Lets not fool ourselves. Without an economic study, there is no way of knowing how much money might be made on a continuing basis. I first bought in to MGV when they exercised their pre-emption over Break Of Day and stopped EVN picking it up. I thought if EVN wanted it then there was good potential as a speculative explorer. Slow progress from then on, of course. Come 2020 with POG over US$2000/oz and MGV discovering very high grades at Lightning and White Heat and the SP went ape sh*t. I even bought some more at 50c after initially taking profits. Then reason took hold again and the excessive valuation in the face of low JORC resources and shallow deposits was recognised along with SP decline. The SP has fluctuated ever since with people getting excited over high grades even though the defined resources were slow to increase, although the JV with EVN later gave some background support. No excitement, but money could be made on the substantial price movements over periods of months. I finally sold out completely at 30c last year after some further lower priced buys that were tempered by the still high valuation relative to some other explorers. However, I bought back in again at 19.0c with the latest share issue. Given the much anticipated MRE this quarter I felt confident enough to take another punt and now the POG is showing strength to help boost the SP again. POG is fickle of course although this is traditionally a time of year when strength is often shown. I feel it is worth waiting for an updated MRE soon, before deciding whether to continue holding or not. Speculation as to toll treatment or buy-out only increases as the resources increase, even though a PFS will give better answers.
I think the moral of this story is "take care". MGV's high grades are not automatically a panacea to quantity and timeframes. The whole picture is needed for success. Best of success to you and all investors.
MGV Price at posting:
22.5¢ Sentiment: None Disclosure: Held
