Small recapSmall recap:
- very good fundamentals: jurisdiction (Canada), close to infrastructure, consistent and very high grade (they know they have the goodies so no need to find it), no debt, very low float, etc.;
- MC under $1M. Based on fundamentals, MGI's MC could very easily be at least 10 times higher so plenty of upside;
- the PM sector has not been very friendly since 2015 (except for two years) and has definitely not been friendly in 2021-2022, but it looks as if it wants to turn around right now. The current economic situation is not easy even for established miners so it's even more challenging for microcaps. So more time needed here;
- BUT the PM sector WILL go back up (could already be underway). THEN it will be strategic for MGI's management to go all in since they will have the sector momentum on their side;
- at the current SP, MGI cannot go much lower. But when MGI's management go all in (and fundamentals are saying they will), you will want to already have a good position in MGI. Otherwise, you could miss the train when/if it does another 2015-like move (SP x5 in one day);
- so at the current SP, it's basically no risk and huge upside. No brainer.