Morien Resources Corp V.MOX

Please Put into Perspective!

[MinerSetback]

I am a significant investor in MOX and have been lurking for years. But today I could not resist to join SH and offer a perspective. The rock falling from roofs is not an uncommon occurrence in any underground mining. Under normal circumstances, this is usually remedied quickly to Safety Board satisfaction. But given the Covid crisis, American inspectors were unable to fly to Donkin to offer remediation due to travel restrictions. So the problem was not solved despite it being a small area of the mine. Given it has been over 6 weeks without resolution and the media holding the N.S. government's feet to the fire, the Safety Board elected to shut the mine down. It was functioning at 50% since the February 13th incident. It was not "sealed" but "maintained and cared" for. That in itself suggests a temporary scenario. The Covid Crisis has affected most businesses unless it is deemed 'essential'; the mining industry is not immuned. Although this is definitely a setback,I do not think it is as severe as the panic sellers think. But that is their prerogative. This is an incredible coal mining asset with outstanding long term potential. Metallurgical coal (80% of their assets) is here to stay for self-evident reasons. To those who feel Morien should have diversified, please think again. To purchase another significant cash flowing royalty, Morien would have to leverage substantial debt. Can you imagine where we would be today carrying debt given the circumstances? Morien correctly decided to wait until Donkin acquired long wall capabilities before taking their plunge. Morien's prudence and caution has been spot on. It has 3.1 million dollars in their coffers to endure this hiccup and NO debt. Investors may have to their dividends suspended for a couple of quarters, but Morien has more than enough capital to survive. It is a royalty play without much overhead. The panic selling today accounted for about 5% of the total float but will be a golden opportunity for others to buy an extremely depreciated share price. All IMHO MS

[MikPrecious]

I share your complete sentiments.  I will also add their monthly burn rate is so low as well. They have plenty of cash as well at over $3million.  The best thing as well is you said thank God they didnt put on more debt in buying a royalty before and he waited for the longwall decision as they would have put them in a bad situation counting on their Royalty. Nice Writing keep it up! 

[tankingfrank]

looks like a good time to buy -- 6 cents cash and a royalty that should be back in short order.   time will tell .