Australia's Mount Gibson Iron (OTC:MTGRF)
(MGX.AX) offers investors a curious twist on the prevailing story among
junior miners today. Instead of being a mining company with an
attractive portfolio of prospective mining assets but insufficient
capital and liquidity, Mount Gibson is long on capital and cash but
short on mining properties. The extent to which Mount Gibson can add
economical reserves at its existing facilities and/or deploy its cash to
acquire shovel-ready projects has everything to do with the value of
these shares.
I have some concerns about Mount Gibson, and it's
not my first pick in the mining sector. I do believe the shares are a
little undervalued today, and I do acknowledge the potential of the
company's NAV heading higher if the company announces good news in
exploration or value-adding deals. Compared to more established miners
like Fortescue (OTCQX:FSUGY), Rio Tinto (RIO), and Vale (VALE), though, I don't find the value proposition to be compelling enough for my own funds.
Follow this link to the full article:
Mount Gibson Iron Offers A Curious Twist On The Mining Sector
No comments:
Post a Comment