Research Group US$950 Gold Forecast, Mining Sector Rotation, Analysis of Top Gold Producers and Valuation of Gold Producer Metanor Resources

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News: Metanor drills 6.12 g/t Au over 37.8 m (36.1 m True Width) and report on mining sector rotation, analytical review of the top gold producers, commentary on commodities, gold price forecast, China - the slowing dragon, and case study of exceptional valuation Metanor Resources Inc. (TSX-V: MTO) (OTCBB: MEAOF) provides as a new gold producer with expanding gold in-situ.

Madison Avenue Research Group has published a report on mining sector rotation and related opportunity. The report also provides an analytical review of the top gold producers, commentary on commodities, gold price forecast, China - the slowing dragon, and provides a case study of exceptional valuation Metanor Resources Inc. (TSX-V: MTO) (OTCBB: MEAOF) provides as a new gold producer with expanding gold in-situ. Metanor is set to top leader-board on sector rotation based on cash flow metrics and valuation.

The abridged report may be viewed free of charge at: http://madisonaveresearch.com/topgold.htm

Excerpts from report:
1) Metanor Resoruces Inc. (TSX-V: MTO) set to top leader-board on Sector Rotation based on cash flow metrics and valuation. MTO.v provides exceptional valuation as new gold producer with expanding gold in-situ; low market cap (exceptional upside revaluation warranted) - low cost gold producer - large infrastructure value - no long term debt - continued resource expansion underway.

Metanor Resources Inc. is a new, unhedged, gold producer in mining friendly Quebec. Metanor's 100% owned 1,200 (upgradeable capacity) TPD mill in Desmaraisville (Val d'Or) is now being scaled into full production. Production in 2008 -2009 should conservatively in excess 25K of gold. Ore extract is coming from their 100% open pit operation on their Barry gold deposit (located approximately 65 km southeast of the mill).

Upside Valuation/Summary: Bulk sampling is wrapping up and Metanor will turn to commercial production by Fall 2008 at MTO.v's 1,200TPD (upgradeable capacity) Bachelor Lake Gold Mill. The current market cap of MTO.V is less than 30% the replacement value (~CDN$140M) of their infrastructure alone, ignoring the ~1M oz gold resource, significant exploration potential and substantial revenue projections. Jay Taylor, mining expert, has made MTO.V one of his top picks in 2008 saying "This is a story of production, exploration, and building ounces". Production in 2008/09 should conservatively come in at 25K gold and ramp up from there. The mill is configured to produce dore bars of gold, with a small component of silver. MTO.V has ~1,000,000 oz of Gold (NI-43-101 measured and indicated) available from their three properties and the ongoing exploration drill program at their ever expanding Barry deposit is just one of many venues to expand the resource base that is exceeding expectations (new drill results expected soon). Their forward projected EPS will likely be very significant as a debt free unhedged gold producer and the current market cap relative to expected revenues is disproportionate; with approximately 74M shares outstanding and currently trading under CDN$0.75/share, the present valuation of MTO.V provides exceptional opportunity for investors. Over 50% of Metanor's outstanding shares are held by institutional interests, amongst them Dynamic Mutual Funds (managed by Goodman & Co.).

Note: The report also contains an addendum section that explains the significance of Metanor's September 18, 2008 news release "Metanor drills 6.12 g/t Au over 37.8 m (36.1 m True Width)". These results are from the recent drilling campaign at the Barry Deposit, where Metanor is currently open-pit mining. Metanor has hit another intersection that represents the potential of another pit, more drilling results and channel samplings are to come. The pieces are falling into place for the Barry Deposit to have a significantly extended life; Metanor now has a main zone, east pit, west pit, and intersections in between.

2) Mining Sector Rotation, Breathtaking Velocity of Rotation out of Resources has Created Opportunity Now
Sector Rotation is always happening, both between and within sectors. There are many forces at play - both micro & macro. A well balanced portfolio will have exposure to all sectors - the key is the weighting and timing. The stock market is a discounting mechanism; industry groups are priced now according to investor's perception of future company earnings and fortunes within the various groups. Capital flows in and out of the markets according to anticipated fortunes and momentum. The flight from commodity based stocks has been breathtaking as fund manager liquidated positions and appears to have created opportunity. The relative ranking of the mining sector has steadily fallen from week to week and now sits at a low relative to almost every sector tracked (as illustrated in adjacent (in report) Sector Rotation Performance Spreadsheet)...

The abridged report may be viewed free of charge at: http://madisonaveresearch.com/topgold.htm

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Reports herein are for information purposes and are not solicitations to buy or sell and of the securities mentioned. Readers are referred to the disclaimer and disclosure section at the bottom of the following URL: http://madisonaveresearch.com/topgold.htm.

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James O'Rourke
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