Just wanting to try and work out why MCo trades at such a discount to other junior goldies. Ok so we establish that MCO didn,t meet there original trial mining objectives. A negative for that. OK they managed to secure extra funding in a once in a lifetime credit crunch . a positive. ITs a lfb which is out of favor as a result of bdg and gbm and gdr all having some problems. ok negative for that. IT has nearly a million ounce jork = positive. Has very few operational news releases. = neg has very high grade = positive. projected cash costs are amongst the industry's lowest = positive. Has a very low market cap approx 13 million = positive Very close to resuming mining in an ongoing manner not trial = a positive. Management although having made mistakes , is big enough to admit to them = pos and negative. No debt = positive. not a huge mount of cash reserves= neg no milling facilities = negative. Huge exploration potential with many other historic high grade shallowly worked mines = pos working head frame and infrastructure = pos So compare that to say Cah in WA and what do we get . CAH a worn out wa mine that failed to get into production under its last name of WEZ = neg very low grade = neg experienced management = pos. relatively high cost production = neg hedging in place at $1500 aus = pos at the moment. debt and market cap very high for a company still a long way off production . Compare with the likes of slr Producing good profits and no debt. = neg Area already extensively explored = neg
OK so there are bound to be things i,ve missed on both sides but i still can,t work out why one should have so much higher value than the other. is it a case of people thinking if it sounds to good to be true then it is thinking . OR is it just purely a marketing thing. Despite it previous failings i try to work out what ive missed that makes MCO cheap compared to other near term producers that also may have problems getting it right. I just don,t see how one can have a market cap of 40 mill plus and raise another 100 million just to get into production with no guarantee of success, when another has a market market cap of 13 million and is about to start producing and may go close to funding itself into expanding into a mid tier producer with no guarantee of success.
MCO Price at posting:
12.0¢ Sentiment: LT Buy Disclosure: Held