Ekaterina Zelenkova
-1 Vote 0

How Long Majestic Gold Corp. (CVE:MJS), (PINK:MJGCF) Stock May Be Rushed On Revised Resources

by Ekaterina Zelenkova Oct 22, 2010
0 Comments
MJS_price_chart.jpgThis week was a fertile period for Majestic Gold Corp. (CVE:MJS), (PINK:MJGCF) stock. On the company's news about the revised and updated resource estimates on the Song Jiagou Mine, the shares gathered a momentum and flew up to the sky yesterday.

Yesterday, MJS stock succeeded to rise by only 16.67%, which was not as much as the 36% price explosion in a day at the end of last month. As opposed to the modest volume traded then, this time the upward move was hammered by 5.4 millions shares changing hands.

That volume represents the quadruplicated value of the average volume for the stock and confirmed that MJS stock rush comes finally into power. The last stir of such a scale was at the end of this April.

And if in those days investors' optimism was supported by the last company's financials, this time following the financial results for the nine months ended June 30, 2010 does not provide such strong financial background.

These days, the black candlesticks and dojis on MJS price chart are explaining investors' indecision.

MJS_from_the_site.pngThe last press release of the company was on the reorientation of the block model and on the updated resource estimates for the Song Jiagou Mine, but not about MJS's financials. While the release was optimistic, the latest financial reports are raising some questions, being not so cheerful.
[BANNER]
For the nine months ended June 30, 2010, Majestic Gold Corp. reported the significant gold revenue of CA $4.1 million and cost and expenses for CA $6,8 million.

The reported revenues and the operating loss are rather convincing that the incomes from operations are not enough to meet the company's needs to maintain operations. In addition, the cash disposal at the end of that period was less than half a million Canadian dollars.

Since the company's present SEDAR filings do not contain information about funds raising, the question arises for how long may Majestic Gold Corp. (CVE:MJS), (PINK:MJGCF) stock stay rushed only on revised mining resources.

Comments (0)

Type the characters that you see in the box (5 characters).

This is a captcha-picture.