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MHM, MHM METALS LIMITED
mme
post Posted: Apr 18 2016, 11:43 AM
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In Reply To: Cato's post @ Apr 18 2016, 11:18 AM

Yep you don't have to go to far on the ASX to see what has happened to the share price of some with a hell of a lot less funds in the kitty. If they pick the right project we should see some nice share price appreciation from here! biggrin.gif

 
Cato
post Posted: Apr 18 2016, 11:18 AM
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In Reply To: mme's post @ Apr 18 2016, 10:23 AM

It is interesting. Seems as if the Brightstar project was a dangerous piece of rubbish. MHM's exit statement was very terse.

Perhaps they can find a little "real" gold mine somewhere. Main point is that the remaining funds aren't just dissipated in management costs.

 
mme
post Posted: Apr 18 2016, 10:23 AM
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Just under 8 million in the kitty versus market cap of around 4 million?? biggrin.gif

 
nipper
post Posted: Jan 11 2016, 06:42 PM
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In Reply To: Cato's post @ Jan 11 2016, 02:39 PM

but the indefatigable optimists spin away
QUOTE
Cashed up MHM has entered the Western Australian gold sector with a binding agreement with Stone Resources (ASX:SHK) to develop the Brightstar Gold Project located in the major gold bearing Laverton region.

Intriguingly, the $1.1 billion capped Regis RRL is active to the north of the Brightstar leases with its emerging Garden Gully project discovered and being developed as a second mine by Regis.

While Goldfields' Granny Smith deposit is 20 kilometres away and the district also has the Sunrise Dam and Wallaby gold projects - over 27 million ounces in total.

With $5 million in the bank, MHM will acquire a 50% interest in Brightstar taking full advantage of the considerable investment dollars previous owners have already spent on Brightstar.

However, MHM is also up for an R&D grant submitted in 2015 so cash reserves could increase further.

MHM will gain a 740,000 ounce 2012 JORC gold resource and a gold treatment plant that should enable earlier cash flows to be generated.

Brightstar's deposits run on a strike length of more than 110 kilometres north and east of Laverton.

The Brightstar Gold project covers an area in excess of 300 square kilometres and includes the Alpha, Beta, Gamma, Ben Hur, King of Creation and Cork Tree Well gold deposits.

For partner Stone Resources the deal neatly provides immediate funding from MHM and an operator to develop Brightstar into a gold producing asset.

MHM will earn an initial 50% interest through spending A$7.5m development capital on the project and can move to 80% ownership with an additional investment.

Critically, the deal also includes an existing 350ktpa plant at site, plus all infrastructures such as power gen-sets, laboratory, camp accommodation and assorted mining equipment as part of the deal.

Analysis

For a company with a market cap of $3.7 million, MHM is trading under cash backing; the JV is immediately valuation accretive for MHM. This acquisition provides the catalyst and path lift value for shareholders at low risk.

The Brightstar deal transforms MHM into gold developer ranks and where WA gold developers and producers trade at high market valuations. The lower AUD is a windfall for WA goldies, already benefitting from falling operating and capital costs and many banking $500+/oz margins.

MHM is likely to review the data set at Brightstar during DD and look for a near term resource target of 1 million ounces of gold. There is likely to be significant upside on the current resource base given the meaty strike length of more than 110km.


Regis has been getting some excellent results just north of Brightstar, providing optimism on exploration upside.

With about $5m cash reserves, MHM does not have to go to market, an advantage in this market. If successful on a gaining a $2.9m R&D grant submitted, then the current under-valuation becomes extreme at a share price of just $0.025.

The 350ktpa gold treatment plant is understood to be in good nick, providing a road to production and fast cashflow for MHM which could be expanded over time.

In all this is a game changer transaction and new direction for MHM, bringing local WA operating personnel and experience to tap a Brightstar.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
Cato
post Posted: Jan 11 2016, 02:39 PM
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The Big Announcement.

With $5m left in the kitty after the sorry exit from the aluminium slag recovery story MHM was on the lookout for a new venture.

They have decided on buying in to a JV on a "care and maintenance" gold exploration site with the current companies SP ( Stone Resources SHK) being .003. There better be a really good story to this or it will be just seen as another way to lose $5m of shareholder funds across a mining penny-deadful

 
mme
post Posted: Oct 16 2015, 02:05 PM
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Been a long long time since I visited here but the update caught my attention today. Now if you treat this like a shell stock it to me is worthy of a punt! 130 million shares on issue currently trading at around 2 cents with approximates now of 5 to 6 million in the kitty! As usual pdyor. biggrin.gif

 

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mme
post Posted: Apr 29 2013, 07:30 PM
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In Reply To: mme's post @ Dec 27 2012, 03:10 PM

Well my last post I mentioned I sold stock.

Have to admit I am now watching very closely as it appears management are turning this one around. Certainly they are quietly getting on with the job and though the new filter hasn't been installed yet this is not too far away. biggrin.gif


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erichmj
post Posted: Dec 30 2012, 02:56 PM
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mme
post Posted: Dec 27 2012, 03:10 PM
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In Reply To: mistagear's post @ Dec 20 2012, 05:28 PM

Took some runs off the board today! Nice run to date! biggrin.gif

 
mme
post Posted: Dec 21 2012, 09:11 AM
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In Reply To: mistagear's post @ Dec 20 2012, 05:28 PM

Please explain coming! biggrin.gif

 
 


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