Originally when I sold most of my GRR above $1.40 and MGX was struggling and losing money I considered that whilst MGX was at a low that MGX had some chance of producing a capital gain. Thats why I invested in MGX.
Sadly I was wrong. Nearly three years of a negative return.
Obviously it was a reasonable move as GRR went from that high down to under 40c, however investing in MGX was a mistake as many other shares have done well over the past year. MGX on the other hand has stagnated and as the mine life draws to a close then theres little chance of decent return. Actually, I think that taking funds from MGX and moving back to GRR is a better investment and I'm considering this seriously.
If MGX announces a dividend it would give the share price a boost and I'd most likely exit anyway as I don't see much of a future. This is what the market is saying too.
Most companies in the mining sector are performing poorly, the problem is also most mining management are poor managers. Most wouldn't have the brains to operate their own company/business. Mining company management are well known for major stuff-ups.
MGX Price at posting:
43.0¢ Sentiment: Hold Disclosure: Held
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