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Are we looking at purchasing an already producing mine before Runruno?
My main concern with keeping my long term investment here is the timing of the overlap. 4 years can fly by in this sector as we all know
Interactive Investor video from few days ago featured MTL and Darren. Our part starts at 5:10
https://youtu.be/D7efXCQ8TnI?si=vwHKk8rdCpHzuudv
Morning
Yes, the gold price is helping massively and I would hope DB will not go on a 'spree' with all this cash like a lot of other AIM CEOs (I don't believe he will). It's apparent to me that we are staying in the Phillippines, at least for the majority of our assets, so measured M&A deals that leave MTL with less risk and more reward should be the way to go. A few speculations here and there is to be expected (exploration projects), but the majority of deals will/should be with previously explored areas and with companies that are already set up/listed.
With the debt covenants removed, the balance sheet of MTL will start creeping up and the cash at bank will start catching up to or market capitalisation within 18 months or so (if the price didn't adjust with the growth in earnings we are now seeing). If it turns out that we have to pay RHL their 'interest', it isn't an issue as it's $1.9 million so it won't affect the company in any way other than peeing off DB, Candy et al.
RHL may then find themselves excluded from any future deals, so it really is cutting off the nose to spite the face if they want to get involved with any future expansions etc. $1.9 million really is a drop in the ocean at the minute so the sooner that itch is scratched we can close the book and move on.
I'm hoping DB builds up a large cash position as security while looking at M&A deals. Junior mining companies have a habit of massively over extending and coming unstuck so it would be nice to see one break the mould. No need for debt, no need for dilution, Runruno can fund whatever it is we need, and Abra will hopefully start adding to the coffers in 2025.
All the best
Totally agree Mac, couldn’t have put it better.
Debt free at record high gold prices, the chains are off, we are now sprinting ahead and the cash is already being banked today at $1000 profit an ounce, and we all own our share of that cash, very happy days.
Not sure what happened there . Should read "mid to late April 2024."
Mikehr1991. Welcome . There is an update mid to late December which should set the SP on another upward trend, followed by a vote around MTL's expansion in June. Most if not all of the LTHs on here can see 5p easily, the more optimistic can see 10p and beyond. If MTL becomes both a gold and copper producer then who knows?
Fantastic to see the clearing of debt yesterday, ahead of what even the most optimistic of us thought would happen. As usual, price reaction to great news is slow and steady here, but it will come in the weeks and months ahead.
Key point is the clear illustration that Q1 will be a terrific quarter. We have paid down effectively $19.8m (net debt at 31.12.23) and will likely finish with a bit of cash from the last week's production, notwithstanding the Easter holiday period. At an average of say $950 (update Lee if your calculation is different), production should be north of 21k oz. Whilst that's not a record, our revenue will very likely be and if gold stays in the region it is today, we truly are entering the golden age for MTL.
For those of us who have taken the long journey, our time has come, and for the newcomers - welcome!
Mikehr1991…it’s hard to know where the share price can end up this year, it’s a fact we will produce 3p per share in free flow cash this year alone, tax on that 3p is an unknown as we should have tax losses from previous years that may offset taxation for a while, gold miners that produce have a price to earnings ratio of between 7 and 20 depending on size and risk, so it’s clear MTL has a lot of catching up as we are priced at 4.3p per share and average earnings of 3p per share.
We have 4 years remaining earnings from Runruno.
The Abra tenement and other aquisitions may light the touch paper when we have more detail on grades and quantities.
I can’t imagine a better place than MTL to have your cash invested.
Rather have a larger company and they'll have the cash for more acquisitions now
12th Jan this year,
https://www.investegate.co.uk/announcement/rns/metals-exploration--mtl/acquisition-of-prospective-philippine-exploration-/7986447
It’s wonderrful watching this rise, only been in short term but already up over 50 percent.
Does anyone have a target for the sp? Just off charts it seems like around 8 could be a sticking point? Although maybe looking at the charts is worthless as MTL is in a totally different place and position then it was back then.
I’m here for the long term just curious what you more experienced MTL holders are thinking
I've come to terms with the fact that this is just one of those slow burner stocks that will fly under the Radar and be ignored by the wider market for a while. Then at no particular point and based on no new information, it'll just fly up and drag in a lot of new investors/punters and also some additional institutional money.
The Abra project is key now, if they get a Co-op up and running with the 'artisanal' miners in that neck of the woods, the knowledge they have will benefit MTL as they will be able to access very high grades with very little outlay. There's a lot of knowledge that's been passed down through generations so listening to those who live there will certainly help us all financially.
After generating cash from the low volume/high profit gold strikes, the copper infrastructure can be put in place and hopefully MTL can create a copper mine with a 10 + year economic mine life. Naturally, other projects will be bought into, and other companies could possibly be in the crosshairs of MTL so the future certainly looks promising (on paper).
Q1 results will give us a boost I think, once the factual numbers are out there, the PE ratio alone will make this look exactly what it is, CHEAP.
All the best
Always remember, cash in the bank is both the companies and the shareholders, the little slice each and everyone one of us own, Darren Bowden could split say $10 million in 3 months time between us all, he will have the cash to do that, it would certainly raise the share price too, but if we let him use that cash and buy us the machines to make that $10 million work, those machines make us $20 million and that $20 million gets spent and makes us $40 million etc etc.
The seeds planted now rather than later will make us all far richer in the mid term than most can possibly imaginable today, well done everyone.
Hello to all the long term holders who have held there nerve over these years.
Today is a fabulous day and MTL is still massively undervalued.
In our MR Bowden we trust and the future is MTL.
DYOR
CV
It would be nice to have a dividend, it really would, just from the point of view of the effect of bringing this company to the attention of the wider (sometimes myopic) market and the on the stock price :-)
But I respect Darren's plans and lets gace it, They have done an amazing job. For my part, my investment has gone up "X7" since 2019/20 when I got interested.
That's pretty good going and if the company keeps getting revalued at this rate, I will be very happy
Well Done Darren and team, brilliant job
Anyone selling today are utterly crazy, it’s unbelievable, you need your hands tying, this is a BUY BUY BUY, you cannot fathom how much this changes the companies position, we spin $20 million a quarter, $80 million a year free flow cash, believe me, this will filter through to us down the road, but Darren Bowden has got bigger ideas with that first allocation of cash generation and it will be planting the seeds of our future, why slow that growth with satisfying a short term dividend gain, the multiple mine income Darren Bowden talks about is now a reality, we have the cash to buy that dream, when we do get a dividend it will be a share of a much larger pot than the one we have now.
I have beaten the drum here for years, today is the day I was saying would come, today is not the day you let go of the dream, hold tight and simply enjoy the next few years at a minimum, it’s just started today.
Morning
Darren has made it very clear (at least to me anyway) that dividends are NOT going to be paid. He actually mentioned this in his most recent interview, he stated he prefers to grow the company and acquire new assets and head towards a $2 billion market capitalisation. Paying dividends when your only producing asset is in the end phase of production is ridiculous, it's blatant short-termism and won't benefit the company in any way long term.
A one off special dividend is about the best we could hope for, but a permanent dividend at this point in time is a no go (my opinion). I would LOVE dividends to be paid but not when our cash generator is in its last 3-4 years of production. Use the cash to get Abra up and running, and there's no doubt many more small/medium assets will be bought or farmed into over the rest of 2024.
As for the RHL Group disputing the debt, well, maybe they're correct, maybe they aren't, as shareholders, all we can do is let the company deal with it and if the legal advice is that we are correct, MTL will no doubt let a court decide. It would be preferrable if it can be sorted without a distracting legal claim, but what will be will be (DB reckons it'll be sorted short term based on his statement in the RNS so we shall see).
Onwards and upwards, we are effectively debt free now so the next RNS (apart from Q1 results) should be an M&A one of some description.
The market makers will now do their thing (up and down for no reason), but if you're here for the journey, it won't matter.
All the best
Gold only going up long term
Just look at historical chart
Why no dividends? This was the moment i was waiting for. I have cut half my holdings now. With sadness as I have been invested here for years and before current management. Who have done a remarkable job. However, without shareholder returns now, to me this becomes a minimum 5 year investment before possible returns and good luck forecasting gold prices over that period.
Count it.
Put it in a bank.
Pay wages etc.
Aquire additional assets to grown the company.
What are they going to do with all the spare money they're going to have?
Company pumping cash now
Just look at revenues and positive cash flow
Great news, and with the gold price $200 poz higher than 2023, must be worth another approx £3m per quarter :)
An early Easter present from MTL. What a stunning turnaround from Darren and his team.
Wow what a day. Been a long journey but here we all are. Thank you Darren and his team. What an amazing effort. Congratulations all my fellow holders both new and old. The future looks great.
Great update about being essentially debt free - this is set to fly as everything we sell now is ££ in our pockets! Great job MTL