RE:Very interesting take from our dear Fred Hi wrzkll,
The google translation is several times misleading. I translated it with a better online translator: https://www.online-translator.com/?prmtlang=de
The „Oh je“ referred not necessarily to the recall of Reynolds, but to the fact that they have apparently found no new CEO and are led now according to interim by a (old) Chinese. This further throws no good light on Majestic which is a question which Canadian would do this difficult construct JV to himself, the list of the candidates is easy to grasp absolutely, at least they will be able to get no Canadian top man, most guys will not go for it. So they just further bumble through. I give boardmember Dear right in the fact that I cannot understand it also 100% as a Situations analysis and the following measures should last up to 9 months. It is played there again, as usual, on time? The suspicion of boardmember woodworm that there is till the 22nd of June none „good news“ is not at least to be dismissed. It concerns 194.444.445 warrants to 0.20$ / share from the last capital increase from June, 2012. With it we would have over a billion shares!.
These Warrants are only pulled of course at the latest June if the share price lay longer time greater than 0.30$ / share. So wide time play? It looks hard afterwards. Fan Zhong Kong should be informed, actually, as a mine operator Dahedong, very well about the state of the things. If he is not this, he also completely has partial responsibility in the present situation. What stops Majestic from sprinkling itself in the depth at any place of the mine to reach, finally, to the higher goldgrades? Nothing, Niente. In accordance with the current Mine planthere makes no difference where is sprinkled. In addition they also need no lab and no full mine licence, because the present licence is bridged. This is slightly feasible within a few weeks / months. There something is not right. Now the company is, actually, almost completely in the hand of the Chinese, why is there then still no full mine licence? If there is this lab really? For something like that there is, actually, in the TSX a duty for the publication. It is also unlikely, that the Chinese government is braking the mine . China soaks up all home produced gold what they are able to do. I could also never understand, why Majestic wants to allow to build a mine lab. This is a technology from (before) yesterday. Nowadays there are a lot of good mobile ore sorters at the market which presort the ore directly on the mine over several sensors and with it the gold grade would (!) double at minimum. A German company, TOMRA, is there, e.g., worldwide well in the business with their sorters. I do not know the price, something like that will already cost a few hundred thousand euros. If one confronts the profit with it, Majestic could easily buy itself 10 such sorters and increase the profit with it easily. The size is laid out appropriate for norm on the containers, so well shippable. TOMRA is, e.g., also thickly in the business for the PET taking back machines of the discount shops (Lidl, Aldi, e.g.).
Where is the mistake in the picture?
Fan Zhong Kong has after my calculation 153 million shares (gemittelter shopping value to 0,107$) = 16 million $ in the company are. Currently his block of shares has a value of 10.7 million $ and is, as long as Majestic is not listed on an Asian stock exchange and as long as there no good news is neither on the stock exchange nor off the stock exchange for sale. He sits on a gigantic mountain from (currently worthless) paper.
About 28.2.2014 there is the quarter report. Because up to now no production update was published again, is possibly to be supposed once more that the production could not be increased again, in spite of one, as we "know" only for a few weeks, since July to 2013 (!) operating mine labs should work !! Besides, the low golden price will load the balance and stand there possibly / very probably again a quarter loss. Positively would be there that the costs were hopefully already lowered a little bit, because both jet set gangsters R&R became, finally, thrown out, but half of the quarter they have still helped themselves in the saucepans for meat.
If I have properly counted with the help of the scanty infos, they should have held back a few more 1000 ounces, but to sell just now with the deep golden price, only to compensate the balance, would also not quite make sense.
I have lost long since the patience with Majestic and have sold most of my shares. How much I will not say, because it can also change fast again, in both directions. Loss up to now: approx. 17000€. Co reason is also that Majestic, how from me supposes, could not profit from a recovering golden price and possibly also becomes. There are currently hundred other, better values, (in 2 others I have invested) are in their big funds in it and push the shares. I have, like probably most here, invested in the fantastic possibilities (headword: to fade out cashkosten from approx. 300$ / ounce) held on, and the difficult sphere. The calculation was: big risk = big chances. Big hope was the Listing in the HKEX, or in Shanghai, so that at least there the Chinese investors could make the course and new investors to the value become attentive and invest. What has also not tasted to me, and I have written this several times here that the course of Majestic lies only and only in the hand of the buyer RBC (There RBC is, it is very likely that it concerns a foreigner. If I buy Canadian shares directly in the TSX, they are always traded about RBC). This buyer could push every day with some silly in 1000$ the course continuously, however, he does not make. I do not understand this. Do the Majestic/@ Chinese about a scarecrow put there black money in own shares to prevent a complete fall? If the not Majestic itself is: Should he lose sometimes the patience, or become, however, Majestic of the western stock exchanges delisted, it would see pitch-black from for Majestic and for the western stockholders. The likelyhood is surely low, but one of many possibilities the company is to be put up under new (Chinese) name anew. Does Majestic buy up the whole western Freefloat? In 2012 approx. 262 million shares amounted of the Freefloat. IF (!) Majestic about scarecrows (RBC) buys back own shares, in the meantime, these should be a 50-100 million shares less.
If they have reached the critical border for a Squeezeout, they could make to the remaining stockholders a bar offer which would not certainly lie about the market price, because the alternative would be a complete loss.
But I do not know it, it is only one supposition.
Now all that sounds maybe very negative, but I try only the difficult situation in itself this JV furthermore considers neutrally to look without pink glasses. I was always in mail contact with somebody which was strongly invested. Thereby I got at least a few infos about the company. Unfortunately, has appeared again and above all during the last months that most infos were worthless, or, however, Hinhaltetaktik on the part of the company. Only one example: The höhergradige area was already promised over one year (!) ago over and over again that they briefly before it would be to be reached him. Since middle 2011 (!) are able? / wish? / are allowed? they do not raise the production. My mail contact has thereby drawn also the conclusions and has sold a large part of his shares. Since that time he also has no more contact to the company, because the bond of trust was destroyed.
I can also not give an advice currently how one should behave. It can just be that Majestic surprises for the first time in her history positively with a production rise. I wanted to demonstrate only a few thought to the present difficult situation which has led to the fact that I have sold a large part. Tradingmäßig, (should surprise i.e. them, finally, sometimes positively), it can be nat. that I buy more once more briefly. With a share I must have either improve (also insider) information, or, however, to the management 100% can trust, both does not exist with Majestic any more …
Greetings Fred