MMC - Marengo Mining

[UPKA]

Re: MGO - Marengo Mining

Looks like the prediction of 600+mt of copper was close to the actual report, but has the market taken the prediction into the SP? The SP is indeed undervalued, but it's only the beginning, it'll be a while be4 the full production starts. So its only the first step of many. Lets see how the market will react tomorrow morning!

 

[chicken8]

Re: MGO - Marengo Mining

Whats everyone predicting the price to get to tomorrow?

I had hoped for 50c about 2 weeks ago but now I think I might let myself be a bit more optimistic?

 

[Ruprect]

Re: MGO - Marengo Mining

I think the key point is that MGO had previously been hoping to increase the resource from 371 million tonnes to around 500 million tonnes. (See presentation from Les Emery in London a couple of months back, "our expectation is to see that number sitting at around around 500 million tonnes")

So the increase to 660 million tonnes is a big difference from what they were hoping for this time. They have also said that they are trying to increase the resource to 1 billion tonnes. JORC indicated resource is 163 million tonnes, and JORC inferred resource is 497 million tonnes.

An even better point is that resource estimate is copper and molybdenum only. That is, the reource also contains gold, silver and rhenium, but this has not been included in the resource estimate to date. These other metals are obviously a bonus.

Some positive points for the future:

- Continuing drilling to increase the resource, may provide another update later this year
- 40% institutional holding
- Pre feasibility study expected to be completed late June
- Moving toward bankable feasibility study soon after
- $8.5 million cash at hand, options should bring in $10million + early 2008
- Market cap only $44 million
- Expected to dual list either in Toronto or London later in the year
- Been conducting forums in London, Sydney and Canada

Thats not an exhaustive list, there is obviously more. And the Yanderra project is not the only one they are involved with.

I think this is a long termer for me, i like what this company are doing, and i am quite impressed with the management. Just my opinion, please DYOR.

 

[YOUNG_TRADER]

Re: MGO - Marengo Mining

With a surging copper price and an already impressive JORC and a tiny market cap I like the look of MGO,

I read that a new JORC is due out soon, so I'd say in the next 4 weeks I'd expect MGO to test 40c +

And so it did

Will certainly be interesting to see how this goes, considering I was one of the lonely ones supporting it 1-2months ago when the SP was 20c and the opies were 6-7c, I hope lots of ASF peeps were able to get onboard at those levels,

I have sold all of my holding and switched into FNT which is also due to release a new JORC in 2weeks or less, will look to getting back in on MGO once the dust settles in a month or two


Company definately has long term potential but not sure how far it will run tomorrow, will watch and see

 

[surfingman]

Re: MGO - Marengo Mining

Updated resource totalling 660Mt at 0.48% Copper Equivalent (2.9Mt or 6.3 billion pounds of estimated recoverable copper metal equivalent), representing a 78% increase on the previously announced resource tonnes.
Includes an Indicated Resource of 163Mt at 0.49% Copper Equivalent, within the Gremi Zone, with the balance of 497 Mt at 0.48% Copper Equivalent as an Inferred Resource.
Potential for “starter pit” identified at Gremi based on higher-grade, near-surface mineralisation.
Yandera Pre-Feasibility Study progressing well, with current activities focused on optimisation of the conceptual Yandera “starter” open pit.

 

[Sean K]

Re: MGO - Marengo Mining

Looks like it's going to open up at over 42 cents at the moment. Will be very interesting to see how it pans out during the day. Surplus in the bid at the moment. Too early to tell perhaps. Got a mention in the Fin this am so there will be more interest I think.

Well done again YT!

 

[UPKA]

Re: MGO - Marengo Mining

looks like the SP be4 the trading halt has reflected the prediction of 600mt resources, so the result was within expectation, only marginally higher. so the price didn't spike as much as i would've liked it to.

 

[YOUNG_TRADER]

Re: MGO - Marengo Mining

looks like the SP be4 the trading halt has reflected the prediction of 600mt resources, so the result was within expectation, only marginally higher. so the price didn't spike as much as i would've liked it to.

Yeah but thats why you should get on board early before the SP runs, now MGO is a good long term hold but I think it'll be quiet on the news front and may drift a little,

Remember its up well over 100% in say 30 days,

 

[Fool]

Re: MGO - Marengo Mining

Based on it opening at 52.5c and current offers at 43c (~20%), I would say the current share price has at least 10% swing in it left, maybe even another 20%.

It definitely would look to still be a reasonable entry point, especially if you are going to hold it.

 

[Ruprect]

Re: MGO - Marengo Mining

Based on it opening at 52.5c and current offers at 43c (~20%), I would say the current share price has at least 10% swing in it left, maybe even another 20%.

It definitely would look to still be a reasonable entry point, especially if you are going to hold it.

Agreed. I would expect some press interest in this announcement, as well as the interest that will no doubt be created by Marengo giving their presentation in Toronto this week.

Its a long term hold, pre feas study will be completed by the end of june, followed by the move toward a bankable feas study and listing in either toronto or london toward the end of the year. And i wouldnt rule out another upgrade to the resource this year, with a movement of some more of the JORC inferred to JORC indicated.

At this point, excluding gold and silver etc, the JORC indicated or inferred inground value is around 28 billion dollars Australian. That is massive. And according to Marengo, its likely to grow even further. Not bad for a company with a market cap of around 40 something million.

A good entry for MGO might be the options (MGOO) at the moment, trading at only a 1cent premium to the sp, close 26c, sp close 45c. Ex price 20c, Feb 08. I think the options have traded at between a 2 and 4 cent premium over the last month. And there is a decent lead time when considering what is to come for the rest of this year. Just my opinion.

 

[vert]

Re: MGO - Marengo Mining

was wondering if anyone has done a comparison to cdu yet? im no where near expericed enough to work it out but from reading through ann re:cdu all morning, basically cdu have better grades low tonnes and mgo have lower grades huge tonnage. which is better ? if mgo should the sp reflect that a bit higher seeing cdu is 3.30 and has been alot higher.

 

[chicken8]

Re: MGO - Marengo Mining

mgo broke my heart

is it just me or does 42c seem a bit too low for mgo right now?

whats everyones predictions for the upcoming week? will mgo go up to the high 40s low 50s mark again?

 

[Sean K]

Re: MGO - Marengo Mining

mgo broke my heart

is it just me or does 42c seem a bit too low for mgo right now?

whats everyones predictions for the upcoming week? will mgo go up to the high 40s low 50s mark again?

Chicken8, we don't do 'predictions' at ASF. We call it a valuation, or price target. No one should be giving any 'predictions' here. Please, anyone coming up with a price target, attempt some FA or TA to justify your price. Thanks!

 

[Ruprect]

Re: MGO - Marengo Mining

Nice little mention in The Australian on the weekend. MGO retreated Thursday and Friday, probably some profit takers and no doubt a reaction to the decline in global markets and commodity prices. The confidence on Wall Street on Friday in addition to the recovery in commodities should prove positive for MGO. I would think a slow steady rise should be in order for Marengo, with the pre feasibility next month, followed by bankable and listing in Toronto and London later in the year. And im quietly expecting yet another upgrade this year.

Marengo upgrades (The Australian 26 May)

GIVEN that Marengo Mining (MGO) has claimed its Yandera project in Papua New Guinea is the biggest copper-molybdenum porphyry system in the southwest Pacific, a resource upgrade of some 78 per cent shouldn't come as a shock given the early stages of the resource definition. Marengo has improved the inferred and indicated resource out to 660 million tonnes with a 0.48 per cent copper equivalent using a 0.3 per cent copper equivalent cut-off grade. It comes after a 40km diamond drill campaign last year, but also uses data from BHP Billiton and Kennecott, which had previously worked the Yandera region. Importantly, most of the resource was upgraded from the identified inventory into the inferred resource category. The resource calculation gives the project 4.5 billion pounds of copper and 180 million pounds of molybdenum. The Yandera structure contains eight discrete zones.

 

[chicken8]

Re: MGO - Marengo Mining

can someone please explain why Marengo is at 33.5c at the moment?

i can't work it out. how undervalued is this share?

your thoughts?

 

[Pat]

Re: MGO - Marengo Mining

can someone please explain why Marengo is at 33.5c at the moment?

i can't work it out. how undervalued is this share?

your thoughts?

Well, You'll always great opportunities to buy and sell, this could be one of those.
IMO it was screaming buy at 33.5 cents, now no sellers under 37 cents. Might just bounce and make you smile chicken8. I wish I had some spare cash left.

 

[chicken8]

Re: MGO - Marengo Mining

even at 34.5c at closing today it would be a good buy

this price is lower than the sp the day that MGO got halted pending an announcement a week ago.

hard to imagine that the sp now, after a favorable announcement, is lower than the sp prior to the announcement

 

[Ruprect]

Re: MGO - Marengo Mining

No, it doesnt make a lot of sense, but then again, the market often doesnt!

Funny that the announcement came in well above expectations, 660mt instead of 500mt yet the sp falls.

They have an inground resource valued around $28 billion. At least. And that doesnt include gold! With a further upgrade, this will push into the $30+ billion zone. It would be a major challenge to find another resource as massive as this.

Hold for a while imo, this should come good again. Ive topped up on options with whatever cash i could find. Its a punt, but i think a calculated one.

 

[chicken8]

Re: MGO - Marengo Mining

the resource upgrade was based on the october report from 06

the sp was 27c at the time

so even if you worked out 27c + the 78% increase you get 48c

 

[chicken8]

Re: MGO - Marengo Mining

i know this isn't how you're meant to calculate it

but watching the sp drop 5% a day for the last 5 days has been depressing