Yes, if a takeover is pitched at MGV then expect the SP to rise. Nevertheless, at present they only have a moderate amount of resources defined. Overall, these are a good, even high, grade but are shallow and any substantial depth still to be defined. Even with today's drop in SP to 30.5c the EV:Resource is still $210.7/oz using the 31 March cash & equivalents. This cash will have been depleted during the quarter and so the real EV:Resource will actually be higher in the absence of any CR. On a comparative basis, $210.7/oz for an explorer with just 659 Koz of JORC resources is a high valuation. Even if the resources are doubled on the next MRE update, the value will still be high. Compare with DEG holding 9Moz and an EV:Resource of $157.6/oz. At that valuation give me DEG and Hemi any day. Sorry to be a party pooper, but I have been holding off from topping up my MGV until the SP gets even lower. No, I am not down ramping, I am just calling out the figures. Should I sell? Probably should have months ago when it was over 50c but my style is to invest and hold when there is still promise. Maybe I have been too hopeful with MGV but in all truthfulness, after sticking with MGV for several years before the high grade link lodes were found, I let anticipation and market action take me too far. I will keep holding MGV. It still has promise. All I am talking about really is the SP and MGV's current value.
MGV Price at posting:
30.5¢ Sentiment: Hold Disclosure: Held
