I couldn't help but think the presentation released by MGV last week was an invitation for offers. There is serious interest there from at least three players, perhaps more. (SLR, WGX, RMS, EVN, NST).
Now, I know this has been flagged here for many, many years. I traded in and out of MGV quite a few times back in 2015 based on results and also an expectation someone would take them out.
Fast forward to 2022. We have a resource that should have been updated regularly to add ounces and grade. This would have served to progressively add value. Instead we've got about 4000 drill hole results (as spectacular as the are) disjointed and failing to sit in a resource estimate. Exploration success - yes. Coherent planning - highly questionable.
I have always questioned the pittance EVN is ultimately paying for it's buy-in. I think it was very premature of MGV management. Capital raising would not have been an issue, particularly if they were adding ounces to the resource models. Another mistake, in my view.
I hope the management have been given a kick up the arse. With more coherent and coordinated management, particularly around planning, this would be trading far closer to 60 cents per share, meaning any offer for the company would be placed at around 80 cents per share.
If an uncontested offer is imminent, 50 cents per share would probably do the job right now.
So there's my whinge. Ultimately, the assets are worth much more than the market is currently valuing them at. MGV shouldn't just rely on offers coming forward, they should manage the company with prudence and a clear strategy.
MGV Price at posting:
33.0¢ Sentiment: Buy Disclosure: Held
