MUN - Mundo Minerals

[hangseng]

Mundo requested a trading halt after the market closed today - hopefully they have some good news about their projects.

HS - do you have any idea what it is about?

Not exactly sure but I believe this will be the confirmation of the Brazil project and government approvals as Mundo had previously reported in the project schedule. If it is then expect to see MUN sp move upward strongly.

It may also be about the Peru project which is already indicated as extremely high grade or possibly the expansion of the Brazil mine at Engenho.

Whatever it is it will only be good news coming out of Mundo, a very exciting company with strong fundamentals and management.

 

[wildmanchris]

Was that the announcement you were expecting HS - looks like your call was right but it opened down @ 0.57.

 

[hangseng]

Was that the announcement you were expecting HS - looks like your call was right but it opened down @ 0.57.

I am very pleased with the announcement.

Key aspects:

• Mundo resources remain unhedged (main point)
• Finance arrangement is excellent and is for project advancement and not merely to line directors pockets.
• Financing allows an 'all in one package' to advance all projects and to develop Enengho to production early as planned
• Relatively low market capitalisaton remains intact
• Unlikely to see further finacing in the near future as Mundo cash flow will be very high
• Shareholders offered to be involved in the equity financing on equal standing with "sophisticated investors" (I will be taking this up)

The sellers were as a result of small holders selling off very small parcels impatiently, their loss, whereas they were obviously hoping for a quick spike in the sp. I sincerely believe the sp is coming back up very quickly anyway this year, as the stock is tightly held and 'real' holders who know won't be selling anytime soon, me included.

All in all I am thrilled with Mundo' progress and the outcome ensures my investment decision will be rewarded handsomely. The speccie status of MUN is gone IMO.

 

[hangseng]

Seems the market (which is always right) and Fat Prophets agree with me.

SP going back up as predicted and Fat Prophets have placed a buy recommendation out this morning on MUN.

Fundamentally this is a no brainer really, now the technicals will catch up.

 

[wildmanchris]

COME ON MUNDO!!!! WILDMAN NEEDS A NEW CAR!!!!!!!!!!

What was their recommendation price to buy up to?

 

[hangseng]

COME ON MUNDO!!!! WILDMAN NEEDS A NEW CAR!!!!!!!!!!

What was their recommendation price to buy up to?

New car seems it may be coming if Fat Prophets are right. They have indicated that MUN will go above the recent high of 66.5 in the near future. They are very bullish with MUN, as I am.

Also as I did, FP focussed on the unhedged position of MUN being maintained. Very clever financier chairing this company.

 

[wildmanchris]

Whats your thoughts on the Share Offer to existing holders HS - I mean it seems pretty straight forward, and if you can buy them @ $0.50 then it is a instant gain of 20%.

The reason I ask is that it seems to good to be true - given that the stock has some massive potential gains ahead of it and all.

 

[ideaforlife]

Hi Hangseng, would you please explain a bit more abt the importance of un-hedged position. I only have basic understanding about hedging which seems to protect from price volitility, be it up or down. Is there any other implications? cheers.

 

[wildmanchris]

What a rally at the end of the day!!! Back up to the old high quicker than I thought it was going to be - there are only 4 sellers in the list left as well. This one seems to be pretty tightly held!!!!

 

[hangseng]

Hi Hangseng, would you please explain a bit more abt the importance of un-hedged position. I only have basic understanding about hedging which seems to protect from price volitility, be it up or down. Is there any other implications? cheers.

It simply means that MUN can take advantage of the fluctuations in the spot price of gold and have not discounted there gold production for the sake of forward gold sales.

As the spot price of gold goes up so does MUN profit, and all of this is 100% owned by MUN.

Expect the sp to go much much higher now. As I have said many times the stock is very tightly held. Supply and demand, what the market is all about.

Congratulations to all who took the opportunty to get in early. There is still 4 sellers and 17,500 shares left for sale though

I feel for the people who sold yesterday and today. A lack of understanding of the announcement or what who knows , but their loss is others gain. Pays to do research, fundamentals first (MUN has great fundamentals)then market trend (gold will go up and MUN is unhedged + low cost start up and production = big profit) and then technicals (entry level pricing was obvious, now breakout and demand).

Here comes your car wildmanchris

 

[nizar]

Expect the sp to go much much higher now. As I have said many times the stock is very tightly held. Supply and demand, what the market is all about.

Congratulations to all who took the opportunty to get in early. There is still 4 sellers and 17,500 shares left for sale though

I feel for the people who sold yesterday and today. A lack of understanding of the announcement or what who knows , but their loss is others gain. Pays to do research, fundamentals first (MUN has great fundamentals)then market trend (gold will go up and MUN is unhedged + low cost start up and production = big profit) and then technicals (entry level pricing was obvious, now breakout and demand).

Im not sure what you mean by early, but i bought in about a month ago at 52.5c after the blue sky break.

I didnt do fundamentals or research. I just saw the share price breakout.

Stop was never closed to being hit so there was no reason to sell.

May be the time to pick up a few more either on market or through the SPP or both.

Dont feel sorry 4 those people that sold, they had their reasons, maybe bought another winner, or needed the cash.

 

[wildmanchris]

Seemed like there was some keen buying late this afternoon to rally back from a drop earlier in the day - good to see some good parcels trading hands at a good price.

 

[EZZA]

hey guys,

went into mun at 58 cents, and piked on this one do to low volume.
looks like i should of stayed in, didn't look like it was going to break support at anytime while i was holding on to it though.

has anyone got any views on holding stocks if volumes a relatively low. i usually don't practice this.

if i did this in this circumstance would have been worth it.

over and out'
cheers

 

[wildmanchris]

From what i've read and the research that i've done it looks like a pretty solid company that will go into production early next year. They seem to think that the two smaller fields that they have invested in will have good yields as well.

I have a small holding in them, and took it primarily because the management are experienced and seem to have their eye locked firmly on the goal.

Fat phrophets went over to their operation and liked it as well - stating that they are well on track.

Im in no hurry for the share price to go anywhere as I think the company is doing the right things to set themselves up long term.

http://www.mundominerals.com/supp_files/stock/Fat_Prophets_July_2007_review.pdf

 

[gilbertw]

This stock will rise strongly when confidence returns to the market. I can believe it went as low as 36 cents (closed at 45cents) today. I invested 10k in another stock yesterday, if I had held off till today I would have increased my stake in MUN.

Crazy market, this company is real quality, excellent management who have a good timeframe for early production which wil help grow the company to the next stage and they have good communication with the market, unlike some stocks I have seen.

The people who sold out today will be kicking themselves very soon. Watch this rebound, the buyers will return and this tightly held stock will shine.

 

[F-P]

I completely agree Gilbert.

I got in at 30c (and again at 45c), and have been delighted with their performance. Up until yesterday, it had weathered the market-wide fall reasonably well. However, some of the selling in recent days seems completely indiscriminate.

When I start buying again, this will be one of the first on my list.

 

[ideaforlife]

How does everyone think of their share placement. What would happen if the share placement is temperily (sorry for the spelling) falls unsuccessful (apparently they were trying to take advantage of the good SP, but the unexpected conrrection happened and made the market price lower than the placement price, inadvently people would be able to buy from the stock market rather than through the placement), then the following exploration would be in trouble and hence the development will not proceed as well as expected.

What do you think?

 

[gilbertw]

correct me if I am wrong but the share placement is due on or around Monday.. i Would think this will rise above 50 cents on Monday.... it's still very cheap at those levels

 

[F-P]

The placement closes on Wednesday.

MUN's SP has only been below 50c for a short period. I suspect that a fair number of applications were received before the price went below that level.

As a side note, if I recall correctly, VRE's retail SPP was fully subscribed despite it's SP spending a relatively large period of time under the offer level.

I agree with Gilbert - it could rise above 50c very soon.

 

[gilbertw]

The placement closes on Wednesday.

MUN's SP has only been below 50c for a short period. I suspect that a fair number of applications were received before the price went below that level.

As a side note, if I recall correctly, VRE's retail SPP was fully subscribed despite it's SP spending a relatively large period of time under the offer level.

I agree with Gilbert - it could rise above 50c very soon.

Thanks F-P. Looks like confidence is returning to the market, MUN is up 4% today, hopefully it wil rise as the week goes on. Fundamentally, I'm with this stock until it matures in 2 years and this temporarily cheap share price may not last too long. Its a good entry point, wish I had more funds to invest..