#MTR Thailand contract alone has value of 4.7p / share

The Thai deal for the Boh Yai and Song Toh mine was announced in today’s RNS (see here).

Metal Tiger have via the Joint Venture company an 80% interest in the operation. This is a good deal when you consider MTR have paid cUS$6m for an operation with a NPV of $78.2m.

The Dowgate brokers note with certain risk factors gave a notional NPV of £3.55m for this asset. This at the time made sense as no deal had been concluded. Now the deal is known to be 80% the NPV would be £28.4m.

This equates to 4.7p a share for Thailand alone.

The MTR share price is currently 3.95p. It is therefore clear the sp has no correlation to the value in the business.

The share price should reflect the value attributable to the following:

Asset trading division. Based on the RNS issued on 22nd August (see here) value = £6.5m or 1p a share.

Thailand 4.7p (based on brokers note information and latest RNS).

Botswana – it is believed the current sp reflects T3 data with the JORC assessment due September. Market is currently indicating a sp value for this asset of 3.95p.

Spain, Tanzania, Russia etc. – value ?

The share price at 3.95p based on this information looks to be very good value.


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