since i am totally disgusted by the behauvior of some people and the tacit acceptance of all others.
This people should not feel they won with their behauvior - so here is my take which in short - the figures are good and Mgm once again confirmed 34.200ozs for 2024.
“Production outlook for 2024 remains consistent with the Company's 2024 annual production guidance of 34k ounces with production weighted to the second half of FY2024.”
https://majesticgold.com/site/assets/files/4537/mda_fye_2024_q3_final.pdf Page 3
This means you have to create 10,000 ozs in Q4 and from Q1 2025 this would then be planned for all quarters in 2025 ongoing CP.
Despite the dividend, assets and cash holdings were increased further. Q4 is already 2 months old today, which means you should already know whether you will produce 10,000 ozs in Q4 to shovel the announced annual production.
If they fail to do so, this would be a real breach of trust on the part of MGM.
Otherwise, there is progress in virtually all areas, the gold price is likely to remain stable for the foreseeable future, which will produce strong profits.
Due to the high gold price, the entire gold mining sector can look forward to very good business in 2025, which has not yet been realized in the sector. I recommend the video by “formationstrader”: https://www.youtube.com/watch?v=G4GtJyN7yK8
addendum “Gold production was 24,170 ounces for the nine months ended September 30, 2024, from 1,487,490 tons of ore processed with an average grade of 0.54 g/t and a 95% recovery rate, compared to 23,206 ounces produced, from 1,430,849 tons processed with an average grade of 0.53 g/t and a 95% recovery rate, for the FY2023 comparative period.
The Company maintains its 2024 annual production guidance of 34,195 ounces. Production continues to be weighted on the second half of FY2024 as mining operations will primarily occurring at +9m ASL and -3m ASL where higher gold grades are expected.
https://majesticgold.com/site/assets/files/4537/mda_fye_2024_q3_final.pdf Page 6
The table shows that significantly more ore was processed (501,819) than mined (446,003). This means that they continue to process a lot of “waste rock” from the mine expansion and thus arrive at a gold content of 0.52 g pto ton. At least 0.67 g/t is probably possible.
They have now confirmed the production target of 34,200 ozs in Q2 and Q3 and “should” be able to achieve this by mixing less “waste rock”. If you don't do this, it would be a strong play as described. I assume that 10K ozs will be produced in Q4 to reach the 34,200 and then 10,500 ozs will be produced every Q from Q1 as written in the CP.
It's a real pity that we are being consoled into the future again and have to trust again that MGM will realize what they communicate. Unfortunately, this has not worked out in the past. To be fair, MGM has stated the production of 34,200 ozs for 2024 and not that they want to achieve this evenly in Q3 and Q4 with 9K ozs.
Bottom line: good numbers, lots of money earned, excellent balance sheet, progress with the new acquisition as well as the drill program of the surface mine. Just not the 9K osz I had hoped for, which would have already significantly increased the valuation according to DCF.
best richard