Thursday, January 19, 2012

Mantle Mining (MNM) technicals not unnoticed

A stock that came up on my radar today was Mantle Mining Corporation Limited (MNM). The stock hit a rolling year low of $0.048 only ten days before Christmas followed by a break out two days before Christmas that prompted a price enquiry from the ASX. The company could not provide any explanation for the spike of its shares apart from activity on internet chat sites.
Today, around 10.7 million units or $970,000 worth of stock changed hands and the price ticked up over 10% to $0.092. This is the largest volume since March last year.

The activity suggests that there may be news on the way and it could come from a number of fronts. Traders will be hoping that the stock price doesn't overcook resulting in a ASX enquiry that will kill the momentum. The activity may also be in anticipation of the things the company has on the go in the next few months.
The company recently drilled 4 holes at it's Bacchus Marsh coal project which has a 1-2billion brown coal tonne target. It remobilised a rig in December for a further 11 drill holes that are to be completed in the 15 hole drill program. The company is also taking action to transfer tenements from previous owners for the Mt Mulligan coal project in Queensland however the court case isn't until March. Considering these two fronts are a month or two away my most likely suggestion for the share price activity is a joint venture with Exergen Pty Ltd musn't be far away.
Directors have recently taken shares in lieu of payment of services which is a good sign.

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