CEO's Response to questionsYesterday I emailed the company saying that I was perplexed as a shareholder at the sp performance when considered against good drilling results and pog.Later I received an answer from Michael Hudson, the ceo which said as follows:
Thanks for your email.
Not that you would want a CEO to be equally perplexed, but the breakdown between hard fundamentals and market price is as disappointing and perplexing for us as it is all shareholders (remembering management have a very large amount of "skin the game" too). As you indicated the results from this year's drilling have been very strong, the asset is growing, we have a 3 year drill permit in place and we can now clearly see the runway to a multi-million ounce discovery in the making. We have attracted some great shareholders over the years who still hold their stock including Sentient Equity Partners, US Endowments, Newmont Goldcorp (to answer your question), Rob McEwan. So what gives?
At the moment IMHO the market is self-fulfilling. We have been under sustained selling pressure since April 2018 - noting the market has been weak for junior explorers during most of that time. That being said I note the recent uptick in gold. And now the market is selling stocks that are not moving. Today there were 47 new highs in mining and 15 new lows. With sell offs starting 2-3 months ago for Mawson when we first started to receive this year's results - the implication is that the results are as weak as the share price and the cycle feeds itself. With lots of cash used in drilling over the last year we need to finance again this year - importantly to keep on executing, and that is an overhang.
The stock has been well marketed since September last year with lots of road shows, engagement of Red Cloud, internet campaigns etc.... But most of that marketing in Nth America fell onto deaf ears into a poor market. Today we presented at the TMX at the Golden Summer Red Cloud Event. It was well received. We hit a 3 yr low. Of course nothing lasts forever but we need to break the cycle and inject new supporters. And that is what we are working on actively now without being able to go into too many details.
Happy to take give you a call or follow up if you have further questions.
Regards
Michael
Michael Hudson
Chairman & CEO
Mawson Resources Ltd
www.mawsonresources.com mhudson@mawsonresources.com I will continue to remain invested and add to my holding. It is also reassuring when a busy ceo provides direct feedback so quickly.
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