Back in November of last year, in a piece about Millrock Resources (MRO.V) for Stockhouse, I said, “Though prospect generators are the first ones weakened by a down market, when the market comes back, they’re the first ones back to work,” and added, “The recent rollback put the company in good shape going forward, and the financing, which came in at a [then] whopping, and almost unheard of in this market $4 million (oversubscribed from the original $3.5m), will be put to great use when assets are going for pennies on the dollar.”
A few messageboarders scoffed at those words and pointed to Millrock as just another bunch of guys in suits scraping around for a reason to keep existing in a market that had no love for the old model anymore.
Well I’m taking the win on that call.
Millrock jumped 24% today on the back of a long term slow rise on consistent solid news, most recently that Centerra would join them in a joint venture on the Los Chinos and Los Cuarentas gold projects in Sonora State, Mexico.
When I wrote the words above, Millrock was trading at $0.17 in a bad market. But almost to the day, the company share price began a climb that has been ongoing, right up to today’s $0.62. Anyone who took my example in late November and bought in has nearly quadrupled their money on the deal.
To me, that call was an easy one to make. Millrock had once been a $10 stock, back in the glory days, and with an esteemed roster of execs and geos, it really just needed the commodities market to take it’s boot of Millrock’s throat for a few weeks to get the ball rolling again.
What’s interesting is, today’s big jump wasn’t preceded by news. Either something’s coming and word has got out, or someone, somewhere, has decided to take a big piece of this play on the open market.
I don’t think this project generator is anywhere near done ramping up, so put it on your watchlist and take a long look.
PS: Great excuse to throw up this blast from the past: