Q: Please provide your assessment of this gold stock as an LT investment. Thanks
5i Research Answer:
MJS is now $156M market cap, after an 88% YTD gain. This week it declared a dividend, with a yield of 5.1%. It paid a similar dividend last year as well. It has a strong revenue base and good cash flow, but earnings per share are low (1c last year). Still, not bad for a 15c stock. Still, with mines in China risks are higher than average here for sure. There was a death at one of the company's mines this summer and operations were suspended. Insiders own about 12%. It has no analyst coverage which always makes us a bit wary. We do not know this one that well, and considering all the 'regular' risks in the junior mining sector we would prefer a company with operations in a more stable jurisdiction.