I totally agree with every point you make, but possibly they are...

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squanski

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21/02/21

19:01

Post #: 51195571
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Originally posted by sydneysider: ↑

On a technical basis MGV is a "falling knife" IMHO avoid until signals flash green. Was invested at 12 cents, rode into the highs. My sense is that the market expected too much, too soon, stock failed to JORC 1M ounces and trend turned bearish, got out between 60 cents and 40 cents via multiple sales. Then MGV management did a massive equity raise which IMHO has not been fully digested, causing the falling knife pattern. My sense is that MGV has lots of gold prospects BUT the individual lodes are on the thin side, so they need lots and lots of (expensive) drilling, typical lode is around a hundred thousand ounces. I asked MGV management if they would consider fast tracking some of individual lodes into development using contractors / selling ore to a local mill. Would have saved / made a ton of money and stopped the falling knife. Sold my position after I got a non-response. It always pays to ask the right questions. Good luck with your position, hope it turns around soon, maybe an uplift in the gold price (which may be underway on the COMEX) will help you.

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I totally agree with every point you make, but possibly they are waiting for some hard evidence from the Evolution JV, which might indicate the direction that project is likely to take. I also agree with Fish, a fall of more than 50% could be a good place to start buying a company, which from its successful drilling campaign has obviously got some sort of future ahead of it.

MGV Price at posting: 32.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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