2012 Update and Expectations Well, 2011 was a punishing year for the TSXV (down from 2100 to less than 1500 in 2011) and most Jr. Mining stocks. If you preserved your capital in 2011, then you did pretty darn well because most stocks were heavily punished. Majestic was down 1 cent over the year, so not too bad in a year of turmoil, so all things considered, I am ok with Majestic as we head into (what will be) a way better year for Jr. Mining companies.
in 2011, Majestic laid the groundwork for a great 2012. They:
-Completed their scoping study and released it in January
-Completed the construction of the new 6000 TPD mill ahead of schedule (April vs. May)
-Started year 1 by commencing the commissioning of the mill
-Raised enough capital to see them through to full production
-Started seeking ways to list on the Hong Kong exchange
That said, they failed miserably in keeping general shareholders informed unless you called them. Shareholders certainly deserved better insofar as communication, but, I am told that 2012 promises to be better from a communication and promotion perspective.
In my view, the next 5 months will be fun as we'll see Q4 and FYE2011, Q1 and Q2 of FY2012 results by May 30th. Following are some updates that I was able to get from the company recently, as Majestic is focused on a few major priorities:
-Looking at means of listing on the Hong Kong exchange - whether a merger with a currently listed company or perhaps a reverse takeover of a shell. This strategy is used all the time to get US listings (experienced it many times in multiple US markets).
-Mining the lower grade halo surrounding the higher grade zone in preparation for increased production resulting from receipt of the mining license increase.
-Tonnage processed will remain the same while proper controls are implemented (auditing, etc), as the
- Producers have very strict rules/audit requirements (Is taking Majestic longer than anticipated to align with Producer Regulations)
- Permitting, mine plan, etc, still coming along, slowly due to regulations and requirements to become a production company
- 7400 TPD now scheduled for mid-2012, but as the lower grade halo is processed, the higher grade zones will start to be mined thereby increasing grade processed through the mill. Ultimate result will be increased Gold production going forward
So, Majestic seems to be humming along at the mine site. Too bad management is to ignorant to keep the general investment community aware and informed not only of their plan and strategy, but also their progress to date. I expect we should see that with their financials at the end of the month, but I've expected these types of normal disclosure before of this management team, only to hear crickets...
Happy New Year folks... glad to have 2011 behind me as an investor, and I really look forward to 2012.
Cheers,
B