MRE - Minara Resources

[Realist]

$3.93 now, I've made about 70% in 3 months wow.

The rumour is Glencore a Pommy company who own 40% of MRE are thinking of taking over the rest of MRE - hence the price keeps going up.

MRE is trading at a PER of 12 to FY07 earnings. Which is higher than competitors who are tradign at 10.

Future earnings are predictions and as such are just as likely to be wrong as they are right. MRE has alot of cash, is well run, over most of its problems, Nickle is strong and staying strong, and the current earnings of $200M+ per year is phenomenal. And the current PER is low.

I see no reason to sell yet.

 

[CanOz]

To me, MRE looks to be a very strong uptrend and starting another wave up. I can see you making allot more on this one Realist.

If metals continue strong then it will do well. I would still expect some corrective move in October though.

Cheers,

 

[michael_selway]

$3.93 now, I've made about 70% in 3 months wow.

The rumour is Glencore a Pommy company who own 40% of MRE are thinking of taking over the rest of MRE - hence the price keeps going up.

MRE is trading at a PER of 12 to FY07 earnings. Which is higher than competitors who are tradign at 10.

Future earnings are predictions and as such are just as likely to be wrong as they are right. MRE has alot of cash, is well run, over most of its problems, Nickle is strong and staying strong, and the current earnings of $200M+ per year is phenomenal. And the current PER is low.

I see no reason to sell yet.

Well it is the best leveraged Nickel play imo

Price is more than right for Minara

Date: 5/9/2006
Author: Jo Clarke
Source: The Australian Financial Review --- Page: 20

The performance of Australian nickel miner, Minara Resources, in the 2006 first half far exceeded expectations. It reported a net profit for the six months of $A100.7 million. This compares with just $A16.5 million for the same period the previous year. Minara's only asset is the Murrin Murrin nickel laterite project, which has been problematic and remains risky. The sole reason for its stellar result is the rising price of nickel. It reached $US3,000 a tonne in late August. Analysts expect the price to continue to rise unless there is a slowdown in the global economy

Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2008
EPS 12.8 56.8 39.3 28.4
DPS 10.0 26.3 20.0 12.0

EPS(c) PE Growth
Year Ending 30-12-06 56.8 6.7 343.8%
Year Ending 30-12-07 39.3 9.7 -30.8%

thx

MS

 

[rederob]

To me, MRE looks to be a very strong uptrend and starting another wave up. I can see you making allot more on this one Realist.

If metals continue strong then it will do well. I would still expect some corrective move in October though.

Cheers,

Profit takers moved in and sold this stock down in recent days.
Get ready to jump back on for next ride north.
Almost hit first line of support at $3.81 but bounced at $3.82 instead.
I have a bid to buy more at $3.50 and do not intend to chase it at a higher price (just yet).
My firm view is that in 2007 MRE will be unlikely to trade below $4 - principally because it will have a dividend that keeps it higher for longer.

 

[rederob]

MRE announced cash on hand at $177m at end of quarter, and record output from Murrin Murrin.
The next dividend is looking to be much greater than the 12.5cents (total of $58m) paid on 22 Sept to stock holders.

 

[Realist]

MRE has now more than doubled since I bought it, someone please convince me not to sell, I am getting more and more tempted...

 

[johnmwu3]

China stainless steel production up 40% compared to same time last year, and more project are being in construction.
So Ni will be very tight next year.

 

[CanOz]

MRE has now more than doubled since I bought it, someone please convince me not to sell, I am getting more and more tempted...

I still reckon its got more upside yet. Into its third wave up now, may see a pause again soon Realist but if i had it, i'd be tempted to hold onto it at least until you saw the trend reverse.

Good luck.

 

[rederob]

I did not sell MRE as it missed my price target from 1 September.
I will "hold" a bit longer as I can see $4.50 being reached in a few months.
Nickel inventories remain very tight and the $30k figure that used to be seen as a bogey, is now just seen as "fair".
Stainless producers have ramped up prices throughout this year, meaning the extra premium on nickel purchases is gradually being accommodated.

Looks like I was too conservative again!
$6 now looking increasingly more obvious as the days roll on.
One I will sit back and relax on rather than try and time a sale as who knows where nickel is headed in coming months - new record highs already broken this month.

 

[Freeballinginawetsuit]

Looks like I was too conservative again!
$6 now looking increasingly more obvious as the days roll on.
One I will sit back and relax on rather than try and time a sale as who knows where nickel is headed in coming months - new record highs already broken this month.

Maybe it could be time to take your profits, seems overpriced at the moment considering its peers.
MRE still has a history of problems with the Murin Murin Plant, top heavy on costs and totally unhedged. Lots of maybe's and its not exactly as if their history wasn't with out hiccups.
Its not a Spec, its a producer,you can't predict the future but MRE has doubled in SP in recent months, thats a great return for a midcap miner!.

 

[rederob]

Maybe it could be time to take your profits, seems overpriced at the moment considering its peers.
MRE still has a history of problems with the Murin Murin Plant, top heavy on costs and totally unhedged. Lots of maybe's and its not exactly as if their history wasn't with out hiccups.
Its not a Spec, its a producer,you can't predict the future but MRE has doubled in SP in recent months, thats a great return for a midcap miner!.

Profit of around $20,000 per tonne at moment, with annual output over 30,000 (conservatively). And with only 465 shares on issue.
Do the maths - scary eh!
I'll hold, thanks.

 

[porkpie324]

I closed my MRE CFD pos on friday there up .38c today, and just look at MCR today up 20c thats 13.5%, also closed that CFD pos on friday, still not to bothered both wetre good earners.porkpie

 

[Realist]

The thing is I am making so much from this I wanna reduce tax by holding it over a year. The next dividends may be very large as well.

I'll hold and forget about it I think, until I've hit the one year mark anyway.

 

[porkpie324]

Being a new zealand trader we don't have capitol gains tax so that position is not an issue, but I guess you have to try and work if to take a profit or hold and hope that the shares don't drop to far. porkpie

 

[moses]

so you all want to hold at this price...but would you buy?

 

[porkpie324]

Thats the question I always ask myself when I'm considering selling or closing a CFD position, thats why I closed my CFD positions on Friday, no I wuold'nt buy at the moment. porkpie

 

[Freeballinginawetsuit]

The thing is I am making so much from this I wanna reduce tax by holding it over a year. The next dividends may be very large as well.

I'll hold and forget about it I think, until I've hit the one year mark anyway.

Just a thought Realist, but your profits on MRE are only based on their current SP who knows what it will be in the future, seems overweight at the moment though!.
Why not realize your profits on MRE, and put them into a fair valued mid cap 'soon to be' that maybe having a few teething problems, but once overcome might really boom in SP (BDG comes to mind).
A soon to be miner in the 'U' sector that has stable commodity prices for the future and the only new 'U' miner for yonks, PDN.
Or the trusty KZL for its future mine potential on its reserves in Zinc and Copper.
All of these seem like pretty good long termers that will no doubt be paying dividends etc, all the stuff your into!.

I just wouldn't consider MRE a long termer, too many if's/bad plant history not enough positives on the exploration side etc. KZL seems to have all of the aforementioned on the postive side and IMHO Zinc has some upside to come, where as Nickle will probably soften up in the near term.

 

[Realist]

Say I've made 130% now.

If I sell now after holding less than 1 year at 50% tax I've made only 65%.

If I hold for 1 year I've made 97.5%.

The stock would have to fall 40% frome here for me to lose out. And I will get dividends before the year is up so it'd need to drop nearly 45% , and if I sell now I miss the potential for MRE to go up further.

Has it topped? is it overvalued? I doubt it, and they have so much cash they can takeover other companies if they want.

I see no reason to sell.

 

[Freeballinginawetsuit]

Say I've made 130% now.

If I sell now after holding less than 1 year at 50% tax I've made only 65%.

If I hold for 1 year I've made 97.5%.

The stock would have to fall 40% frome here for me to lose out. And I will get dividends before the year is up so it'd need to drop nearly 45% , and if I sell now I miss the potential for MRE to go up further.

Has it topped? is it overvalued? I doubt it, and they have so much cash they can takeover other companies if they want.

I see no reason to sell.

No probs, each to their own.

Not sure on your income, employee position etc but if youre fully into the shares maybe you should seek some tax advice as to a financial set up that minimizes your tax exposure on your share transactions. 50% tax is heaps!.

 

[Realist]

No probs, each to their own.

Not sure on your income, employee position etc but if youre fully into the shares maybe you should seek some tax advice as to a financial set up that minimizes your tax exposure on your share transactions. 50% tax is heaps!.

Agreed. 50% is a killer.