Ann: MRG HMS - Scoping Study & PEA Delivers Significant NPV, page-78

i think you may be missing the points…
1. the last CR was set at the lowest level in 4 years and this placement is really struggling to find a final home/ holders
2. whilst MRQ has cash, this is bleeding due continuous drilling costs along with the director’s pay role withdrawals at $300k pa.
3. Cash is now a finite commodity as the likelihood of another successful CR now appears an impossibility. 4. Management have been silent since the Ra Ra to get the CR filled after having to postpone the deadline for closing, excuse given its holiday season!, probably because uptake faltered.
5. Realistically any other company would be on the front foot with some modicum of respect for shareholders basically saying yes the SP has fallen but we remain confident this is a short term aberation as the market digests the CR….. but silence…. Maybe there is just nothing to announce to support a higher SP.
6. Probably a T 20 holder has quit their holding in recent days, possibly because they see no future. I imagine such a T20 holder would be in close contact with management and to sell out would indicate the first investor to get to the exit door. Yes it was hoovered up but realistically did the buyers know more than the seller? Did the buyers simply top up and average down holding costs.
7. The valiant flag bearer @PICT hasnt posted in a while, was he the capitulating seller? His silence I see to be of concern.
8. There is continuous postings from emotive commentators that ridicule sellers simply to comfort their insight into what value there is in MRQ. @2ic was always questioning the quality of mgmt drilling announcements. Sadly many, including me, ignored him, to their own financial detriment.
9. Mgmt needs to come clean and let shareholders know of why the SP has fallen, address the consummate loss of investor confidence as a matter of priority. I am worried that the lack of communication, together with a large holder quitting their holding at the lowest SP in 4 years, belies a failing company situation.
10. At only $5m market cap, if the company had intrinsic value, then why hasnt a vulture aggressor launched a bid to takeover the company. Its only the cost of a good house in Sydney! My guess is that any woodbe resources company already know there is no real value in the leases.
11. The above 1-10 are simply my own observations, not in any way investment advice, just trying to place some sanity into discussions about the realistic future potential. Simply, unless mgmt takes a change in how the limited cash resource is allocated in order to stop the cashflow bleeding, stop drawing a salary, start to focus immediately on existing resources, then the market is correct in pricing the SP in the realms of an unsalvageable future.
Just my observations and I am sure to galvanise the stalwart investors who see light at the end of the tunnel, unfortunately it might be the ships lights reflecting off the iceberg, let alone an oncoming train.

I think I might buy a few at .001 for old times sake.