MLS, a zinc spec

[Sunshine007]

I know this is a zinc explorer. I know it has got a jorc resource and is drilling around aimed at lifting the numbers. Talked about fast tracking the development. Also waiting to settle some uranium deals in Namibia. I have no idea as to how to value such stocks. Only that zinc is hot, uranium is hot. And technically MLS has bottomed out, IMO. Overhead resistence around 4c. Current price 2.7c.

[Sunshine007]

the known resource at MLS's Manindi project area is 1,052,640 tonnes grading 7.64% = 80,421 tonnes contained metal. There has been some nice drilling intersections so this tonnage is likely to be increased.

[tricha]

Hi Sunshine - I went over Metals Australia Ltd.

699 million shares

6.6 million cash in the bank.

Web site poor, management\directors backgroung [?][?] The highest priority in any company is management. A pity there isn't a list of managers\CEO's, the good, the bad and the plain ugly.

They give a zinc %, but no details of the other minerals involved [?][?]

It was worth a look, but too risky for me. But who knows, could be the next Fox Resources.

Cheers

[Fodder]

Nice call Sunshine[8D]
Up 18.5% so far today...
I got a few of these for a punt...
You got any?

[Sunshine007]

Yes Fodder, got a few at 2.5c last week. To me it's a coincidence that the market seems to like it due to strong zinc price. Uranium deal in Namibia could be source for future price moving news.

[Dazza]

its on my watchlist

the bad
1. 690 mill shares
2. all the good news is in, dunno when they going to drill more etc
3. no timetable for production
4. if they want to get it into production they will need cap rasising, no infrastructure etc.
5. management who are they????????

the good
1. 6 mill cash - enough to continue with the drilling but not enough for production



so ill punt a bit later on when i know they are going to commence drilling again.

i dun see production until 2008 maybe 9.


though PDN - producer to be , is worth 2 billion.

JML - production to be but with Zn is worth 200-300 mill.



so if they can shore up the goods etc, we can expect a 10 bagger from thisone.


but can management do it? need to find out who they are.

sunshine u wouldnt be able to help us to reserach who the directorsare would u

do they hold ?
top 20 holds?

[Dazza]

nvm i did some digging my self

chairman = some lawyer guy what da??

that david guy = geologist. 2/3 companies he is director = gone down the drain, something like sabre resouces and golden deep. The 3rd company is tiger resouces that has gone well.


and the other management dude is an accountant.


so how many shares does the directors hold.... piss poor.. next to nothing like 3.5 mill in TOTAL out of 670 mill shares :(

Pan pacific mining (who are they)? holds 5%

top 20 holds 36%


needs more development be4 i put my spec money into, id rather put spec money in AUZ .

willhave to await further developments and announcements.

on the watchlist she goes

[Sunshine007]

Hi Dazza, good work.
In the short term though, strong zinc market may be able to carry it higher. A good board/management will be needed if it is to sustain the up move.

[msgoldenhair]

Hi Sunshine, I bought AGS after seeing your tip back in July 05 and doing a bit of research...certainly done well out of that. Had a look at MLS and I'm in. Fingers crossed that it does even half as well as AGS!

[Sunshine007]

Hi goldenhair, hope it works out well for you.
Golden is beautiful.

[Sunshine007]

MLS was tested for support at 3c today. It looks the support is holding strong.

[Sunshine007]

As I said when starting this thread, I don't have much idea about the valuation of MLS, so I'd like to quote Nowhere Man's post on HC:"...(zinc closeing price USD$4320 per ton), that places an in-ground valuation on the known Manindi resource of $452m or about 67.5c/share!"

[SCHUMACHER]

MLS up on good volume today following announcment of potential resource upgrade.....recent driling shows good grades .....more to follow and one to definately watch as the previous closing high was 4.2c
If it gets back thru this level them off she goes...cheers Schu

[SCHUMACHER]

going well the last few days...has finally broken its previous high at 4.2c last traded 4.3c ...watch this one move if it holds above 4.2c

cant believe i got in at 3.4c a little over a week ago
cheers Schu

[msgoldenhair]

MLS has taken off...really good grades annnounced...

[SCHUMACHER]

yep ....just another future winner..........resource upgrades will see shareprice increases.......not sure how difficult it will be to get to production, but they are definately on the right track

[msgoldenhair]

oops... sorry about my new topic...I meant to add my comment to the existing topic...

re MLS nice strong finish...be interesting to see if it gaps up tomorrow

[Jaffa101]

:D Does anyone want to take a stab at what this baby will do from here following the good news today together with the strong finish this afternoon? :D

[Sunshine007]

Since we don't know how much zinc they will eventually discover, I don't have a clue as to a fundamentally justified price projection. So let me try som TA: Looking at its monthly chart, the basing pattern can project 28c to 33c target area. Share price history point to 15c to 17c as target and resistence.

[Sunshine007]

Yesterday's selloff following the news release seems to be over. It's an intraday correction. The strong move today confirms the effective breakout and confirms the new up trend. I should have topped up yesterday but was too nervous to do so. Typical!

[Dazza]

gj to those who brought MLS

going off the roof at the moment :D

[edison]

well 300 million share traded!

Have to say I am a happy man today ...... could go even more tomorrow.

One thing though, all the broker house have been woken up and will do some research and possibly recommend it to their clients .......

[SCHUMACHER]

OVER 100 MILLIONN TRADED TODAY...HIT 7.4c in the morning rally and has settled back down at 6.8c to 6.9c before having another crack .....all looks good as there were big blocks of shares bought around current levels yesterday....we are talking 4 -5 million at a time...

analysis on MLS: from H/C

In ground value @ $4000/t zinc @ 2mT(140,000t contained) = $800M AUD

Assume simple ore offtake agreement to minimise on capital costs (say to golden grove) i.e. sell the ore straight? Capital cost roughy $50M as open pit

So $750M

operating costs per pound - say 40cents ~$90M

So $660M

Less tax $462M

Divide it by 2 to discount for time value till production

= 231m

Less other items not foreseen by this calculation= 30m

= $200M

No. of shares on issue = 200/669 = 0.30

30 cent target at around JORC stage as i have clearly allowed for time value by dividing it by 2. remember its open pit so it can come out of the ground easy
CHEERS SCHU

[SCHUMACHER]

MLS holding up well at 7c after a massive buying onslaught over the past 2 weeks. Has risen from 3c a few weeks ago to hit fridays high of 7.4c b4 closing at 7c
Obvously undervalued based on inground zinc resource. Once measured ,it will be all on. It is definately not too late to get on board while the company are drilling the resource .Take a look at recent announcements confirming drill results and continually increasing the resource
This one may be a stand out performer in 2007 with the massive global Zinc shortage . How soon to production you may ask? Well i intend to find out from the comapany when I phone them this coming week.
Cheers Schu

[SCHUMACHER]

Is no one watching/holding this stock.....sheesh

after my report on friday where the share closed at 7c , today we are currently at 8.1c (major breakout) with over 100 million traded.....cheers Schu
Im enjoying the ride from 3.5c a month ago
cheers

[Fodder]

Yeap I'm watching Shu and gobsmacked...what a wee ripper...I was in at 2.8 cents and it looks like it's going to be a triple bagger for me very soon...many thanks to Sunshine for putting it on the radar ;)

:D:D:D

[SCHUMACHER]

Good on you fodder.....i discovered this one from Hotcopper and took a look, liked what i saw and jumped in at 3.5c so still extreemly happy, watching the story unfold, sizable resource and Zinc at all time highs. well done to you also
cheers Schu

[Jaffa101]

:D Just hit 8.4! :D

[SCHUMACHER]

Yes it did , but more importantly it closed on its high for the day.......relentless buying today!
what will be in store for tomorrow?? who knows but the interesting thing is that the BEARS were slaughtered by the BULLS

cheers Schu

[SCHUMACHER]

massive buying again today after MLS became a Spec BUY from Intersuisse brokers and the companies securities were mentioned in the newsletter of Cube financial group as a "speculative BUY".

Opened sharply at 9c and hit 9.4c .currently trading at 8.8c up .04c from yesterdays close....close to a million traded today with a V.W.A.P OF 9c
all good
cheers Schu

[SCHUMACHER]

My post from H/C
The recent volume shows that MLS is a highly liquid stock based on the end of day volumes in the past 2 weeks, traders like liquidity as without it they have no game to play. Therfore we have a good combination of traders/investors and financial investment advisors coupled witrh a few insto,s makes for an interesting stock to watch

Since the 29 november to yesterdays close (10 trading days) MLS has turned over a staggering 962,837,980 million shares, not bad which equals 1.5 x the current issued capital, quite impressive i have to say.

On the chart front we have had a major breakout above 7c and the indicators look bulllish. StochRSI closed at 63 yesterday which is not an overbought/oversold position yet, needs to get over 80 as a value b4 it becomes overbought.Yesterdays VWAP @ 8.96c /share
RSI currently overbought though.

The close yesterday at 8.6c suggested profit taking as opposed to the fundamentals of the company. The correction was ineviatible, due to the RALLY which has lasted approx 5 trading days. Rally,s usually last anywhere from 1-5 days and can sometimes be unstable due to the heavy trading and spikes shown on the charts. In theory , the shareprice needs to hold at 8.5c which becomes support since gapping up from 8.4c at mondays close.
The longer the shareprice stays around say 8.6-8.7c the better as it means we have some consolidation at these levels and provides a better chance of it moving hiigher in the short term. If it breaks 8.5c then its a different game and could drift back to around 8c
Todays trading may give an indication. Im hoping that it stays around current price , but then again it may launch into the 9c range again, as it has shown that it can be a volatile stock.
good to see higher highs and higher lows which confirms the UPTREND pattern
cheers

[Jaffa101]

:D Closed on the day's high of 9.4 cents with (once again) healthy volume. Lets hope that the next resistance of ten cents will be tested before Xmas! :D

[Jaffa101]

[:I] oops. Too eager with the good news.... Retreated slightly at the close. Still - gotta be happy with the performance so far this week! :)

[SCHUMACHER]

Jaffa, what are you on about? it closed on its daily high of 9.4c
should go alot higher tomorrow
cheers Schu

[Jaffa101]

I'm on a high Schu - yep I see I got it wrong (happy to be in this case!) Must be all the Xmas cheer! Great to see it closing on it's high, and I hope that you are right in that tomorrow may be another great day!

[kronos]

I bought MLS for 8 cents in Nov 06 and are now watching a little nervously as it slowly drifts down to nearly below 7. Anyone have any news to suggest it may be on the rise in the near future? And is primarly a day trader type of share?

David

[FarmerGeorge]

Short term I think everything is a day traders type share. I got a few of these just under four cents. Long term they are still undervalued if you believe management have the skills to get the zinc out of the ground at a cost around the average.

[Serpie]

Have been in this one for about 6 months and the days traders LOVE it. The rapid rises and falls have had little to do with the fundamentals of the company, but have been based more on TA and charts.
The recent drop was due partly to the fact that the directors honoured a deal that was made 8 months ago (when the SP was 2c) and all of the traders who bought in at 8c spat the dummy. And the anns have been few and far between, which has also contributed to the trickle down.
Longer term still looks the goods. Got a good rap from an investment company a couple of weeks ago.
Anything below 7c may represent a good short term buying opportunity IMHO.

[kronos]

Cheers for that.
I`ll hang in there and watch them grow.

[kronos]

Hi Schumacher,

Do you still think MLS are worth 30 cents at JORC stage?
Where can one find more information on the company?
The web site is a little parsimonious when it comes to data.

Cheers

David

[FarmerGeorge]

While all these things are subjective I think it is a little optimistic to divide by two to get the time value on this one. With the nature of mining and the demand for/on equipment and personel right now I'm a bit more conservative in my valuation. But then again I am a farmer right.

[kronos]

10 million traded. Jumped to over 7c. Anyone have any news?
Namibia on the radar?

Kronos

[FarmerGeorge]

Interesting point kronos I haven't noticed any news that could have had that effect lately. However bear in mind that this has drifted from a fairly stable 8c not so long ago, someone might just be looking to top up on the recent dip. On the other hand maybe I 'm just being naive :)

[Serpie]

Got back into this one yesterday because I think Manindi drill results are due to be announced in the next week or so.

Today ARH announced that they're ready to re-list on Monday with huge Chinese backing. ARH are running a huge project on MLS holdings with MLS getting a 33% free carry, so it's all go.

13% rise in MLS today, and more expected on Monday.

I'm trying to convince myself that I'm clever, but sometimes ya just get lucky.

[FarmerGeorge]

Also note that zinc price is well off its low and has been ticking up quietly for a wee while now, also LME stocks down to 100k t. I'm not sure on the timing of the results serpie but hope you're right. I'm still trying to decide if I hold these guys longer term or sell on some shorter term positve reaction: development costs on mines are starting to get pretty high. Any opinions?

[Serpie]

I'm going short term on this one FG,

I've been in and out before, and made 50% (although if I'd timed it right would have made 120%) but have some issues with the quality of their management, specifically their attitude towards shareholder communication.

I feel like a bit of a mercenary, buying shares in a company that I dislike, but I believe that there are good short term gains to be made.

After buying at 7, I'm waiting for the first ticker change (10.5) and then I'm out. Another 50% profit will be great.
Will stick to my plan this time!

[FarmerGeorge]

Fair enough serpie, can't argue with the shareholder communication comment. Feeling like a merc shouldn't put you off, just think of skilling, lay, fastow et al on the other side of the equation! Should have you feeling much better about your own behaviour in no time! Works for me anyway.

[kronos]

Big volume of 34 m traded today, sp up to 8.1. MLS is on the move. Or is it the day traders mainpulating things? Trying to work out why people are buying in. Forthcoming Manindi results? Reflected glory from ARH? Something secret? I really don`t know but hoping it`s an upward trend because they sure deserve to go higher.
Kronos

[Serpie]

Kronos,
IMHO a combination of all the above factors. Nice summary.

[kronos]

Are there any other MLS shareholders out there frustrated by its almost total inertia. It has good news from Minindi zinc, possibilities at Sherlock Bay, early but promising exploration in Nimibia and yet its price slides slowly downwards. I would rate them as easily over 12c but the market doesn`t. What`s going on? Can someone with more experience illuminate things?

Kronos

[Serpie]

Very frustrating stock to own Kronos.
I sold last week at 7.8c. There's still a huge potential here, but everyone seems to hate them.

I believe that the good news from Manindi is still to come. The results that have been released so far are not in the zones of primary interest.

[FarmerGeorge]

I agree with you both serpie and kronos, note a quick 10%+ for you serpie: nice work. I'm still holding because it is still undervalued and I have plenty of time but i certainly share your frustrations! I like the company because they aren't too bothered with putting themselves on parade but it is a bit of a downer in the short term.

[FarmerGeorge]

Uranium deposit in Namibia. Previously I valued the Namibian holdings at $0. MLS now looks to be cheaper than ever. Would like to increase holding just need to decide what to sell!
Best of luck to holders, when this finally does start moving i think it will happen very fast.

[kronos]

sp currently 9c and a staggering 127m traded. Haven`t had this volume since early dec last year. A right-royal day trader feeding frenzy going on but when the blood clears the signs are positive for the patient ones.
kronos

[FarmerGeorge]

Noticed a bid on open today of 15c! Didn't quite hold up there but sitting fairly steady now at 11c with about 12m buyers loaded up. I am not willing to sell until I fully understand the Uranium report but welcome any views from posters with positions (or just an interest?) in MLS?

[kronos]

Currently 10.5 with 8m buy orders at 10 where it could go before retracing upwards. Clearly lot of profit taking with sellers outnumbering buyers 2 to 1. I bought in today, a little high at 12 but fully expect the sp to be 14+ be the end of the week.
I`m in for the long run anyway. What predictions by December?

kronos

[FarmerGeorge]

In hindsight 12c does seem high but as long as you have a bit of time I would expect the gains to come, it's difficult when the 'feeding frenzy' gets going though. I almost started buying up some more PDZ this week at $1.06 - eek.
I can't hazard a guess at the SP by year end - if Namibia pans out well and there are some good announcements from Manindi and the Zinc price holds or gains then 20c could be easy. Of course in that world I would be dating Jessica Alba as well. ;) I'm hoping for 16c+. :)

Anyone else pick up any MLSOA? It's my first foray into options but seemed cheap at 5c last week, time will tell.

[kronos]

Hi FG. Yes, 12c was a little premature; The Great Wall of MLS pushed down the sp but in the long term this company is a great prospect. They have zinc, nickel and, most excitingly, uranium. The next piece of postive news from Manindi or Namibia could well push the sp permanently over 12c.
I also bought options at 5c. The options will be more rewarding than the full shares as the price rises.
Good luck.
Kronos

[FarmerGeorge]

Report today is positive and a reminder of what the 'base' MLS are working from looks like. The JORC resource from 2000 seems likely to be upgraded, the question is: by how much? The wording is definitely quite confident, we will know the reality in the next few weeks. Still holding the options. Best of luck to any other holders.

[kronos]

Big announcement regarding Mile 72. Radiometric survey and sampling reveal large amount of U308. The detail work is yet to come but there is little doubt that MLS have made a major uranium discovery.
This is big!

[FarmerGeorge]

No news from Metals has seen them moping around with little volume and declining price. I continue to be a frustrated holder waiting for a resource announcement which hasn't come yet. Anyone else still hanging on or have any insights into MLS?

[kronos]

Gidday FG. Yes it has been an interminable wait for news on The Manindi JORC and from the fields in Namibia but perhaps something is coming. The sp is currently up to 7.7 with good volumes of buyers building. This has happened before and may be a day trading manipulation but a lack of cappers near the sp suggests that this is a genuine response to imminent news. Perhaps those in the know are buying in.
Watch for a few more days to see if a pattern emerges.
The Jorc would have to be close to completion.
And a significant zinc upgrade would be a considerable boost to the share price.
Patience seems to be the key because you can be sure that if you sell now it`ll go up.

MLS law (formerly murphy`s)

[FarmerGeorge]

Yeah I'm well aware that the moment I sell it will shoot up, haha maybe I should sell and you hold to get the benefits! I can't read too much into the various market depth things and I have absolutely no skill in technicals but I do believe that JORC will have positive news based on what we've seen come through in the drilling results. It is all to easy to get impatient with these but I have the experience of MCR (bought around 50c sold around $1.50, bugr!) to remind of the importance of patience! cheers kronos at least i'm not the only one hanging around here with MLS

[FarmerGeorge]

A couple of announcements from MLS in recent days around both the Manindi Zinc and their Uranium deposits. I don't see any JORC details but news seems fairly postive on my reading(?).

[kronos]

Hi FG. Yes good news from both Manindi and Namibia. There is clearly going to be a significant upgrade to the zinc reserves and zones A B and D, and promising signs of more reserves at Bandicoot to the south. Manindi is the current jewel in the crown for MLS; it has the potential to be an operating mine within 2 years. And most importantly will generating an income.
The exploration at Mile 72 is very promising with strong indications of good U303 reserves which in depth drilling will need to confirm in detail.
This is a long hold for me now.

[kronos]

Press release today reveals that trial pit sampling at the Kudu Prospect in Mile 72 has resulted in a number of outstanding assays including:

[kronos]

As I was saying...today`s press release says that trial pit sampling at the kudu prospect in Mile 72 has resulted in a number of outstanding assays including:

M72 kdup 002 23,113ppm (2.31%) U308

Yes, that`s right! 23,113 ppm!

The sampling also indicates that the uranium increases with depth.

Early days yet but the signs are that MLS have a significant uranium field.

A fantastic bit of news to pre-herald the imminent long-awaited release of the Manindi JORC in a few weeks time

It`s been a long wait but well worth it.

[FarmerGeorge]

It certainly seems like it has been forever, hopefully this will show the benefits of hanging in there and holding your nerve. I continue to hang on to a huge bundle of options (sigh).

[kronos]

Options 5.3 at the close,the heads at 9.9 as news of exciting finds at Mile 72 is absorbed by the market. The share price is poised for another lift next week as `big` investors see the worth of MLS.The JORC should confirm a substantial upgrade at Manindi.
Things are looking really good. So much excitement after all that waiting!

[FarmerGeorge]

kronos remember we have seen plenty of 'excitement' before: those heads went up to 13c at one stage, from memory. I'll believe it when I see it (the JORC that is)

[FarmerGeorge]

While I'm still not keen on jumping on the excitement the heads are moving up towards their historic highs as the market continues to absorb the recent Uranium report. JORC sometime before christmas would be nice - kronos your shares must be in the money soon if you're still hanging in?

[kronos]

Yes it`s looking good but we still have to get the JORC from Manindi. Looking at the 3d map that accompanied the last drill results it would appear that the zinc is double or more than the the 2000 estimate which would make it a viable mine. The suggestion of more zinc in the bandicoot area is of interest. To prepare for a two year mining programme with the prospect of a larger reserve would make the management very happy I would think.
And the latest results from Mile 72 although literally scratching the surface are very promising.
If it turns out to be a large shallow field, easily got at and with high ppm, then look out.
The options are the ones to go for in my opinion. I got a few at .04 when there was a big dip in the market.
But as I said, I`m in it for the long haul.
Why sell now when all the signs indicate a substantial increase in the sp in the next 6 months?
Good luck FG.

[FarmerGeorge]

Cheers kronos and same to you - nice buying into those options you'd be up over 50% already? I have some from back when they were 5c maybe six months ago so doing okay just now as well - you sound like you know a bit more than me about their resources, I don't know much about Uranium at all but it seems to be good for them!