When I talk or write about investment ideas, I only use the term ‘stupidly cheap’ when the value of a company punches me in the face. That happens only four, maybe five times a year. So today is a special day, because I want to share with you an investment idea that I think is a screaming buy at $0.24 CAD.
Montan Mining (TSXv: MNY) is Peru’s newest toll milling company. The company has an agreement to buy an already gold-producing 150 tpd plant. Unlike its rivals in Peru, this company will have the capacity to process copper as well.
Montan is positioned for growth through the acquisition and development of advanced and/or cash flow mining opportunities. It is backed by an experienced management team and is supported by committed and sophisticated investors focused on building value for the long term.
This week I have spoken with Ryan Fletcher, Interim CFO and Director of the company, and he told me that “most important thing is to protect dilution. We want a lean, mean, share structure machine for Mergers & Acquisition – backed by cash flow.”
Share structure, management and growth strategy
After studying the documents available on Montan’s website and speaking with Ryan Fletcher, I am of the opinion that shares of the company are currently stupidly cheap. The company has a tight share structure, solid management and a smart growth strategy that has enormous potential to unlock tremendous value for shareholders. Keep in mind that the share price currently fluctuates intraday between $0.20 CAD and $0.24 CAD, so it is possible to buy the shares below $0.24 CAD. You can check out the recent price history in detail here.
Last but not least: please read my disclaimer before you buy stocks that I mention on my site and keep in mind that I am not a trader. I am always looking at companies through the lens of a value investor with a long-term view, so it is entirely possible that the share price will trader under $0.24 CAD in the short-term. It is also possible that I am wrong and that the share price will never be higher than $0.24 CAD. Therefore you should always do your own due diligence and not rely on my opinion. If you want to find out more about Montan Mining, I urge you to visit the company’s website and to speak with someone from management.
P.S. This is the second of two ‘stupidly cheap’ stocks that I have mentioned on this blog. The other one is Cordoba Minerals which has already climbed from 10 cents to 25 cents (intraday) since I mentioned it on my blog. The stock is currently trading around 20 cents.
Quelle:
greenmetals.co/montan-mining-is-stupidly-cheap