MCR - Mincor Resources

[kirtdog]

IMO this stock is very undervalued, I think the 'recession' has undervalued MCR and believe it will bounce back to around $2... Almost debt free company and nickel will always be in high demand, just not from china, now is the time..

 

[Sunburnt Land]

MCR is in a super strong position relative to its peers (e.g. MRE, WSA, MRE, IGO, MRE) but unfortunately the share price only reflects what someone is prepared to pay for it.

Gee $2.00 a share would be nice. Wishful thinking though in the short-term I say. Maybe in 12-24 months we'll see it bounce back somewhat. With the tens of millions of cash they have in the bank, I hope they maintain a decent dividend.

I jumped in a while back at $1.05 and then again at $0.75. Gee I wish I had some spare cash to pick up another parcel. Today's close at $0.51 is an unbelievable price for shares in such a high quality company.

 

[oldblue]

I agree that it's a quality company but it's a one-metal operation and will struggle to make money while the price of Ni remains depressed.
I hold a few but won't be adding until the PoN and the SP take a turn for the better.

 

[kirtdog]

feels like its gonna keep dropping til it hits zero i bought in around 55c starting to think maybe i should cut my losses...

 

[inenigma]

I guess it all depends on who you listen to..... One website states that Stainless production has dropped for 2008 ("http://www.metalworker.com.au/Article/Global-drop-in-stainless-steel-production/234402.aspx"). Another site forecasts demand for stainless to increase for 2008 ("http://www.pdfdownload.org/pdf2html/pdf2html.php?url=http%3A%2F%2Fwww.worldstainless.org%2FNR%2Frdonlyres%2F9B25D843-CD1D-45AB-AA3F-C7AFE8A38631%2F4259%2FDemandIndexAllStainlessProducts.pdf&images=yes"). Yet other sites are forecasting an increase in production for 2008 and a decrease in demand.......

So, if production drops and demand increases......
But, if production increase and demand falls out ......


Who do you listen to ???

 

[laurie]

Who do you listen to ???

At the end of the day its your money and if you feel uncomfortable holding MCR sell..... but I understand where you are coming from damn if you do and damn if you don't

cheers laurie

 

[doogie_goes_off]

To quote myself: "I'd say we could see some time in the 65-85c range",

Well its ~55c now and if I were a betting man I'd suggest a break below this support as the nickel price is tanking, glad I sold at $1 ish.

 

[Sunburnt Land]

Not the one metal company as many believe. Beautifully positioned to take advantage of the WA government's decision to lift the ban on uranium mining. I'm looking forward to a positive announcement on MCR's Gacoyne Tungsten-Uranium project. The huge 750+ square km tenement provides massive upside to reported findings. Visible uranium mineralisation occurring in both outcrop and drill holes. Companies like BMN have taken off recently, uranium is attracting huge interest of late.

 

[fodder-oz]

Well at least MCR still has it's cash reserves. Hopefully Nickel prices will go up next year some time. Not sure what the market will do with this news, but seeing the numbers of trades recently I hope not much affect.

Whats peoples opinions on this news?


http://www.theaustralian.news.com.au/business/story/0,28124,24779504-36418,00.html

NICKEL miner Mincor Resources will shut its main nickel mine, Miitel, from Christmas because of poor prices.

The Perth-based miner also said it won’t achieve a first half accounting profit after depreciation and amortisation during the current financial year ending June 30.

In an investor briefing, Mincor reaffirmed production guidance for the current financial year at 16,000 to 19,000 tonnes of nickel, down from an earlier target of 19,500 tonnes to 20,500 tonnes

 

[fodder-oz]

any thoughts on this annoucement? I guess this will happen with alot of the smaller miners with metal prices at lows below cost.

 

[eddyeagle]

I had a look at the investor briefing yesterday and thought it was outstanding. It reaffirms to me that this is a quality growth company with excellent management. Their cost cutting program looks very sensible and I believe MCR will be in a great position to outperform when the demand for resources does pick up.

I liked their insight into the nickel business, mentioning that it is a highly volatile business and that while the good times are very good, the bad times must be managed and that they are well placed to do this in the present environment.

One slide of particular interest:


Value attributed by the market
to Mincor’s business, being 4
cents per share, or A$8 million.
This business has:
• an 8-year track record of
production and profits;
• 2007/8 EBITDA of $140 million;
• Current cashflows of $2-5
million per month (before
capital and exploration);
• 160,000 tonnes of nickel in
Resource;
• property, plant and equipment;
• active mining and exploration
operations

I think I will be topping up around the 50 cent mark in the near future and holding for the long term.

 

[derty]

NICKEL miner Mincor Resources will shut its main nickel mine, Miitel, from Christmas because of poor prices.

MCR say that they are temporarily suspending mining and preparing a new mining plan. I suspect that the new mining plan will be to shed the existing workforce and mining contracts and then employ a new workforce and negotiate or tender a new mining contract at significantly reduced prices.

Labour prices and contracts are still at boom prices. There are a lot of people in the mining industry that are inexperienced or just plain crap and are getting paid top dollar due to the labour shortage and the ability to play desperate employers off against each other. The power has shifted back to the employer.

 

[oldblue]

MCR say that they are temporarily suspending mining and preparing a new mining plan. I suspect that the new mining plan will be to shed the existing workforce and mining contracts and then employ a new workforce and negotiate or tender a new mining contract at significantly reduced prices.

Labour prices and contracts are still at boom prices. There are a lot of people in the mining industry that are inexperienced or just plain crap and are getting paid top dollar due to the labour shortage and the ability to play desperate employers off against each other. The power has shifted back to the employer.

Hi derty.

Is the Miitel mine currently worked by the company or by a contractor?
If the former, I would have thought that the cost of redundancies would rule out firing and re-hiring. If the latter, I wonder what the penalties are for breaking the contract?

 

[derty]

Is the Miitel mine currently worked by the company or by a contractor?
If the former, I would have thought that the cost of redundancies would rule out firing and re-hiring. If the latter, I wonder what the penalties are for breaking the contract?

Barminco had the mining contract at Miitel and as far as I have learned there is no compensation to be paid for ending the contract.

The standard for redundancies appears to be 2 weeks for every year of service and I don't imagine most of the mine staff (that are not contractors) would have significant tenure with Mincor. So at the end of the day redundancies would be a small amount when compared to the ongoing mining costs.

 

[bas]

The hedging they took out proved to be very good management decision now. This is giving them an "artificially" lower cost of production, need to find out how much hedging they have in place- ie when they will fill all the contracts.

Price may well go lower, but good opportunity to get set in a well managed company for the next cycle in nickel prices.

 

[fodder-oz]

Well just back from holidays and see that MCR has been doing great including today up over 20% so far.

Any reason why stock is up so much from last year in the 50 and 60c range to over 90c now? Finally back in the black now on this great company.

 

[fodder-oz]

Ahh further research I see Nickel price has gone up. Well thats good news for now lets hope it can last and go up more.

 

[eddyeagle]

Maybe I am a gullible sucker, but once again I am very impressed with the latest report from Mincor.

With the exception of their 1st ever net loss ( $22.7 Mil, including pricing adjustments and one-off non-cash asset impairment charges of $26.6 Mil), there are plenty of positive statements in there ie. exceptionally strong balance sheet, outstanding leverage to a recovery in global growth etc

- $72 Mil in the bank, no debt.
- Dividend of 2c – yield of almost 3% at current prices.
- Production flexed downwards to a robust core of three low cost mines
- Cash costs down
- Operations capable of a rapid and low-cost return to production when conditions improve
- They look forward to the future with ‘great confidence’

“Mincor continues to offer its shareholders outstanding leverage to the nickel price, and an investment in a financially strong mining company with a long term track record of success”

 

[babka]

Hi eddy... please don't think that you are a gullible sucker. I think that your post is a good one and a true one. We just have to be patient for nickel prices to improve. Company itself is a gem - IMHO. Cheers.

 

[oldblue]

Unless we get a world where the price of nickel never improves then MCR looks like a fair bet to me at these prices. It's shown that it can manage its way through difficult conditions and is positioning for the eventual recovery.
A stock for the patient type. I hold a few.