The shares have been very disappointing as they have failed to take any advantage of rising PGM prices or the expanding discovery at the Thunder Bay project in Ontario.
In retrospect, I suspect management would take back in a heartbeat the initial scoping study they announced recently given that it was never intended to be used for a standalone mining operation. The result was an underwhelming reception many shareholders used as an "opportunity" to sell their shares.
The plan is still very much to drill surface anomalies and follow structures to depth with significant potential to make a large-scale discovery assuming the sub-surface geology can be unlocked. Encouragingly, Rio Tinto has made a PGM-Ni-Cu discovery within a small claim block surrounding Magma's large land position and both Stillwater Mining and North American Palladium are active in the nearby area.
Finally, Magma has refocused its Australian exploration on the Griffins Find gold project in Western Australia where drilling could produce some surprises for a market that has close to zero expectations at this point.
MMW Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
