TSXV:MGR.H - Post by User
Post by
Bobwinson Nov 05, 2020 5:48pm
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Post# 31848676
new stockholder
new stockholderI bought shares of Magna this week in the .90' range. I wanted to buy nearer .70 but didn't have the funds available. Still cheap. There is some risk to restarting production but the old mgmt appears very confident that the problems with production have been resolved and they have a couple small projects that can boost production further to 100K/yr starting in 2021.
Based on the current price, the market cap of Magna is around US$86million. That's very cheap for a producer in the 70-100K oz/yr range and I expect a rerating as the company moves towards full production. The presentation says that 18K has been produced from January to September 2020. If Q1 comes out in the 15-20K oz range at near the $1200 AISC envisioned in the recent PFS, Magna should be off to the races. I expect by mid to late 2021, the market cap should be in the 200 million range.
The nearby exploration prospects look interesting and close enough to use some of the excess capacity of the mill. If drilling confirms early indications, they could have more low capex production quickly compared to denovo projects. Company is forecasting 200K in a couple of years. Looks ambitious but if they can go underground and bring the other small deposit online by 2021, I will be a believer. Even if they stay near 100K, I think this is a winner.