MGT current market cap $137.2M at $0.048c. Shares issued 2,862,412,667. Listed Options at 5c due 31/5 = 172,624,545 & 29/10 a further 297,520,678 are due. You can bet that management will be putting out some positive announcements to ensure they collect $23.5M from these listed options. Hence > BUY BYE $0.05c S.P.
So assuming all listed options are taken up by 29/10 there will be 3,332,557,890 paid up shares on issue. At $0.07c a share the market cap would be circa $233M. To achieve a market cap over $200M MGT would need to be well advanced with its project.
A further 107M unlisted options expiring over various dates out to 2025 at various strike prices will also come into play.
As the company progresses MGT will be looking to attract institutional investors. These investors would like to see a S.P. pushing $1 so a share consolidation of say 10 to 1 MAY happen at some point in the future.
Not sure what the projected mine life is for this project but if it gets off the ground and in production 50 yrs might be a rough estimate. (any better guidance appreciated). To get into production the company will need to raise capital via debt, issue of more shares, off take agreement funding, etc. Guestimate, up to 5 years before commencement of mining.
Where will the S.P. be in the medium term? Good question. Maybe FMG could be a guide. FMG was pretty “rocky” in its early days. We don’t have a Twiggy leading the show either.
Without a share consolidation we could make 8c within 12 months. With all listed & unlisted options exercised at 15c the market cap would exceed $500M and we would be an ASX 300 company. In recent times shares such as PLS & ADN have been savaged by shorters once entering XJO, XKO or XAO indices.
A lot to consider when assuming a forward looking S.P. ADN run from 3c to 44c with a heap of shares & options on issue prior to generating a $. It is conceivable MGT could run to 20c based on ADN performance but its JV partner, MEP has not enjoyed the spoils to the same degree.
So a stab in the dark………………..Well north of 5c. Say 8c in 12 months, 15c in 2 yrs, 20c 3 yrs, blue skies after that as crystal ball is foggy. Would have been nice to have purchased FMG at 5c. Just ponder over that one for a while. Buy LOW & HOLD………….. for the ride. > DYOR<
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