I think a few people have pointed this out that in the space of basically 3-4 months the share price of MGV has for lack of better word, gone bonkers. With plenty of people being in since the share was sub 10c, it is expected that there will be some selling when the share price stagnates.
A constant stream of incredibly high-grade assays has been released which has facilitated this but I almost want to think that despite the constant stream of good news, punters have grown desensitised to the grades that are being pulled out, even if they are incredibly good throughout the whole lode. I've seen other explorers with announcements screaming "HIGH GRADE DEPOSIT - 3m @ 6.7g/t Au from 25m" in an announcement and because it's a primary result, the share price goes up a considerable amount.
This announcement trumps most junior explorers finds on the surface, except we've got it going down 250m!
What's MGV have to constantly best to get a share price rise? " BONANZA GOLD GRADE: 3m @ 884.7g/t Au from 5m including; 1m @ 2,518.8g/t Au from 6m". Let's be real - that's not going to happen everyday.
Whilst I am an absolute noob at the stock market, public interest (in the masses) is going to drive the share price of a company at the end of the day, people seeing potential in a company to make them money, whether it be short or long term. I think the average punter will be looking for a quick turn around and if it's not eye-wateringly attractive, they likely will turn a blind eye and look at the next hot stock that will get them a guaranteed return on the next announcement.
In my eyes, the SP of this stock can only go so high based off of the constant drill results as it doesn't outline officially the amount of resource there to be mined and how management will go about it - there are always estimates but it's never the full deal. There are a few posters here who have tried to estimate and speculate but at the end of the day, we're all just making our own interpretations based off the announcements. That speculation needs to be replaced with an official outline from management so there is a level of certainty. It'll take a larger, official announcement that properly outlines the resource base and geology alongside management's plan to extract and produce with numbers, profit etc so people can actually see the production plans and the actual fiscal worth of the company from the horses mouth so to speak - this will hopefully be the Q3 JORC.
The question of manipulation for accumulation or TO has also been raised which could potentially be a factor in the dismal SP performance but again, speculation.
For the guys that are in it long, that is fine - they are not the average punter, they sit, buy in the dips and have strong hands that don't fold when the tree is shaken (eg. 60c dip, never thought I'd see that again hence the re-up). Quite happy to sit here and watch the ounces pile up, even if the SP doesn't perform too well/trades sideways in the short term.
Open to discourse!
MGV Price at posting:
60.0¢ Sentiment: Buy Disclosure: Held
