MMEX Resources Corp (OTCMKTS:MMEX) is a player ostensibly in the energy patch that we were extremely bearish on when the stock spiked up above the nickel level in the Spring. MMEX’s management has a track record for dilutive investment “schemes”, and we could find no evidence that the plan to actually build a refinery in Texas was anything more than that. The dilution has already shown up, so we remain skeptics.
However, we must acknowledge that, according to MMEX’s latest press release, they have actually spent some money: the company recently announced a purchase of 126 acres in Pecos County, Texas for the construction of its Phase I 10,000 barrel-per-day (BPD) crude distillation unit near Fort Stockton, Texas. This is what we said we were looking for to give them a little bit of the benefit of the doubt. So, hats off on that note.
MMEX Resources Corp (OTCMKTS:MMEX) frames itself as a mining development Company leveraging global demand for mining assets located in the Americas. The company was formed to engage in the exploration, extraction, refining and distribution of oil, gas, petroleum products and electric power.
MMEX focuses on the acquisition, development and financing of oil, gas, refining and electric power projects in Texas, Peru, and other countries in Latin America.
The company’s management team apparently has extensive experience with natural resource project development and project financing in North and South America. MMEX is initially focusing on opportunities in Colombia and Peru. Moreover, MMEX Resources Corporation focuses on the exploration, extraction, refining, and distribution of oil, gas, and petroleum products in the United States and Latin America. It also intends to provide electric power.
MMEX Resources Corporation was formed in the State of Nevada on May 19, 2005 as Inkie Entertainment Group, Inc.
Subsequently, MMEX amended its articles of incorporation to change its name to MMEX Resources Corporation and to authorize the Company to issue up to 3,000,000,000 common shares and 10,000,000 preferred shares. We have seen massive and dilutive share creation in this stock already, and we have strong reason to believe that will only accelerate from here.
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As noted above, we have been very skeptical of MMEX, but posed a challenge to the company which we assumed they would never meet: start spending money. We don’t know for sure that this has happened, but it appears that it may have with the company’s recent release announcing the purchase of a large tract of land in Pecos Country, Texas. This, of course, doesn’t remove all reason to be skeptical here, but it does put at least one brick in a wall of credibility that can be further constructed from here, depending on events.
Jack W. Hanks, President and CEO of MMEX Resources Corp., commented, “The closing of our Phase I land site is a major milestone for the Pecos County refinery project and a catalyst for significant milestones to come, including the filing of environmental permits to authorize construction on our smaller-scale initial refinery. We’re eager to begin construction on this exciting project and start bringing new jobs to the region.”
The chart shows 73% during the past month in terms of shareholder gains in the name, a bounce that has taken root amid largely bearish action over the larger time frame. That said, MMEX has evidenced sudden upward volatility on many prior occasions. Moreover, the company has benefited from a jump in recent trading volume to the tune of 53% above the average volume levels in play in this stock over the longer term.
At this time, carrying a capital value in the market of $13.37M, MMEX has virtually no cash on the books, which must be weighed relative to about $734K in total current liabilities. The company is pre-revenue at this point. We will update the story again soon as developments transpire. For continuing coverage on shares of $MMEX stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $MMEX, either long or short, and we have not been compensated for this article.