Here is Proactive Investors' take:
"Montezuma remains very well funded with $8.6 million in cash at the end of the June 2012 quarter, yet the company currently has a market cap. of just $17 million.
The company also has additional key share positions in Auvex Manganese, Buxton Resources (ASX: BUX), Lithex Resources (ASX: LTX) and Exterra Resources (ASX: EXT) worth around another $2 million - therefore the Enterprise Value of its projects is around just $7 million.
It is also worth noting that the Butcherbird Project hosts the largest onshore manganese occurrence in Australia, which occurs in shallow flat lying zones with the ore occurring as discrete high grade bands interbedded with clay waste.
These zones are often overlain by a cap of high grade ore which is being targeted as potential direct shipping ore material.
Importantly - the style of the mineralisation at Butcherbird is amenable to relatively low cost beneficiation which contributed to the positive outcome of a Scoping Study completed in 2011.
Taking this highly prospective nature of the project into consideration, along with Montezuma's additional interests in other projects such as Durack (earning 85%) gold, copper and Mt Padbury (100% of gold) gold, manganese, iron - Proactive Investors considers that the Montezuma valuation is slight with the potential for a near term re-rating. We believe the share price should be trading in the $0.30 - $0.45 range.
Highlighting the possible Montezuma upside, the company is currently trading at just $0.25 a share, down from the 12 month high of $0.80 in November when the company announced some very impressive high grade copper intersections at Butcherbird."
http://www.proactiveinvestors.com.au/companies/...-project-33895.html
Comment: Let's summarize:
17,0 mio market cap
- 8,5 mio cash
- 4,5 mio Peak Hill at current RNI valutation (above)
- 2,0 mio other share positions
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2,0 mio enterprise value for our manganese and copper assets. Talk about UNDERVALUED .... |
