Got a canadian company on my desk with similar to Matsa MK Cap plus an estimated after-tax profit of 3 Mio CAD (before tax apr. 6 Mio CAD) not too different with Red Dog with a bulk sample time frame a little bit longer as for Red Dog (18000 to 25000 oz with 5 gr/to Cutoff, est. 13 g/to). They have only 1 project ongoing, to get to the bulk sample they had to dilute their MK Cap with a 2 Mio CAD PP plus add a 8 Mio USD loan at 20,5% yearly interest plus legal costs for a average loan time of apr. 7 months only. This includes at less than 100 meter depth dewatering for 200000 cubic meters, building costs for a 79 staff camp, 1 Mio CAD provision for site-recovery cost, plus 8000 meters of drilling out of the bulk sample to hopefully get to a production decision beginning of 2019. In the end due to the high debt costs its sort of fantasy, this week after some very high Au finding during ramp down the shares increased shortly one third during the anouncement day, with buyers hoping to get the bulk sample up to 18 to 25 g/to instead of the PFS with est. 13g/to..
Now bet what I consider safer: Matsa or the canadian one? I prefer Matsa. Let the worried people sell Matsa, and keep the shares in stronger hands, who can sit out the market turbulencs.
MAT Price at posting:
15.5¢ Sentiment: Hold Disclosure: Held
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