Yes, the SX-EW process that GTI helped Skorpion use gave them the lowest production cost in the industry: metalin.com . Since GTI is also doing MMG's feasibility study and the deposits are similar, it's a much lower risk project than many others.
I agree that MMG sounds better all the time. The more I've looked at MMG and many other miners, the more I've become convinced that MMG has the highest likelihood of huge returns for coming years of any stock out there. When I see projects that look promising, inevitably they have very high costs (including smelters), royalties, law suits, metallurgy problems, insider shenanigans, deceptive marketing, permitting/environmental issues, political risk, and/or part ownership that make the projects far less attractive than they seem at first glance. I think MMG is far more attractive than it seems at first glance because of management's conservativeness, the high 5% cutoff used for the 5 billion pounds of zinc, the 100% ownership, the low costs, the Skorpion precedent w/GTI, the infrastructure, their own refinery vs. relying on smelters, no insider selling, clean metallurgy, conservative marketing, relative permitting/environmental ease, absence of royalties, and their world class size in an extremely tight zinc market.
Remember that besides their huge zinc project in one of the safest areas of the world, they also have lots of high-grade silver there, with 45+ former producing silver mines that never had a mill to concentrate ore grading lower than 500 g/tonne silver. Since the valuation is already extremely low just for the zinc project, the silver is basically "free." |
