New York, NY (PRWEB) March 03, 2014
Investors looking for exposure to precious metals would do well to consider Metanor Resources Inc. In reviewing gold producer Metanor Resources' numbers for the first quarter ending as a commercial Gold producer we note several important points that show good health; 1) The P&L bottom line of $410,000 net loss is extremely positive after factoring out depreciation (a non cash item) of $1.07 million and the fact it had to include two months of expenses that were not in the commercial gold production period. 2) Even though Metanor produced 4,514 oz Gold in December it could only show 2,863 ounces of that as sales in the quarter because 2,375 ounces of Gold (representing ~$2 million at cost to Metanor and ~$3 million in terms of sales) was on deposit at the mint. 3) Cash-wise Metanor should be currently sitting well with somewhere between CDN$4 million - $5 million as it would have received that aforementioned $3 million from the mint in early January + it already had ~$1 million cash closing out the period + it is understood to have had an abnormally large GST(sales tax) refund (receivable) of an extra $700,000. 4) Also important to note is Metanor announced earlier this week the amendment of a ~$5.3 million note with the Quebec Government, pushing the note back over a year and thus negating the potential cash call in April 2014.
Excerpts of Metanor's February 28, 2014 release:
Metanor Reports its Financial Results for the Quarter Ending December 31st 2013 with a Cash Cost of US$766/oz
Ghislain Morin, president and chief executive officer, and Serge Roy, executive chairman of the board, declared: « We are very pleased with our quarterly results which show that Metanor can already generate a positive gross margin at the onset of commercial production. We plan to improve these results during the coming quarters as we attain full production capacity. »
The full financial release from source with P&L statement may be viewed at http://goo.gl/2cwUcw online.
The release stated that Metanor will continue to develop new drifts to the west which will allow access to new zones and increase the production toward a full capacity. Additionally, Metanor will increase the diamond drilling in the coming months in order to eventually add new resources and reserves.
Metanor recently announced Gold production numbers for January holding steady above 4000 ounces, this while still processing development ore. Recent development work to open new stopes at Metanor's Bachelor mine appear to have translated into results, allowing Metanor to have stabilized Gold production over 4,000 oz per month. The stage is now set for a cash flow positive scenario, and a push to stabilize in the higher range of a 4000 - 5000 oz per month Gold target (at 800 TPD). Managements near-term plan is to increase the mill capacity by ~50% at low capex (~$4 million) and target 6,500 - 7,500 oz Gold production per month in late 2015 (contingent of obtaining additional electricity from Hydro-Quebec planned for 2015). Metanor with ~267 million shares outstanding provides an ideal vehicle for investors seeking exposure to precious metals. Shares of Metanor are currently trading near C$0.20 and the time to pay attention is now while Metanor is trading at a fraction (less than 1/4) of its infrastructure (replacement) value alone, ignoring the ~1.6 million oz Gold resource in all categories (on all properties), and ignoring the large resource growth potential. Metanor is also actively advancing on a second front, it's Barry Mine deposit, that many believe has a the potential to translate to a large increase of gold ounces in the ground and a significant percentage increase in production ounces on top of the >6,500 ounces Gold production per month target expected at Bachelor sometime in 2015.
Market Equities Research Group has identified the following related research links on Metanor:
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. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned.