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There is no such ceiling.. Management has to deal with matters as they see them. They've taken the opportunity to raise at a premium to the current SP in order to progress the exciting prospects with KML.
They raised similarly in December 2016: a placing at 1.5p with warrants on a 1:1 basis at 2p. Lots of spurious talk of ceilings, etc. Yet somehow by March 2017 the SP was at 3p.
No, I saw it. It looks promising. Certainly looking like a good investment. Will take some time before it has significant impact on the SP. I expect MTR to move to 50% ownership in the coming months.
Lol. MOD closed down 6% today, but still about 10% up on the week.
Lol. Today MOD opened at 32c (up 0.5c) and closed at 32.5c. That's a 3.17% increase on yesterday; and a 16% increase on the week so far.
I wonder if the MTR SP (down on the week so far) will respond?
Don't think selling now would make sense. Far better to have done so six months ago; or if you need the money in six or twelve months' time.
The main likely catalysts are:
- MOD's T3 DFS, expected by end of Q1 2019 (i.e. within 8 weeks). This may well boost MOD's SP and, by extension, MTR's
- further bids to merge with or acquire MOD. Sandfire's recent approach was rebuffed - but it put a new floor under MOD's SP. Expect more on this front any time
- positive news from MTR's partnership with Kalahari Metals. MTR now has 34% of KML, with an option to take that to 50%. Potential news of copper discoveries; and of KML moving to IPO in 2019
- copper price recovery. Who knows what the short-term holds, but medium to long term it should happen.
Yes, the five-year copper chart is instructive. Only a year ago - before fears of a US-China trade war took hold - copper was over $3.20; and five years ago breached $3.40.
So with copper supply falling and demand growing it won't take much to return to those levels (assuming no major world downturn, or Chinese recession). Those levels would drive a significant boost to the T3 DFS numbers and make MTR's stake in MOD even more significant.
… and copper is up a tad more - at $2.815/lb.
Lol. Today MOD opened at 30.5c (unchanged) and closed at 31.5c. That's a 3.28% increase on yesterday; and a 12% increase on the week so far.
Obviously, this positive run can't continue indefinitely but perhaps MTR shareholders - or those currently manipulating the stock downwards - might cotton on to the buying opportunity soon.
I agree. And copper hit $2.80 today for the first time since late 2018 - so good for our BFS numbers.
Sell on news. Now market is looking at the detail and liking it. A long-term hold for me.
Copper has hit $2.8/lb for the first time in 2019. Who knows if the uptrend will continue but this is a good sign so far for MOD's forthcoming DFS.
Lol. Today MOD opened at 29.5c (up 0.5c) and closed at 30.5c. That's a 5.17% increase on yesterday; and a 9% increase on the week so far.
Of course it's only a prediction.
https://seekingalpha.com/news/3429111-copper-rally-10-percent-next-3minus-6-months-economy-perks-citi-says
Lol. Maybe Hotcopper and ASX sites are wrong. They're telling me that Friday's close was 28c; that MOD opened at 29c and closed at 29c. So while the SP didn't move all day it did open (and close) 1c higher than it closed on Friday. That's a 3.57% increase.
https://www.asx.com.au/asx/share-price-research/company/MOD
Cashking didn't provide an MOD SP update this morning so I thought I should report that MOD was up over 3%.
Price is creeping up again. Think this will climb a bit more today once people take in the news.
Just released on ASX.
https://hotcopper.com.au/threads/ann-121-mining-presentation-cape-town.4624359/
Meanwhile, copper is at $2.77 - exactly the price at which Sprott assesses the forthcoming MOD DFS at $230m net present value, using an 8% discount rate. Obviously, only time will tell how close their assessment is to the published DFS in the coming months.
https://drive.google.com/file/d/1wZe9wXKVDYASrd46v4NKXgS6VWNJxT8S/view
Well, like any report you can read into it what you want. But it seems a fair survey to me, and they explained that they've focused on "the eight major diversified miners that have a real choice of where they spend their money — BHP Group, Rio Tinto Group, Vale SA, Anglo American, Glencore, South32, Vedanta Resources and Teck Resources."
An interesting article on the significant growth in capital expenditure on copper; and the implications.
https://www.fin24.com/Opinion/miners-are-budgeting-for-a-recovery-in-copper-20190201-2