Pinned straw:
Thanks to Trav, he managed to pick up the mumbling from George that Genesis and Goldfields are in the Dataroom.
Kudos for Travis for his sharp hearing which I did not manage to make out.
https://x.com/TRAVmoneyofmine/status/1822220868958736756
I also agree on the negatives such as not having a reserve.
But I'm only holding to see how far this deposit goes at depth and the desperation for those companies for extra ounces.
If this trades above the NPV of nearly $1bn I'll be selling.
[held]
Yes @edgescape - well spotted - and in today's poddy (which was done without Trav - on holidays?) - they played that part of Magnetic's Resources' D&D Presso where George Sakalidis mentions them (Genesis & Goldfields) having been in MAU's "dataroom for a while": https://youtu.be/FA0WrpDsHII?t=990
Worth playing that whole section actually because it's about M&A and the strange things that Red 5 have done back when they were still called Silver Lake Resources - starting here: https://www.youtube.com/watch?v=FA0WrpDsHII&t=231s
It's an interesting idea to float - and it's prompted by RED apparently bolstering its war-chest by selling the RED shares that they owned after the merger (the ones that SLR bought in RED prior to RED acquiring SLR) - and hypothesising about what they think they need the extra money for since they already half around half a billion and no debt at this point. One idea is that they might buy Magnetic and other assets around or between Leonora and Laverton to almost force Ral at GMD to buy RED at some point in the future just to get to those assets which he will presumably need given time. I imagine there might be a "strategic stake" in MAU purchased by RED in the very near future if they're not already accumulating a stake, just as SLR did with RED to stop GMD from bidding for RED, and if RED (the old SLR) end up with more than 10% of MAU, that would be a blocking stake that would stop GMD from acquiring MAU - remembering the Luke Tonkin - who was the CEO and MD of SLR - is the new CEO and MD of RED now. Will Ral buy 10%+ of MAU to stop anyone else (such as RED) from taking MAU over? Much to ponder.
The other wildcard in this is that Gold Fields Ltd's Granny Smith's 3.5mtpa gold mill that is currently running at around 50% below capacity is only around 35 km away from MAU's Lady Julie. GMD's Laverton (Mt Morgans) Mill, which remains on C&M (i.e. not currently operating) is even closer, around 15 km away according to Ali GC today. Interestinger and Interestinger... [add it to your dictionary - it's a good word!]
Yes @edgescape you may remember that we did have a discussion about George's prolific background that didn't seem to check out, i.e. his own version of past events and his own past accomplishments seemed to be hard to independently verify - well, some of it did - I found this today: https://stockhead.com.au/resources/george-sakalidis-finding-significant-deposits-where-the-big-guys-cant/ [14-April-2020]
George seems to be one of the most accomplished significant mineral deposit locators that I'd never heard of before you mentioned him a few weeks/months back. I think the truth is in the middle - he's found a few deposits but up until this one most of them haven't been particularly newsworthy - and he's leveraged his prior success to start or run a series of companies and not all of them have made money for their shareholders. This one looks like it will though.
But as a quality human being, someone you should trust to manage your hard-earned, I'm not entirely convinced he's the level of quality management that lets me sleep well at night when I've got significant financial exposure to his company, which of course I haven't.
That said, I've still got some exposure - just not more than I can comfortably afford to lose - on the basis that if I do lose it, I should be able to make it up somewhere else. So a small position in other words.
Excerpt from that Stockhead article from 4 years ago:
Special Report: Storied geophysicist and Magnetic Resources managing director George Sakalidis has a +20-year history of finding profitable mineral deposits on ground many others considered ‘worthless’.
In 1996, as a consulting geologist, Sakalidis found a brand-new gold deposit near the 5.5-million-ounce Plutonic mine in WA.
This area, disregarded by others as ‘non-prospective’ granite, became the ~300,000oz Three Rivers Deposit.
“That caused a bit of interest; people started saying that I was finding deposits where the big guys couldn’t,” Sakalidis says.
“People started backing me to find stuff and initial pre IPO funds were raised.”
Sakalidis says to key to his success is “not being influenced by other’s opinions”.
“When you come to an area, an existing geological model may not be accurate,” he says.
“I assimilate all the different bits of information and say ‘well, this is what I believe is going on’ and then go out and test it.
“I can do that better than most, for some reason.”
In 2000, Sakalidis got some seed money together and listed mineral sands explorer Magnetic Minerals in a $4.5m float.
“I applied ground magnetic techniques and found a very significant mineral sands resource called Dongara in WA,” he says.
“That company was taken over less than three years later in 2003 [for $22.6m].”
Sakalidis has been involved in four subsequent company floats – Image Resources (ASX:IMA) in 2002, Meteoric Resources (ASX:MEI) in 2004, Magnetic Resources (ASX:MAU) in 2007, and Emu NL (ASX:EMU) in 2008.
--- end of excerpt ---
IMA is down to 7 cps, MEI is down to 10 cps, EMU is down to under 2cps. All three charts look nasty. MAU is not like the others. Their SP has headed north east at a good clip recently. Below 80 cps a year ago, closed at $1.60 today. Guess he got lucky this time, eh!
Would you buy a used car from this man?
Additional: MEK closed up +15.91% @ 5.1 cps and received a speeding ticket - MEK-Response-to-ASX-Price-Query.PDF Their response was lodged with the ASX just after 4pm Sydney time. Nothing additional to report. They're just getting on with it at Andy Well (in their Murchison project) and are finalising their debt package for the modest (under $50m) re-start costs there - as previously reported. As I have said, they're the most advanced gold project developer in Australia at this point in time, and have relatively low costs to get the Andy Well plant operational once more. Much lower than building a mill from scratch. And they aren't waiting for all the Is to be dotted and the Ts crossed on the paperwork, they're getting stuck in there, because the financing is really just a formality - the plant will pay for itself and Meeka will repay the debt quickly enough, even at much lower gold prices than what we have now. I don't expect much lower gold prices, but they'll be profitable regardless.
MAU on the other hand do not intend to develop Lady Julie. Not through to production anyway. They want to sell it. That much is very obvious. Doesn't mean you can't make money from holding MAU shares - any acquirer is going to have to offer a substantial premium to get the thing over the line, so there's plenty of potential upside there. I just figure I'd rather go with more competent and trustworthy management, i.e. elsewhere. You can't pat all the fluffy dogs, eh Claude?!?
MAU closed down -1.13% @ $1.5825, PNR closed up +12.9% at 10.5 cps, KIN closed up +5.56% @ 5.7 cps, SXG closed +12.61% (or 28 cps higher) @ $2.50, RMS closed +5.76% (+11c) higher at $2.02, STN was up half a cent, so +2.78% to close @ 18.5 cps, only 4 of the 60 odd Aussie gold sector stocks that I follow closed in the red today, MAU (-1.13%), TGM (-3.33%), WGX (-3.36%) and M2M (-5.41%), so a very small number. The sector was up by +2.28%:
CSL drove the healthcare sector down -2.87% - CSL is by far the largest constituent of the Aussie Healthcare sector and CSL was down -4.58%. I sold out of CSL in June and haven't bought them back since then. I'm thinking gold is the place to be this year.