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MRX - Matrix Metals

Discussion in 'Stocks I-P' started by Stan 101, Mar 30, 2005.

  1. Serpie

    Serpie

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    I was pleased with the weak day yesterday, but today looks stronger.

    Hopefully we'll average in the mid / low 9's, and get our SPP allocation in the low 8's. Good buying at that.

    They'll be please to see DYL going up to (as holders of 25M DYL shares). Would like to see them sit on those, and have a nice little sideline going.
     
  2. TedE

    TedE

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    Assuming it started yesterday, anyone have an insight as to how the calculation works.

    Heres how I think it works based on the announcement:
    ((Volume Day 1 x Closing Price Day 1) + (Volume Day 2 x Closing Price Day 2) + (Volume Day 3 x Closing Price Day 3)... etc)/Volume for the 5 days.

    If thats correct I currently have the weighted average for the 1st 2 days as follows:
    ((2,294,555 x 0.083) + (2,156,820 x 0.086))/4,451,375 = 0.08445...

    At a 12.5% discount this would come out at 0.07389... cents per share which, for $5,000, translates to 67,662 shares (rounded).

    Any comments?

    Please note, I have no expertise in maths... please DYOR.
     
  3. Serpie

    Serpie

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    That's may understanding of it too TedE.
    Bargain basement prices - as long as it doesn't fly this week.
     
  4. TedE

    TedE

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    For all those playing along at home... after close on Day 3 using the formula above, I come up with the following:
    Weighted Average Share Price: 0.0840261...
    Discounted price: 0.0735229...
    Shares per $5,000: 68,006 (Rounded)

    Once again, I'm no expert and I can't be sure thats correct... please DYOR.

    Ted
     
  5. Serpie

    Serpie

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    Nice work TedE,

    I'm in favour of anything that saves my limited brain capacity. Keep those rolling averages coming.

    And in the meantime we're another week further ahead on our march towards copper production. All good.

    Cheers
    Serpie
     
  6. Serpie

    Serpie

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    What's the score TedE?
     
  7. TedE

    TedE

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    Evening Sports Fans...

    Well, the stock went up today, but thanks to piss poor volume the average remained largely unchanged.

    After Day 4 my calculations come out as follows:
    Average Price: 0.08410574...
    Apply the discount: 0.07359252...
    Shares per $5,000: 67,942 (rounded)

    With one day left to go, I don't see the no of shares per $5,000 dropping below 65,000 shares. With a close of 0.09 and volume of 10,000,000 on Monday you're still getting 65,184 shares. It'd have to be a pretty special day to pull it off.

    DYOR,
    Ted
     
  8. TedE

    TedE

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    And thats the buzzer...

    At the close of play we find:
    Average: 0.084097...
    Discount: 0.07358...
    Shares per $5,000: 67,949 (Rounded)

    :)

    DYOR,
    Ted
     
  9. Serpie

    Serpie

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    Nice work TedE,

    $0.07358. Now that is a great discount!

    I think that MRX may be getting penalised this week for DYL's dropping SP. With MRX's new holding of 25M DYL shares, the MRX price may dip whenever DYL's does.
    I see MRX as the quiet achiever in my holdings. They're just cranking away, getting their copper production into gear, and not being constantly watched like a lot of other mining stocks. There are no drilling results pending, no exploration questions. Just loads of copper sitting in the ground awaiting a shovel and a bucket.

    "Sticking to their knitting" as they say. And production only months away.
     
  10. TedE

    TedE

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    mmm, bargain basement... worthy of Walmart.

    Only 130 days left until Harry Potter and the Deathly Hallows... until then, there is plenty of mooting and uni stuff to keep me occupied.

    Woo capitalism,
    Ted
     
  11. Serpie

    Serpie

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    Being sold down today.
    People are swapping all of their 8.2c shares for replacement 7.4c shares acquired through the SPP.
    Hanging on to all of mine. IMHO good value at both 7.4c and 8.2c due to upcoming production.
     
  12. TedE

    TedE

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    Actually, they seem to have rounded down to 7.3c... just got a letter informing me I've been allotted 68,484 shares for my $5,000 (which is 7.3c).

    Good to be alive :)
     
  13. TedE

    TedE

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    Ah, music to my ears.

    Ted
     
  14. TedE

    TedE

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    Woo hoo... back up over 9 cents. Where are ya Serpie? High Five!!!

    Ted
     
  15. Serpie

    Serpie

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    Right here riding the wave with ya TedE!

    Seems to be great sentiment around MRX and DYL at the moment. 3 mines?

    DYL surged 14% yesterday, and is holding it's gains today, so MRX's holding has increased by around $1.7M in the last 24hrs. Easy money, and a great deal for MRX as DYL climbs.

    More importantly - must be time for an update on the copper production. I'm hanging in there for that.

    Great days to be holding DYL and MRX.
     
  16. mmmmining

    mmmmining

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    Can I joint your guys?

    Seeing the battle between SMM, PDN, and Areva?

    What for, for the known resources? Would you like to pay $30/lb for an explorer? With this kind of money, you can buy almost all uranium explorers in WA, or in NT, and not too short in SA.

    Why, why, and why?

    I figure it out,it is the battle of land holding.

    Mt Isa region is reach in Copper, Gold, Zinc, Silver, Iron Ore, REO and of course URANIUM.

    It would not be too difficult to figure it out other people want to joint the party.

    They are not going to pay $1.5b for it, they are not going to pay even $100m for it. How?

    Buy the land nearby, and not owned by SMM.

    There are quite a few companies have it. MRX is one of them which holds large parcels.

    I bet it is just a matter of time that someone speak French (Canadians too) will take a seriously look at it.

    Before that, I suggest that you guys take a serious look at it too.
     
  17. Serpie

    Serpie

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    Mmmminig,

    You'll probably already be aware of PDN already having exposure to MRX holdings via their large holding in DYL, MRX's partner in the joint venture.
    It seems as though PDN are never far from the action.

    I think PDN will be quite happy to keep their fingers in lots of little yellow pies without having to spend lots of cash. However, if the SMM thing falls through, and it looks as though it will, perhaps they'll be throwing their chequebook around.

    Does anyone think it's a coincidence that PDN's SMM offer expires on 27/04/07 - the same day that the Labour Party's conference begins . . .

    Good to see the change in tick play too. We can start to make some good percentages if we can leave 10c behind. Happy TedE?
     
  18. Serpie

    Serpie

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    Thank you to Rogues Trader on HC for the following info:

    MRX valued at 14.4c

    Date
    11 April 2007
    ASX Code
    MRX
    Share Price
    9.7cps
    Market Cap (fully diluted)
    $68.2m ($68.3m)
    Issued Capital (fully diluted)
    702.7m shares (704.5m)
    Cash (as at 15 March 2007)
    $5.5m
    Board
    David Humann (Chairman)
    Shane McBride (Managing Director)
    Clive Donner (Non-Exec Director)
    Geoffrey Jones (Non-Exec Director)
    Ronald Hing (Non-Exec Director)
    Richard Procter (Non-Exec Director)
    Top Three Shareholders
    Independence Group NL (18.9%)
    LinQ (9.4%)
    Glencore (6.3%)
    Resources Analyst
    Andrew Rowell
    Ph: +61 8 9268 2837
    andrew_rowell@hartleys.com.au
    Matrix Metals Limited’s (“MRX”, “Company”) plans to commence
    production at the Leichhardt SX/EW copper operation (previously known
    as the Mt Cuthbert/Mt Watson operation) during the September 2007
    quarter at an initial production rate of 5,500tpa copper cathode.
    Geotechnical and metallurgical studies are about to commence to confirm
    the potential to increase this to 10,000tpa in the short term.
    The development of the copper oxide deposits provides cashflow for the
    Company to continue its strategy to focus on the discovery of world class
    copper sulphide deposits within its 5,000km2 tenement holding in the
    prospective Mt Isa region in Queensland.
    We believe the Leichhardt operation has the potential to generate
    significant cashflows, given that MRX is unhedged and the copper market
    expected to remain tight throughout 2007,. In addition to the Company’s
    copper projects, Matrix retains exposure to the booming uranium sector
    through its investment and joint venture with Deep Yellow Limited.
    We believe that MRX will be re-rated as the market recognises MRX’s
    move to production, its leverage to the copper price and the exploration
    potential of its ground holding. We continue to rate Matrix Metals
    Limited as a Speculative Buy.
    Investment Highlights
    • Copper Production from September Quarter – The Leichhardt
    Project will be developed in two stages. Stage 1 has low start-up
    costs and a short time frame to production (September quarter 2007)
    at the rate of ~5,500tpa copper cathode. In Stage 2, production is
    expected to increase to 10,000tpa based on geotechnical and
    metallurgical studies being completed to allow the resource to be
    converted to a JORC compliant reserve.
    • Leveraged Copper Play - MRX is a leveraged copper play that is
    fully exposed to copper price movements due to the absence of
    mandatory hedging,. Hartleys currently values MRX at 14.4cps,
    however, we recognise that MRX is extremely sensitive to copper
    prices. In order to highlight this, our valuation ranges from 4.4cps at
    US$1.50/lb Cu to 50cps at the current spot price of ~US$3.35/lb.
    Stage 1 of the Leichhardt project is robust at current copper prices
    with a breakeven point of ~US$1.60/lb Cu. The development of
    Stage 2 is likely to have low capital costs and reduced unit operating
    costs, thus providing an enhanced financial outcome.
    • Glencore Offtake Agreement for Existing Deposits – Glencore
    has secured the offtake rights to existing sulphide deposits and their
    extensions on MRX’s tenements by providing the funding for
    production at the Leichhardt project. However, new sulphide
    deposits discovered in the area remain available for offtake
    negotiations.
    • Xstrata JV and Deep Yellow Drill Programmes – Xstrata has the
    right to earn up to 75% of primary sulphides around a small area
    (210km2) surrounding the large McCabe deposit. Drilling is expected
    to commence in late March 2007. In addition, Deep Yellow (earning
    up to 80%) is targeting uranium anomalies in close proximity to the
    Mary Kathleen uranium mine and the large undeveloped Valhalla and
    Skal uranium deposits. As part of the transaction, MRX has been
    issued 21.4m DYL shares with a current value of $8.5m.
    Matrix Metals Limited Speculative Buy
     
  19. TedE

    TedE

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    Ecstatic Serpie... I'm relatively new to the market and this has been one of the first thing's I've got in on. What a great hobby, certainly beats flower arranging.

    Ted
     
  20. Serpie

    Serpie

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    You'll be even happier today TedE.

    Mining has started, and ahead of schedule. First pour in July.

    Sweet!
     
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