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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,
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To: Done, gone. who wrote (96678)11/20/2006 11:24:03 AM
From: rrufff  Read Replies (1) of 122087
 
MMG 3.24 - from IHub - any comment??

Posted by: mingus79
In reply to: None Date: 11/4/2006 6:50:19 PM
Post # of 60

No Known Reserves -- Don't Believe the Hype

Despite what other posters say, the company does not have any "proven" reserves. From the most recent 10Q:

"The Company is an exploration stage company and does not currently have any known reserves and cannot be expected to have reserves unless and until a feasibility study is completed for the Sierra Mojada concessions that shows proven and probable reserves."

and

"The Company’s plan of operation for the next 12 months is to continue work on the feasibility study to determine whether a mining operation may be profitably conducted on the Company's concessions."

If the feasibility turns out positive, then they will need to raise alot of money (and there will be alot of dilution):
"The Company estimates that completion of a feasibility study will cost an additional $3.3 million and the Company expects that it will take an additional 12 to 18 months to complete.

Following the completion of a successful feasibility study, the Company would then proceed to the construction phase, which would entail construction of a mine and related infrastructure pursuant to a Mine Plan developed specifically for the Company's concessions, and construction of an Extraction and Reduction plant to extract metal from the ore that would be mined. The Company estimates that construction of a Mine (based on the Mine Plan) and Extraction and Reduction plant would cost approximately $400 million and take approximately 2 to 3 years to complete after completion of the feasibility study, assuming sufficient funding is available. The Company intends to finance construction costs with a combination of equity and debt. In addition the Company may seek joint venture partners or other alternative financing sources as necessary to complete development of the project."

I think the fact that they did a private placement in March, 2006 at only $0.80/share is the best indicator of what the stock is worth, given the risks.
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