Tom: Yes, I'm displeased with the price action too. First the bid offer narrowed to 0.20-0.25 from the previous 0.20-0.30. Now the bid has dropped. I spoke to Bill Burton recently and he continued the bullish line. He said that the one project consultant thought there'd be only two Mg projects built over the next five years and MGAC would be one of the two. I believe drilling one the first hole has completed. I asked him if some sort of on-site chemical analysis couild be done to determine thje quality and thickness of the carnallite layer and he said no, it has to be sent out. Hmm, if cocaine dealers can do a quicky chemical test in a test tube on taking delivery of a shipment, why can't some test be done in the field too for the carnallite. I also asked why the stock price was so depressed if everything looked so great. He said that they're not doing any promotion right now, no one on Bay St. knows anything about magnesium, the Russian and German teams aren't allowed to buy stock (why don't they just call home long-distance and tell friends and relatives to buy stock) and MGAC doesn't want the stock price to go up. Hmm and double hmm, pretty suspicious things to say, don't you think?!
I'm willing to hang on a little bit longer. If we get further selling next week, it probably means there's something wrong with the drilling results. Bill said the technical teams publically stated that there are no technical impediments to developing this deposit, but when I asked him isn't that assessment conditional upon the ore body meeting expectations for size and quality upon drilling, he tried to say no this, no that, they already know what's in the ground, the French records for the potash mine were very good, this, that, whatever, but in the end, he sort of conceded that it is conditional on drill results being favorable.
Well, MGAC remains a speculative stock. Whatever the bullish pronouncements may be, I've always focussed on what counts, and that is whether the drill results will show a favorable deposit. I hope the stock price doesn't mean the ore body is poor.
Rand |
