I don’t think I’ve ever written about David Morgan or his Morgan Report mining newsletter, so when a reader popped up to ask about a new pitch from him this week, I thought I’d take a quick look-see for you. This is going to be short, we’ve got the Thinkolator’s best answer but I haven’t looked deeply into the stock beyond that.
The Morgan Report runs about $500/year, and I don’t know what David Morgan’s track record might be — he’s one of the more visible silver enthusiasts in the world of investing punditry, and he has the same focus on physical silver and “sound money” that most hard assets enthusiasts have, so he’s very much big picture driven. I don’t know whether or not he’s particularly skilled at picking junior miners, but he has at least been at it for a while.
And the teaser pitch is a little bit thin on clues this time around, but let’s see what the Thinkolator can do…
He does reiterate that he’s mostly a fan of physical silver, but that he likes mining stocks sometimes as well:
“While most of my research and writing focuses on the value of physical silver and the misunderstandings I believe exist in the market, I constantly research mining companies and bring our members the very best.
“After all, if silver is a good investment, then it stands to reason that silver miners — the producers of silver — could potentially be as good as an investment, maybe even better.”
And, of course…
“… every once in awhile a silver miner comes along that impresses me enough to recommend it to readers of The Morgan Report.”
So… what clues do we get? This is about it:
“I studied the company for 20 months before I recommended it to my paid subscribers. And… it has so far been a very good recommendation. The price of the stock has DOUBLED since February.
“Better still, I believe this stock could double again in the next few months, possibly tripling by the end of 2017. (There is precedent for this. Back in 2011, the stock was 4X its current price.)”
And one more specific hint that we can toss into the Thinkolator…
“Not only does this company have a good management team and a solid balance sheet, samples from two new vein targets appear to be VERY promising. (This information was just made public on March 16, 2017, by the way, so it is ‘hot off the press.’)”
And he also notes that he is personally a stockholder in the company. So what is it?
Well, the key for narrowing this down is, I think, that terminology — samples from “vein targets.” That’s not the terminology you’d likely use for actual drilling results, so it’s probably earlier stage sampling that they’re doing. And since we know it was made public on March 16, that indicates it’s almost certainly a press release (junior miners try as hard as they can to get their news out — they depend on getting investors excited about their future, because they always need more funding from further equity sales to do their exploration work).
So where does the Thinkolator take us on this one? To a little C$50 million explorer called Minaurum Gold (MGG on the Venture Exchange in Toronto, MMRGF OTC in the US).
Minaurum Gold is a survivor of the collapse in the gold and silver markets over the past five years or so — and yes, it was roughly 4X higher back in 2011, when silver was hitting its recent peak (and when gold was just about to peak). They raised enough money back in 2011 to keep a minimal spending pattern going for a while, and then raised money again last Summer, so they do have a little bit of cash right now (something like $2 million), and they did just issue a press release last week about two promising new “vein targets” on their La Quintera silver property (they also own a few exploratory gold projects, all of their projects are in Mexico — La Quintera was a producing silver mine 100 or so years ago).
So… is this a worthwhile investment? I have no idea, I’ve never looked at this stock and it’s at an extremely early stage — they don’t have reserves or resources booked, at least on this silver project, they just have the likelihood of some promising veins of silver (partly because this is a past-producing mine in an area where there are a lot of high-grade silver mines). Whether or not it’s worth your time is up to you — it has already doubled this year, with some additional enthusiasm based on that initial press release.
So… whaddya think? Any silver or gold enthusiasts feel like digging through the info on La Quintera or Minaurum’s other assets? Let us know with a comment below.