Woke up today planning on buying a big position in Magna because in my gold producer chart list literally every single producer has exploded up in last month EXCEPT MAGNA. At least for a trade it was a no brainer.
Disclosure: I bought 60,000 shares at 0.83 this morning, but paying up with stock up 12% this morning on the Argonaut news. No position before.
Then news dropped this morning that Argonaut sold the 9.74mm shares they owned. It traded in a single Cormark-to-Corkmark block trade yesterday (Mar 7). Magna issued the shares to Alio Gold when buying the San Francisco mine exactly two years and two days ago and Alio and Argonaut later merged.
It think this block trade will mark the 2022 bottom in Magna gold. So I paid up for my position today.
I've been chatting with shareholders that have been long there for over a year and the consensus for 2022 is:
- hitting close to a 100k production run rate (25k poured per quarter, would require like ~35k placed on pads. Later in 2022 thing.
- resource update for higher gold price showing +10 year mine life at 100k/year. This could be in March! You can see this coming from the latest presentation (1.4mm in M&I resources at $1000 gold) to over
- Higher production than last quarter (21k oz placed on pads, 15.5k oz produced), leading to falling cash costs through the year.
There is a great board over at CEO.CA (mostly Canadian resource investors). I've been blowing it up this morning if you want to look. I'm @energyrealist over there! I'll post some high level stuf on valuation there now.
See page 9 of the presentation for the M&I resources at $1500 gold.
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