SP article22 Jan 2019 09:27
"Okay I have not always called Metals Exploration (MTL) correctly. But ten days before Christmas I suggested punters looking at Metals Exploration should, in the immortal words of Perry Como, catch a falling star and put it in their pocket. Since then the shares have nearly trebled.
The event, which shareholders are eagerly anticipating and should further spur this dog�s recovery, is a resolution of new terms for the company�s �90 million debt on which it has defaulted. The current spurt in the share price suggests this is imminent and, I am told, agreement has been reached with the existing lenders HSBC in Hong Kong and Paribas in Paris.
Last week the company posted a new presentation on its website. It has recruited a new chief executive, Darren Bowden, who has an impressive track record and has already put in a new team to manage operations on site.
The new technical director, a Chinese born Australian, has a PhD in flotation and will soon iron out the glitches that have plagued this project. I believe the forthcoming quarterly report will show that the biox plant is now running up to speed.
Furthermore, the new team has not only promised to fully tackle the operational challenges but has resolved to develop the significant exploration upside. It is confident it will produce gold at an annual rate of 100,000 ounces at under $750 an ounce after all cost including debt. What that should mean is that the company will throw off significant cash by the second half of this year.
So stand by your beds and let the good times roll!