RE:RE:RE:RE:RE:RE:Worst Case / Best CaseThere are many underlying reasons contributing to a stocks valuation.
For myself, risk aversion rank.
Majestic has 75 % of its market cap covered by its cash position and that cash positions continues to rise.
Majestic has one of the lowest Gold cash costs in the world, hence its very high operating margins ensures robust free cash flows.
Majestic has the resources to increase both production and grade, which together, compound rapidly increase free cash flows.
Majestic has very low G &M which also benefits cash flows.
Majestic has been given the right to consolidate gold production in Shandong Province.
Combined, these factors make Majestic one of the most attractive takeover targets that are available .
The negative factor is investor exposure which will come our way with the HKEX.