9 February 2010

Monterrico catching up

11/09/2006 Robert Tyerman

After previous delays, Monterrico Metals expects to seek permission to develop Peru's Rio Blanco copper deposit early next year.

Former AIM star Monterrico, which still has more than £10 million cash after losing £2.2 million in the six months to June, hopes its long-awaited bankable feasibility study on the Rio Blanco copper and molybdenum project in northern Peru will be ready in four months. The company, where former British ambassador to Peru and Falkland Islands governor Richard Ralph has replaced Robert Guy as chairman, estimates Rio Blanco could hold as much as 7.2 million tonnes of copper and 287,000 tonnes of molybdenum and says it intends to ask the Peruvian authorities in the first quarter of 2007 for a permit to mine.

Since June's general election installed a mining-friendly government in Lima, Ralph and chief operations officer Ray Angus (who knows major Chile-focused copper group Antofagasta well) say they expect a favourable decision. They say this could lead to initial production at an annual rate of 220,000 tonnes of copper and 2,500 tonnes of molybdenum as from 2010, rising to 345,000 tonnes of copper in the fourth year.

Ralph claims the project, which would involve piping concentrate to the coast, would be economical at any copper price above 52 cents, against today's price of around $3.40, with costs helped by a planned 'filtered tailings' operation. 'You can hedge at $2.70 five years ahead,' he maintains, adding that the Rio Blanco deposit is high grade and has no arsenic.

Monterrico, which is close to appointing a new chief executive officer to replace former boss Chris Eager, owns 100 per cent of Rio Blanco, which cost £600 million or more, in debt and/or equity, to bring to production. However, the company accepts that a joint venture, probably with a big group, is the most likely route to production.

Earlier delays, technical uncertainties and fears that an anti-mining party would win Peru's elections have helped take erstwhile high flier Monterrico down from nearly £6 to below £2 in two years. Growth Company Investor suggested partial profit taking a year ago at 542.5p and the shares are now 188p, up 6.5p this morning.

They could rally further if Rio Blanco gets the go-ahead.

Sector: Industrial Engineering

Companies: Monterrico Metals

Subscribe today

Growth Company Investor is the leading magazine for investors in AIM and boasts award-winning research and analysis coverage. 
Subscribe now and receive a 50% discount

AIM in Review 2010

Growth Company Investor, in association with the London Stock Exchange, presents the most wide-ranging and detailed examination of the AIM market: AIM in Review 2010. For more information and to order, click here or contact our marketing team on 020 7250 7056.

Directors' Pay on AIM 2009 – ­ a Growth Company Investor publication in association with Deloitte

The report reveals the top-earning chief executives and remuneration levels at AIM's most profitable and fastest-growing companies. It also examines constituent parts, including basic salary, bonus, pensions, benefits and share-based payments. To order click here.

Free – Latest Stock Recommendations

Free access to the latest AIM stock recommendations and news from the award-winning Growth Company Investor team. Receive our tips on what stocks to buy direct to your inbox every Tuesday and Friday. Find out more today.

Select your level of risk and we select the funds

Cautious? Positive? Adventurous? Choose between three levels of risk for a fund of funds from Sharefunds, our sister company. Click here for more information.

The AIM Guide 2009/10

The brand new, fully updated AIM Guide 2009/2010 is now available to purchase. AIM Guide is the only fully comprehensive guide to AIM and is regarded as 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies.   Order your copy today and benefit from a £10 discount!

VCT Special Report 2009

This report's principal aim is to provide business owners seeking funding with information about the amount of funds that VCTs have to invest. Click here for more information.

Cash Shells Special Report 2009

Business XL, the award-winning monthly magazine for growing companies, is delighted to announce the launch of a new study on cash shells. The research provides a comprehensive overview of cash shells on AIM, companies that have become a significant feature on the AIM landscape. Buy the Cash Shells 2009 Research Report today or email Halid Delkic to obtain a free two-page abstract.

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

Atlantic Coal

Atlantic Coal taps investors 09/02/2010

Pennsylvania-focused Atlantic Coal has raised £400,000 at 0.7p for working capital and to help with a takeover.

Tags: AIM , Commodities , Fundraisings

Sector: Mining

Companies: Atlantic Coal

Mineral group plans £20m float 08/02/2010

Aussie-listed Greenland Minerals and Energy is planning a flotation on the London Stock Exchange to raise £20 million for a £1.4 billion world-class rare earth and uranium project at Kvanefjeld in Greenland.

Tags: Commodities , Fundraisings , New Issues

Sector: Mining

Randgold continues expansion 08/02/2010

African miner Randgold Resources plans hefty production and resource increases after lifting annual gold sales 27 per cent to £288 million. 

Tags: Commodities , Emerging markets , Full list , Growth Stocks

Sector: Mining

Companies: Randgold Resources

More News

Sectors

Vitesse Media Events