The biggest confidence in morning star (as per the thread's title) is the ability of the Chairman to raise money. So for that bit - we are in good hands. It is the worst time to raise money for these type of ventures in 20+ years, so it is great to have Nick in that seat.
Another confidence area is M Botting's ability in getting the infrastructure, team and throughput right. I have only seen praise for the guy and I believe he knows what he is doing - he impressed me at the last AGM during after. He is passionate about MCO and its success. IMHO - Hats off to him to stop the workers drilling (hence reduce the OPEX) until the concentrate is sorted and getting the metallurgist in to get that right.
As far as the $10m+ pulling out, there are a variety of reasons for that to happen. It could be that Chillie decided to call all loans in that could be called in and MCO was just on that list. It could be that because MCO slowed down the operation on account of the concentrate, they decided that it is a better move to pull the loan off and use the money (or pledged money) in a different investment and buy some more Morningstar when the concentrate was right. It could be that Chillee has strict guidelines within its policy whereby the $10m was a short term loan contingent on getting the gold out of the ground – the minute MB said stop operations whilst we get the concentrate right, Chillee basically had to pull the money out because the goal posts moved.
I could go on and on with my speculative imagination. MCO will definitely live to fight another day and IMHO the more USA print money the closer will be the tipping point of THE huge surge in the gold price “HUGE”. It is a matter of time.
I will be buying the new offer if it stacks up (and I am sure it will).
If the price falls to $0.08 do you buy or sell. I’d buy. When will the stock get back to a healthy market cap? Who knows?
What is a healthy Market Cap – that is up to each individual.
If you have the time to wait that I’d say average down, otherwise get out, invest somewhere else and come back when you are ready.
Caveat – Averaging down in my opinion is not a good strategy. I think however MCO will be a bargain at Capital raising time
DYOR You must DYOR
MCO Price at posting:
11.0¢ Sentiment: LT Buy Disclosure: Held
