MCR - Mincor Resources - Nickel Producer

[macduffy]

Hi George.

Nothing wrong with MCR's fundamentals that I can see. Solid balance sheet, profitable operations, good ore reserves, $100m cash, no debt.

They have ambitions to grow into a "multi-commodity growth company" and to me, that's where the risk might lie. No doubt they have a good chance of success before the current commodity price boom peters out but ramping up exploration/development expenditure, which such a strategy involves, is an expensive business that will soon chew through that $100m if operating cash flows don't keep up. There's a lot riding on future Ni prices to keep funding this expansion.

[macduffy]

MCR announces that it will spend $30m in JV exploration projects with Niuminco, an unlisted Australian company, on gold/copper prospects in PNG.

http://www.mincor.com.au/images/mincor---eiciechowi.pdf

[shasta]

MCR announces that it will spend $30m in JV exploration projects with Niuminco, an unlisted Australian company, on gold/copper prospects in PNG.

http://www.mincor.com.au/images/mincor---eiciechowi.pdf

Yeah, i clicked onto DSF to find they are suspended & due to be relisted with a new name, but some high grade copper figures in there shows some interest.

Market a little ho hum, but MCR around $1 looks pretty good value & up to $30m seems a reasonable size bet for there expansion plans outside Nickel

[FarmerGeorge]

Thanks tricha, MacDuffy, Shasta, for your comments. Risk certainly there, but have taken a position and will allow this 'multi commodity' claim to play out a little.

[macduffy]

Doing well here, George.

The market seems to like the move into PNG with MCR up 8.5% today on an otherwise sluggish day.

[lawrence]

To think this was $5 in Sept 07 still hold it has keep its promise of a dividend

[shasta]

MCR - UBS 9th Annual Australian Resources Conference - Sydney

http://stocknessmonster.com/news-ite...E=ASX&N=545410

Great overview of MCR's non Nickel projects

MCap ~$170m, with $96m cash (The PNG Gold project will cost up to $30m in staged payments)

Dividend yield is 9.3% if MCR continue to pay 8c per year (2c interim, 6c final)

[macduffy]

Dividend yield is 9.3% if MCR continue to pay 8c per year (2c interim, 6c final)

I'd like to think so, shasta.

But dividends from mining companies are notoriously volatile so I won't be banking on it just yet!

[tricha]

Mincor - A nickel producer in a transition stage

WELL I can not change the thread title, but lets refresh.

Its been a dog of a nickel company in the last 6 months, mine closures, doggy contractors, losses.

But there is light at the end of the tunnel and if u do not understand this, it might pay to buy a Warren Buffet book.

http://www.stocknessmonster.com/news...E=ASX&N=536513

[denpal]

FYI, one of the founding directors John Gardner is a director of VKA. I think VKA is outstanding value with 500,000 oz gold JORC'd @ 1.2g/t in Ghana with a 1M oz target this year. EV $5.4M and has $5M cash too. I hold.