MGN - einer von Hommel's Lieblingen

verfasst von BillyGoatGruff, 05.04.2004, 19:31

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>>MGN - Mines Management (!) Kennt jemand diesen Silberwert?

aus seinem kostenlosen Newsletter:



* MGN (MINES MGMT) (I own shares)
http://www.minesmanagement.com/
info@minesmanagement.com (509) 838 6050 Doug Dobbs
11.7 mil shares fully diluted as of the March 4th 1.4 mil financing.
@ $8.25/share
$97 mil MC
261 mil oz. silver resources. Previous drilling spent over $100 million drilling the property.
$97 mil MC / 261 mil = $.37/oz.
You get"approx" 22 ounces in the ground for 1 oz. silver's worth of stock.

Additional comments: As copper moves up 5 cents/lb., it adds $100 million to the value of the deposit.
As silver moves up $.50/oz., it adds $130 million to the value of the deposit.

Mines Management owned 10% of the rights to their property in Montana. The other 90% owner, Noranda, simply gave up on the property and walked away from their mining claim due to"perpetually" low silver prices and political concerns. That explains the rocketing share price. So, the MNMM group got 90% of the rest of the property FOR FREE!--the value of which, and the nature of this transaction has just barely begun to be understood by the market, given the low relative price.

Their property also has about 60% of the value (at current prices) in copper (copper at $1.40/lb.), 2 Billion pounds of copper, and 261 mil oz. of silver. Doing the math:
261 mil oz. silver x $8.12/oz. = $2.1 Billion.
2 Billion lbs copper x $1.40/lb.. = $2.8 Billion.
Total value of mineralization before costs to extract: $4.9 Billion. This number increased by $200 million since last week! And it increased from around $3 Billion just a few months ago!

Copper continues to move up. It's (copper at $1.40/lb.). MGN is both copper and silver! (Also, consider Western Silver formerly Western Copper) Someday soon, investors are going to rush into copper opportunities, if they are not already. Mines Management will benefit from this. Doug Casey wrote a bullish article on copper,"The Coming Copper Crunch" for the dailyreckoning.com last week.

They do not have an active working mine--which is a minus. They will need to raise capital to get a mine going. Noranda had several estimates for the cost to build a mine and mill, around $250 million. But it could be less depending on how economic they decide to do things. They are working on a feasibility study, and avoiding excessive dilution, which is a plus.

Regarding environmental concerns: Noranda had a fully approved Environmental Impact Statement (EIS) that led to successful project permitting, so environmental concerns were not a factor in Noranda's departure of the project in 2002.

For more on MGN (formerly MNMM) see
http://www.thebullandbear.com/bb-reporter/bbfr-archive/minesmgmt.html

I own shares of MGN.

Zitat Ende
<ul> ~ Hommel's Newsletter</ul>

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gesamter Thread:

• Edelmetallaktien - warum die Hausse weitergehen sollte - Silberblick, 05.04.2004, 17:39
  • warum die Hausse weitergehen sollte? und warum nun??? - CaptainB, 05.04.2004, 18:32
    • MGN - einer von Hommel's Lieblingen - BillyGoatGruff, 05.04.2004, 19:31
    • Weil sich das Ende einer Konsolidierung in den letzten Jahren - Silberblick, 05.04.2004, 22:22