Irish minerals explorer Minmet enjoys what is politely known as a chequered past spanning many years. In its present form, the company has only been on AIM since December 2005 and for much of that time its shares were a one-way market. But after touching a low of 5.25p, there has been a marked pick-up in the share price. I believe there is a strong possibility that Minmet will be taken over and broken up, for the sum of the parts looks worth a lot more than the current whole.

There have been disappointments aplenty at Minmet in recent years but the current management appears to have set the business on a new path. It has sold off the bulk of its mining projects to listed companies in exchange for shareholdings – thereby turning illiquid investments into tradable ones. Other, less viable, investments have been written off.

At the last count, the company had cash balances of £7 million and listed shareholdings worth £5.3 million. That compares with a current market capitalisation at 12p of just over £11 million. But there is a lot more beneath the surface.

Some 18 months ago, Minmet gave the Toronto-listed Gold-Ore an option to buy its Bjorkdal gold mine in Sweden. Gold-Ore has until the end of this year to exercise that option. It has been giving encouraging reports on Bjorkdal to its own shareholders over the past year and it is reasonable to assume the option will be exercised. If it is, Minmet will receive a further £3.25 million in Gold-Ore shares and cash.

Then there is a host of Latin American oil and gas prospects that Minmet acquired earlier this year as part of a share exchange deal with AIM-listed Gold Oil. Together with Gold Oil, Minmet has oil and gas exploration rights onshore and offshore in Cuba covering areas reckoned to be highly prospective. Their value is unknown but undoubtedly substantial.

Add all this up and you get a value closer to 20p than the current 12p. If a bidder really is stalking Minmet – and the shares were a lively counter on Friday – this is the sort of price it would have to pay. Minmet is not for light sleepers; but it looks an interesting trade for the more adventurous investor.

Minmet	AIM	0pm	p	p
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Other company articles:
Exploration Insights			03/03/2008
Gold Oil winner from Minmet deal			02/11/2007
Minmet and GOO both suspended			12/10/2007
Minmet underpinned by assets			28/09/2007
Blood on the floor at Minmet			23/08/2007