Monday, January 17, 2011

Manas Resources Ltd (MSR) - New All Time High

Manas Resources traded at all time highs today (35.5c) and closed (34c) above the previous high of 32c set in November 2010. It was +15% on the previous days close and looks potentially like a breakout. Volume was healthy with over 2.5m traded.

There's no guarantees that the breakout will hold, especially given Gold's recent weakness (although MSR bucked the trend today), but if it does it's blue sky territory from here. With no overhead resistance it will be interesting to see where the share price would end it's run.

MSR has not been listed on the ASX for very long. They came into  being as a result of Perseus Mining Limited (ASX: PRU) spinning out their Kyrgyz Republic mineral assets into a separate entity (July 2008).

Perseus Mining continues to hold a significant stake in the company.

Share price: 34c (as of close 17/01/2011)
Number of shares: 177.35m (after final placement in late January)
Number of options: 60m listed (+ 15m unlisted)
Market cap: $60.3m (undiluted)
Cash: $1.8m (Sept Qtr) + $11.5m (placement) = $13.3m
Gold resource: 1.13m Oz
Market Cap / Resource = $53 p/oz

The upside potential could come from the expected low initial capital cost of the Shambesai Project (to move to production) as well as the predicted low cash cost per ounce to mine ($250 per ounce for life of mine). A full feasibility stuy for this project has commenced.

Further to this MSR has huge exploration upside with 4400km2 in a highly prospective Gold province.


Disclosure: Position held in MSR. Not investment advice. Do your own research.

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