MEE - Metex Resources
- Thread starter bigdog
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I'm not exactly sure what you mean, but MEE is not in a trading halt because of ANZ becoming a substantial holder (through Opes). ANZ has been a substantial holder for a long time, they only just got around to stating this on paper, leaving quite a few people annoyed for not divulging this earlier.
I think you will find there will be an announcement (Monday morning before trading) regarding MEE allocating more shares to the market.
I think you will find there will be an announcement (Monday morning before trading) regarding MEE allocating more shares to the market.
Some nice news this morning after trading halt.
Incitec has given Metex 11 million to help fund their big project, and a new Heads of Agreement with Mitchell Drilling to complete 3 million dollars worth of drilling.
All things looking very positive.
Incitec has given Metex 11 million to help fund their big project, and a new Heads of Agreement with Mitchell Drilling to complete 3 million dollars worth of drilling.
All things looking very positive.
Hmm, I am not so sure. The capital raising comes at a high price:
1. the issue of an extra 55 mil shares. There are currently about 276 mil shares, so that will increase to 331 mil, a 17% dilution effect on current holdings.
2. and at a price of .20, a very substantial discount to the current price (of about 40% on todays price) . A discount of 10-15% would be more usual.
3. the granting of exclusive rights to IPL in relation to ammonia.
I think that it is excellent to have a credible jv and cornerstone investor, but do not think that, objectively, such a surge in share price is warranted. IPL has been typically smart in striking the bargain.
Further, the Blackwood venture with Constellation involes a further 15 mil shares for .20, taking the total subscription to 346 mil, a combined dilution effect on current holdings of 20%.
At .33 cents, Mee with 346 mil shares would have a market cap of $114 mil; it is simply not, in my view, a $114 mil company, especially compared to other listed small caps.
Those concerns are particularly so when:
1. the dilution impact of employee incentive schemes are also considered;
2. the early stage trial nature of the project is considered.
I am (as you will see from previous posts) an enthusiast of Mee, but think that shareholders are being premature.
I would have been much more impressed by Mee if its capital raising in this matter included existing shareholders and less dilution and discount.
1. the issue of an extra 55 mil shares. There are currently about 276 mil shares, so that will increase to 331 mil, a 17% dilution effect on current holdings.
2. and at a price of .20, a very substantial discount to the current price (of about 40% on todays price) . A discount of 10-15% would be more usual.
3. the granting of exclusive rights to IPL in relation to ammonia.
I think that it is excellent to have a credible jv and cornerstone investor, but do not think that, objectively, such a surge in share price is warranted. IPL has been typically smart in striking the bargain.
Further, the Blackwood venture with Constellation involes a further 15 mil shares for .20, taking the total subscription to 346 mil, a combined dilution effect on current holdings of 20%.
At .33 cents, Mee with 346 mil shares would have a market cap of $114 mil; it is simply not, in my view, a $114 mil company, especially compared to other listed small caps.
Those concerns are particularly so when:
1. the dilution impact of employee incentive schemes are also considered;
2. the early stage trial nature of the project is considered.
I am (as you will see from previous posts) an enthusiast of Mee, but think that shareholders are being premature.
I would have been much more impressed by Mee if its capital raising in this matter included existing shareholders and less dilution and discount.
That's right James, however I believe the dilution of shares doesn't impact MEE as much as you are making out. I don't expect to see IPL selling their chunk of shares any time soon, resulting in market dilution on paper but close to the same amount of freely traded shares for the time being.
Major sells? Are you looking at MEE or '.com' stocks? It's still moving nicely, people just had to work out if it would keep going positive after yesterday's big gains, and yes it is!
Haha I was talking about the sells this morning early on in the market. The term "Major" was used because thats more money i'll ever see in my life.
As for the SP now, its looking really good. To continue on after yesterdays huge gains, its very impressive.
Not only is the share price encouraging the volume is aswell. People are starting to take more interest in what this company has to offer. Over the last 6 months it has been a rare occurrence when more than 2 million shares traded each day. For the last few days there has been well over 10 million. The last time we saw such volumes the share price hit highs above 40c. The progress that has occurred since then combined with the new found interest new highs will be tested in the next few weeks albeit with some taking profits in the meantime.
The last few buys and sells are averaging around 50k so im guessing these arent your average mum and dad investors. Share price dipped today but as yesterday, I expect it to rise as the price currently represents somewhat of a bargain.
From what i can tell with the trading, its not exactly being snapped up in large volumes but hey, its only 11:35am. Long day ahead. Market cap is still listed as 101 million but is that old information already? I thought the capital raising had already started?
From what i can tell with the trading, its not exactly being snapped up in large volumes but hey, its only 11:35am. Long day ahead. Market cap is still listed as 101 million but is that old information already? I thought the capital raising had already started?
Profit takers will predominate over the next few days I would expect. There has been great volume and one would hope that most of the new buyers will hang around for a while. It would be tempting for some to get out as great profits would have been made by some. I am up +200% at the moment. Am I tempted to get out? No way... there is too much potential in this little gem.
Hi guys, I am a new investor in MEE (bought in today).
You guys are right, this is a little gem waiting to flourish into a great company in the near future. Great to be aboard.
Yes, the share price will be up and down for a while with the traders hoping on and off but for us....Long term....is the way to go.
Do you guys know much about Linc Energy also?
You guys are right, this is a little gem waiting to flourish into a great company in the near future. Great to be aboard.
Yes, the share price will be up and down for a while with the traders hoping on and off but for us....Long term....is the way to go.
Do you guys know much about Linc Energy also?
Linc is undertaking UCG (coal gasification) and GTL (gas to liquid).
The Russians are the UCG experts, and the South Africans are the GTL experts.
By combinining the two technologies this co. will produce Diesel. Hence the name "Linc" energy.
The project near Chinchilla, Qld (practically next to Kogan Power Station) "Capowie" on Kummerows Road is a demonstration project that will be commissioned in the next month.
The commercialisation of the project will occur over the next few years once the demonstration project proves successful. Which it will.
Linc also has an interest in South Australia with Sapex. I will let you look in to that.
Peter Bond the MD is a 60+% share holder hence the co. will be impossible to takeover unless he sells. Very unlikely.
Denis Kruger is the site manager and worked previously at Wilkie Creek coal mine.
The sp has risen many fold in the last twelve months and for good reason.
Full commercialisation at Chinchilla will achieve in excess of 20,000 barrels/day (160L barrel = 1 bbl). The demonstration project will only do 10 bbl a day. There is over 400m tons of coal for this project.
Based on 20,000 bbl/day = 7m barrels/yr. And based on the 400m ton of coal there is capacity for over 655m bbl.
Current Australian Diesel production was only circa 85m bbl in 2006, hence LNC could produce nearly 10% of Australian diesel production per year. I think diesel is now over US$60/bbl....You do the maths.
These figures are only on Capowie. As I said check out Sapex coal tenements and what coal they have and you begin to see how much clean diesel this co. will be producing in ten years time.
To become a very valuable co.
Recommendation: Buy lots.
PS - I also own MEE but Linc has the wood on it.
You seem to know your stuff, but I thought that LNC only had 300million tonnes of coal in its 14 tenements. Feel free to correct me if im wrong. The SP in my opinion is good value at the moment for LNC. Unfortunately i'm out of capital!
As for MEE, I am expecting it to go up today purely because it went down yesterday. Once the profit takers offload a bit then we can see some further positive growth.
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