E25 - Element 25

SevenFX said:

Greggy

You may well be right and this could have a lot of potential from a fundermental point of view, but I'm just lookin at charts and numbers (vol, depths, etc)

I can't see the volume buildup as yet...???

You will see the first window, which is daily & the second window which is weekly since it first opened.

Hope this helps,

Click to expand...

I forgot to add that MZM has only about 18 million shares that are freely available (ie. not in escrow) and that turnover of even 600,000 is significant for this stock as its over 3% of the company's shares not held in escrow.
Thanks for your assistance as per usual.
DYOR

I have been keeping an eye on this but have not invested. I'm new to trading and am learning (i know very little..), but I will list the reasons behind not investing:

1. The IPO was not fully subscribed. If this was as good as it looked investors would have jumped on the 20c and added options being offerred. I did not find it suprising to see the price fall after listing becase of all this.

2. There are experienced Non-Executive directors who are being paid $50K (Omera), $35k (Cornelius) and $25k Grammer. The less experienced and not as well know Brown is getting $135k + $52k to a related entity. What are the non-executive directors doing for their $$. Are they just being paid to put their name behind the company or are they being involved in management? If the non-exec directors are as good as they appear to be at what they do, i would expect that for them to take an active part in the management of the company they would need to be paid more $$ (refer to prospectus http://www.asx.com.au/asx/statistic...m&timeFrameSearchType=D&releasedDuringCode=6).

3. If MZM was hot property, why would those that got in on the IPO be selling below the list price (obviously because of the added value in the options they hold), but if they believed in the company they would not sell at all and not hold out a while longer??

4. It may be years before we see any significant price movement in SP.

The main reason i didn't ivest was #2 and #4 above. Anyone care to comment on my analysis, am I on the right path here (I'm new at trading). I have looked at the prospectus but did not spend much time studdying it properly.

steven1234 said:

I have been keeping an eye on this but have not invested. I'm new to trading and am learning (i know very little..), but I will list the reasons behind not investing:

1. The IPO was not fully subscribed. If this was as good as it looked investors would have jumped on the 20c and added options being offerred. I did not find it suprising to see the price fall after listing becase of all this.

2. There are experienced Non-Executive directors who are being paid $50K (Omera), $35k (Cornelius) and $25k Grammer. The less experienced and not as well know Brown is getting $135k + $52k to a related entity. What are the non-executive directors doing for their $$. Are they just being paid to put their name behind the company or are they being involved in management? If the non-exec directors are as good as they appear to be at what they do, i would expect that for them to take an active part in the management of the company they would need to be paid more $$ (refer to prospectus http://www.asx.com.au/asx/statistic...m&timeFrameSearchType=D&releasedDuringCode=6).

3. If MZM was hot property, why would those that got in on the IPO be selling below the list price (obviously because of the added value in the options they hold), but if they believed in the company they would not sell at all and not hold out a while longer??

4. It may be years before we see any significant price movement in SP.

The main reason i didn't ivest was #2 and #4 above. Anyone care to comment on my analysis, am I on the right path here (I'm new at trading). I have looked at the prospectus but did not spend much time studdying it properly.

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Hi steven1234,

Thanks for your opinion. I'll now try to answer your qyeries in more detail as I am a keen follower and shareholder.

1. True. The IPO was not fully subscribed. Base metal prices were falling temporarily at the time. You also need to remember that there are a lot of new floats around at present and hence there's a great deal of competition out there for new funds. The market in particular has a current love affair with uranium and iron ore floats. MZM was a gold and base metals float. However, the company is actively seeking other opportunities. THe MZM float was underwritten to the tune of $3 million by Intersuisse, who are specialists in smaller stocks. The float raised $3.6 million. As a result, 18 million new shares and 4.5 million options were issued as a result. I did not participate in the float. I began purchasing MZM when it was around the 15.5 cent mark.

2. Justin Brown is the Managing Director and hence is getting paid the most. He is also an experienced geologist. The board is well known throughout the industry. As they are all directors, they would be making a number of important decisions at board meetings. Terry Grammer in particular has an incredible track record.

3. There are a number of companies that go below their float price after they list on the ASX (i.e. UXA and MMB to name a couple). Not all go on to perform as well as these two. Sometimes the stags when they see a share come on below issue price they then sell and go on to the next one. The more patient investors generally stay on. I personally feel that the best time to buy is after the stock has listed, with the notable exception of uranium stocks and Telstra 3 shares.

4. I've had 27 years trading experience and been burnt once or twice (e.g. URL). I've also had good days like yesterday with GSE and recently with VMS. One has to spend a lot of time researching stocks before buying them. The share price has improved from a low of 15.5 cents and is now at 21 cents. I don't have a crystal ball and can't predict what will happen to the share price. However, should the company continue to come out with more exciting results at its Callawa Prospect (though early days) and other projects, then hopefully the good news will be reflected in a higher share price. MZM has good experienced management, solid cash levels and interesting prospects.

The above information is just my opinion and please do thorough research before buying or selling.
DYOR

Hey Greggy,

Thanks for the feedback, greatly appreciated.

I'll keep an eye on MZM and see where it goes.

steven1234 said:

Hey Greggy,

Thanks for the feedback, greatly appreciated.

I'll keep an eye on MZM and see where it goes.

Click to expand...

No problem. Hope it wasn't too long.
Hope you have a Happy 2007.
DYOR

MZM has finished 2006 at 22c, up 1c today. Its highest end of day finish since listing. This will be one to watch in 2007 and my pick in Jan's tipping competition. I've been following this one since it was 15.5c and feel that its still been overlooked by many people.
Happy New Year to All.
DYOR

steven1234 said:

I have been keeping an eye on this but have not invested. I'm new to trading and am learning (i know very little..), but I will list the reasons behind not investing:

1. The IPO was not fully subscribed. If this was as good as it looked investors would have jumped on the 20c and added options being offerred. I did not find it suprising to see the price fall after listing becase of all this.

2. There are experienced Non-Executive directors who are being paid $50K (Omera), $35k (Cornelius) and $25k Grammer. The less experienced and not as well know Brown is getting $135k + $52k to a related entity. What are the non-executive directors doing for their $$. Are they just being paid to put their name behind the company or are they being involved in management? If the non-exec directors are as good as they appear to be at what they do, i would expect that for them to take an active part in the management of the company they would need to be paid more $$ (refer to prospectus http://www.asx.com.au/asx/statistic...m&timeFrameSearchType=D&releasedDuringCode=6).

3. If MZM was hot property, why would those that got in on the IPO be selling below the list price (obviously because of the added value in the options they hold), but if they believed in the company they would not sell at all and not hold out a while longer??

4. It may be years before we see any significant price movement in SP.

The main reason i didn't ivest was #2 and #4 above. Anyone care to comment on my analysis, am I on the right path here (I'm new at trading). I have looked at the prospectus but did not spend much time studdying it properly.

Click to expand...

I will just add a bit regarding #2.

The role of the Board of Directors is to plan and set the strategic direction of the company and ensure that the companies executive managers carry out those plans. The role of the Non-Executive Directors is not to be involved in the day to day mangement of the company. Ideally, they are supposed to be able to see the bigger picture and not be clouded by the day to day issues. Having Non-Executive Directors on the board that are not involved in the day to day management of the company is part of ASIC's recommennded guidelines for company structures.

Companies are not all managed by a Director. Some may have a board made up of all Non-Executive Directors and the person in charge of the day to day management of the company is not a Director at all (such as a Cheif Executive Officer CEO).

As to the remuneration, the Non-Executive Director's role is not a full time position. They would all have income from other business interests and probably sit on other boards. Aternatively, the Executive Directors hold full time executive positions in the company and the extra remuneration they are paid is for that executive position.

As an example, Owen Hegarty is the Managing Director of Oxiana. He has a seat on the board, but is also the full time manager of the company and so is classed as an Executive Director. However, he also sits on the board of Range River Gold, but he does not hold a management position in that company, so he is classed as a Non-Executive Director. As you would expect, he gets paid a lot more for his role at Oxiana than at Range.

Hope this helps and apologies if I'm telling you things you already know.

dubiousinfo said:

I will just add a bit regarding #2.

The role of the Board of Directors is to plan and set the strategic direction of the company and ensure that the companies executive managers carry out those plans. The role of the Non-Executive Directors is not to be involved in the day to day mangement of the company. Ideally, they are supposed to be able to see the bigger picture and not be clouded by the day to day issues. Having Non-Executive Directors on the board that are not involved in the day to day management of the company is part of ASIC's recommennded guidelines for company structures.

Companies are not all managed by a Director. Some may have a board made up of all Non-Executive Directors and the person in charge of the day to day management of the company is not a Director at all (such as a Cheif Executive Officer CEO).

As to the remuneration, the Non-Executive Director's role is not a full time position. They would all have income from other business interests and probably sit on other boards. Aternatively, the Executive Directors hold full time executive positions in the company and the extra remuneration they are paid is for that executive position.

As an example, Owen Hegarty is the Managing Director of Oxiana. He has a seat on the board, but is also the full time manager of the company and so is classed as an Executive Director. However, he also sits on the board of Range River Gold, but he does not hold a management position in that company, so he is classed as a Non-Executive Director. As you would expect, he gets paid a lot more for his role at Oxiana than at Range.

Hope this helps and apologies if I'm telling you things you already know.

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Dubious Info,

Thanks for your contribution. I feel that the directors of MZM are reasonably paid and have experienced backgrounds. I can't see the likes of Terry Grammer etc putting his name to a company just for the sake of it. He has the runs on the board (e.g. helping discover the Jubilee Nickel Mine, WSA and now HNR) and my understanding is his only other directorship is with HNR which has done well this year price wise.
I'm looking forward to an interesting 2007 for MZM.
DYOR

Thanks for the feedback guys.

At the end of the day a good director behind any company can make it do well. What is crucial is to have good management. If MZM does make some large finds its likely that the non-executive directors will become more involved in the company (it makes sense?). Its also in their best interests for the company to do well considering their share/option holdings.

This is definitely on my watch list... I'm dissapointed i didn't take advantage of the price when it was in the 15's. This is in its early days anyways (and im still learing how the market works..)

steven1234 said:

Thanks for the feedback guys.

At the end of the day a good director behind any company can make it do well. What is crucial is to have good management. If MZM does make some large finds its likely that the non-executive directors will become more involved in the company (it makes sense?). Its also in their best interests for the company to do well considering their share/option holdings.

This is definitely on my watch list... I'm dissapointed i didn't take advantage of the price when it was in the 15's. This is in its early days anyways (and im still learing how the market works..)

Click to expand...

Over the 27 years that I've been involved in the market, I have come to the view that with good management anything is possible. I was attracted to MZM by the high quality directors on board and its interesting prospects. I reckon Terry Grammer is one of the very best geologists in the business.
DYOR

Hey Greggy

I finally picked up a little MZM at 17c. With upcoming drill results its a bargain!

In doing some reasearch i came across this article from the Australian

http://www.theaustralian.news.com.au/story/0,20867,20965899-18261,00.html

TWENTY or so years ago, a grader doing road work northeast of the old gold rush town of Marble Bar took the top off a small ridge, exposing copper. Lang Coppin, who owns adjoining Yarrie station, had done a fair bit of prospecting, and took samples.
A lab report showed good grades. But the area was covered by an existing exploration licence, so Coppin kept the news to himself. Earlier this year, the rising copper price made him think again about the samples, and he returned to the area in his helicopter and took some more rock. Again, a good assay result, grades up to 19 per cent copper.
More good news: the previous tenement owner had let the licence lapse, so Coppin quickly pegged it. Then he heard that old mate Denis O'Meara was floating a new company with Terry Grammar and Inky Cornelius. The Coppin tenement became part of the Montezuma Mining Co IPO in return for shares.

This week Montezuma reported more rock chip assays from Coppin's tenement, now called Callawa. They came in up to 28.7 per cent copper with associated gold and silver -- the precious metals suggesting this was not just secondary copper.

It's early days, because these are chip samples only. The area had not been explored previously for metals. When De Beers held the tenement, its interest was confined to diamonds.

steven1234 said:

Hey Greggy

I finally picked up a little MZM at 17c. With upcoming drill results its a bargain!

In doing some reasearch i came across this article from the Australian

http://www.theaustralian.news.com.au/story/0,20867,20965899-18261,00.html

TWENTY or so years ago, a grader doing road work northeast of the old gold rush town of Marble Bar took the top off a small ridge, exposing copper. Lang Coppin, who owns adjoining Yarrie station, had done a fair bit of prospecting, and took samples.
A lab report showed good grades. But the area was covered by an existing exploration licence, so Coppin kept the news to himself. Earlier this year, the rising copper price made him think again about the samples, and he returned to the area in his helicopter and took some more rock. Again, a good assay result, grades up to 19 per cent copper.
More good news: the previous tenement owner had let the licence lapse, so Coppin quickly pegged it. Then he heard that old mate Denis O'Meara was floating a new company with Terry Grammar and Inky Cornelius. The Coppin tenement became part of the Montezuma Mining Co IPO in return for shares.

This week Montezuma reported more rock chip assays from Coppin's tenement, now called Callawa. They came in up to 28.7 per cent copper with associated gold and silver -- the precious metals suggesting this was not just secondary copper.

It's early days, because these are chip samples only. The area had not been explored previously for metals. When De Beers held the tenement, its interest was confined to diamonds.

Click to expand...

Hi Steven1234,

The rock chip sample results at its Callawa Projects were very encouraging, up to 28.7% copper. Its still very early days, but I'm looking to when they start drilling the prospect. Meanwhile, they're doing a fair bit of work at their Weebo Project in WA which is fairly close to the Thunderbox Gold Deposit.
I sold all of my options when MZM were 11-12c for a nice profit, but still hold a few shares just to keep an interest.
DYOR

Acquired a 70% interest in GPN's Robinson Range Uranium Project

YOUNG_TRADER said:

Acquired a 70% interest in GPN's Robinson Range Uranium Project

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This should increase interest in the stock. Hence, today's share price increase. As I alerted readers of this thread back in Dec 06, MZM's MD informed me that the company was looking for new projects and has now indeed kept his word.
DYOR

Thanks Greggy!

Lets hope the upcoming drill results are positive.

steven1234 said:

Thanks Greggy!

Lets hope the upcoming drill results are positive.

Click to expand...

Fingers crossed.
DYOR

Just saw depth, somethings up!

Another BCN type run?

YOUNG_TRADER said:

Just saw depth, somethings up!

Another BCN type run?

Click to expand...

You're right. Its currently in the mid 20s and at a record high. Now this is a nice breakout. MZM has several interesting projects as I have mentioned before and they've also recently added a uranium project.
DYOR

greggy said:

You're right. Its currently in the mid 20s and at a record high. Now this is a nice breakout. MZM has several interesting projects as I have mentioned before and they've also recently added a uranium project.
DYOR

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All of a sudden MZM is looking a tad weaker. I've got rid of my remaining holding this morning for a nice profit. Even though there's perhaps greater upside I thought I wouldn't go broke taking a profit in this difficult market. Besides I've finally taken the plunge and bought into RMG.
Good luck to exisiting shareholders.
DYOR

MZM in pre-open anyone have any info? Speeding ticket?