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This has been the pattern the last few quarters nimrod, solid updates followed by the profit takers/ sell the news brigade and then slow and steady rises to the next leg. Top up territory for sure - all GOOD!
Candy already has accepted the 7% rate and MTL have already paid off the loan as far as they are concerned, Edwards is basically being given his 7% and if he wants 15% he will have to fight for it, but it looks like a lost cause for him with MTL having written legal agreements and Candy has followed those agreements and already accepted taking 7% interest.
Cracking day all in all, bring on Q2 and news on the Abra tenement.
There was some profit taking going on today which will have held the price back. SP could have easily have been higher on such an excellent update. Maybe the buyers will return tomorrow.
12m Forecast Rolling PE Ratio (f) 4.5. Metals Exploration's PE Ratio (f) is ranked 5th out of 44 companies in the Metals & Mining market.
Strange that the two parties to the loan agreement would have different interpretations of it. Did I read some months ago that Candy's reduction of the loan interest rate was dependent on RHL doing the same? No mention of that in the recent RNS but it's hard to imagine the two factions accepting different rates.
Good luck derampimg $44 mill revenue.and $24 mill cash inflow for the qtr
From the 27th March RNS - "RHL Group advisers have communicated RHL Group's belief that the higher 15% rate is applicable until repayment, which potentially amounts to an additional US$1.9m owed in interest payments to date."
This we already knew.
The most worrying part of today's RNS is the following :-" During Q1 2024 most aspects of the process plant performed adequately"
Adequately!! Why aren't the derampers jumping on this sentence?
/s
Https://metalsexploration.com/wp-content/uploads/2024/03/MTL-Repayment-of-Debt.pdf
"RHL Group advisers have communicated RHL Group’s belief that the higher 15% rate is applicable until repayment,
which potentially amounts to an additional US$1.9m owed in interest payments to date. The Company disputes this
figure and believes it has relevant documentation to support its position. Discussions on this matter with the RHL
Group continue and further announcements will be made in due course, as required"
It is just the smaller shareholders Edwards part of the loan interest thats in dispute, the larger shareholder Nick Candy has accepted the terms and the interest reduction to 7%, so yes its not alot, but its a written agreement that Edwards and Candy made with MTL and Candy is sticking to it, so Edwards is going to lose the argument if he was to take it any further than verbally agreeing to what he signed for, overall its small fry now, and not worth thinking about.
Isnt the extra interest 8.5% of 30% of 21 mill, so only 535,000
All very positive. Only snag is the increased interest rate debate on the 30% still has us on the hook for near enough 2 million USD. Would be good to resolve this ASAP, and hopefully plow full steam ahead into purchasing as much land as possible for future mining.
I want this share to delivery well into my pensionable years!
Hi Darientaylor, on the Q1 numbers for both companies, checking the current market caps for both companies:
CEY making 105k ounces with a average AISC of $1275 and a market cap of £1470 million.
MTL making 23k ounces with a average AISC of $1150 with a market cap of £117 million
We produce about 1/4 of the profits CEY produce but are market capped at just 1/12 th
So MTLs market cap needs to increase 3 fold to equal CEYs market valuation.
It blows my mind how cheap MTL is, but I couldnt be happier knowing the cream will always float to the top, just enjoy the ride.
Correction year Market Cap £250 mill share price 12p
Year end numbers out in about 3 weeks.looking for
revenue of $146 mill
Operating profit $62 mill
profit before tax $58 mill
Pretax P/E 3..
bargain of the year
share T/P 250p by year end
Excellent update this morning, a little better than already high expectations. I work closely with one of DB’s former employers and while I have no direct insight into Darren as an individual (other than in my capacity as a MTL shareholder and the in-person experience at the MTL board meeting in London a few years ago), I do know the type of institution he came from quite well. He is a bona fide mining company growth CEO, so we are in good hands. His conviction, aspirations and track record are a solid combination. Full disclosure, I top sliced a couple of modest tranches of my 6m+ this am, for cash needs. Still in very deep here and happy to be so.
having noticed the rns and did some back of a *** packet numbers.
so produced 23k oz gold at an aisc of about $1,100 per oz , this is about one qtr the production of cey who produced 105k oz at an aisc of $1500. market cap of cey is over £1 billion, mtl is £117k if mtl continues on this level of production they it look under valued by about 50%... maybe thats too simplistic but there is substantial headroom to the upside. imho
We held onto 1540 ounces of gold produced but didn’t sell, that would have made another $3.1 million free cash flow to those results, if they had done that they could have made nearly $25 million in just 1 quarter, from a gold price more than $250 dollars lower than todays.
On that basis going forward 2024 is set to exceed $100 million profit, the numbers are amazing, and from 1 mine, Darren Bowden (Mr understatement) already has the second mine in hand and has expressed in recent interviews he wants multiple mines, multiple incomes and a £2 billion market cap, who knows what’s achievable from a man who consistently under promises and over delivers.
Wonderful set of results. Good "steady as she goes progress". No surprises, debt free and, as stated earlier, done at a substantially lower gold price than now so profit growth is almost built in for the next quarter. Spend the next year or two building up a very healthy cash balance and exploring for new resources and we have the beginnings of a very solid company forming.
Would be nice to get some of the volatility out of the share price but that isn't anything to do with the company, just the market.
I like Darren (mr understatement) Bowden I do wish someone would hand him a blooming big trumpet and tell him to blow it (with integrity) in the middle an RNS!!
Its an outstanding job imho and its about time they had moment to beat their collective chests before getting back down to work!!
Debt free producing a 23k ounce gold production quarter and all at a gold price $250 dollars lower than today, AMAZING, can you imagine the next set of results, the press and media will bring this success to a wider audience and maybe we will align to some sense of fair value for our fantastic position, happy days all
Fantastic update. Better than I expected. 6p today?
Onwards and upwards… great results. Well done for those who held the faith.
Top up time!
Outstanding update.
Happy Monday everyone, future is looking good.
Scrambling to find some extra funds to buy more…
Fantastic RNS and congratulations Mr Bowden.
CV
Amiga, it wasn’t an issue at all, Nick Candy is MTLs largest shareholder with 918 million shares, he did have around 50 million more and it looks like he made a deal outside of the market and someone purchased £2.5 million worth of his shares, some here made out he was bailing out, the market maker took advantage and dropped the price 10% in a day only to see it rise back over 12% the next day when the drama was evaluated, know one knows who bought the shares, it could have been a family member for all we know, but they were not sold through the general market.
Do some research, Q1 results next weeks will tell you a lot about where we are at financially and what we produce quarterly, and we have 4 years gold remaining in this mine at 1.29 g/t average.
The Abra tenement aquisition may get a mention, it’s the first of our expansion plans and the purchase for $1.6 million is being put to the shareholders in June.
Andy ,
I guess his sense of humour doesn't appeal to you ?
" My first wife was Thai , unfortunately she died of testicular cancer ! '
Snolly