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Sunday, October 1, 2017

Stock Idea…Metanor Resources Inc



Stock Idea…Metanor Resources Inc

Symbol : MTO
Exchange: TSXV
Market Cap : 48.4 Million
Revenue : 60 Million
Three Year Revenue Growth :
Investment Type : Micro Cap Deep Value
Price/Earnings : 5.1
Forward P/E :
Price/Book : 0.7
Price/Sales : 0.6
Price/Cash Flow : 3.2
Price : 0.77
Investment Stem : Cheap Small Caps Screen

Metanor Resources Inc is engaged in acquisition, exploration and development of mining properties. The Company operates a gold mine in Quebec and exploration & evaluation properties in the area.

Metanor Resources Inc. is engaged in the acquisition, exploration and development of mining properties, as well as the commercial production of the ore reserves of its Bachelor Lake and Hewfran properties. The Company operates through three segments: the mining site (Bachelor mine), exploration and corporate. The Bachelor Mine is located approximately 90 kilometers northeast of the city of Lebel-sur-Quevillon, Quebec, Canada. The Bachelor property consists of approximately 240 claims and over two mining concessions covering an area of approximately 7,566.73 hectares. The Company is conducting surface drilling program on its Moroy Property. The Company's properties also include Barry project, Wahnapitei Property, Dubuisson Property, Hewfran-2 Property, MJL-Hansen Property, Barry United Property, Barry Extension Property, MJL-2 Property, Nelligan Property, Barry-Souart Property, Geonova Property and Coniagas Property.

The dreaded metrics from Morningstar…


The company’s website…


An article from seeking alpha from 2015 for added information.


Sometimes an investing thesis can be quite simple. This company is a small gold producer in Canada that trades at below tangible book value. The much larger Kirkland lake Gold Ltd. (KL on the TSX) took an initial position last April and is now a beneficial owner of this company. When larger companies become beneficial owners (owns more than 10 per cent of tradable stock) of smaller companies, it usually means they are interested in buying it outright sometime in the future. The management team at Kirkland Lake Gold obviously think that the stock of MTO is trading at a discount to its net asset value. Free cash flow can be very volatile with junior resource companies but MTO currently has a cash return of 8.3 percent.







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