#MTR T3 value?

In the latest RNS announcement from MOD they are talking about the possibility of T3 being an open pit mine (see here).

image.pngThis is hardly surprising when you look at the silver and copper grades.

Looking at the information provided to date we can estimate that within the T3 we have:

  • Copper – width of 26.7M at a grade of 1.45%
  • Silver – width of 26.7m at a grade of 21.3 g/t Ag.

image

MTR 30% share valued at £271m. If assume realise 40% of the asset this would be £108m or 18p per share.

These calculations do not take into account the area could be much bigger or the following statement within the RNS.

“identified very compelling deeper targets outside the current resource area”.

By the September quarter we will have sufficient information to enable investors to more accurately assess the value of the asset and by the end of the year the viability of an open pit T3 mine.

 

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