This is a frustrating stock. My view on the negatives and positives:


1) On my calculation, management has just posted a approx. 50k oz reduction in forward 12-month production, from approx. 95k oz to approx. 45k oz. I'm using approximate numbers since it's difficult to read the silly 3-D graphs of forward production.

2) This clearly raises operational questions. Now, a lot of junior gold companies have disappointed in recent quarters, but that's not an excuse.

3) Mngmt interest in minority shareholders seems minimal - website and available information are poor. 

Positives (taking things at stated value)

1) Looks cheap on basic valuations  - for example, EV / res oz is approx. US$30/oz

2) Looks operationally cashflow neutral even on disappointing new forward numbers, with plenty of cash on the balance sheet following NewMargin investment. 

3) The Chinese are driving this company. According to latest Bloomberg data, NewMargin have 7.9%, which would double if the warrants are exercised. Mr. Kong Fan Zhong has a further 7.4%. By contrast, Mr. Husband appears to own <1.0%. I would suggest interesting developments are going to happen on a Chinese-driven timetable.

4) Shares look tightly held as current trading volumes are tiny. I calculate last 6 month trading volume at approx C$30k/day, compared to a current mkt cap. of approx. C$90m. Trading volumes are nothing - try buying into this company in size.

5) Mr. Feng Tao & NewMargin seems to be reasonably serious players. I particularly liked an old Time article from 2005 mentioning his ambitions in the gold space and a prior link to Robert Friedland.,9171,1039752,00.html

6) China appears serious about gold. The Ministry of Industry & Information Technology estimates FY15 Chinese consumption at 1,000 tonnes, compared to probable domestic production of 500 tonnes. It wants to encourage consolidation / growth in the domestic gold industry.

Hopefully MJS minority shareholders can benefit from this consolidation. I think this is where the best hope lies, rather than anything from Mr. Husband.