I keep having investors ask me about MDI and the Barkly region - so here's my take, for what it's worth.
The problem with exploration in the Barkley region is simple - it's big company terrane. Explorers are looking for a company-making IOCG but you could just as easily pour tens of millions into the region and find absolutely nothing! There's no "low-hanging fruit" to be had here, but the surface-enriched copper provides a lot of smoke to chase. I worked on the region a few years back and I've lost count of how many times I've heard different companies tell the "outcropping roadside copper" story.
I've invested in other things the people behind MDI have been involved in and in recent years it's always the same - smoke and mirrors. Since the sale of Sandstone MDI has burned a heap of cash with little or no results.
MDI's last 5B to the ASX says it all - around 2/3 of their quarterly spend goes into admin and salaries. I know times are tough, and getting tougher for juniors, but IMO you're no longer an explorer once you do that! All shareholders are paying for is bums warming seats - how does that generate SH value?
The company is still in reasonable shape financially, with over $2 million in the bank but the sp has been mauled - falling nearly 70% since January.
Unless these guys "pull a rabbit out of a hat" (which means getting into the field and spending some real money on the ground) I have a fair idea where they are headed in the current market - DYOR.
MDI Price at posting:
2.1¢ Sentiment: Sell Disclosure: Not Held
