Mexus Gold US (MXSG)

[TMLonggun]

Yes, and I didn't like it but I don't assign an absolutest evil intent to every event. The world isn't this black and white.

It was either deliberately fraudulent or enormously irresponsible to do what they did.

Or it was a simple mistake with a giant chart posted within the release that included all the relevant information so there was minimal possibility of confusion. No one who looked at the entire PR at the time walked away confused. They missed the words "of the mineralized intercepts" which is regrettable.

I'd prefer Mexus present itself professionally and never make a spelling or grammar mistake but I care far more about them operating at a profit, expanding production, increasing the margins, and drilling out an inventory of future ore. If they can do that I will forgive a lot of past sins and so will the market.

A new gold bull market has begun in earnest. Things are going great in Canada and Mexico for low cost open pits. As long as Mexus can operate at a profit things will get a lot better from here. If this PR is accurate, I believe Mexus is at or exceeding that threshold. Last time we got .2% then nothing - this time the percentages are ramping up in a sub optimal but satisfactory manner because they only need minimal recovery with such high grades to make a low cost heap like this work. The rest can trickle in over time. Maybe some of my favorite napkins will end up framed :)

Will the trickle become a flood? It is looking increasingly likely. Earning a dollar of operating profit is huge for a company like Mexus. Nearly all juniors constantly lose money while trying to find something worth turning into a mine or building out to make their first buck. Mexus has finally done just that. This period is likely to be a strong reversal as long as they continue to produce an increasing amount of gold. I have seen so many fail to get to this $1 operating profit point that even skeptics should give them a degree of props once something finally appears on the financials. Once they have regular income it should be relatively easy to ramp up and use efficiencies of scale to dramatically lower their costs.

This is the transition period from a speculation to an investment I have written about previously. Watch risk and price shift with additional profits (or lack thereof).