Q: I have a small position in MGX and it is up sharply today. They have had several announcements over the past few days. Can you share your thoughts and outlook on this company?
Q: Hi Team, Perhaps this is a clarifying question....? Below is my question about MGX and 5iR's response. My question on your answer is you are saying that there are other companies who posses the technology to extract lithium from oil and gas waste water. If so could you name them for me? Clearly the key for me is the Li extraction technology and patent. Thanks team. Chris
Hi Team, I would appreciate your thoughts on MGX Minerals. It appears this Canadian company has patented a filtration system and recently successfully tested it for the removal of Li from oil and gas waste water. In addition purified water is a by product. I have been following the Li story and own shares in ORL and ALB. However, it seems this process is cheaper, faster and more efficient than the current solar and hard rock mining methods and we have lots of O&G. MGX can also apply their technology to recover magnesium and boron. Quite frankly the technology that MGX has tested seems to me like a HUGE discovery and breakthrough. Thanks Team Chris
Answer:
The stock is certainly attracting interest, up 414% in a year and 94% YTD. Market cap is now $65M. Insiders own 35%. But there is no revenue, little cash and negative cash flow. It has some patents for metals recovery but there are other companies in this business, and we do like to see revenue and third-party confirmation of the robustness of the technology. It is still early stages here.
Hi Team, I would appreciate your thoughts on MGX Minerals. It appears this Canadian company has patented a filtration system and recently successfully tested it for the removal of Li from oil and gas waste water. In addition purified water is a by product. I have been following the Li story and own shares in ORL and ALB. However, it seems this process is cheaper, faster and more efficient than the current solar and hard rock mining methods and we have lots of O&G. MGX can also apply their technology to recover magnesium and boron. Quite frankly the technology that MGX has tested seems to me like a HUGE discovery and breakthrough. Thanks Team Chris
Answer:
The stock is certainly attracting interest, up 414% in a year and 94% YTD. Market cap is now $65M. Insiders own 35%. But there is no revenue, little cash and negative cash flow. It has some patents for metals recovery but there are other companies in this business, and we do like to see revenue and third-party confirmation of the robustness of the technology. It is still early stages here.
Q: Hi Team, I would appreciate your thoughts on MGX Minerals. It appears this Canadian company has patented a filtration system and recently successfully tested it for the removal of Li from oil and gas waste water. In addition purified water is a by product. I have been following the Li story and own shares in ORL and ALB. However, it seems this process is cheaper, faster and more efficient than the current solar and hard rock mining methods and we have lots of O&G. MGX can also apply their technology to recover magnesium and boron. Quite frankly the technology that MGX has tested seems to me like a HUGE discovery and breakthrough. Thanks Team Chris