Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: Frankly Speaking who wrote (23081)	10/19/2006 11:19:25 AM
From: Mr. Aloha	Read Replies (1) of 78417

I think you can't miss over the long term with this one at the current price level, though it can be subject to short-term volatility, as many have seen this year. Once they prove the economics of the project with the feasibility study, the market cap should be a lot higher. I think some takeover bids will ensure that. Given the similarities to the Skorpion mine, which was proven feasible (and taken to production) by the same group doing MMMGG's feasibility study when zinc was about 1/4 the current price, the economics should be awesome. I think it's crazy that 6 years ago, around the bottom of the metals bear market, Skorpion was valued much more than MMGG is now (about twice MMGG's current market cap). And MMGG's in a much more preferable location than Namibia and has lots of high-grade silver and potentially lots more zinc to boot. It's just staggering when you consider the huge bull market zinc's in now, with zinc hitting another new all-time high today, over 5 times the price of a few years ago. Given how easily world-class projects these days have been able to get financing (e.g., IVN's Oyu Tolgoi getting $1.5 billion of investment from Rio Tinto well above market yesterday in confiscatory Mongolia), financing shouldn't be a problem if they don't get bought out. We're talking about the biggest preproduction zinc project in the world outside of Iran and Bolivia. And zinc's breakout and supply/demand fundamentals will likely cause many majors and institutions to covet participation in one of the few world-class zinc mines. I may be biased, but I think MMGG's by far the biggest no-brainer investment in the market today. Undervalued HBM's market cap is one indication of the upside of MMGG; Even though its market cap is about 25 times bigger, HBM has less than half the zinc that MMGG has: hudbayminerals.com MMGG's bulletin board status has given us an opportunity to get into this world-class project at a below bear market price. I don't think this opportunity will last much longer...

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