January 2011Happy 2011! I think this is going to be another great year!
I am glad Majestic has not released any news over the holidays aside from that poison pill PR. I see that they have a new IR/PR team in place to answer questions. I do intend to call them in the near term to see what is going on with the company lately.
I do know the scoping study was provided to the company in mid-late December, and that many updates are forthcoming in January as per the normal reporting schedule, and as per the interview on Youtube on Nov 18th. For me, it is always good to revisit what is expected in terms of updates in the next few weeks (IMO):
-Obviously, the biggest item is the scoping study that includes a mining plan and preliminary ecomonic assessment. As this was provided to the Co last month, I would expect to see it released to the public before the end of January. Hopefully next week once most investors are back from vacation.
-An update on the loan to RAB that was paid off around Nov 18th and cash on hand (I have no idea why they sit on things like this instead of releasing these material events immediately via PR's)
-An update on drilling results. As per Rod and the interview, they've uncovered potential zones to the north, and in the future, will explore potential at depth, so the property has potential to have additional increases in resources with more drilling.
-An update on the construction of the 6000TPD mill and tailings storage facility. At the time of the interview, it was said to be about/over 50% complete, and that was November 18th. Rod indicated it should be done "in about 4 months". Jan 18th would be about 75% done based on the interview, so that would be a great update.
And finally, FY financials that are due by the end of January as per TSXV reporting regulations.
Personally, I am expecting another news flurry (with significant positive news), with more german newsletters, etc in the upcoming month or so. Just a gut feel based on the M.O. of the company over the last year. I just can not see them building this mill without first knowing how positive the economics of the mine are.
On another note, warrants that were exercised are still being sold into the market - at a calculated rate - and Instinet it a new buyer and has been accumulating for some time (months). This is why we are staying at .17-.18. As inventory slows, and news and promotion hit, I think we're in for a stop in the .30's in the shorter term - but only when promo and news occurs. As for those that boo-hoo the company, they need to get their head out of the sand and actually look at the resources an in-situ value.
Really looking forward to the first half of 2011.
B