Hi All,
As promised, and long time coming, below is the
MAG summary (
take your time reading it).
While preparing it; things like multiple announcements saying that “it will be bigger than Boda and comparable to Cadia East” made me think if I am the only one who can see that info or if everyone can see it.
As I have said quite a few times; I have held from 4c to 46c and in-between and I’ll hold until we get the end result. Couldn’t give a crap about the daily movements, and I’m convinced that this will turn into something big – of course IMO, from my research, and with my money/investment for my gain/loss – everyone DYOR and make your own decision/opinion/conviction/etc!
If I was going to
summarise the whole summary into a few dot points it would be:
- Tier 1 Projects
- Tier 1 Location
- Tier 1 Team (who are also the definition of “skin in the game”
- MC: $41M, Cash: $5M, EV: $36M
- on the cusp of a Major Discovery
- Wellington North Project/Lady Ilse is looking more and more, with every announcement, like another Cadia East (current resources: 33Moz Au, 7.5Mt Cu)
- Myall Project/Kingswood Prospect has a lot of similarities to/could be another Northparkes (3.8Moz Au & 3.4Mt Cu)
- Parkes Project is an early-stage (ALK’s) Tomingley Gold Mine/Operation with existing Parkes gold intersections equivalent to early stage exploration results at Tomingley (~
3.5Moz mined to date + to be proven up)
MAG – Summary:CURRENT VALUATION (at 24c):MC: $41M
Cash: $5M
EV: $36M
REGISTER/MAG SHAREHOLDERS SUMMARY:View attachment 2127118First four holdings/numbers are from Substantial Holder notices.
Last three are my best guesstimate.
Explains why there isn't much on offer/for sale.
The first 6 out of 7 lines/holders in the summary are all believers in the story and will see this story play out to the end.
My best guess is that most of the last line are believers too, leaving not much left for trading/flipping!TEAM (in no particular order):
MAG’s Team is the definition of “skin in the game” and, along with the Adviser, and the Directors’ and Adviser’s inner circles, own 75% of MAG (plus Gold Fields owns another 11%).
Grey Egerton-Warburton (& Co): - Adviser since shortly-after Boda discovery
- own about 25% of MAG (put in $7.2M in the two CRs)
- Advised AGO on its way from a junior to a $4+ Billion market cap, Top50 ASX Company, raising $100’s of millions in the process
- SIR, similar to AGO, from <$10M market cap to a $1.8B takeover (5c to $5 share price run)
- Advised many, many others
David Flanagan: - owns 6M MAG Options (ex 26c)
- founding Managing Director of AGO
- led and grew AGO from a $9M startup to a $4+ Billion market cap and into a Top50 ASX Company, with $1.5 Billion in annual revenues
Tony Walsh: - owns 2M MAG Options (ex 26c)
- MAG Company Secretary
- was with David Flanagan at AGO for most of the $9M to $4B+ journey (reported to Flanagan but was Flanagan’s most important mentor)
- was Company Secretary at IGO and led the Corporate element of the $440M Nova copper/nickel project financing
- current Company Secretary for Legend Mining (LEG) who also just made a big discovery
- certainly no ordinary Chartered Accountant/Company Secretary
Peter Duerden: - owns 2.8% of MAG (bought all (~5M) shares on-market once Boda announcement came out - had nothing to do with MAG at the time and was in his first MD role at SKY)
- worked at ALK for 10.5 years, in charge of all of their North Molong Belt porphyry exploration
- “region defining” work done and is The Expert on East Lachlan mineral systems (lives and breathes the area, literally)
- some of his publications on the area:
https://smedg.org.au/mines-and-wines-2015-files/presentations/Duerden_MolongVolcanicBelt.pdf &
https://eprints.utas.edu.au/11543/
- put together the drill plan for the Boda discovery,
---Boda drill got delayed by a wind farm that came onto the Boda ground (https://www.infigenenergy.com/bodangora/),
---left ALK and went to Newcrest/Cadia & picked up their knowledge/processes (~1 year),
---then went to SKY in his first MD role (8mths),
---Boda drill/results finally came out,
---Duerden loaded up on MAG on-market straight away as saw what they have compared to ALK/Boda,
---then left SKY to become MD of MAG
---SKY then, off the back of his work there, made a big discovery just after he left
---definitely The Man you want to have if you’re after a Boda/Cadia East-type discovery
David Richardson & David Berrie: - own 24.7% (Richardson) & 8.2% (Berrie) of MAG
- great & savvy dealmakers:
--- purchased Net Smelter Royalties for $100k (these were previously contracted/optioned for purchase by Gold Fields at $20M each x 4 NSR’s (prospective grounds or what?): View attachment 2127187 ---- quality of MAG’s projects surely attracted the current team but I’m sure the existing Directors played a big part too
The two Davids (Richardson and Berrie) are the Founding Directors and are two of the biggest tight arses you'll ever see on an ASX Board.
Some examples:
1.
- share price was down at all-time-lows in the 1c's
-- company running out of/needing cash
--- company had offers for a CR ($2M)
---- but the David's said;
----- get stuffed, as offer/price/dilution was not good enough for shareholders, and
------ so they funded the Company with their own personal cash.
2.
- share price was low/all-time-lows
-- Company was lacking cash
--- Company not in the best place
---- Company got offered a JV from a $23 Billion Major
----- but JV was a low-ball offer
------ so the Davids said;
------- get stuffed $23 Billion Major
-------- and rejected the offer.
The above should tell you what the Board will do for shareholders and how they will treat the Company; always in the best interests of holders, but that shouldn't surprise anyone as they are the biggest holders and with their inner circle own pretty much the whole Company!
And guess what? The Directors, Inner Circle, Big Boys on board; they all want to make (big) money too, so they will do everything they can for holders to get the best return.
So, they will always get the best deal for holders, and let’s hope it's something similar to what our adviser has previously achieved (one of many deals) (from under $10M MC to $1.8B takeover), assuming they confirm a big discovery, etc.
I guess it helps to be a tight arse and reject offers that are not good enough, when you know the quality of the assets that you have!
Steven Oxenburgh: - 30+ years minerals exploration and evaluation experience
- previously at Gold Fields & responsible for the divestment of the East Lachlan projects to MagmaticPROJECTS:
MAG’s NSW Projects:
Location of MAG’s NSW projects:View attachment 2127121Location of MAG’s NSW projects with Majors active in the area (FMG grabbed everything they could around MAG’s Myall and also next to MAG’s Parkes within the last 12 months or so; Freeport & Newmont have grabbed grounds also):View attachment 2127124NSW/East Lachlan area is very underexplored compared to WA’s Yilgarn and should produce plenty more world-class deposits from further exploration (especially now that Boda has lit the place up):View attachment 2127127View attachment 2127130MAG’s Wellington North Project:
Lady Ilse Prospect: - comparable to ALK’s recent Boda discovery (ALK added a peak $478M to its market cap as a result of discovery (so far))
- indicators pointing to Lady Ilse being bigger than Boda
- indicators pointing to Lady Ilse potentially being another/comparable to Cadia East (worth $15B+ to Newcrest)
- Lady Ilse porphyry target zone currently at 1.8KM x 1KM (open to North & South) (comparable to Cadia East footprint of 2KM x 500M)
- Lady Ilse has the right:
--- wide zone of gold anomalism
--- wide zone of porphyry pathfinder geochemical anomalism
--- mineralisation style
--- rocks/stratigraphy/geological setting
--- alteration
--- geophysical signature
Lady Ilse area (including other prospects) and location of ALK’s Boda:View attachment 2127136ALK’s Boda Discovery Hole:View attachment 2127139Similarities between MAG’s Lady Ilse and ALK’s Boda:View attachment 2127142MAG grounds encircle ALK’s Boda grounds:View attachment 2127145Similarities between MAG’s Lady Ilse, ALK’s Boda & Newcrest’s Cadia:View attachment 2127148View attachment 2127151MIMDAS geophysical survey shows the size of the Lady Ilse target zone to be much bigger (1.8KM x 1KM) than initially anticipated (bigger than Boda and comparable to Cadia East (2KM x 500M)):View attachment 2127154First hole at Lady Ilse completed:
- depth of 1014.8m
- validated MAG’s exploration model
- intersected porphyry-style mineralisation in the predicted target zone
- target zone remains open in all directions
- significantly upgrades the potential of the area to host a large porphyry system comparable to the Cadia East deposit
Every piece of work that is done/announced is confirming what’s there and increasing the scale of the system.View attachment 2127157Core images from the first completed hole showing porphyry related mineralisation and alteration styles:View attachment 2127160View attachment 2127163View attachment 2127166MAG’s Wellington North Project (Other Prospects):
Bodangora Mines: - historical production of 226,000 ounces of Gold at a super high grade of 26g/t Au
- recent data reinterpretation has identified several alkalic intrusives that appear to be an extension of the Boda trend
Rose Hill: - could be another early-stage Boda (results: 71m at 0.43% Cu, 0.30g/t Au)
Mayhurst: - another prospect showing early-stage porphyry potential (results: 21m at 0.19% Cu, 0.11g/t Au)
MAG’s Myall Project:
- Myall is potentially another Northparkes (3.8Moz Au & 3.4Mt Cu)
- located 60km’s north of Northparkes
- geological, geochemical, litho-geochemical and geophysical work competed
- right geological features to identify Northparkes-style porphyry Copper Gold deposits
- strong geological similarities between Myall and the nearby giant Northparkes porphyry Copper Gold mine:View attachment 2127169Myall’s Kingswood comparison with Northparkes:View attachment 2127172FMG has, in the last 12 months or so, grabbed everything they could around MAG’s Myall project (all the green coloured grounds next to Myall) (I wonder why):View attachment 2127175MAG’s Parkes Project:
- Parkes is an early-stage Tomingley
- located south/adjacent to Tomingley (ALK’s gold producing mine/operation; total of ~3.5Moz mined to date + to be proven up)
- Parkes Project existing gold intersections equivalent to early stage exploration results at Tomingley
- also prospective for epithermal gold mineralisation (ie. Evolution Mining’s 11Moz Cowal Gold Operation down the road)
- also prospective for porphyry copper-gold mineralisation (ie. China Moly/Sumitomo’s 3.8Moz Au & 3.4Mt Cu Northparkes mine, which is 10km’s away from Parkes) (MAG’s Parkes results: 135m at 0.29% Cu, 0.17 g/t Au, from 254m)
- Majors (Freeport and FMG) have recently grabbed ground next/adjacent to MAG’s Parkes projectView attachment 2127178MAG’s Moorefield Project:
- one of the four NSW projects that came from Gold Fields
- not a porphyry project like the other three projects
- not on the Junee Narromine or the Molong Volcanic Belts (more akin to the Cobar region in NSW (>7Moz))
- 15km gold trend with 19m at 1.28 g/t Au at one end of the trend and 30m @ 1.6 g/t Au at the otherView attachment 2127181MAG’s WA Projects:
They might sell these as they are not even mentioning them in presentations anymore:
MAG’s Mt Venn Project:
GBR ran to a $32M market cap on results from their Mt Venn project (adjoins MAG’s Mt Venn project and most of the igneous complex is on MAG’s ground).
MAG’s Yamarna Project:
MAG has one tenement on the outside of the massive GOR landholding and another tenement right smack in the middle/within all of the GOR tenements and 15km away from GOR's 6Moz Gruyere gold mine.
I've put red boxes around the important bits for those who are not good at jigsaws:View attachment 2127184And that's all folks!I would also suggest having a good/proper look at:
- MAG Website (https://magmaticresources.com/) - MAG Presentations (https://magmaticresources.com/investors/) - MAG Research Report from FEB 2020 (https://magmaticresources.com/wp-content/uploads/2020/02/Eagle-Research-Advisory-Report-Feb-2020.pdf)Cheers,
GB.
(20min delay)