below my answer to a statement in the german forum about the status of this investment. I will finally leave it with this and will only comment if there is smething factual.
MJS has been a catastrophic investment for many for around 10 years. Many false and exaggerated promises were made and then the share value was diluted further and further by new private placements. At that time, it should have been clear to everyone that MJS was a risk investment in a project in its early stages.
How can you profit from a share as a shareholder?
1 - The company shares its profits through dividends
2- Higher buying interest than selling interest
2a. Takeover by another company at a higher price
2b. Growth share like a tech stock in its beginnings, after it has achieved a strong, preferably dominant market position, then shares its profits with its shareholders.
MJS has achieved a strong market position since 2020. There is no invovation cycle or competition as for example with tech stocks/. There is a hole with gold and you dig it out when the infrastructure is there. This has all been the case since 2020. It's a very stable business model except for the gold price.
I have often written my resonance for the investment transparently here:
- Speculation on rising gold price
- Determination of the very stable business model
- With share buyback 1, the MGM's determination that the share price does not correspond to the intrinsic value of the company and that they want to increase Shareholder value (spoiler, it was a lie)
The company has been making steady profits since 2020. We are now in the 5th year. Without the IPO, around USD 75 million was generated as cash reserves. With a market capitalization of around USD 50-60 million
majesticgold.com/site/assets/files/4092/20240405_mjs.pdf
pdf page 9-10
MJS should be a very solid investment, with the strong prospect that the MGM will share profits with its shareholders. That should be the RULE. What we have here with this MGM is an EXCEPTION. In this case, an absolute catastrophe.
Why a catastrophe?
There is no confidence in the MGM that they
a- can meet its milestones within the given timeframe
b- there is no confidence that the MAM can deliver on its announcements
c- there is no confidence that the MGM will share the success with its shareholders
1. share buyback number 1 announced. never carried out and never communicated why.
2. share buyback number 2 announced. Only about 10% of the possible number of shares bought back. never communicated why.
3. IPO of PRG only in the 4th attempt. During this time, all plans for the acquisition of new mining assets and mine expansion were not achieved. As well as complete silence regarding shareholder value during the entire time with the justification of the IPO.
4. since the IPO and the removal of all restrictions and after 4 months there is still no statement on shareholder value!
All while the cash balance has grown from $33,774,231 (2020) to $97,971,465 (2024).
These condensed 4 pts read short and sweet. But behind it are 3 years of frustration, disappointment, misinformation, failure, lack of understanding and the complete ignorance and non-communication of the MGM.
A fundamentally very justified investment has turned into a 3-year disaster due to the actions (failures) of the MGM. Anyone who has been invested here for this long or even longer has lost a lot of money in real terms due to opportunity costs. All with a massively growing cash position, secure business and prospects.
Why?
The majority of shares are held by a small group of presumably wealthy individuals. They could fire the MGM, renew it and thus significantly influence the decisions. I think this group is extensively informed and is not in a hurry, as they are presumably rich. As they are kept well informed, they are not so much in the dark and presumably have a plan from MJS as to how and when they will benefit.
Professionally, you can understand that. Humanly, it is simply the peak of indecency. The MGM simply doesn't care about our welfare for the simple reason that we can't fire them. Humanly/formally speaking, we have the same right to be informed as the little rich group. But the MGM just doesn't give a s##t about us.
What needs to change:
The MGM should finally consider the interests of us small shareholders. (I don't believe that anymore). All shareholders will make profits when the small shareholder majority decides. Then and only then.
- The MGM must ensure that liquidity/turnover is created in the shares so that other players can invest in MJS. Since at least 51% of the shares are held by a small group, in my opinion this can only be achieved through a dividend. Due to the large volumes heldby each of the individulas, any sale would cause the share price to plummet.
What needs to happen now:
1- Share buyback of at least 50% of the possible amount. (50 million shares possible, buy back at least 25 million)
2. reverse share split 10 to 1. MJS no longer a penny stock and possibly rise in indices on the TMX etc.
3. dividend of at least 0.05$ according to share split 10 to 1 (104,500,000 shares). This would cost only around USD 6 million and would result in a dividend yield of 3.5% at a share price of USD 0.15.
My personal take
MGM needs to realize what a bottomless sh### they have been pulling on us small shareholders for 3 years. They seem to live in their cloud and simply don't realize that there are not just the few rich majority shareholders in Canada for whom they are also responsible. It's just dr###ing how they treat us just because we can't fire them.
Sorry for my choice of words, but after 3 years of solid arguments, I have no other words for this bunch/clownshow. Additionally, James Mackie has obviously lied to me in our phone call/mail multiple times. They just don't care.
It's almost a theatrical play of human behavior. If you can't exercise power - you're simply doomed.
Future
I rule out fraud.
We will make profits, which is why I am invested here both monetarily and mentally
The way we are being treated is the peak of indecency
I hope that a certain professionalism finally comes to this company in terms of adhering to the self-imposed goals ->1 to drive the business forward and 2 to increase shareholder value
The fact that the timetable for the mine quization cannot be met again is not a good sign. Let's hope that MGM did not sell our PRG part too cheaply and does not buy the new assets too expensively.
Unfortunately, the performance in terms of professionalism over the last few years does not point in a good direction. Perhaps at some point the small majority of shareholders will realize that something has to change at MGM.
I hope this has been helpful for some of you
i will leave it like this, i promise :)
regards
richard
Translated with DeepL.com (free version)