This presentation really says it all
http://www.musgraveminerals.com.au/pdfs/2016-02-25-0459282016_Feb_MGV_RIU_presentation.pdf
For a micro gold explorer hopefully come producer, this is my no.2 pick. It doesn't have the same defensive qualities as BAR, but it's extremely cheap and there are comparisons.
1/ Expertise in the top 5 share registry. The market really overlooked imho the significance of the Silver Lake JV deal. Located in the highly prospective Murchison region sharing neighbours like Metals X and Ramelius, close to existing infrastructure. By having Silver Lake as now their largest holder through a deal on one of Silver Lakes non-core assets - there are huge benefits for both companies. Also in the top 5 are heavyweights Barrick and Independence group.
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
| 1 |
|
|
Fully Paid |
|
| 2 |
|
|
Number |
Percentage |
| 3 |
1 |
SILVER LAKE RESOURCES LIMITED/INTEGRA MINING LIMITED |
9,548,387 |
7.63% |
| 4 |
2 |
INDEPENDENCE GROUP NL |
9,027,000 |
7.22% |
| 5 |
3 |
ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD |
6,947,417 |
5.56% |
| 6 |
4 |
BARRICK (AUSTRALIA PACIFIC) LIMITED |
6,000,000 |
4.80% |
| 7 |
5 |
ALLISE PTY LTD |
2,600,000 |
2.08% |
2/ Admin cash burn has been reduced and is now at a very reasonable level
3/High exploratory budget with great discovery upside
4/ Very low shares on issue, large options expired, small free float.Cash strapped MTH dumping (and It's a real shame I missed out on that one) ruined momentum plus a secretary issue stealing funds didn't help. Though I see only upside from here with these speed-humps behind them. Volatility is gone and there are buyers lurking about for the limited stock on offer.
5/ Cash buffer and no debt
I will go into more detail as time permits, however with this high exploratory budget, and the commercial terms of the JV requiring a certain spend for an initial 60% interest in the project, they will need to raise money at some point within the next 12-18 months.
With such low shares on issue and such a good registry, raising money will never be an issue when the time comes, and with huge discovery upside it could be well-placed to raise at decent price, further dampening the dilution of such low issue in the first place.
