Caveat Emptor!!!As per usual, i see that there's never a lack of trolls, pumpers and just plain suspect posters on these forums when a certain "unfortunate event" happens. Dubious folks who go around, making the rounds posting an enormous pile of dung & misinformation which "MAY BE" harmful to your person and "may" result in severe financial losses IF you are ignorant enough to believe them.
I will address a few now and debunk them........
First warning number ONE. When you see someone like MezzMax posting on a board telling you to buy & go all in......RUN for the hills and never look back. One only has to visit his posting history to see the train wrecks the infamous MezzMax has invested in. One of the biggest "pumps" being that Cryptostar AKA Cryptocrap (CSTR) was to go to the moon and make him billionaire including everyone else that took the plunge & blindly bought in. Well, we all know how that turned out for MezzMax & all the suckers. Btw, MezzMax use to be a former millionaire..........But that's just one of his greatest hits.....
So what's the message here? Whatever Mr. MezzMax says or anyone like him, makes sure it goes in one ear and then quickly out the other.........moving on....
Gr8play wrote:
"Considering that it takes at least 10 years to bring a mine into production, it makes no sense that the stock is trading so cheap."
It does make sense, you just have to know what to look for and have all the information on hand to properly understand what's going on here. And being "cheap" is relative
"Positives include a multimillion ounce deposit and a fully functional producing mill!This stock should have a valuation of over $500 million minimum as is. "
The "million ounce deposit" you speak of is deceiving & deceptive. Though i agree with you the mine "could" have a potential NAV of $500M, the company is not. This is a I&I resource and not a confirm & defined proven reserve. That's what most people not knowledgeable in the sector evetuallty miss. Lots of factors, some in control of the company some not, have greatly reduced that valuation of the company to almost nothing.....It's not only about deposits but also about he financial health of the company.
"Negatives point to the team burning through cash at a rapid rate. But in my opinion its mainly due to a perfect storm of: Covid related labour inefficiencies, supply chain challenges, unanticipated rising costs of fuel and consumables, shortage of skilled workers, bad luck causing equipment breakdowns at the worst possible time."
Well said & completely agree..... and then some. You can also chuck in mismanagment in there along with those other factors.
"In my opinion I think the fastest and best way to turn the company around will be if Mr Makuch was asked to take on a major role in leading role in the company."
Not sure that will really help, and for all intents & purposes it's way too little too way late at this point. Only a massive resturcturing will do anything to aid the company at this point and that usually means current holders are totally wiped out.
"Current market cap. is $14.8 million. The stock is ridiculously undervalued. They have an operating gold mill and a 2 million ounce + deposit!"
The use of market cap here isn't ideal and totally inappropriate. It's a rudimentary form of measurment and does not show an accurate picture. You forgot the include the $100M+ of debt they hold AND they're basically insolvent which means the need for further dilution. Once you factor all that in, the actual & current value of the company is about $120M. As for the desposit, as it's NOT a "proven reserver" they won't get much in terms of value.....currently. But for agruements sake let's say there's at least 1M ounces of AU which is 80% recoverable. IF they're lucky, they might get about $100-$300/ ounce for a PROVEN RESERVE
"They have all the required permits in place. Its a no brainer. You cannot build a mill for less than 20x the current market cap. alone, and that is very conservative."
All a moot point at this time. It does not matter now....
"Its only a matter of time before they get the right operations and management team in place to make this operation fly. This is the issue in my opinion. Everything else is plug and play."
Time is a luxary the current mgmt do not have anymore and has basically ran out. Should this company be able to restucture & resurface some time in the next few years OR if some "other" group takes over the mine, maybe with the POG much higher & in a better economic environment which is conducive to gold mining, it "may" have a chance to be profitable some day.
What investors REALLY need to understand here, is this. The company in its "current form" and its "currenbt" s/h are done. No if's or but's about it, this is not debatable.
GLTA