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Very well put Jamie, the refinancing of our debts with the banks has been the major sticking point, one that’s dragged on longer than anyone could have anticipated, the major shareholder debts that run alongside are not so bad as they obviously have an interest in the mines success, hence why the loaned the money to keep us afloat, they will be patient enough to wait it out, the banks have been good enough to wait to see how the new management have progressed so far, I’m confident they are happy we are viable again and will restart a loan plan soon, this next results will cement that fact, 7 years gold left in this section that makes up just 15% of our land bank, so plenty of time to make good on the loans, we have an extremely bright future.
For new newbies on the board...
Worth reiterating (and not forgetting) that we were trading consistently between 3p and 4p less then 18 month ago and had never recorded a SINGLE penny of profit in our quarterly numbers. Losses every quarter...
Not only have we increased gold production to record levels with still lots of room to improve (currently running at circa 65 percent) we have also become cost neutral for the first time in the mines history and recorded a 3 million positive free cash flow for Q1 and Q2 consecutively with Q3’s numbers imminent.
All of this has been achieved with a new management team, a first class CEO and with the same number of shares in issue as 18 months previous.
I still think we have some way to go and improvements to make, but with gold prices on the up and MTL trading at 80 percent less then we were only 18 months ago when we were arguably in a far worse position then we are now.
We are poised and ready to fly :-)
Good luck all.
Jamie
MTL remains one of the few gold producers not to re-rate at all - most producers have doubled even trebled this year based on the rising gold price.
OK we have to acknowledge the debt situation and the long delay in the re-structure but I fully believe the reason for the delay is simply down to the rising gold price and improving operational performance.
The banks will not take a massive haircut or offer wonderful terms when they see the mine generating ever increasing revenues almost monthly due to the rising commodity price. I think there will be a deal but the terms may not be as good as when the gold price was $1100 oz - that is logical is it not.
My view is, even accounting for the debt position, the market value of MTL should be far higher than the current circa £20m - next year at current gold prices the company could have revenue in excess of $100m
A share price of 2p would only value MTL at £40m - there-in lies the opportunity.
Some risk yes but the rewards could be outstanding
Nice few buys showing on recent trade history. Smart money and all that.
Im going 16k at an average of 1400 - 22.4m
A 6% increase on last quarter Lee. Given the work and new additions added by DB over the past 6 months, I would say this is VERY realistic too. Rather your numbers are true then mine of course ;-)
16.5k at $1430 is a mighty $23.5 million income, very realistic, my prediction
Don't be overly optimistic. Many things may go wrong yet.
One thing we know for sure is the price they will be getting for their gold will be around $125-$150oz higher than in Q2, that will be very helpful to the company, even higher in Q4.
Another record quarter, demonstrating further improvements have and will continue to be made.
It’s that time again guys, predictions for Q3...??? Number will be out within the next couple of weeks.
I’m going with 16,000 ounces of gold sold at an average of 1,430 usd per ounce. Total 22.9m :-)
ok. You convinced me. I am buying 200000 shares.
Biox circuit has been stable and operating fine (not yet at full capacity but thats the plan).
Quarterly update due early next week judging by previous releases.
Revenue is not a problem. Gross margin neither. It is the debt. MTL needs massive Gross margin to pay interests. It's possible but BIOX circuit must be running perfectly to lower cost per oz. They have been having a lot of troubles with that.
So when is the next raport coming out?
Wow, time flys, we’re only 2 weeks from getting the next report, they will be our best ever, average gold sale price should be in the region of $1430 per ounce, with an increase in quantity and we should have made significant earnings, with the next and final quarter being over $1500 per ounce, they will just keep getting better, time is our friend