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#1 2017-03-06 19:44:22

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,325
Trades :   139 
Website

Moreton Resources (MRV)

Has been awhile since I've written anything on silver resource companies smile, full read at: http://www.bullionbaron.com/2017/03/asx … s-mrv.html

Recently I decided to take a look at what silver companies were currently listed on the ASX given my expectation that we are seeing the beginnings of a new cyclical bull market in precious metals. I used my Gold Nerds subscription to narrow down to those companies which had an (estimated) 50% or greater interest in silver related projects

...

Anyone looking to put a serious amount of capital into silver related stocks would probably do well to investigate options on global stock exchanges.

However, as I was only looking to speculate with a small amount of capital I decided to look through those options on the ASX.

I was looking for a company with multibagger potential, the possibility that it could increase multiple fold from it's current share price. Typically this is easiest for those companies with a low market cap, so the bottom half of the list (sorted by market capitlalisation) is where I started. I also wanted a company with a reasonable sized (silver) resource already defined, this narrowed down the selection further knocking the smallest company (Malachite Resources, MAR) off the list. Preferring a company with a primary focus on Australian projects knocked Santana Minerals (SMI) off the consideration list. This left me with Argent Minerals (ARD), White Rock Minerals (WRM) and Moreton Resources (MRV).

The one that caught my eye and resulted in a small purchase recently was Moreton Resources (MRV).

http://www.bullionbaron.com/2017/03/asx … s-mrv.html

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#2 2017-03-06 20:51:29

finicky
Silver Stacker
From: Dreamworld
Registered: 2011-06-10
Posts: 3,461

Re: Moreton Resources (MRV)

A silver mining stock huh? Tsk tsk tsk

Last edited by finicky (2017-03-06 20:53:00)

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#3 2017-03-06 21:08:47

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,325
Trades :   139 
Website

Re: Moreton Resources (MRV)

finicky wrote:

A silver mining stock huh? Tsk tsk tsk

The project they have has resulted in several companies going from zero to hero to zero, hoping it can do the same a 3rd time (aim to get out at hero) lol

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#4 2017-03-10 14:50:06

Caput Lupinum
Silver Stacker
From: Silver Stackers forum
Registered: 2012-06-17
Posts: 4,964
Trades :   11 

Re: Moreton Resources (MRV)

MRV's share price would be more influenced by coal regardless of what silver is doing

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#5 2017-03-10 16:38:18

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,325
Trades :   139 
Website

Re: Moreton Resources (MRV)

With a market cap of only $8.5M, if the price of silver starts moving higher I beg to differ Caput Lupinum.

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#6 2017-03-14 04:13:23

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,325
Trades :   139 
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Re: Moreton Resources (MRV)

Very interesting announcements today showing why MRV's silver project will be the main price driver:

Investor presentation: http://www.asx.com.au/asxpdf/20170314/p … 3sq9n0.pdf
Rapid Advancement of Granite Belt Project: http://www.asx.com.au/asxpdf/20170314/p … qdrf4v.pdf

Path to production for their main coal project will be a multi-year process, whereas the silver project has potential to be processing ore within months following refurbishment and recommissioning of existing equipment:

"First Silver targeted to be poured within 60 days of final permitting"

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#7 2017-03-14 17:39:05

windmill2
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Registered: 2014-05-14
Posts: 84
Trades :   

Re: Moreton Resources (MRV)

Where would a novice buy a few shares, simply and quickly?:)


You don't need a weatherman .
To know which way the wind blows.
Bob Dylan

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#8 2017-03-14 18:03:21

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,325
Trades :   139 
Website

Re: Moreton Resources (MRV)

windmill2 wrote:

Where would a novice buy a few shares, simply and quickly?:)

Not sure I can be of much help with the quickly part, probably take a coupe of days (minimum) to setup, go through ID process, etc. I've had my account with ANZ Share Investing (previously eTrade) for around 9 years.

I notice CommSec is doing free brokerage if signup using this link: https://www.commsec.com.au/homeoffer?ic … cdia-offer

As a novice though, make sure you take your time to understand the sort of company you are buying (junior resource stocks are by nature VERY risky). MRV while I think looks quite prospective, is still waiting on the AAT decision and could potentially end up owing a substantial amount of money to the ATO.

I do think the share price will see a rise today though given yesterday's announcement.

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#9 2017-03-14 18:59:30

windmill2
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Registered: 2014-05-14
Posts: 84
Trades :   

Re: Moreton Resources (MRV)

Thank you  baron, I know there's no guarantees.
And that its not paid  advice. I'd be talking a tiny toe in the water.
You present some sussinct answers to questions I've had for a while.
I believe a crisis almost here but there are also oppurtunities


You don't need a weatherman .
To know which way the wind blows.
Bob Dylan

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#10 2017-04-06 20:49:17

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,325
Trades :   139 
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Re: Moreton Resources (MRV)

Great announcement this morning: http://www.asx.com.au/asx/statistics/di … d=01846110

Results confirm leach pads contain non-JORC 2012 compliant resource of 1.99Mt of crushed ore averaging a grade of 38.5g/t silver for 2.56Moz of contained silver

i.e. $61m worth of silver sitting on the lead pads with minimal processing required... market cap of the company is only around $15m.

Still have the AAT decision pending, but this play is becoming less speculative, even at current prices. They'll need to raise some funds soon/finance the processing though.

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#11 2017-04-07 07:54:12

finicky
Silver Stacker
From: Dreamworld
Registered: 2011-06-10
Posts: 3,461

Re: Moreton Resources (MRV)

Unbelievable - so the 'project' that destroyed the equity of investors when it was the 'flagship' of MMN (deceased) AYN (deceased) is now to be used to exsanguinate a fresh crop of ingenues. And its legal of course. This project did not expire (twice) because of bear markets in silver; it was because it was never a safe and robust project to begin with. The 'moral hazard' was, and is, that the reckless opportunist managements still made a lot of money and never had to apologise or explain to anyone.

"$61m worth of silver sitting on the leach pads with minimal processing required"
Really? Guess they'll just flick the switch then and it'll work this time.

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#12 2017-04-07 09:35:06

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,325
Trades :   139 
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Re: Moreton Resources (MRV)

So just a coincidence that MMN went into a final trading halt in November 2011 after spot declined to $15 from over $21 earlier in the year and AYN went into a final trading halt in March 2014 after spot decline to low $20's from over $40 only a few years prior...

The price of silver wasn't the only factor, but it was A factor.

There's a good chance this mine will claim yet another victim (MRV) in the future (unless Silver's boom/bust nature changes) and those shareholders who happen to be holding it when it sinks. However, in the meantime it *could* be one wild ride higher. It has already climbed 100% from the start of this thread and if the company can work it's way through the AAT decision (whichever way it goes) and the spot price of silver continues trending in the current direction, I'd be surprised if the share price doesn't have a lot further to go.

A large percentage of heap leach mines fail. There is risk, a lot of risk (particularly over the long term). However, I saw the potential reward for the company to be a multi-bagger and still do. It could reach 10x the market cap from time of the OP (which would bring the company in line with m/cap MMN and AYN), provided silver continues trending higher and they get off to a positive start. I will probably take some profit and free carry some shares if it doubles again from here.

No they won't flick a switch. Yes it could be a hard grind to extract the silver and I expect they'll need finance to get started which could mean dilution in the short term. They've indicated they'd like to mine 75,000oz a month (900,000oz per year, $22M per year before costs).

If you think there is a better silver mining opportunity on the ASX I'm all ears Finicky. BTW what are your thoughts on the AUD Silver chart? It looks bullish to me (medium term).

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#13 2017-04-07 16:54:23

finicky
Silver Stacker
From: Dreamworld
Registered: 2011-06-10
Posts: 3,461

Re: Moreton Resources (MRV)

The monthly ETPMAG etf still looking positive, although a bit lethargic coming out of the blocks compared to what I was hoping for. The daily spot aud silver chart looks like it's beginning another rally? The rising 50 dma is closing in on the 200 dma and the silver price is above both. Again, not as exciting as I thought it might be by now - but at least the bullish outlook survives.

Regarding Macmin, I actually did an amateurish analysis of its costs before its demise and was arguing with the die-hards on hc. Macmin would not have made a profit at a hundred dollars silver. It's moot whether the bearish silver price itself contributed to the failure of their shameless last gasp capital raise.

I dont know whether AYN was going any better with costs, but the rapid inflation of their stock issuance would suggest AYN's management were just looking after themselves as well - I'm sure they would not have made a dollar profit out of Texas at a much higher silver price.

There are no good primary silver projects in Australia. There're just speculative opportunities to make dollars out of other shareholders frankly.

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#14 2017-04-07 17:39:50

Ag bullet
Member
From: SE QLD
Registered: 2013-12-26
Posts: 535
Trades :   10 

Re: Moreton Resources (MRV)

finicky wrote:

Unbelievable - so the 'project' that destroyed the equity of investors when it was the 'flagship' of MMN (deceased) AYN (deceased) is now to be used to exsanguinate a fresh crop of ingenues. And its legal of course. This project did not expire (twice) because of bear markets in silver; it was because it was never a safe and robust project to begin with. The 'moral hazard' was, and is, that the reckless opportunist managements still made a lot of money and never had to apologise or explain to anyone.

"$61m worth of silver sitting on the leach pads with minimal processing required"
Really? Guess they'll just flick the switch then and it'll work this time.

yep, AYN went down, no super payed to employees yet the board sailed off into the sunset. they were the only ones not to lose.


'let's get physical!'

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#15 2017-04-07 21:09:50

trew
Silver Stacker
From: Melbern
Registered: 2011-08-24
Posts: 3,963
Trades :   

Re: Moreton Resources (MRV)

Bullion Baron wrote:

There's a good chance this mine will claim yet another victim (MRV) in the future (unless Silver's boom/bust nature changes) and those shareholders who happen to be holding it when it sinks. However, in the meantime it *could* be one wild ride higher.

ahh the good old "I know it's really worthless but I'll still trade it because I'll sell to the next sucker and won't be the one holding when it tanks"

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#16 2017-04-08 00:06:41

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,325
Trades :   139 
Website

Re: Moreton Resources (MRV)

trew wrote:
Bullion Baron wrote:

There's a good chance this mine will claim yet another victim (MRV) in the future (unless Silver's boom/bust nature changes) and those shareholders who happen to be holding it when it sinks. However, in the meantime it *could* be one wild ride higher.

ahh the good old "I know it's really worthless but I'll still trade it because I'll sell to the next sucker and won't be the one holding when it tanks"

I wouldn't say it's worthless, I just think it's in a sector which can be cyclical in nature and often to extremes.

If you think silver will just conservatively edge higher over the long term then it could be a good long term buy. If you think silver will boom, bubble and crash again (as I do) then it's probably a good time to buy with the view to sell it before silver crashes or if they run into difficulty sticking to their mining plan.

If you don't like this speculative end of the market, don't buy it. I also own higher quality gold stocks, for example NST, which I have held since 2013 and have no intention of selling in the near future.

Last edited by Bullion Baron (2017-04-08 00:07:26)

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#17 2017-04-08 02:31:47

Ag bullet
Member
From: SE QLD
Registered: 2013-12-26
Posts: 535
Trades :   10 

Re: Moreton Resources (MRV)

Bullion Baron wrote:

If you think silver will just conservatively edge higher over the long term then it could be a good long term buy. If you think silver will boom, bubble and crash again (as I do) then it's probably a good time to buy with the view to sell it before silver crashes or if they run into difficulty sticking to their mining plan.
.

and how will you know when they are having difficulty sticking to their mining plan? i know for certain they won't tell you.


'let's get physical!'

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#18 2017-04-08 02:53:14

Bullion Baron
Silver Stacker
From: Adelaide
Registered: 2009-09-14
Posts: 7,325
Trades :   139 
Website

Re: Moreton Resources (MRV)

Ag bullet wrote:

and how will you know when they are having difficulty sticking to their mining plan? i know for certain they won't tell you.

They have in many others I've watched, evident either through delays or directly announced (e.g. X was our guidance, but have only achieved Y). Sometimes the announcement will be met with a sharp price decline making it difficult to exit before you're already burned (CGT comes to mind, got burned badly by that one), other times it's just a slow decay.

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