mbg- green alert, dare i call?

  1. 258 Posts.
    I have called mbg a number of times in the past and failed. At that time and numerous times mbg was at 4.5 to 5c level and when tin price was US$4000 per tonne. I mentioned that tin price was increasing and looking at $6,000. I wasnt wrong with that except mbg just failed to be rerated by the market- must be a well oversight, who said market was efficient. Still believe that market has significantly underpriced mbg. With tin price above US$8,000 today, mbg should have doubled in price which was my projected price at above 10c.

    It should be as production of tin is going very well and recovery rate has been good. The new plant is good and has added to production. Some hedging at 55c US is in place against a part of the production. If all add up mbg should be double its current price. Only problem is it is not as sexy as nickel or gold but market should rerate once it understnds mbg production and potential and tin price- looking like it could replicate nickle price. There is no other good tin producer in Aust.

    I shall call mbg green alert one last time to 10c in the short term, probably breached when we get the quarterly report. It could give us a surprise as I understand the company is constantly looking for other mining deals so could be surprise upside on that front. It has successfully floated off some of its gold assets ie Republic gold. One imporatnt aspect which wasnt there before was the significant market depth and extreme vol. Never seen 25m traded so must be something substantiual happening or otherwise market rerating significantly. Perhaps my green alert could be reached after all, and about time. Perahps initially to 8c and then above 10c when report received. Tomorrow and next few days should be interesting especially with tin price trending everyday to new records.

    Research yourself and see if you agree.

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