Today’s $44m market capitalisation of Metanor, which is less than the $62.7m of development and working capital injected into the company since the SSL agreement was signed in January 2011 (ref table below).  Therefore, it is possible to argue that:-

 

  • The BL infrastructure and ore reserves, together with all the NI-43 101 ore reserves at Barry had a negative value of $18.7m ($44m - $62.7m), as it has taken more capital for Metanor to reach its current gold producer value, than the market attributed to the whole company by the market.
  • SSL has contributed 31.86% of the capital to bring BL into production and give it rights to 20% of the mine output.  Accordingly, SSL paid $7.4m for 20% of the BL project in January 2011and then contributed pro rata to its gold stream percentage.  Therefore, with hindsight, SSL made a high risk investment at the outset.
  • The share price of the company should be at least $0.27 (based on 226m issued shares), assuming the company had no value whatsoever, when BL refurbishment capital was first introduced by SSL.

According to the Pre Feasibility study the IRR was a 85% positive yield on the investment required when the price of gold was about $1270.  It may take some time for that return be recognised in the share price.

 

 

Metanor : Capital Introduced since signing the SSL Agreement

Date

Share / Loan Capital

% of cap raised

Capital Source

 

$m

 

 

January 17, 2011

5.000

 

 

March 30, 2011

9.000

 

 

September 2, 2011

6.000

 

 

 

20.000

31.86%

SSL - Sandstorm Limited

March 7, 2011

16.233

25.86%

Alliance Securities

November 30, 2011

8.500

13.54%

Alliance syndicate $0.34

January 20, 2012

0.500

0.80%

Natcan $0.34

March 22, 2012

0.550

0.88%

Emploi Quebec

April 19, 2012

7.000

11.15%

Investissement Quebec

August 22, 2012

10.000

15.93%

Tempest / Comark

$millions

62.783

100.00%

TOTAL $62.783M