MMC - Marengo Mining
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Re: MGO - Marengo Mining
I'm not sure if the pre feasibility will make a difference on the share price. Perhaps Ruprect or Kennas might know. As long as it allows MGO to move onto the next step which is the Feasibility Study. Perhaps they will release an updated resource figure a the same time. Also they might make a start on the bolubolu gold project.
I'm not sure if the pre feasibility will make a difference on the share price. Perhaps Ruprect or Kennas might know. As long as it allows MGO to move onto the next step which is the Feasibility Study. Perhaps they will release an updated resource figure a the same time. Also they might make a start on the bolubolu gold project.
Re: MGO - Marengo Mining
A completed pre feas should be good news for MGO, and it has good potential to have a positive affect on the share price. Im not sure if we will get an updated resource at that time, although i do expect one in the not to distant future, with an upgrade as well as movement of more resource from inferred to indicated.
I think what we have seen with FNT in the last couple of days is that people, and a lot of traders, are warming to the PNG story.
The size of the resource, $28 billion in situ, in conjuction with completion of pre feas, updated resource this year, listing on AIM or TSX and move toward bankable feas early next year should all help to create a re rating in the medium term for MGO.
In addition, the extensive appetite for base metals by the chinese and now south koreans might lead to speculation of an aquistion. This has already been referred to in the Fin Review regarding MGO.
A completed pre feas should be good news for MGO, and it has good potential to have a positive affect on the share price. Im not sure if we will get an updated resource at that time, although i do expect one in the not to distant future, with an upgrade as well as movement of more resource from inferred to indicated.
I think what we have seen with FNT in the last couple of days is that people, and a lot of traders, are warming to the PNG story.
The size of the resource, $28 billion in situ, in conjuction with completion of pre feas, updated resource this year, listing on AIM or TSX and move toward bankable feas early next year should all help to create a re rating in the medium term for MGO.
In addition, the extensive appetite for base metals by the chinese and now south koreans might lead to speculation of an aquistion. This has already been referred to in the Fin Review regarding MGO.
Re: MGO - Marengo Mining
I wonder if it's neighbour China Metallurgical Construction Corp at the Ramu prospect will come into the picture? Not sure how much money they have left as they are constructing the mine atm. Also not sure if Highland Pacific are paying for any of it.
I wonder if it's neighbour China Metallurgical Construction Corp at the Ramu prospect will come into the picture? Not sure how much money they have left as they are constructing the mine atm. Also not sure if Highland Pacific are paying for any of it.
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Re: MGO - Marengo Mining
I guess this should be approaching soon. Hopefully before 30 June - rose again to 38c after spending time at 34-35c for much of the past 2 weeks.
Cheers
Duckman
I guess this should be approaching soon. Hopefully before 30 June - rose again to 38c after spending time at 34-35c for much of the past 2 weeks.
Cheers
Duckman
Re: MGO - Marengo Mining
Thought id get this one going again.
After consolidating around the 33-34c mark, the sp has steadily increased in the last 2 weeks, on relatively light volume.
The pre feasibility study should be out very soon, MGO had suggested mid year which is now, and they have been very good at keeping the market informed in the past.
The sell side is very thin and buyers are growing. If the pre feas is good, we could see some fast movement here as we move toward bankable feas and listing on TSX or AIM. Keep in mind the massive in situ JORC indicated and inferred resource, closing on $30 billion AUD.
Thought id get this one going again.
After consolidating around the 33-34c mark, the sp has steadily increased in the last 2 weeks, on relatively light volume.
The pre feasibility study should be out very soon, MGO had suggested mid year which is now, and they have been very good at keeping the market informed in the past.
The sell side is very thin and buyers are growing. If the pre feas is good, we could see some fast movement here as we move toward bankable feas and listing on TSX or AIM. Keep in mind the massive in situ JORC indicated and inferred resource, closing on $30 billion AUD.
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Re: MGO - Marengo Mining
Yes - I've been waiting and watching this one keenly.
Hopefully the announcement will be through soon.
Duckman
Yes - I've been waiting and watching this one keenly.
Hopefully the announcement will be through soon.
Duckman
Re: MGO - Marengo Mining
yeah, its a nice move, albeit on low volume. But its hitting the mark of where it was pre announcement. Theres not a huge amount of sellers leading up to the 50c mark, and i wouldnt think they would last long with a good pre feas announcement, which cant be very far away at all. Still trying to get my head around the fact that MGO is only a 50mil market cap with an in situ resource closing on $30 billion aud.
Options here (MGOO) look to be a very good opportunity today, trading at a 3c discount to the heads. Should really be the other way around. (20c ex, Feb 08)
yeah, its a nice move, albeit on low volume. But its hitting the mark of where it was pre announcement. Theres not a huge amount of sellers leading up to the 50c mark, and i wouldnt think they would last long with a good pre feas announcement, which cant be very far away at all. Still trying to get my head around the fact that MGO is only a 50mil market cap with an in situ resource closing on $30 billion aud.
Options here (MGOO) look to be a very good opportunity today, trading at a 3c discount to the heads. Should really be the other way around. (20c ex, Feb 08)
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Re: MGO - Marengo Mining
Marengo's value doesn't surprise me. Add up the capital costs of mining this resource- railwayline across mountains, port facilities , labour- most of the technical admin will be sourced from OS and given its location they will have to pay very well and house them in a very secure compound, environmental issues (Ok tedi) and the list goes on. It will take a good sized midcap miner to get this going and to be able to raise the funds required. Then there is the time required to get this all in place. I'm sure this has been discussed before but we are loooking at billions not millions to get this going
add it up invest - now and wait until 2010-12 before you see a dividend.
day traders they can come and go on this stock. recom-buy a small position as they say and put it in the bottom draw
Marengo's value doesn't surprise me. Add up the capital costs of mining this resource- railwayline across mountains, port facilities , labour- most of the technical admin will be sourced from OS and given its location they will have to pay very well and house them in a very secure compound, environmental issues (Ok tedi) and the list goes on. It will take a good sized midcap miner to get this going and to be able to raise the funds required. Then there is the time required to get this all in place. I'm sure this has been discussed before but we are loooking at billions not millions to get this going
add it up invest - now and wait until 2010-12 before you see a dividend.
day traders they can come and go on this stock. recom-buy a small position as they say and put it in the bottom draw
Re: MGO - Marengo Mining
Announcement out after close today. $12.5million capital raising, specifically targetted at north american investors. Will be issuing a prospectus in Canada later in the year for a probable listing on TSX. Good news. I note that the placement will close on August 1, and will be priced "in the context of the market". With the pre feas out soon, we might see a re rating here very soon, leading to a lot less dilution than at current prices.
Marengo Mining Limited (ASX: MGO) (“Marengo” or the “Company”) is pleased to announce that it will move to raise up to A$12.5 million, by placing new fully paid ordinary shares. Marengo has engaged Paradigm Capital Inc. (“Paradigm”) of Toronto, Canada to arrange to place a portion of these shares with North American investors.
The placement will be on a best efforts basis to investors and will be priced in the context of the market.
The equity raising is being made to North American and other international, institutional investors, and in addition to Australian investors. The introduction of these overseas investors to the Company’s share register at this time is expected to facilitate interest in Marengo ahead of a planned prospectus filing in Canada later in 2007, for which Marengo is also pleased to announce that Paradigm has been engaged to act as the Company’s exclusive lead agent.
A General Meeting is to be held on or around 22 August 2007 at which Marengo will seek approval from its shareholders to issue that part of the placement that exceeds the 15% maximum automatically available to Marengo under Australian Securities Exchange Listing Rules.
The placement is expected to close on or around August 1st and funds raised will be used to advance work at the Company’s 100% owned Yandera copper-molybdenum project in Papua New Guinea, and for general corporate purposes.
Announcement out after close today. $12.5million capital raising, specifically targetted at north american investors. Will be issuing a prospectus in Canada later in the year for a probable listing on TSX. Good news. I note that the placement will close on August 1, and will be priced "in the context of the market". With the pre feas out soon, we might see a re rating here very soon, leading to a lot less dilution than at current prices.
Marengo Mining Limited (ASX: MGO) (“Marengo” or the “Company”) is pleased to announce that it will move to raise up to A$12.5 million, by placing new fully paid ordinary shares. Marengo has engaged Paradigm Capital Inc. (“Paradigm”) of Toronto, Canada to arrange to place a portion of these shares with North American investors.
The placement will be on a best efforts basis to investors and will be priced in the context of the market.
The equity raising is being made to North American and other international, institutional investors, and in addition to Australian investors. The introduction of these overseas investors to the Company’s share register at this time is expected to facilitate interest in Marengo ahead of a planned prospectus filing in Canada later in 2007, for which Marengo is also pleased to announce that Paradigm has been engaged to act as the Company’s exclusive lead agent.
A General Meeting is to be held on or around 22 August 2007 at which Marengo will seek approval from its shareholders to issue that part of the placement that exceeds the 15% maximum automatically available to Marengo under Australian Securities Exchange Listing Rules.
The placement is expected to close on or around August 1st and funds raised will be used to advance work at the Company’s 100% owned Yandera copper-molybdenum project in Papua New Guinea, and for general corporate purposes.
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Re: MGO - Marengo Mining
Ruprect. thanks for the post
i didn't check after closing today
can you tell me what this all means in terms of sp for the company?
because the capital raising is to be done in another market i'm guessing this will not cause the ASX MGO sp to go south?
please correct me if im mistaken
Ruprect. thanks for the post
i didn't check after closing today
can you tell me what this all means in terms of sp for the company?
because the capital raising is to be done in another market i'm guessing this will not cause the ASX MGO sp to go south?
please correct me if im mistaken
Re: MGO - Marengo Mining
No worries.
The first capital raising, the 12.5 mil placement will be on the ASX. So if we consider 12.5million x around .40c per share, we could expect another 31,250,000 shares added to MGO. Thats the worse case scenario, based on full subscription at a price around 40c. I expect it to be fully subscribed, but if a re rating occurs in the next few weeks with a pre feas, we could be talking about a lot less of a dilution because of higher sp. Either way, with only 127m shares currently on offer, the first scenario it would take it up to only about 158m.
Now because it is a share placement designed specifically to advance work at the Yanderra project, it shouldnt have a downward affect on the sp at all. This is because there is a direct benefit in the short term. Market Cap increases, but so does cash at hand for a purpose, at about the same amount. I guess we need to take into account that MGO had about 9mil in the bank as at their 3rd quarterly, this would take them over 20mil. Therefore, this money is enough to aggressively pursue the Yanderra project. Thus, we might be right in assuming that the pre feas is good.
Therefore, the placement is not to be used mainly for ongoing operations of the company, but rather to pursue their project.
The TSX listing later in the year, will raise funds, likely in line with the sp on the ASX, but the prospectus will indicate that the funds will be used for a bankable feasibility.
Without a JV partner, these are the steps that a small producer has to complete to make the moves toward production.
Therefore, a dilution in both these instances can only have a positive affect on the sp in the long term imo.
No worries.
The first capital raising, the 12.5 mil placement will be on the ASX. So if we consider 12.5million x around .40c per share, we could expect another 31,250,000 shares added to MGO. Thats the worse case scenario, based on full subscription at a price around 40c. I expect it to be fully subscribed, but if a re rating occurs in the next few weeks with a pre feas, we could be talking about a lot less of a dilution because of higher sp. Either way, with only 127m shares currently on offer, the first scenario it would take it up to only about 158m.
Now because it is a share placement designed specifically to advance work at the Yanderra project, it shouldnt have a downward affect on the sp at all. This is because there is a direct benefit in the short term. Market Cap increases, but so does cash at hand for a purpose, at about the same amount. I guess we need to take into account that MGO had about 9mil in the bank as at their 3rd quarterly, this would take them over 20mil. Therefore, this money is enough to aggressively pursue the Yanderra project. Thus, we might be right in assuming that the pre feas is good.
Therefore, the placement is not to be used mainly for ongoing operations of the company, but rather to pursue their project.
The TSX listing later in the year, will raise funds, likely in line with the sp on the ASX, but the prospectus will indicate that the funds will be used for a bankable feasibility.
Without a JV partner, these are the steps that a small producer has to complete to make the moves toward production.
Therefore, a dilution in both these instances can only have a positive affect on the sp in the long term imo.
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Re: MGO - Marengo Mining
Thanks for that summary and your thoughts Ruprect.
The pre-feasibility results are much anticipated ....and yes, I agree that things are looking very promising.
Thanks for that summary and your thoughts Ruprect.
The pre-feasibility results are much anticipated ....and yes, I agree that things are looking very promising.
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Re: MGO - Marengo Mining
Hi All
In the latest Eureka Report, financial reporter Tim Treadgold made positive mention of Marengo. The subtitle of his article was - If the big boys tie up the aluminium game, the smart money will look to copper and iron ore. Obviously referring to BHP and RIO.
At the very end of his piece he writes:
"it would be a wise investor who dusts off their files on stocks that offer these attributes:
Direct exposure to existing copper and iron ore assets or,
Large undeveloped resources in the ground that bigger companies want to buy"
He then proceeds to mention Equinox, Anvil, Aditya Birla before adding...
"Further down the food chain, but with big undeveloped copper resources, are stocks such as Marengo Mining, an often overlooked explorer with its foot in the world class Yandera copper project in PNG."
Nothing we didn't know but good to see that it is getting some coverage all the same.
Cheers
Duckman
Hi All
In the latest Eureka Report, financial reporter Tim Treadgold made positive mention of Marengo. The subtitle of his article was - If the big boys tie up the aluminium game, the smart money will look to copper and iron ore. Obviously referring to BHP and RIO.
At the very end of his piece he writes:
"it would be a wise investor who dusts off their files on stocks that offer these attributes:
Direct exposure to existing copper and iron ore assets or,
Large undeveloped resources in the ground that bigger companies want to buy"
He then proceeds to mention Equinox, Anvil, Aditya Birla before adding...
"Further down the food chain, but with big undeveloped copper resources, are stocks such as Marengo Mining, an often overlooked explorer with its foot in the world class Yandera copper project in PNG."
Nothing we didn't know but good to see that it is getting some coverage all the same.
Cheers
Duckman
Re: MGO - Marengo Mining
Thanks for the update duckman. I think the only time for ppl to take notice on MGO is when they r close to production or put a $$ figure on their production. ur average investors wouldnt have a clue how big their potential is, and BHP dont seem to be interested in the area, because they did explore the same area 20yrs ago, so they know that there r minerals there.
Thanks for the update duckman. I think the only time for ppl to take notice on MGO is when they r close to production or put a $$ figure on their production. ur average investors wouldnt have a clue how big their potential is, and BHP dont seem to be interested in the area, because they did explore the same area 20yrs ago, so they know that there r minerals there.
Re: MGO - Marengo Mining
Exciting article especially the quote "To put Yandera into perspective, output at that rate (100,000 tonnes of copper) would make it one of the world’s biggest copper mines, not just one of the biggest in Australia or PNG.
Still extremely undervalued - bring on the rest of the week.
Marengo Mining Gets Set To Unveil Its Yandera Feasibility
By Our Man In Oz
Les Emery is the first admit that he has got a tiger by the tail. But, he’s also in no doubt that he can tame the tiger which is the potentially giant Yandera copper project in Papua New Guinea. If all goes to plan, Marengo Mining, the small Australian-based company which Emery runs, will convert Yandera from a concept in the remote and rugged highlands of PNG into a mine producing 100,000 tonnes of copper a year. To put Yandera into perspective, output at that rate would make it one of the world’s biggest copper mines, not just one of the biggest in Australia or PNG. In about a week, Marengo will be saying a lot more about its plans for Yandera with the release of a keenly-awaited pre-feasibility study.
When Minesite caught up with Emery in his Perth office earlier this week he was quietly confident, but also very frank in discussing that challenge which lies ahead. “We know it’s a big project,” he said. “And we know what people mean they say it’s too big for Marengo. But our answer to that is that it might be too big for the Marengo you see today, but not too big for the one we’re growing.”
Investors, who had been cautious in their treatment of Marengo over the past year are slowly returning to the stock. Between late April and late May Marengo was a star, more than doubling in price from A26 cents on April 26 to A52.5 cents on May 23. Since hitting that 12-month price high Marengo has eased back but at A40 cents the company is only capitalised at an unchallenging A$50 million.
The next test, will come in the third week of July, the time nominated by Emery as the release date of the pre-feasibility study. With the big event so close he was naturally hesitant to give too much away to Minesite. However, he did say that all of the numbers were in, and the job at hand now was “writing up” the document. “The numbers look good,” he said. “And we’ve been pretty rigorous with our copper and molybdenum price assumptions. Copper has been factored in at US$1.50 a pounds (versus the current price of around US$3.60). We’ve made a similar cut in the price of moly which is shaping as a very valuable by-product for the development.”
Questions such as the likely capital cost are taken on notice by Emery, but it’s unlikely that a mine based on a Joint Ore Reserves Committee (JORC) resource of a whopping 660 million tonnes assaying 0.48 per cent of copper equivalent (copper and moly) is going to be developed for less than US$1 billion. To hit the production target of 100,000 tonnes of copper a year implies a massive mining and processing operation of low-grade material. All that Emery is prepared to say ahead of the release of the study is that Marengo has been busy recruiting staff, and that the earliest likely production start-up is 2011, or 2012. “It will be a big development, but we are talking about a project which will have a start-up life of at least 10 years, and more than likely last 20-to-30 years,” he said.
While the numbers are crunched in Emery’s office work at site is accelerating, and plans laid for future fund raising, most probably in North America rather than London – continuing a trend by Australian miners to by-pass the U.K. “We’ve got two rigs on site now, a third on the way, and perhaps one more to come,” he said. “The results we’re obtaining continue to justify our enthusiasm for the project.” Just how big Yandera is already (and remember it’s virtually certain to continue growing) is shown in the 660 million tonnes of 0.48 per cent material but, more importantly, in the fact that when boiled down all that dirt contains 2.9 million tonnes, or 6.3 billion pounds, of copper – a 78 per cent boost on the previous resource estimate.
As no-one doubts that Yandera contains a big pile of copper the next step for Marengo will be funding, and that almost certainly means Emery will be spending much of the rest of 2007 in Canada and the U.S. “The level of interest in London has waned,” he said. “There is a small group of active institutional investors, and you can raise the money you need in London, but you really don’t create a new market for the stock. Certainly, there’s no retail component, whereas in Canada you’ve got the best of both worlds. Very deep institutional pockets and a broad retail market.”
Emery’s view is that London hasn’t gone cold on mining, just going through a cool patch. “They’ve had few problems with questionable companies working in Eastern Europe and other difficult places,” he said. “The other problem is that there really aren’t many analysts following the sector. You can probably count the number of minig analysts in London on one hand, whereas in Toronto alone I’m told there are 65 resource analysts, which is more than the whole of Australia.”
Exciting article especially the quote "To put Yandera into perspective, output at that rate (100,000 tonnes of copper) would make it one of the world’s biggest copper mines, not just one of the biggest in Australia or PNG.
Still extremely undervalued - bring on the rest of the week.
Marengo Mining Gets Set To Unveil Its Yandera Feasibility
By Our Man In Oz
Les Emery is the first admit that he has got a tiger by the tail. But, he’s also in no doubt that he can tame the tiger which is the potentially giant Yandera copper project in Papua New Guinea. If all goes to plan, Marengo Mining, the small Australian-based company which Emery runs, will convert Yandera from a concept in the remote and rugged highlands of PNG into a mine producing 100,000 tonnes of copper a year. To put Yandera into perspective, output at that rate would make it one of the world’s biggest copper mines, not just one of the biggest in Australia or PNG. In about a week, Marengo will be saying a lot more about its plans for Yandera with the release of a keenly-awaited pre-feasibility study.
When Minesite caught up with Emery in his Perth office earlier this week he was quietly confident, but also very frank in discussing that challenge which lies ahead. “We know it’s a big project,” he said. “And we know what people mean they say it’s too big for Marengo. But our answer to that is that it might be too big for the Marengo you see today, but not too big for the one we’re growing.”
Investors, who had been cautious in their treatment of Marengo over the past year are slowly returning to the stock. Between late April and late May Marengo was a star, more than doubling in price from A26 cents on April 26 to A52.5 cents on May 23. Since hitting that 12-month price high Marengo has eased back but at A40 cents the company is only capitalised at an unchallenging A$50 million.
The next test, will come in the third week of July, the time nominated by Emery as the release date of the pre-feasibility study. With the big event so close he was naturally hesitant to give too much away to Minesite. However, he did say that all of the numbers were in, and the job at hand now was “writing up” the document. “The numbers look good,” he said. “And we’ve been pretty rigorous with our copper and molybdenum price assumptions. Copper has been factored in at US$1.50 a pounds (versus the current price of around US$3.60). We’ve made a similar cut in the price of moly which is shaping as a very valuable by-product for the development.”
Questions such as the likely capital cost are taken on notice by Emery, but it’s unlikely that a mine based on a Joint Ore Reserves Committee (JORC) resource of a whopping 660 million tonnes assaying 0.48 per cent of copper equivalent (copper and moly) is going to be developed for less than US$1 billion. To hit the production target of 100,000 tonnes of copper a year implies a massive mining and processing operation of low-grade material. All that Emery is prepared to say ahead of the release of the study is that Marengo has been busy recruiting staff, and that the earliest likely production start-up is 2011, or 2012. “It will be a big development, but we are talking about a project which will have a start-up life of at least 10 years, and more than likely last 20-to-30 years,” he said.
While the numbers are crunched in Emery’s office work at site is accelerating, and plans laid for future fund raising, most probably in North America rather than London – continuing a trend by Australian miners to by-pass the U.K. “We’ve got two rigs on site now, a third on the way, and perhaps one more to come,” he said. “The results we’re obtaining continue to justify our enthusiasm for the project.” Just how big Yandera is already (and remember it’s virtually certain to continue growing) is shown in the 660 million tonnes of 0.48 per cent material but, more importantly, in the fact that when boiled down all that dirt contains 2.9 million tonnes, or 6.3 billion pounds, of copper – a 78 per cent boost on the previous resource estimate.
As no-one doubts that Yandera contains a big pile of copper the next step for Marengo will be funding, and that almost certainly means Emery will be spending much of the rest of 2007 in Canada and the U.S. “The level of interest in London has waned,” he said. “There is a small group of active institutional investors, and you can raise the money you need in London, but you really don’t create a new market for the stock. Certainly, there’s no retail component, whereas in Canada you’ve got the best of both worlds. Very deep institutional pockets and a broad retail market.”
Emery’s view is that London hasn’t gone cold on mining, just going through a cool patch. “They’ve had few problems with questionable companies working in Eastern Europe and other difficult places,” he said. “The other problem is that there really aren’t many analysts following the sector. You can probably count the number of minig analysts in London on one hand, whereas in Toronto alone I’m told there are 65 resource analysts, which is more than the whole of Australia.”
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Re: MGO - Marengo Mining
Hi folks,
MGO ... will be alert for a positive spotlight on Marengo,
around 19-20072007, as a significant and positive time
cycle comes into play ...
happy days
paul
=====
Hi folks,
MGO ... will be alert for a positive spotlight on Marengo,
around 19-20072007, as a significant and positive time
cycle comes into play ...
happy days
paul
=====
