Ge&Cr:June view.Mano River13 Jun 2007 12:35
Over the past eight weeks the market has slowly started to wake up to the potential of Mano River – a potential we flagged in a detailed note published on 8th June. Among the myriad of AIM listed juniors Mano is unusual in that it has a project - the New Liberty Gold Mine in Liberia -where a bankable feasibility study has been completed and where production is set to commence in 2008. So Mano can generate near term cashflow. Moreover Mano is believed to be working to realize value via a three way demerger of its iron, gold and diamonds interests and it has been suggested that at least two of those operations may well attract bid interest. The first operation which will be spun off (onto AIM) is Stellar Diamonds.
On June 1st Mano announced its results for the year to January 31st 2007. Mano recorded a net loss of $953,545 as compared to a net loss of $1.34 million in 2006. Administrative overheads totalled $1,006,726 over the twelve month period, compared to $1,559,914 in 2006, the decrease being primarily due to lower professional fees. Revenue for the period came from interest earned from cash deposits, $53,181. As at 31st January 2007, the company had working capital of $1,005,543.
We value the company’s assets on a sum of the parts basis. We believe Mano's shares are worth at least 20.5p a share and hence, at 12.55p our stance remains strong buy.