MOY is a stand out potential in the gold sector and it is currently undervalued. Some significant price catalysts in the pipeline.
FA positives
$139 million in FY15 sales of ~88,000 ounces of gold,
Generates $7.1M per quarter in free cash
Has $14.1M cash in bank and is a cash machine
No debt - Zilch debt free
Has 4 drill rigs churning on their very prospective tenements fully funded.
$10M drilling program for 110,000m to be drilled this year
Has consistently hit exceedingly high grades at surface with length on their tenements
Has excellent management who have steered MOY in the right direction
Excellent broker in Argonaut, I rate them highly
Potential acquisitions hinted
PoG has been buoyant $1240
Market cap is only ~$98M. Relative similar peer valuations around $250M
FA negative
LOM is about 15 months
PoG crashes.
I rate MOY a strong accumulation between 13c to 14c. 2 month outperform time frame.
MOY Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held