Ann: Magmatic Resources raises $2.2m, page-60

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03/11/19

20:14

Post #: 41225617
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Originally posted by aussiepaul72 ↑

Hey Green Bull,

Thanks for your post. Yeah that conversation was probably with me in regard to AQX & MAG.

I do take your point and agree that the timing of their fast uptrend was about the time of ALK's discovery. However my take on it is that that was one of the catalysts to the market discovering AQX. I don't attribute the neurology to ALK as the sole reason for the huge uptrend though in the share price of AQX though. AQX had a number of other attributes that I think really drew investors to taking a stake once they became aware of the company and realised how undervalued it was.

Some of these include:
- already having a gold resource at Horn Is of nearly 500k Oz established and significant upside to this resource increasing
- to reinforce the huge potential at Horn Is, a JV with a well respected and significant mid tier gold produce, St Barbara Mining (SBM) to fast track exploration and potentially discover a significant deeper source
- a capital raise was completed with a new cornerstone investor (now 3rd largest shareholder) which is very well known and respected in Datt Capital
- the cap raise was highly sort after and competitive from sophisticated investors / companies wanting to take a significant stake in AQX to the point where Datt Capital paid a 10% premium to the last trading price and a 45% premium to the 20 day volume weighted average share price.
- Not very often does a company have the ability to raise funds at a premium, especially in the current capital market and minnow exploration company like AQX.
Datt quoted "We are also very impressed by both the management and technical teams at Alice Queen and their ability to identify significant value for shareholders. The joint venture with St Barbara has significantly de-risked the Horn Island project and the recent discovery by Alkane, next door to Yarindury, has significantly increased the prospectivity of Alice Queen's North Molong Belt projects."

Don't get me wrong, I totally agree that I think MAG has huge potential for the very reasons you have put forward. However, I think at the time I saw AQX as a better investment with greater upside in the short term and that has proven correct. I still want in on MAG but I will wait until a number of things line up on my checklist strategy. Rightly or wrongly, at present I don't see MAG in any great hurry to sharpen the drill bit and run an extensive exploration program this quarter. That says to me that chances are the share price probably isn't going to appreciate quickly in the next month or two through to end of the year. I have no doubt it will happen but it's about choosing an entry point that I am happy with. I might get it totally wrong and miss out but that's life ..... I just go on the info at hand and make a decision I am comfortable with. MAG has seen a significant uptrend in share price after the ALK discovery but now it has come off those highs and is settling back. I won't be surprised if it settles back a bit further considering their very modest expenditure on exploration this quarter.

Anyway, you were smart and got in early on MAG. Well done! I'm however on the other side of the coin and looking for the best entry point now. You may very well say 'I told you so' if I miss out but I'll only have myself to blame if that's the case.

Hopefully both AQX and MAG are winners in the long run!!!

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My sentiments exactly. I have a small position in AQX and want to enter MAG at some point but I feel it has run hard and would be more comfortable waiting for the dust to settle. Do you have a target price in mind? That said, we could both be wrong and may never see it this cheap again but such is life.

MAG Price at posting: 14.0¢ Sentiment: None Disclosure: Not Held
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