Post by
awacs1 on Jan 04, 2017 4:29pm
New high?
I have followed MLN for a while and note that it is moving nicely. On the positive side, I like the stream of royalties and uptick in production, but do not like the level of debt,(although the debt is held by Wexford who also hold about 82% of the stock). I like the fact that the HS zone is a significantly higher grade than most heap operations but am concerned about how large this ore body is and thus when do they revert to the lower grade? My major concern is the size of the float and average daily trading volume of only about 29, 000, this lack of liquidity is a negative.
Anyone got a line on why Wexford has not actually bought out the rest of the shares? I suspect that it is because the loans pay out on average at 15% and as long as the company is generating enough revenue to cover the payments, this is a sweetheart deal for Wexford.
On balance, the stock has some upward potential if the production holds up, and gold continues to move up. But I do not like the set-up which does little to favour the ordinary investor.
Look forward to the conference call.