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
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
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…
http://quote.morningstar.ca/Quicktakes/stock/keyratios.aspx?t=MTO®ion=CAN&culture=en-CA&ops=clear
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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