Cork MTO.v Metanor You've been on to something good there. As you already know Metanor struggled, but has gotten over the hump and is about to see some real progress. Right now I like the Timmins and Abitibi miners the best and Ill pay the premium for this jurisdiction, since Mexico just added the royalty. Most are roaring right now.
Bachelor has 1.6m oz high grade ore 7.38gpt, Open at depth and on strike all directions. They've hit a 5100/tpd run rate already from their 1200 tpd mill and mine. Replacement cost for the mill and underground is $150mill alone. At these grades they are going to Cash flow very well starting around now, even at the 50 - 60,000 oz/year run rate and $1250+ gold. They have loss carry forward over $50 million to help cash flow and the loss makes things tempting for the circling sharks.
The future is very bright as well and I see Bachelor paving the way. They are planning on increasing the mill capacity at Bachelor by 50% at just $4 million CAPEX and targeting 80,000 - 90,000 oz Gold/year in 2015 their alone.
Additionally their Barry deposit is a potential 10M+ ounce Open pit target; SGS Geostat has identified Metanor’s Barry deposit as comparable in potential to rival other multi-million ounce deposits such as Osisko's Malartic gold deposit & Detour Gold's Detour deposit. All they need is to set up a concentrator and ship the concentrate down the road to Bachelor where they have plenty of capacity to produce the bars. The PEA for this plan comes in at a whopping 87%IRR at $1275 gold.
These 2 mines could produce 150 -180koz in a few years and would put Metanor in mid tier status. To pay for production and keep debt down, they sold 20% of their Bachelor production to Sandstrum for $20 mil, they pay $500/oz so that covers much of the cost. Barry is free from the agreement. I see them similar to Lakeshore Gold in a sense that the hardest work is done and now they need to clean up their operations and balance sheets and then grow organically (hopefully). Their is light at the end of this tunnel.
Feel free to correct me or to fill in some blanks and we'll have a nice picture painted.
Checkmate28
