Sector NewswireTM Sector: Mining - Metals and Minerals :
News Release - January 30, 2013 5:36 PM EDT
Analyst Issues Upside Price Target on Metanor Resources Inc. as Company Targets 60,000 oz/year Gold Production
NEW YORK, NY, January 30, 2013 /Sector Newswire/ - Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) (Frankfurt: M3R) is identified in newly issued analysts report by Secutor Capital Management with upside market valuation. The analyst has initiated coverage with significant upside re-rating based on several factors; 1) Metanor currently executing on the Company's production target of 60,000 oz/year at its 100% owned Bachelor mine and mill in Quebec, 2) Net Asset Value (NAV) projection of readily achievable resource growth and extension of mine life scenarios at Bachelor, 3) blue sky potential at Metanor's Barry open-pit gold project, and 4) comparable analysis.
The full Analyst report may be found at http://sectornewswire.com/SCMCanalystMTOJan29-2013.pdf online.
The qualified analyst has identified Metanor Resources Inc. as significantly undervalued at current share price valuation of under CDN$0.22; the analyst forecasts a $0.66 per share price for MTO.V under a comparison of the NAV calculated for in an upside resource and production scenario (accounting for the conversion of the Inferred Resource to reserves, as well as the assumption that approximately 214,000 additional ounces of gold will be discovered).
In market comparable
analysis Metanor was compared to other junior production companies
on an Adjusted Market Cap (AMC) to Production basis, as well as on
an AMC to Resource basis. The Company compares favourably on these
metrics, as it is lower than the group average. The discrepancy in
the valuation may be because of the delays faced by the Company as
it reached producer status, causing a decrease in share price.
However, as Metanor ramps up production at Bachelor and achieves
positive cash flow as Management expects it to do in February, this
valuation gap may tighten.
Bachelor Lake Ramping Up Production
to an Average 60,000 oz/year; Management Expects Cash Flow Positive
by the End of February: Production is ramping up at the Bachelor
Lake Gold Project, QC, after delays caused by permitting and labor
shortages. The Project is fully permitted and now fully staffed
since a number of workers were hired due to recent mine closures in
the Abitibi region. Management expects to make up for lost time,
given its procurement of experienced labour, and achieve positive
cash flow at the Bachelor Lake Mine by mid-February. A 5,000 t bulk
sample completed last June yielded 25% more gold than expected and
the mill is currently running at 96 to 97% recovery. The Company
anticipates approximately 16,000 oz of gold will be produced by June
2013, followed by ~60,000 oz in the next year.
The full Analyst report may be found at http://sectornewswire.com/SCMCanalystMTOJan29-2013.pdf online.
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL.
SOURCE: Sector Newswire
Additional Disclaimer and Disclosure I Contact I Terms and Conditions I Copyright I Privacy Policy |