Q: Good morning,
Could you please offer your insights , specifically after May 12th news release.
Thank you,
Could you please offer your insights , specifically after May 12th news release.
Thank you,
5i Research Answer:
MOG is a small ($50M) developer that has been listed less than a year. It has no revenue, losses and negative cash flow. Cash is $8M. The May 12 release notes that it has found a new geophysical target on trend near another deposit. Its target is near surface. While a positive development, such targets do not guarantee drilling success. It is better than drilling 'blind' but we need to see drilling results here for any confirmation. The stock has been strong this year with anticipation but also the sector has had a solid year so far. Right now, it should still be considered VERY risky. It will need more capital, likely within a year. There are no analysts following the company yet.