It was obvious from the initial GWE results in late October that is was a duster, because the geophysics hadn’t worked. Hence the stock was heavily sold down.
Ever since then, the company commenced its pivot from an exploration company to a mine services company, rapidly announcing a series of deals and joint ventures to build up the necessary framework to start providing these services. This included the owner of a very large equipment supplier in WA, Paramount, making a personal cash investment to buy 10% of the company at 1c and joining the board. This is someone who is right in the middle of the mine services sector in WA. Obviously he wouldn’t have done that if he didn’t believe the company has great prospects in this business. It also means the company has ample cash and can hire whatever equipment it needs from Paramount to fulfil contacts.
The company has set a target of $300m of business by the end of this year. If it hits this target, This would make the company massively undervalued. Simon Rushton has track record on this, having built the same thing at MinRes, on an even larger scale. As soon as the first contracts get announced, Macro becomes a cash flow positive company.
it makes perfect sense to get all the bad news finally out over the Christmas break and clear the decks for 2025.
M4M Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
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