Shaw and Partners Ltd state manager David Bosio has highlighted an investment case for junior gold and nickel explorer Moho Resources Ltd (ASX:MOH) in a video interview with Proactive’s Andrew Scott.
Moho is focused on gold and nickel exploration at the Empress Springs, Silver Swan North and Burracoppin projects.
As bad management can kill a good project, conversely, good management can make a tough project succeed and with Moho, Bosio said the team was made up of experienced practitioners with a good track record.
Backed by non-executive chairman Terry Streeter, who Bosio said was very well-known in the nickel and gold space in Western Australia for success stories such as Jubilee, he highlighted Moho as a company to watch.
He said: “In this environment, we have seen a lot of uplift in junior exploration companies and to find companies with market caps of less than $10 million – they’re almost becoming as rare as hen’s teeth.
“They have a suite of nickel and gold assets, only 50 kilometres away from Kalgoorlie which is a very well-known mining centre in Western Australia.
“The company is looking to commercialise some of these assets.”
Near-term production opportunity
Bosio said what made the company stand out was its East Sampson Gold Project within the wider Silver Swan North Project, which he said was taking shape.
"What they are focusing on is on a clear, definitive mining scenario – something they can bring into production very quickly and cheaply.
He continued: “By exploiting near-term production, the advantage is that you can create early-term cash flow which reduces dilution and can be used to progress some of their other exploration initiatives."
In September 2020, the company expanded its ground holding at the East Sampson Dam prospect to 103 square kilometres with most tenements having seen no modern gold exploration.
M&A outlook
Bosio added: “In my mind, I feel very strongly that we are in a good gold environment and I feel that the tailwind is behind the sector and some of the majors like Northern Star – those that have a lot of milling infrastructure with capacity, could easily buy some of these proven, smaller assets that can be very profitable in this market.
“I do believe we are going to see a lot more mergers and acquisitions in this sector over the next 12 months.”