sharetrader
Results 1 to 10 of 161

Hybrid View

  1. #1
    Advanced Member trackers's Avatar
    Join Date
    Nov 2004
    Location
    Christchurch, , New Zealand.
    Posts
    2,227

    Default

    Quote Originally Posted by shasta View Post
    Always like finding these type of companies that fly under the radar, there's a few of them around if you dig around

    This post from the Age 2 mnths ago is quite interesting (particularly the ties to China at the end):

    More to Metallica than heavy metal
    BARRY FITZGERALD
    April 28, 2010 - 10:05AM

    Garimpeiro confesses to long believing that Queensland's one-stop shop in the minerals game, Metallica Minerals, was named in honour of Metallica, the ageing US heavy metal rock band responsible for the sale of more black T-shirts than AC/DC.

    But he has been set straight. The company's name comes from "De re metallica," (On the nature of metals), written by the "father of mineralogy," Georg Bauer in Chemnitz , on the northern foothills of eastern Germany's Erzgebirge (ore mountain) in 1556.

    A young mining engineer who went on to become president of the US, Herbert Hoover, and his geologist wife, Lou Henry Hoover, did the English speaking world a favour by translating De re metallica in 1912. That was some 14 years after Herbert spent some time in Western Australia as mine manager at the Sons of Gwalia gold mine.

    That's the end of the history lesson. Garimpeiro's interest today is in the massive discount to asset value currently on offer in Metallica's share price. As mentioned above, Metallica is something of a one-stop shop for punters in the mining sector, albeit within the confines of Queensland's borders.

    Its direct and indirect mining interests in the state stretch from Weipa (bauxite) in the far north to the Surat Basin (coal) in the south. In between there are nickel/cobalt, tungsten/molybdenum and copper/gold interests, much of it through listed investments.

    At last count Metallica's listed interests included 56 per cent of MetroCoal (MTE), 29.9 per cent of Cape Alumina (CBX), 76 per cent of Planet Metals (PMQ) and 47 per cent of Orion Metals (ORM). On yesterday's closing prices, the portfolio was worth $52.3 million.

    The two big chunks in that are MetroCoal ($28 million) and Cape Alumina ($19.2 million). Both were floated off by Metallica last year. MetroCoal has already attracted the attention of Chinese interests through a big-spending exploration joint venture. Cape Alumina has environmental opposition to overcome but is of serious to the Chinese, given the superior quality of Weipa bauxite compared with their own stuff.

    Add Metallica's $8.8 million cash to its portfolio of listed investments and you get a total value for the listed interests and cash of $61.1 million. That is more than double the group's market capitalisation of $30.1 million based on its last closing price of 26.5 cents a share (and after adjusting for the pending share buyback-transfer agreement in CBX with Resource Capital Funds).

    But wait, there's more. Not steak knives, but full ownership of the group's flagship project, the Norninco nickel/cobalt/scandium project northwest of Townsville. It now includes the old Greenvale laterite nickel deposits which come with a handy remnant ore position of 38 million tonnes grading 0.8 per cent nickel and associated cobalt.

    Greenvale itself was mined between by Freeport and others between 1974-1992 and has the distinction of being Australia's highest grade laterite nickel project to date, with grades of more than 1.5 per cent nickel. But it was a huge loss maker for much of its history. But wrap it in with Metallica's broader interests in the Greenvale nickel belt, and Metallica's ambitions for Norninco start to look interesting.

    The return of well-above historical average nickel prices is not going hurt the ambitions either. A staged development is on the cards, with initial annual production of 2900 tonnes of contained nickel and 200 tonnes of high-value the cobalt the likely starting point.

    That assumes that Metallica goes it alone. The entry of a big brother already in the nickel game to move things along and on a larger scale is a real possibility. On that score, it is worth noting that an associate of China's Jilin HOROC Nonferrous Metal Group is Metallica's biggest shareholder at 18.8 per cent of the company. Not very imaginative with company names the Chinese.
    I see MLM has rallied 20% in the last 5 days, could've found this one a week ago shasta! Just kidding, nice find

  2. #2
    Legend shasta's Avatar
    Join Date
    Sep 2004
    Location
    Wellington
    Posts
    5,914

    Default

    Quote Originally Posted by trackers View Post
    This post from the Age 2 mnths ago is quite interesting (particularly the ties to China at the end):



    I see MLM has rallied 20% in the last 5 days, could've found this one a week ago shasta! Just kidding, nice find
    MLM has sent in an amended presentation & dropped 2c to 22c today.

    http://www.stocknessmonster.com/news...E=ASX&N=221353

    Page 19 has a slight correction (save you trainspotters some time!)

    NTA (Listed Investments + Cash as per spreadsheet) = $0.39

    I'll keep updating the discount of the share price to NTA, like i did with SRL, eventually the market caught up & SRL doubled!

    Lets hope MLM does the same, technically it's still in a downtrend

  3. #3
    Legend shasta's Avatar
    Join Date
    Sep 2004
    Location
    Wellington
    Posts
    5,914

    Default

    Quote Originally Posted by shasta View Post
    MLM has sent in an amended presentation & dropped 2c to 22c today.

    http://www.stocknessmonster.com/news...E=ASX&N=221353

    Page 19 has a slight correction (save you trainspotters some time!)

    NTA (Listed Investments + Cash as per spreadsheet) = $0.39

    I'll keep updating the discount of the share price to NTA, like i did with SRL, eventually the market caught up & SRL doubled!

    Lets hope MLM does the same, technically it's still in a downtrend
    MLM share price $0.23, as MTE has increased

    NTA = $0.41

    Discount to NTA = 44%

  4. #4
    Legend shasta's Avatar
    Join Date
    Sep 2004
    Location
    Wellington
    Posts
    5,914

    Default

    Quote Originally Posted by shasta View Post
    MLM share price $0.23, as MTE has increased

    NTA = $0.41

    Discount to NTA = 44%
    MLM's 56% owned stake in MTE reported a 500% increase in Bundi Coal Resource (58mt to 292mt)

    Market really hasnt taken this in, not a big rise in MTE or MLM!

    http://www.stocknessmonster.com/news...E=ASX&N=221451

    MLM's 76% owned stake in PMQ reported a HoA to sell the Wolfram Camp Project (Tungsten) for $8m

    http://www.stocknessmonster.com/news...E=ASX&N=221457

    MLM share price $0.235

    NTA = $0.42

    Discount to NTA = 45%

  5. #5
    Legend shasta's Avatar
    Join Date
    Sep 2004
    Location
    Wellington
    Posts
    5,914

    Default

    Quote Originally Posted by shasta View Post
    MLM's 56% owned stake in MTE reported a 500% increase in Bundi Coal Resource (58mt to 292mt)

    Market really hasnt taken this in, not a big rise in MTE or MLM!

    http://www.stocknessmonster.com/news...E=ASX&N=221451

    MLM's 76% owned stake in PMQ reported a HoA to sell the Wolfram Camp Project (Tungsten) for $8m

    http://www.stocknessmonster.com/news...E=ASX&N=221457

    MLM share price $0.235

    NTA = $0.42

    Discount to NTA = 45%
    Friday's update

    MLM share price $0.23

    NTA = $0.40

    Discount to NTA = 42%

    IMO the disconnect between the SP & NTA must be due to the 30% holding in ASX:CBX (worth ~$15.4m @ $0.40)

    The Queensland Govt has some serious environmental concerns on CBX's large Bauxite project, which is on hold pending appeals.

    For now the upside is largely with MLM's 100% owned Nickel/Cobalt project (Nornico), & it's 56% (~$20m) holding in ASX:MTE (a coal company)
    Last edited by shasta; 26-06-2010 at 01:51 AM.

  6. #6
    Legend shasta's Avatar
    Join Date
    Sep 2004
    Location
    Wellington
    Posts
    5,914

    Default

    Quote Originally Posted by shasta View Post
    Friday's update

    MLM share price $0.23

    NTA = $0.40

    Discount to NTA = 42%

    IMO the disconnect between the SP & NTA must be due to the 30% holding in ASX:CBX (worth ~$15.4m @ $0.40)

    The Queensland Govt has some serious environmental concerns on CBX's large Bauxite project, which is on hold pending appeals.

    For now the upside is largely with MLM's 100% owned Nickel/Cobalt project (Nornico), & it's 56% (~$20m) holding in ASX:MTE (a coal company)
    MLM - Current Share Price $0.21

    NTA = $0.39 (Listed Investments + Cash)

    Discount to NTA = 47%

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •