Nothing mean or argumentative in analyzing different stocks and different styles of investing/trading.
While for an active trader like you, one day performance can be very significant, it means nothing to me, as I’m focused on the long term.
BWR does look undervalued vs. other producers on a market cap per proven pound of zinc basis. Thanks for the explanation for why that’s the case. I agree that a big run in the price of zinc should benefit them and their warrants more than other producers because of that higher leverage to zinc. They also have some catching up to do with the other producers at new highs while they still are well under their spring high.
However, MMGG has much more leverage to zinc than BWR, as it is far more undervalued on a market cap per proven pound of zinc basis. I don’t know what will happen in the next few months, but I’m confident that longer term MMGG will far outperform BWR and BWR warrants. Just looking at the producers with far less proven zinc and probably higher costs than MMGG will have, MMGG could have 40-50 x upside just to get to where those producers are now, which is still very undervalued relative to other stocks. Discounting for the time value of money and the equity dilution they’ll need to finance the move to production, they still have at least 10-bagger upside from here when with a positive feasibility study, even if zinc doesn’t move up at all. If the feasibility study shows higher profitability than today’s producers, the upside could be much higher.
The discount for not being proven economically feasible yet and not being listed on a major exchange is far too high, IMO. In a year, I think those hindrances will be gone and the stock price will be much higher as a result, even if zinc is lower.
Given GTI did the positive feasibility study for the similar Skorpion mine and got them into production when zinc was about ¼ the current price, I have no doubt the feasibility study for MMGG will be very positive. That’s why my money’s on MMGG. |
