Sector NewswireTM

Sector: Mining - Metals and Minerals   :

 

News Release -  December 4, 2014 4:34 PM ET 

 

 

Gold Producer Metanor Resources Continues to Keep Costs Under Control -- All-in Sustaining Costs US$1,040/oz

  

NEW YORK, NY, December 4, 2014 /Sector Newswire/ - Metanor Resources Inc. (TSX-V: MTO) (US Listing: MEAOF) (Frankfurt: M3R) announced its financial and operational results for Q1 FY 2014-2015. The results prompted favorable commentary update from mining analyst Thibaut Lepouttre; Mr. Lepouttre is intimately familiar with Metanor's operations having made past site visits to Metanor's Bachelor Mill, he issued a research report on MTO.V this mid-November 2014. The analysts noted all-in cost of C$1,188/oz work out "decently" converting to US$1,040/oz and further commented, "Looking at the balance sheet, we’re actually pretty happy with what we see. The company was free cash flow positive once again (excluding exploration expenses and working capital changes)."

Pouring gold at Bachelor

 

Metanor Resources Inc. is a Canadian gold producer that commenced commercial gold production on December 1, 2013 at its 100% owned flagship Bachelor mill and mine located along the prolific Abitibi Greenstone belt in mining-friendly Quebec. The mill currently operates at ~700 TPD yielding ~50,000 oz gold per annum. Bachelor is a rich underground mine with grades upwards of 26 g/t gold with an average grade of 7.38 g/t gold (fully diluted using long hole). The Bachelor mill is uniquely positioned sitting geographically as the only mill located within 200 km in a gold rich district. Metanor appears extremely undervalued compared to its book value of $0.1952/share, the current share price is near $0.08/share (with 296,557,733 shares outstanding the current market capitalization is ~$25 million). Metanor is currently trading at less than half its current book value and this is after it wrote-down ~$10 million of assets last year. As gold retrenches, and strengthens, MTO.V harbors potential to leverage to a multiple of book value and a multiple of earnings. MTO.V is currently trading at a fraction (near 1/4) of its infrastructure (replacement) value alone, ignoring the ~1.6 million oz global gold resource in all categories (on all properties), and ignoring the large resource growth potential. MTO.V also offers a significant latent tax savings windfall value for a future acquirer with a loss-carry-forward on the books of ~$40 million, the impact could generate $12 million - $15 million in tax credits.

 

Sector Newswire has identified the following related research links on Metanor:

 

  - Thibaut Lepouttre's Nov. 12, 2014 research report on Metanor: http://sectornewswire.com/CaesarsReport-Nov12-2014.pdf online.

     (related commentary update may be viewed here) 

 

  - Recently released Market Equities Research Group report on Metanor: http://sectornewswire.com/Report-MTO-11-2014.pdf online.

 

  - Mining Expert Jay Taylor's interview with Metanor's VP and recommendation to clientele:

    http://jaytaylormedia.com/media/MetanorResources20140128.mp3  [Audio]

 

  - Mining Expert Lawrence Roulston initiates coverage http://sectornewswire.com/RoulstonMTO02-2014.pdf [PDF]

 
  - Metanor Resources Inc. Corporate Website: http://www.metanor.ca/en [Website]

 
  - SEDAR Filings for Metanor Resources Inc.: http://goo.gl/fpbR3Z [Website]

 

  

 Excerpt Metanor's November 30, 2014 release:

 

Metanor Reports its Financial Results for the Quarter Ended September 30th, 2014

VAL-D'OR, QC--(Marketwired - November 30, 2014) - Metanor Resources Inc. ("Metanor") (TSX VENTURE: MTO) is pleased to report on its financial results for the quarter ended September 30th 2014 (Q1). This press release should be read in conjunction with Metanor's quarterly financial statements and accompanying notes for the period ended September 30th 2014 and related Management's Discussion and Analysis (MD&A), which can be found at www.metanor.ca or on SEDAR www.sedar.com. All amounts are in Canadian dollars unless otherwise stated.

 

Q1 Highlights

  • Gold sales of 12,043 ounces;

  • Gold production of 11,598 ounces;

  • Total of $15,878,051 in revenues from gold sales at the average sale price of $1,318 per ounce;

  • Cash Cost of $951 per ounce sold;

  • Sustaining cost of $1,133 per ounce sold;

  • All-In cost of $1,188 per ounce sold;

  • Net change in cash of $664,017;

  • Positive Cash flow from operating activities of $4,352,231;

  • Net Loss of $957,604 after depreciation and depletion of $3,637,362;

  September 30th 2014   September 30th 2013  
Operational Results        
Tonnes milled 56,949   55,591  
Feed grade (g/t) 6.53   6.0  
Mill recovery rate 97.0 % 97.1 %
Ounces produced 11,598   10,373  
Ounces sold 12,043   10,269  
Underground development (metres) 1,638   1,277  
Diamond drilling (metres) 11,564   7,237  
         
         
Financial Results 
(thousand dollars)		 September 30th 2014   September 30, 2014  
Gold Sales 15,878   0  
Operating Costs (11,240 ) 0  
Royalties (230 ) 0  
Depreciation & depletion (3,637 ) 0  
Gross Profit 771   0  
Other Expenses (1,748 ) (657 )
Operating Loss (977 ) (657 )
Financial Expenses & Revenues 79   (967 )
Deferred Income Taxes (59 ) 0  
Net Results (958 ) (1,624 )
*As of December 1st 2013, the Bachelor Mine reached commercial production status.

Ghislain Morin, president and chief executive officer, and Serge Roy, executive chairman of the board, declared: « Even in this volatile gold market, Metanor is generating a positive cash flow and is pursuing its drilling program. The focus remains on improving Metanor' balance sheet and increasing resources at the Bachelor Mine. »...

...click here for full copy from source

 

  

  

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.

 

 

SOURCE: Sector Newswire editorial

editorial@SectorNewswire.com

 

 

 

  

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