MXR - Maximus Resources

[YOUNG_TRADER]

Breathe, breathe, ok having taken a few deep breathes let me say the following

While I believe the JORC is ridiculous and pathetic at an $800/oz margin 16k oz's can still net $12.8m = NET 9c to MXR applying a discount factor of 1/3rd that still = 3c NET to MXR

Given cash and asset backing stands at 13c I see little downside from these levels

however I am still very dissapointed with this JORC

 

[eclectic_nish]

I guess they were soo shocked by it that they had to read itover and over......hence the delay..

 

[d_crome]

Maybe in their detailed "formatting" and "editing" and "proof reading" they acidentily erased an additional "0"???

Still hoping they released this from their LA office and a second announcement will read "APRIL FOOL"... lol

 

[kpas]

Breathe, breathe, ok having taken a few deep breathes let me say the following

While I believe the JORC is ridiculous and pathetic at an $800/oz margin 16k oz's can still net $12.8m = NET 9c to MXR applying a discount factor of 1/3rd that still = 3c NET to MXR

Given cash and asset backing stands at 13c I see little downside from these levels

however I am still very dissapointed with this JORC

Not to mention that they will add another 3-6c of value in the coming months.

That takes the valuation to at least 16c, if not 19-20c.

This doesnt take into account the bullish statement they have made about adding more to the JORC estimate.

There is no downside from the current prices.

 

[prawn_86]

There is no downside from the current prices.

Ha! I have heard that before about companies that are actually producing.

Markets are driven more by fear and greed than by underlying fundamentals I have learnt...

 

[kpas]

Ha! I have heard that before about companies that are actually producing.

Markets are driven more by fear and greed than by underlying fundamentals I have learnt...

Their announcement is very bullish.

Two things to remember:

1. This is initial resource estimate, it is likely to be low as they need to do a more work to firm it up.

2. It still adds value to their current share price and gives them cash on hand to develop their other projects without further dilution.

It's not a bad announcement.

 

[prawn_86]

Im not saying its a bad announcement.

Im just saying that I heard it before about other stocks not being able to go lower.

There are lots of stocks trading below NTA or at ridiculously low PE ratios (or both)

So saying that it cannot go lower is a big call in the current environment

 

[rhyslivs]

I would be wary of assuming that a stock can have no downside in current markets even if it is trading at or below its NTA.

A safer way too look at it in my opinion is if you can see no short term upside then there is a safe bet that it could and will have downside.

The problem is there is just too much opportunity out there at the moment. If a stock is stagnating (like a lot exploration stocks are) then people will take their money elsewhere to a stock that offers positive short term prospects.

This is only my opinion, anyone else is free to contradict me!

Rhys

 

[Justthinkin]

At my age you get used to being misled, making mistakes, mis-interpreting things... it's all part of learning. But I get really annoyed when those who should know better dance around reality for whatever personal reason they might have.

At the outset, some of the analysis presented on this forum I think is quite outstanding. Well done. My comments are certainly not critical of those on this forum.

(a) I can deal with the a little resource. OK... not as grand as we would like. But if it's only 16,000 oz, then is there merit in dropping at least $2.0M capex re an inferred resource!. In my view, in this market, not an obvious answer. No comment from the directors.

(b) The report talks about Hancock's conclusions and comments for further areas of possible gold mineralisation. Regretably, the Directors have made no comment. What do they think I wonder? Should we sack and appoint the consultant on the basis that we are only ever to be fed this consultants heavily qualified opinions?

(c) I hate announcements that talk about what might be especially when given historical announcements, much of the work underpinning this announcement was completed pre Xmas 2007. 3 months to assemble 2 pages of absolute dribble.

This announcement has probably done MXR a great dis-service. It's either underpinned by extreme conservatism (which is of very little value to a company in a very fragile market) or is as good as it gets and the directors have no choice but to sell the maybe...

I'm long at that momemt and the loss is not killing me. But I really do hate potentially mischeivous directors..

 

[YOUNG_TRADER]

As I said,

I'm definately holding and may even buy more MXR at 13c level as its NTA

However what gets me like most is how far short the Sellhiem JORC fell from our expectations,

I mean in all the qtrly reports the company repeatedly stated a production target of 15k-20k Oz's Au PER ANNUM

A JORC of 16k oz's allows for little over 1 years production,

Even in todays presentation the company restated their target of 15k oz's p.a. (I notice the 20k upside is not present) but its still a PER ANNUM PRODUCTION target


The final image does show the JORC outline in terms of the current mining lease and the areas that offer immediate upside to the current resource,

Another hold for me I guess

 

[herbert]

YT, read my posts on HC under the nick "sellier".

Independant auditors tend to be overly conservative in their estimates.
I assume MXR management know that there is a lot more gold in Sellheim than currently stated in the JORC. The auditor didn't even take the gold nuggets into his valuation so it's probably useless to consider the 16.000 ounces of gold the top-end of the resource.

Anyway, 12.5 M$ revenue per annum are currently 66% of the market cap. Valuing MXR's cash, cash equivalents (ERO holding) and Sellheim alone would justify a shareprice of 20c.
Cheers

 

[JTLP]

Herbert you are Sellier???

When I read your comments last night i was very impressed. You had a well presented argument and shed some new light and facts.

Much appreciated and I hold much happier now :

 

[rhyslivs]

Forgive my ignorance but what is HC? Is it another forum is it?

It seems all the impulse sellers got weeded out yesterday. Todays share price showing a little bit more strength... so far anyway.

 

[Markcoinoz]

Hi Herbert,

I have cheered up a bit now

Do you remember in which announcement it gave the Test Pit Samples of Nuggets they had originally unearthed?

I seem to remember reading an announcement last year that highlighted the samples.

Like alot of things, when you go searching for them, you can't find them

Considering they have not been included in the Initial Jorc, some of the samples were very significant for memory.

Keep up the good work.

cheers markcoinoz

 

[YOUNG_TRADER]

Hey Marco,

If you listen to Kev's BBR pres today he talks about the 16koz JORC + 12K oz's in Nuggets from Bedrock, also talks about very confident of $10m - $12m net cash from intial start up operation, trial mining soon, full scale July etc etc Very confident of more resources etc etc

Like I said at 15c it offered little downside given NTA of 13c and today the rebound has shown this

 

[kpas]

Hey Marco,

If you listen to Kev's BBR pres today he talks about the 16koz JORC + 12K oz's in Nuggets from Bedrock, also talks about very confident of $10m - $12m net cash from intial start up operation, trial mining soon, full scale July etc etc Very confident of more resources etc etc

Like I said at 15c it offered little downside given NTA of 13c and today the rebound has shown this

I agree - give it time and they will edge their way back up.

They should firm up the JORC within a few months and also be in a position to sell their gold at a very good price, putting themselves in an even better cash position then they currently are at.

Definitely holding.

 

[Markcoinoz]

Hey Marco,

If you listen to Kev's BBR pres today he talks about the 16koz JORC + 12K oz's in Nuggets from Bedrock, also talks about very confident of $10m - $12m net cash from intial start up operation, trial mining soon, full scale July etc etc Very confident of more resources etc etc

Like I said at 15c it offered little downside given NTA of 13c and today the rebound has shown this

Thanks YT,

I lost my sound a couple of months ago and have had problems ever since trying to get the right ethernet adapter for my PC

However, thanks for mentioning the 12k ozs of Bedrock Nuggets.

That enforces what i was alluding to yesterday when i mentioned that the all important question was in regard to not just the initial resource, but the bigger picture being the Bedrock which is what they are really going for.

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A few points.

It was only for the 3 small areas of their tenement.
It is Alluvial which makes it much more difficult to put a figure to a resource.
The main Gold nuggets were found in the Bedrock.
The Bedrock Nuggets were not included.
They will be sending the Gold to market at $200 oz costs.
That means it brings in immediate cashflow.
Its only Initial Jorc.

Thats always been the difficulty of any Alluvial Mine.
Trying to work on Random Data.

The main point is they will go forward from here and imo will reach the targeted 15k ozs per/yr.
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Kevin has also just announced another BRR. 3.03pm today.

He is renowned for his BRR. At least they get their money's worth from the subscription. I think he also has a soft spot for Julia:

Cheers markcoinoz

 

[JTLP]

Why was the g/t so low?

Is it due to the nature of not being allowed to add the bigger nuggets etc?

And when will we see the effect of these larger, not included nuggets? Will they state "we sold a nugget that wasnt included in the JORC for $$$ today" or will they break it down?

Not too familiar with how we will ever know!

 

[Markcoinoz]

JTLP,

The main problem was always going to be to satisfy the JORC Standards for measuring an alluvial resource.

There has to be enough confidence to say there is an approximate amount of resource over a certain size area after samples have been taken from the testpits.

Its not that they don't have a decent resource.
Its because they must qualify to meet the criteria.

An alluvial deposit is not like ordinary Gold Mining where you drill holes at various intervals to identify a size and location of a reef.

There is no uniformity with alluvials.
One test pit shows up alot of Gold Samples.
The next one may not.

OK with the 16,000ozs, it is a conservative amount to satisfy the Jorc Code that they do have a resource over a certain area. From there it will increase as they mine and become producers and explorers at the same time.

However, they had to pass the first test which was why they had to get it audited in the first place. Its all part of the process.

Regarding the nuggets, they could not be included as part of the Jorc Resource because of the nature of what they are. There is no distance that a nugget is spread out over. Its all random. Great you find a nugget and add it to the total production. They will be sold along with the rest at market.

As the production commences, i am confident we will be seeing announcements along the way of good size nuggets found.
Its a known area for finding them.

Overall, they will bring in cash as more and more Gold is found.
As simple as that.

It should not be seen as a big issue.

Just helps us along the way in exploration of their other assets which are far more important IMHO.

Cheers markcoinoz

 

[herbert]

Hi Herbert,

I have cheered up a bit now

Do you remember in which announcement it gave the Test Pit Samples of Nuggets they had originally unearthed?

I seem to remember reading an announcement last year that highlighted the samples.

Like alot of things, when you go searching for them, you can't find them

Considering they have not been included in the Initial Jorc, some of the samples were very significant for memory.

Keep up the good work.

cheers markcoinoz

Hi Markco,
good to see you back in a good mood
I think I found the report you were referring to.

In today's BRR interview Kevin Wills clearly pointed out that there is more gold than 16.000 ounces. When adding the nuggets from the Bedrock we're talking about 28.000 ounces or approx. 21 M$ revenue over 2 years.

Now when you think about the potential for the resource to double or triple in size because of their over-conservative estimate MXR are getting in an undoubtedly enviable position when comparing MXR to other juniors - financial independence that is

Could someone please tell me what Big Kev is talking about in his second interview ?

Cheers