Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The decision to issue a PM license is unofficial and only minor modifications are required. In other words, the PM will receive a license in the near future, which will take the company's operations to a whole new level. The share price, which had previously reached 20p without a license, is set to reach 30p this time easily.
Today I talked to a geologist who has certian knowledge about the PM field. First of all, this company is going to have a very large area. This means that a lot more resources can be added in the future. Therfore, this shows how much the Mongolian government has high hopes for the company, as well as the fact that the company is acquiring such a large area, which shows that the reserves are expected to increase.
The license is ready for issuance or is in the final stages. The reserves discovered to date are based on only 3 drill estimates, so the reserves are relatively small.
The key issue is PM needed to raise additional funding for more drilling in the near future. Much will depend on how MB and management team work on it.
As you know, stock prices do not rise in a straight line. Fall a little, rise a little. Most importantly, the company's current situation and future profits matters overall. These figures and other facts are good and I am very optimistic for PM
The Government of Mongolia is planning and aggressively pushing to fully vaccinate all citizens (3.3 million) by June 1. By the end of next week, 1 million vaccines will be delivered, and additional 1 million vaccine will be delivered in 2 weeks. Great news for Mongolians.
In addition, Mongol Refinery state owned company has announced a tender for a crude oil pipeline. This will allow PM crude oil to connect to the Refinery and Trans-Siberian Railway at a lower cost. In other words, all the major indicators are very positive for PM.
As for the share price, reaching 30p is a matter of time and may reach this level by the third quarter of this year.
In addition, with the Central Bank of Mongolia lowered interest rates on bank savings, many people began to withdraw money from the bank. Coinciding with this period, AARD or ARD COIN issued a new type of coin, raising the company's value from $ 30 million to $ 500 million. This was a major step for Mongolians to enter the stock market.
If PM receives a mining license and positive news spreads that the company's shares are likely to increase in the future, Mongolians will be able to buy more shares in the company. In this case, PM shares are expected to increase tenfold.
PM may also be interested in selling its shares to more Mongolians. Because the more Mongolians own shares, the more domestic support there will be. There is a risk that the company will be hampered by politicians but many local voters can be protected from this risk by becoming shareholders.
There are two main reasons why PM did not obtain a mining license within last one year. The first is the condition of the Covid. Due to Covid, the Mongolian government has not been able to operate at full capacity. However, with the start of vaccination in February 2021, the issue of issuing a mining license to PM could be issued in July 2021.
The next reason is politics. After the 2020 elections, the cabinet was completely reshuffled, including the resignation of the Minister of Mining. With the appointment of a new Minister of Mining, there has been a change within the Ministry, which has led to a change in the composition of the Mining Licensing Commission.
Due to the above two obstacles, it is clear that the work that has been stopped will move forward. The death of the company's largest shareholder Ms. Oyungerel also led to delays.
The Ministry of Mining was not fully operational due to the covid and elections. As Mongolia begins to vaccinate its citizens, government operations are beginning to return to normal. The process of determining PetroMatad's license reserves and then issuing mining licenses is nearing completion. On the other hand, due to the fact that exploration and mining is mainly done in the summer, Ministry of Mining are working to issue PetroMatad license by the 2nd or 3rd quarter of 2021.
I am writing from Mongolia. I would like to share with you my assumptions about the MADT stock price. I think this stock will rise to 70p or more this spring for 4 reasons:
1. The construction of an oil refinery by the Government of Mongolia will begin this spring. The Indian contractor, JMC Projects India, has arrived in Mongolia in 2020 and construction will begin this April. As we all know, this refinery has the capacity to process 1.5 million tons of oil per year and will get the required crude oil from Dornod aimag. Petro Matad oil field is located in this province.
2. Petro Matad has applied for a mining license and expects to get it in the 2nd or 3rd quarters of this year. Obtaining a mining license will allow the company to earn real income.
3. The amount of crude oil extracted in Mongolia does not meet the needs of the Refinery. Therefore, the government fully supports the oil industry. In addition, the Ministry of Mining has announced 550 km crude oil pipeline construction tender recently.
4. The most important card of the current ruling party's election in 2024 is the construction and commissioning of an oil refinery. This means that the government has full support and no barriers to extracting and selling oil.
For the reasons stated above, the MATD stock price is expected to rise sharply and reach at least 70p.