This morning's open was quite amusing with one seller trying to sell 3 mill shares. He undercut the other sellers by offering the stock at 0.4c thinking that he would be dealt at 0.5c. Lo & behold due to some operators quick fingers who managed to amend the total buy quantity to less than 3 mill, the seller was dealt at 0.4c. Only a $3,000 difference.
Got to love these operators. Looks like the lucky buyers who were dealt at 0.4 managed to offer their stock immediately at 0.5 & exit after 2 hours with a neat 25% profit.
I am NOT ramping this stock. It doesn't need to be ramped.
Merlin is grossly UNDERVALUED at $16 million for whatever reason.....
Look back during 2008 & 2009 where the market capp was over $40 million.
When the Singaporean company launched a takeover bid in 2014, the bid was also over $40 mill.
The only things that have changed are that the price of diamonds are now much higher & the company is on the verge of commencing production at a level which should generate large monthly positive cash flows.
Have a good read of the Mechanical Clamshell Grab Mining Feasibility Study (160 pages).
You will get an idea of how much money has been spent by Rio in the 1990s & NAD & Merlin on these tenements since 2004.
We have now churned about 120 million shares mainly at the 0.5c level over the last two weeks.
Any other diamond company situated in a country with no sovereign risk that has proven reserves & resources as per 2012 JORC code, coupled with 2018 diamond prices would be valued at $60 million+ before any commencement of production.
Watch this space over the next TWO weeks ! We should be well NORTH of 1 cent.
MED Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
