I understand those who invested in the IPO are down a considerable amount, but Ihave recently come across MKG and at current prices, Mkt cap and EV there seemsto be a lot of potential upside for the company.
The SPstarted tanking in July 2018 just after the announcement of maiden drillresults and has never recovered since (although these results were encouraging).An explanation for this may be the release of 10m shares from escrow in April2018 which I believe were the shares offered in the seed raise at $0.05 –investors started offloading when it was trading at $0.2 (300% return) to takesome profit? More shares were released from escrow in November 2018, which mayhave added to the continued downward trend?
Drilling atboth prospects in the Napié Project has returned shallow, wide, low-mediumgrade gold intercepts. Also the Niou Project has had some decent hits.
Strong cashposition for further drilling in the near future so presuming they keep gettinggood hits I don’t see the SP falling any further.
Board andmanagement have repeatedly referred to their previous success in West Africawith Orbis – This was obviously a marketing point to investors when raisingmoney in the IPO, great, but time to give that a rest and get to work with MKG. Thecompany needs consistent encouraging drilling results to get the price moving,maybe they should be focussing drilling on one project rather than chopping andchanging between the two.
Resolutehave a large stake which is appealing.
Very illiquidbut at these prices and hopefully with more good results to be announced itlooks worth a punt…
Any otherviews on MKG? IMO
