First phase of a bull run13 Apr 2019 12:28
That’s a great piece of advice, and I can see those effects play out on this investment, when you have a long period of downward price pressure, it doesn’t matter how enticing an opportunity looks, most investors stay away as it looks far to risky, little interest, I can see that’s where we are at now, nothing but consistently positive news has poured in since Dec 2018 and it’s had little effect as yet, but the smart money is going in heavy, some large holdings are held by a few, and yet, many are too nervous to commit, many who do just dip in and out at the first sign of a profit, but it’s looking like many of the free float in shares are finding sticky fingers, I sense it will end up with around 50 PIs with large holdings, around 5m to 15m shares that will drive us forward into the second phase, MTL just has to get production to nameplate design and the risks will have evaporated, this will be where new investors will want a piece of the pie, phase 2 and free float shares will be greatly reduced, obtaining these few shares will require paying more for them, that’s simple supply and demand, the 3rd phase will be debts paid back, cash positive and PIs issued with a well deserved dividend payment, at that point our market cap should reflect $200 million to be fair value, that’s 8p a share and 1/2p dividend every year, with a cash positive position in 2 years from now, we can JORC up the remaining gold rich surrounding plots, and our mine life could expand another 10 to 20 years.
All this sounds apple pie in the sky? Well look at AAZ for a comparison, they were exactly where we are today 3 years back, debts to finance and hit a low of 4p, all the way down from 125p, very little interest from PIs, but they sorted the finance, pulled out the gold and reduced debts in 2 years, share price 30p, then recently hit phase 3, debts paid, paying a generous dividend, proving up adjacent lands to extend the mine life, share price consistent at around 80p.
Those who did the hardest thing in investing, that’s doing nothing, grab your stake and let it grow, those who sat tight with AAZ from phase 1 of the bull run (4p) to phase 3 of the bull run (80p) have 20 folded their investment and receiving a dividend every year that’s worth more than their original investment, crazy but true.
My advice for MTL investors, get in, add where possible, but leave your position alone and wait for phase 3.
GLA
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