In the 90's my father Gerry ran his own stock tipping website where he used a lot of fundamental company analysis to find good stocks and recommend them.
He was so successful and he made so much money for people that ASIC closed him down!
Im about to tell people what his favourite stock was so im a little scared that ASIC will send me a cease and desist letter too!
Dad couldnt run his website anymore but he was still popular for tips among his friends and he went on to start the ASA (australian shareholder association) coffee mornings which still exist today.
For 15 years before he passed, he liked Red Metal Ltd RDM. He was no silver bull but he thought their Maronan deposit (lead/silver) was world class and was worth well more than Red Metal's entire market cap. Red Metal also had a lot of good copper, gold and REE tenements around australia as well. Dad loved the directors, especially Joshua Pitt who has a habit of being very conservative and not exaggerating or overhyping drilling results - a rare thing in the industry. He'd also had a lot of success with these directors in previous mining companies.
Fast forward to today. Dad is no longer with us and Red Metal spun off their Maronan deposit last year and called it Maronan Metals. Unlike my dad I am bullish on silver, very bullish. And compared to other silver developers like Silver Mines SVL which have massive market caps that I dont think are justified, I believe Maronan has good value and I think im invested in the right company at the right time for the coming silver bull run.
Market manipulation is rife on the ASX and many friends I have reached out to about Maronan say they dont touch ASX stocks anymore. I totally get that. But Maronan is unique. Its 53% owned by Red Metal, 10% owned by Crescat Capital and Joshua Pitt has 4%. Other shareholders have a maximum 1% stake. Its a tightly held company and yes there are some shenadigans with the share price but there is no short selling and its quite easy to stop the share price manipulation.
Maronan has enough good drilling results (300Mt @6.5% lead and 106g/t silver) to make a profitable mine even at todays silver and lead price yet many of us know that good companies can still not eventuate into a good share price.
There are six asx listed silver developers with sufficient drilling results for a mine however if you invest in Maronan you are investing in the one which I believe is most profitable in the LONG run. That word needs to be emphasized because some of the other silver miners might do better short term with overhyped results and short term strategies.
With Maronan you have a clever options system in place which enhances shareholder value for both red metal and maronan shareholders. When red metal spun off maronan they gave red metal shareholders options in Maronan to exercise at 30c before August 30 2024. So there is a big incentive for red metal shareholders boost the price of maronan with some heavy buying before august 30. And by August this year we should see some increase in the silver price. The price of Maronan is currently 23c. If the share price of Maronan is 40c at August 30, then you would expect almost 100% would exercise the options. That would raise $15mil. That excludes the need to raise capital in a share raising. Great! The $15mil then completes all the infill drilling to have complete confidence to make a mine.
Many companies do not do enough drilling. Then the share price peaks at the decision to mine and goes downhill ever after. Maronan was almost mined in August 2015. They have held off, just to do more drilling and get even greater confidence. Hopefully you can watch this interview with the CEO and start to get as much confidence as my dad and I had/have in Maronan.
https://youtu.be/XSz-x9Lndws?si=LvgyQ7Ylk_tkoFXN
Who doesnt like to get things for free? I know I do. And the thing I love most to get for free is silver. With Maronan, the high lead percentage will pay for the mine. All the silver mined as a byproduct will be free.
Regards
Ben