RE:RE:MerrexThe truth about Merrex doesn't correspond with the idea of "creating value". Over 10 years, $75 million of expenditures later, and just over 1 million oz resouces, the company was sold for $40 million. I don't call that creating value, more like destroying value.
One of their best ideas was a permit in Guinea called Karita that connected their Siribaya JV with IMG's Boto and which had a lot of prospective ground. They promised repeatedly they would start drilling and utterly failed to get a drill on the property, let alone do a simple a ground survey.
From the time they entered into a JV with IMG to the time of sale, they accomplished literally nothing to add value to the company while enjoying salaries of hundreds of thousands$/year and maxing out the allowed options.
That just might be a clue to explain a $2 million market cap. The next clue lies in their investor presentation that opens up far more questions than answers. The fact that the company has spent $8million on their flagship property alone should raise a lot of questions. Then they report being at a pre-feasibilty stage for that property but provide practically no economic data on the presentation whatsoever.....not even resource numbers.
The presentation offers no compelling reason to buy in here notwithstanding the lack of confidence the market has in management's ability to add value to the company.
Then there is the problem of liquidity. In the last 90 days, there was one day that traded $30,000 worth of stock but most are effectively zero with the occasional day up to $6,000. An investor who has a million or more shares is pretty much stuck until something changes.
What good is there to say about it? Well, with such a small market cap, it could double or triple quite quickly. If some liquidity appears along with that, investors might be able to take profits. Be careful though, with new management on board, admin costs are about to jump and this company is going to have to find some cash soon and dilution could be significant.
The thing that could be good is the idea of a small scale operation that would pay for exploration. Dilution is always a real killer for little companies like this especially today more than ever as few large investors are interested in funding them. Even enough cash flow to fund admin costs would be very helpful.
Sorry guys for the mostly negative comments.... this isn't intentional bashing, just the way I see this one. I won't trouble you anymore posts in the near future. I will check in from time to time and see if the company is doing something that might attract me in.