HELLO ALL

TAKE A GOOD LOOK AT THE CHARTS BELOW. CHECK THIS COMPANY IT SEEMS A GOOD PUNTER BASED ON ITS COPPER MINING POTENTIAL IN PERU.

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RNS Number:9040S
Monterrico Metals PLC
05 December 2003
Monterrico Metals plc
Rio Blanco Pre-feasibility Study
Strong copper prices provide additional lustre to the results of the
Pre-feasibility Study at Rio Blanco in northern Peru.

LONDON: 05 December 2003 : Monterrico Metals plc. ("Monterrico" or the "Company")

is pleased to release highlights from the Pre-feasibility Study which examined
the economics for the development of the Company's 100%-owned Rio Blanco Copper
Project ("Rio Blanco or the "Project").
Discounted cash-flow analysis using data from the Pre-feasibility Study
indicates a pre-tax Project Net Present Value of US$320 million at a discount
rate of 10% and an internal rate of return of 33% using a copper price of 90
cents per pound.
The Pre-feasibility Study was compiled by GRD Minproc whose conclusions where
drawn from individual reports by Snowden Mining Industry Consultants, Vector
Engineering, SGS Lakefield, Golder Associates, Water Management Consultants and
Minproc.
The report appraised four process design options for the development of the
Project, as it is currently understood. The report concluded that the best
financial return for the lowest technical risk was to mine 10 million tonnes of
ore per annum (27,000 tonnes per day) using simple open cut technique and
produce a copper concentrate for shipment to a smelter. Production in this
scenario would average around 100,000 tonnes of copper in concentrate per annum
in the first seven years.
The key advantages at Rio Blanco are;
- The possiblity to mine higher grade ore for the first five years of
production (at an average grade of 1.13% Cu)
- Rapid payback of capital around 3 years and long mine life, 32 years.
- Waste to Ore ratio very low at around 0.7:1 over life of mine.
- Simple metallurgy allows for high recoveries of around 90 - 95% and the
production of a clean high-grade concentrate (30 - 38% Cu)
- Estimated capital cost for the project is US$191 million, which is
modest for its size due to simple mining and processing.
To date, Monterrico has not taken into account the molybdenum present in the
resource. Molybdenum may be extracted in the concentration process and would be
a valuable by-product. The company intends to calculate a molybdenum resource
as the part of the feasibility study, and this has the potential to further
improve the economics of the project.
The Company has recently secured GBP10.2 million (net) to fund the Bankable
Feasibility Study. Drilling contractors have initiated the 20,000 meter infill
drill program to define proven and probable ore reserves. Tunnelling contractors
are extending the "Karlita" tunnel and are presently at 270 meters through
Henry's Hill. Monterrico currently has 20.17 million shares in issue trading at
around 168p and an undiluted market capitalisation of GBP33.9 million.
Chris Eager (CEO) said: "The timing for the Project couldn't be better, there
is sustained international demand for clean high grade copper concentrate and
the outlook for rising copper prices. Rio Blanco looks very attractive at the
current copper price (around 95 c/lb) and sensitivity analysis indicates that
the project could generate robust cash-flows at much lower prices. The
Feasibility Study has begun and results from both the drilling and tunnel should
be released prior to Christmas."
Contact:
Christopher Eager, Monterrico Metals +44 20 7448 5088
Keith Irons, Bankside Consultants +44 20 7444 4155 / 07885 356 639
Richard Chase, Ambrian Partners +44 20 8528 1456

Anyone have a view why the sp has taken a hammering today?

Looks like the trip the company arranged for brokers last week was a success, since the sp has been spiking in the last few days.

rgrds
gk

sp in free fall! Any idea what the heck is going on?

Been coming back teh last couple of weeks & today its gone ballistic +12% so far today. Whats the news?

Have been watching it rise and recoup my losses. Have not seen any news on this one. Would love to know what is going on though!!

Polish company has stated it wants to buy out the mine!

Big jump up today - anyone aware of any news. Haven't seen anything myself

I know there have been problems with the locals, but is anyone else worried about how much these are falling by, almost daily...

These may go as low as 300. nothing gonna happen for the next 2/3 months and the sp will drift IMO. I'm waiting on side lines will be interested around about Feb/Mar 2006.

With regards the news released yesterday about the feasability study delay, is this not a huge over-reaction that the sp dropped 65p !! Any comments would be appreciated

Does anyone know if there's a good chance that with the peruvian elections looking as tho they're heading to a right wing / ex military politician, that these shares could well be worth zip in the very near future if he decides to take back the various mines....? Surely this is a huge possibility

Take it as no replies, everyone must have bailed already !!

It's not looking that good I must say as they had trouble raisng more cash recently. Though they did manage in the end. drift back to 200?? just another guess.

With no definite news with regards the elections, why is this going up quite nicely again ? Typical since i bailed out at around 2.50 having got fed up with the daily drops....

I like the look of this one and the shares look relatively cheap considering what Monterrico is sitting on, (Potentially one of the largest copper mines in the world), and the good article in shares magazine may have swung the negative feeling towards MNA. Any Thoughts?

Agreed, but a great deal still hinges on the election result

When is that decided?

Looks like it's down to a two horse race now between Ollanta Humala and Alan Garcia with no candidate getting the needed 50% of the vote, with the final voting set for June 4th. They're both left wing politicians which is worrying, with Garcia not so extreme in his views tho, which definitely makes him the more favourable candidate for monterrico. Here's hoping

Thanks for that info, are you predicitng some sort of grab of assets if Humala is appointed?

Copied from bbc report, it says Humala has promised to redistribute the countries mineral wealth and also opposes a free trade agreement with the U.S. Both candidates have also said they would consider further tax rises on resources. Recent polls suggest that Garcia is in the lead so far with 54% of the vote if it were decided now, but who knows what will happen support-wise between now and 4th June.
However downbeat i sound, this company has such serious potential with the assets it already owns, so i'm just going to keep an eye on it for a little longer before jumping back in. Good luck if you hold already