Metminco (LON: MNC) report: September Quarterly Results

– Metminco has issued a comprehensive update covering its operations during the September quarter.

– The most important event was the deal to acquire the remaining minority interests in Hampton Mining. This should complete on 24 November assuming it is passed at the AGM on that day. Metminco will then own 100% of Hampton and hence Los Calatos.

– The company is preparing to start drilling at its flagship Los Calatos copper project in Peru. The plan is to start drilling in December 2010 and up to five rigs will be used. The 50,000 metre campaign is planned to be completed in mid-2011. In addition, a state-of-the-art Titan 24 geophysical survey is under way; this should generate detailed 3D imagery of the subsurface structures.

– Work is also proceeding at the company’s other properties. At Mollacas, metallurgical leach testwork is under way as part of the final feasibility study. At Vallecillo, a scoping study is planned, including a drilling campaign. At Camaron, an extensive surface mapping and sampling programme has been conducted.

By Daniel Stewart & Co

– We reiterate our Buy recommendation and 31p price target.