RE:All doubts eliminated interesting points in my opinion:
1. dividend
- admittedly small 0,007CAD (0,0047€) but finally the proof that the company is starting to share the profits with its shareholders. For me, this is an extremely important step and outweighs the disadvantages of expensive German taxation. It brings certainty that the investment will pay off. The costs are relatively low for the company at around US$ 6 million. The effect on the share price based on the dividend yield is probably the most certain
“At June 30, 2024, the Company has a cash balance of $103,932,757, of which $33,379,640 is held in Hong Kong, $59,214,932 is held in China and $11,391,237 is held in Canada. Cash held in China is subject to local exchange control regulations which provide for restrictions on exporting capital from China, other than through normal dividends
”
majesticgold.com/site/assets/files/4532/2024-q2-fs.pdf page 12
2. plan for the future
- MJS has still not published a plan for the future. In my opinion, it is likely that MJS shareholders will participate in PRG's profits based on their 70.5% stake in PRG -> receive an annual dividend. There is no confirmation of this yet
- What are the further activities? What Lithnium plans are there?
- The lack of a plan is still extremely poor
“In June 2024, the Company made an equity investment in Allied Critical Metals Corp. of CAD$250,000”
stockhouse.com/news/press-releases/2024/...ts-2024-q2-results
WOW - and now?
3. profits from PRG to MJS - access by MJS to PRG's profits
On the advice of a user in “22882288”, I am now convinced that profits in the form of dividends can only be paid out to all shareholders. If 10 Millions US is paid out, PRG shareholders get 25% and MJS gets 70.5%. There is only one type of share.
https://stockhouse.com/companies/bullboard?symbol=v.mjs&postid=36190041
4. IPO of PRG
25% of the assets for 30 million US$ which nobody would have needed. New MGM which has to be paid for, 2 1/2 years wait with certainly rising asset prices for new mine acquisitions, high costs for the IPO as well as administrative costs in the 2 1/2 years before.
So far I see no benefit from the IPO.
5. new acquisitions of mines
The second deadline 31.08 has expired without communication.
In the news here, the end of the process 02.25 is still mentioned:
https://stockhouse.com/news/press-releases/2024/08/23/majestic-announces-change-in-use-of-the-net-proceeds-from-global-offering
6. mine expansion and production
The head grade was still lower (0.54 ) than stated in the corporate presentation (0.67). Nevertheless, MJS intends to produce the stated 34,200 ozs for 2024.
“The Company maintains its 2024 annual production guidance of 34,195 ounces. Production continues to be weighted to the second half of FY2024 as mining operations will primarily occurring at +9m ASL and -3m ASL where higher grades are expected.”
majesticgold.com/site/assets/files/4532/2024-q2-mda.pdf page 6
majesticgold.com/site/assets/files/4505/2023-q2-mda-mjs.pdf page 5
The dividend is proof that we are finally sharing in the company's success:
The dividend was an extremely important step. Fundamentally, everything is still very good. The company is earning good money, there are secure gold reserves, progressive mine expansion, mine expansion. Very good prospects for rising profits in 2024 - 2025 and beyond.
What should be done now:
-MJS must finally communicate a plan , how we will benefit in the future
- MJS must finally communicate a plan for future business activities. In my opinion, they should just stop everything and pay out profits. A overdue dividend does not overweigh 3 years of screaming incompetence and negligence. Let PRG do Business and please please clownshow, shut up / shut down and pay me my share in PRG
- MJS and PRG should buy back shares
-> THIS is important. With the Dividend (which is small), Sharebuy back it is a cost effective way to rise up the shareprice and "safe" costs on future dividends.
Possible share prices:
In my opinion you should not stress yourselves. Profits are expected to continue to rise. The dividend is proof that the small group with the majority of shareholders will no longer burn their money. I think it is very likely that there will be a dividend every year in the future.
The risk-free yields (government bonds and fixed-term deposits for private customers) will probably fall, which will make dividend yields more attractive. With MJS you have both cash flow and shares in a growing company that may sell its PRG shares in the future.
In my opinion, a share price of €0.2 is justified with the projected earnings for 2024, the projected earnings for 2025 and the dividend.
Simplywallstreet is currently valued (on a Q1 basis) at CAD 0.23 ~ €0.15 ~ $0.17
simplywall.st/stocks/ca/materials/...ic-gold-shares/valuation
let's see how the dividend, rising production for the second half of the year and the increased gold price influence the valuation: 0.3 CAD ~ 0.2€ ~ 0.22$ is not far away!
Regards
Richard
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