www.CaesarsReport.com - Stock Market Report
Ticker ML
O/S 146.47M
Countries Active USA
Avg. Volume 5,510,100
Main Sector Copper Mining
Mercator Minerals Ltd. (ML:TSX) is a natural resource company engaged in the exploration, development and mining of base and precious metals deposits. The Company’s primary focus is increasing the production of copper and the resumption molybdenum and silver production at the 100% owned Mineral Park Mine located near Kingman, Arizona.
The main focus of the Company is the expansion of its copper production at Mineral Park.
• Profitable Copper Production Today
• 100% owned, no royalties
• Operations started in 2003
• Positive Cash Flow
• Payback in 1.8 year, 25 year mine life
• Phase I –25,000 tpd (30,000 possible)
• Phase II –50,000 tpd (+60,000 possible)
• Project flexibility for operating enhancements.
The mine currently mils 30,000 tons of ore every day. After the Phase II expansion (expected ultimately Q4 2009) Mercator expects to produce 56.4 million lbs of copper, 10.3 million lbs of molybdenum (moly) and 600,000 ounces of silver.
The cash cost per lbs of copper is 1,09USD/lbs. If we take the current copper price into account, (2.24 USD ) we reach a cashflow of 65,7M USD. This is 74M CAD before taxes and around 50M after taxes.
So our estimated P/E is approximately 3.
Kindly Yours,
The Caesars Report Team
www.Caesars Report.com
