RE: Majestic ValuationsTeknikal,
So we both agree the current shareprice and Market cap are much much lower than it should be based on ounces in the ground, EV of a company about to start production, etc. The market cap should be anywhere from $250m to $525m based on NPV (range given for geological reasons, stage of Company, etc), rather than the $110M or so it is now.
I will totally disagree with your point that "the sad fact is that North american investors do not give much considerations to a canadian company with chinese assets". The post of yours to the Vicarage report clearly shows Companies with Chinese assets that are properly valued in the 'Comprables' section. Noting that, the issue really is Majestic's inability to get noticed (and therefore valued properly) vs. an overall market that isn't noticed or valued properly, right?
I mean, every investor would want a story where they can get in for 1/4 of NPV, no? Regardless of geography. This is an issue of visibiilty and Majestic simply not "getting in enough faces" with their information and story.
To show my point, try this out. The following link has the 15 top business websites (obviously from the US).
https://www.ebizmba.com/articles/business-websites
Take 43 of the top 10 and add any few Canadian sites you want:
Yahoo Finance (#1)
Google Finance (#4)
MSN Money (#5)
Marketwatch (#9)
Stockhouse
Now, type in Majestic gold or MJS. Look at the news that comes up. You will either see "0 News items" or "1 news item" and for all business sites but stockhouse. What does this mean? Well, to me, news is not released often enough to put and keep Majestic on any radar. Not prospective investors and barely current investors. Anyone wanting to find additional information is out of luck (unless they really try to find it). So, no information, no buying, no buying, no price appreciation... so, today, we sit undervalued - by a lot.
Also, all news available points only to the PA (and at times the 43-101). Nothing about the mill. Nothing about where Majestic is insofar as "pre-production" or on the "cusp" of production. Nothing about the"How" or "when" Majestic will start producing. Certainly Majestic could do a better job as the perception left by the lack of news is there is little meat on the bones of Majestic for Prospective investors to dive into.
In my view, Majestic has nothing to lose by trying something different. Try a 2 - 4 week PR blitz using Marketwire, Business Wire, or similar. Release news about the Mill, Update on start of Production, on the plan to increase production, on the drilling, on the project.. the "how" "what" and "when". Get that info out there to all. Get people talking. Compare volume generated by this to volume generated by stockwatch releases.
Quite simply, Majestic has done the same thing for years (stockwatch), and suffered the same issues at the same time (lack of investor recognition). Based on the the Market Cap vs. NPV, this method has clearly been a failure. Continuing to do the same things will yield the same results... so switch it up... Again, it is not a matter of North American Investors "not caring" about a company with Chinese assets, it is a matter of NA investors not knowing about the company, its assets or its plan...
Hopefully Majestic will "grow" to use new strategies...
B