The Critical Investor takes a close look at MGX Minerals, a Canada-listed company with portfolios of magnesium, lithium and silicon projects in British Columbia and Alberta.
MGX Minerals Inc. (XMG:CSE; MGXMF:OTCPK) is a diversified Canadian mining company engaged in the development of large-scale industrial mineral portfolios in western Canada. The Company operates magnesium, lithium and silicon projects throughout British Columbia and Alberta. Although the company has a Canadian Stock Exchange (CSE) listing at the moment, it is one of the most liquid stocks over there, and management is currently looking into the possibility of uplisting to the TSX Venture.
The strategy of MGX Minerals is well-thought out by management. It seeks to build long-term shareholder value through development of industrial mineral assets, in specific commodities and mining-friendly jurisdictions. Benefits of this type of assets are relatively low initial capex needs, solid demand and price decks, near term cash flow, very simple quarry-like open pit operations with shovel and scoop mining with no tailings, fixed operating inputs, long -term supply and energy contracts, streamlined permitting as industrial minerals like magnesium and silicon just need quarry permitting. On top of that the company also has partnerships in place or is seeking those, providing financing, engineering expertise and low-cost energy solutions.
The company is led by President and CEO Jared Lazerson, who is a relatively unknown name in the field of junior mining. When talking to him, I became impressed by his knowledge on almost every aspect of the company, the projects and by his strategic thinking, work ethic and enthusiasm. Veteran resource investor Robert Hirschberg and his team feel the same way about him, and we all think Jared could make waves in the mining business soon. He gathered an experienced team around him with many decades of experience, but particularly …read more