Watched an interesting interview with Darren Mclean who highlighted a couple of gold companies:
MFG (not listed on your database yet) and SGD.
He's the one who actually flew satellites over mining projects and read drill reports personally to decide whether projects were a "scam" or legit.
What drew me to this was the idea that Muddy Waters and Darren Mclean are taking long positions in these companies, despite their primary business being short sellers.
Here is the original article by Larry McDonald of the Globe and Mail, including the video link:
Video link:
https://www.youtube.com/watch?v=VYA3S3N-dgQ&list=PLHXV1yDW9VX9Nu7g6mQVCTL5fzzDCmg9C&index=37
Article:
https://www.theglobeandmail.com/investing/markets/inside-the-market/article-short-sales-on-the-tsx-what-bearish-investors-are-betting-against-72/?utm_source=Shared+Article+Sent+to+User&utm_medium=LinkCopy&utm_campaign=Shared+Web+Article+Links
Wondering what your thoughts are on these two companies, especially as share prices have run up parabolically on SGD?
My interest would be in small speculative positions only.
Thanks and happy holidays.
Nearly any project can be 'spun' into good news, and the sector of course is very hot. But it is important to consider risks. A sector turn could see some serious losses in many stocks. Still, we are not expecting this, but it happens.
MFG has $42M cash. Insiders own 5% and have been buyers. Muddy Waters owns 16%. McLean owns 1%. Management is good, and it is working on its pre-feasibility study for a 4,800 tonne/day open pit project. Permitting is expected late this year. It is a good project, but performance is going to depend on drill results (expected in the Q1). As far as developers go, we would consider the project and potential to be above average.
SGD is much larger, now at $3.1B market cap, after its 229% one-year gain. It has $119M cash but no revenue, losses and negative cash flow. Insiders are less than 1% but have been buyers. 18526 Yukon owns 15%. Rogue Valley is a good discovery, certainly, and there is potential here. The Valley gold deposit, a near-surface, bulk-tonnage system has consistent high-grade intercepts like 534.5m of 0.62 g/t Au and broader zones exceeding 1 g/t Au from surface. Einarson Project features Jupiter target with extensions like 6.8 g/t Au over 9.0m, plus Carlin-style potential across multiple zones. Regional assets like Cynthia show new gold anomalies, supporting district growth. We have nothing against either company, providing an investor understands the risks here. Timing is always delayed, and in-fill drilling needs to confirm deposits. And, keep in mind these both are being 'promoted'. MW has a wide following and the stocks have already reacted. A quieter news cycle could see these stocks consolidate, or drift. But certainly both have potential as well.