Brickbats for Metals Ex
Article Date: Oct 02 2008Metals Exploration, the Pacific Rim-focused gold and molybdenum hopeful, has been eagerly awaiting an imminent update on its key Runruno project in the Philippines. A ‘concept study’ earlier this year suggested annual production of between 190,000 oz and 210,000 oz would be possible there at an economical cash cost of $400 an ounce.
However, directors’ attention has been interrupted by criticisms by certain investors of an investment of about £500,000 in audio visual concern Catalyst Media Group. This company has had a torrid AIM history since its 2000 float at 84p, though it made a turnaround from £3.5 million losses to £406,000 profit last year, and its shares, which hit 425p in 2005, now languish at 33p.
Metals Ex bought in well below the peak, but is still showing a hefty proportionate loss and critics ask why a mineral company would invest in a media venture anyway. The investment was made under the chairmanship of Steven Smith, who left the board in July, when Ian Holzberger became executive chairman.
Chief executive officer Jonathan Beardsworth calls the Catalyst Media issue a ‘red herring’. With Metals Ex trading at a depressed 9.75p, progress at Runruno is clearly a priority.
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