The point is that Minmet now is a very different animal to what it used to be. It has new management, is ruthlessly concentrating on the better prospects and dumping, or cold storing, the less immediate prospects.
We are told that cash will last for three years - and, by then, revenues for JVs or sales will be through. Therefore no need for any institutions - which I agree, might be reluctant.
I am completely discounting all the past history - because it is new management - and assuming that the gold prospect in Cuiaba [which was the reason for my enthusiasm for the share] is now dormant - but not abandoned as they have only written 80% of the expenditure off, while if it was abandoned they would have written off 100%.
There is a very active JV in Peru; prospective prospects in the Dominican Republic; good prospects in Honduras; the Sungem zinc prospect; the possibility of the alluvial diamond operation surprising us all [though I am not very optimistic about that - hope I am wrong].
Are all those projects [together with some £7m cash] worth its current market cap of about £9m?
Well I think so - and I will buy more sometime soon - hopefully after the price has eased a bit more. Obviously it will not go to the giddy heights I expected when Cuiaba was on the boil; but I expect the share price to be a multiple of the current price within a year.
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