Hi AB I’m not sure a CR is necessary for Moy and certainly the market isn’t pricing one in. For me the better option for any expansion project for Moy would be to utilise some of its cash mixed with drawing on a debt facility. Why dilute our holdings? As I have said before if we are confident enough to back Moy we should be comfortable with the company using a moderate level of debt to strengthen its business (just like nearly every other good business in the world does).
But all that aside, for me the most interesting and exciting thing about this morning’s announcement is its reference to an update in a couple of weeks of the advanced feasibility study on fresh ore processing. Any significant breakthrough on its sulphate resources could provide the company with an extra 850K oz in gold, with lower capital requirements and production costs. I’m not sure Moy would be flagging this upcoming event unless it is positive - and the market is certainly reacting positively to something on the horizon for Moy. Just think of the longevity of Moy’s operation and its mining options (pit and/or underground).
MOY Price at posting:
22.5¢ Sentiment: Hold Disclosure: Held
