Hi Petertkd, I believe we have been on the same page with MLS for some time, and have agreed on many things with the company. As you would have noticed the conversation has turned very toxic on this thread, and I have had to step back and look at the reasons why I purchased my shares in MLS years ago, as I have also been getting angry and frustrated, but the more I look at it and research the company I realise that much of this is coming from the constant rubbish that is getting fed through this thread. My research has lead me back to the original reason I bought in, Graphite. The company has a proven JORC resource in the hottest mining area in the world at the moment, with a massive and I mean massive upside. My frustration with the company has come down to one thing, I need to be more patient, As many investors do frustration sets in when the potential of their investment is not for filled within their expected time frames. Over the last few days and weeks I have done some research and the conclusion is that I believe the company is way undervalued, well it has excess of its market cap in cash in bank, which is crazy, meaning the JORC resource is currently worth nothing, and all of the other project in great location with great prospects are worth nothing, which means the current SP is not a true indication of the companies worth. I have decided to switch off from the SP movement and focus on the upcoming workings of the company.
Quebec is in a surge of investment into renewables, and a hoard of junior mines have been trying to put in permits to allow them to drill and try to sure up a possible resource, this has placed a massive burden on the permitting system, that has not been able to keep up with the demand, changes are coming and the government is trying to streamline the process, but this will take time and may be May or June before it is implemented. Has this caused delays and frustrations, yes, is it the companies fault, no. The application has been in for many months and it is simply now a patience game, getting angry and frustrated I have found achieves nothing.
Drilling has not started, but the PFS works and design works have begun. We have sent a Graphite sample away to help with this process. The company has already done testing on the Graphite and proved it is of battery grade, and the sample area soon to be permitted and drilled have shown that some of the area's have massive potential, and will I believe result in a massive increase in the JORC resource at Lac Rainy. A drill team has been selected as per previous announcements and we wait. One thing I have noticed with many companies in Quebec is that due to the demand for drilling in the area, the market does what it always does, supply and demand get imbalanced and the price goes up, this is most definitely happening on the ground, which brings me to the recent CR. Initially I was disappointed with the placement, but I strongly suggest anyone interested in the company look at the expected cost of the drilling program and other works that are being carried out alongside, the use of the flow through share program is something that should be looked at in Australia (and I think it is), accessing it is not a given and you must have a investor that is willing to participate, the result is we currently have $18.4 million in the bank to carry out a full attack on Lac Rainy to release its true worth, lets not forget this money will also help with all of the other projects, Corvette river, Andover the tenements in the Northern territory. Any of these could be a company maker, but it is Lac Rainy that is the jewel that requires the most attention.
So why is the share price currently so low, I don't know about anyone else but the micro EV market companies have coped an absolute pasting in the last 6 month, the Lithium price has crumbled and many companies, especially in Quebec where possibly overpriced and there has been a massive pull back, look at GT1 and PMT, both excellent companies with great prospects, but the market has dropped off as it has done time after time, after the highs come the lows, and MLS has not been immune, although comparatively our share price has performed better then most but still it has been frustrating to watch. The potential for a rerate is very clear to see, a possible tier 1 asset that is about to possibly increase in size by many multiples, multiple other projects in known area's are also getting ramped up, and currently the value of these is nil, nothing, zip, and we are still trading $3 million below our cash backing, in my mind I think the elevator is well and truly in the basement.
Management have also been under the microscope, Paul Ferguson started work for MLS two months ago, and everyone expected instant success and a booming SP, was never going to happen, the more you research the mining industry, the more you realise that trying to put a time line on a drilling campaign or PFS announcements is impossible, they cannot be accurate they are an estimate of what is expected, things rarely come quicker then expected especially in very busy mining area's. I think many of us need to sit back and smell the roses and look at what we possibly hold shares in, and see that the potential is massive. If you go through the quarterly reports you will see that the cash burn of this company is very very low, they are about to get much larger, but to term the company as a lifestyle company as stated by some, with a staff expenditure of $28k a quarter is rubbish.
What I am trying to say in my Ramblings is Petertkd you have been one of the only ones that has not been diverted by the pressures that many have posted by MLS, and that is appreciated, I have gone back through why I bought the company shares in the first place and have found that the company has moved forward on many fronts, just as they have announced, I strongly recommend that anyone that has fallen into the negativity trap as I did go back through why you invested here in the first place and ask if the fundamentals of the company have changed and gotten stronger. Yin, a yell out to you to do the same, as I believe you like myself got frustrated and listened to the white noise that is being dribbled into our ears, put them on ignore they are not worth the time or the frustration and trust your own research, and never ever believe anything on HC unless you prove it yourself.
Have a great Easter All, and DYOR
MLS Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
