The only positive I get from this report, and it is an important factor, is that outlays appear to have been contained. This is an achievement by NG. Some funds from the Chinese has been added to the bottom line as a result of recovering exploration costs under the JV agreement.
It appears that the current funds may last until end March 2012, by which time some actual production revenue to fund the operations should (hopefully) be flowing. If not then SHs know what to expect.
It is hard to put a valuation on this company. I do not know how much credence one can give to the resource estimates. There will be no gold production of note until the winder is in place and the internal upgrades have been completed to the satisfaction of the Mines Department - this may happen by end September, in which case some revenue may start coming in late October/early November, on which the company will report in January 2012. Hence the share price will at best continue to be depressed in 2011 Q4 (unless MCO has some special news to be released prior to the quarterly).
Good luck MCO followers. This is an interesting story. I just hope people do not set their expectations too high for 2011 given how things have progressed to date. I am looking forward to the new CEO progressing the company.
loki (Gee this guy must be some sort of down-ramper and obviously is looking for some cheap MCO shares. No way is he getting mine, which will hit $3 by Christmas 2011).
MCO Price at posting:
29.0¢ Sentiment: None Disclosure: Not Held
