Back in April 2005, Metanor Resources was a gold junior with a good story to tell and had just 13.35m shares out. To cut a long DD story short I looked at the stock, liked it at the time and bought it. I was in and out of the stock for a while until the penny finally dropped on the play around late 2008. That's when I sold for the last time and never went back. Here's why: A little list of the dilutive financings that MTO.v has run in the last five years.
....unless you were very smart/lucky and sold on one of those two spikes to over a buck, benefit has never been passed on to the shareholder. What we have is a company that has soft-soaped the retail community for half a decade, grown its company nearly to nearly 10X market cap but has given zero, zip, squat back to the people that funded the gig. And all this time, even though MTO is now supposedly in "commercial production", it has never returned a quarterly net profit. Not once.
Making money in junior mining isn't about rocks, it's about finding a company that has the wellbeing of its shareholders as a priority. MTO.v has failed miserably on this score, so if you're the type of person who bets on leopards changing their spots go ahead and buy this stock. IKN avoids.
| Metanor (MTO.v): A Story of Dilution | |||
| Date | units | price | total funds |
| Apr'05 | 565,000 | $0.60 | $339,000 |
| Jun'05 | 5,219,168 | $0.60 | $3,131,501 |
| Jan'06 | 201,000 | $0.60 | $120,600 |
| Jan'06 (f/t) | 543,000 | $0.70 | $380,100 |
| Feb'06 | 666,667 | $0.60 | $400,000 |
| Mar'06 | 395,000 | $0.65 | $256,750 |
| Nov'06 | 4,709,079 | $0.50 | $2,354,540 |
| Dec'06 | 5,032,321 | $0.50 | $2,516,161 |
| Jul'07 | 625,000 | $0.80 | $500,000 |
| Dec'07 (f/t) | 4,587,469 | $0.80 | $3,669,975 |
| Feb'08 (f/t) | 5,000,000 | $1.00 | $5,000,000 |
| Dec'08 (f/t) | 4,288,089 | $0.45 | $1,929,640 |
| Mar'09 | 24,354,800 | $0.50 | $12,177,400 |
| Apr'09 | 2,495,000 | $0.50 | $1,247,500 |
| Dec'09 | 3,370,000 | $0.50 | $1,685,000 |
| Dec'09 (f/t) | 9,227,227 | $0.58 | $5,351,792 |
| Jan'10 | 4,000,000 | $0.50 | $2,000,000 |
| Mar'10 | 5,820,000 | $0.50 | $2,910,000 |
(f/t = flow through)
That little lot adds up to nearly $46m in proceeds and in that time we've seen the shares outstanding column balloon from 13.35m to 128.2m. But as this chart shows....
....unless you were very smart/lucky and sold on one of those two spikes to over a buck, benefit has never been passed on to the shareholder. What we have is a company that has soft-soaped the retail community for half a decade, grown its company nearly to nearly 10X market cap but has given zero, zip, squat back to the people that funded the gig. And all this time, even though MTO is now supposedly in "commercial production", it has never returned a quarterly net profit. Not once.
Making money in junior mining isn't about rocks, it's about finding a company that has the wellbeing of its shareholders as a priority. MTO.v has failed miserably on this score, so if you're the type of person who bets on leopards changing their spots go ahead and buy this stock. IKN avoids.