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Lassonde Curve matters when Building Mines

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Lassonde Curve matters when Building Mines

"When building a mine, a company may trade down to 30-50% of its NAV. 

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The Low might come when they finish the feasibility study, and are getting the financing in place,  From the low, they price will rise soon long as they show progress in being on-time and on-budget".  

/  go to xx mins to hear more :   

Pierre Lassonde: 1:1 Dow to Gold Ratio - $25,000 Gold Coming      >

 

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THE LASSONDE CURVE explains why GCM dropped*

GCM slid back into the "ORPHAN" phase by making a bid for GLDX. 

GCM had a market cap of about $350M (US$6 x61m= $366M) and bid about $250M for GLDX, which needed $378M to build a mine at Toroparu.

It Toro has an NAV of US$1Billion and Old GCM $500M. then the current NAV of new GCM/TPRFF ($4.30 x105M= $450M) is 30% of that

GCM share price at the Moment of Approval of the acquisition of Gold-X / GLDX

GCM / Gran Columbia C$ Quote /  ...  5yr-L: 4yr: 2yr. 10d/ Last: C$5.21

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US$ Quote / TPRFF ... update: 10d/ Last: US$4.315, after testing $4.00

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Comparison: vs.GDXJ; C$5.21, US$4.315 = 7.89% of GDXJ ($54.71), 2.42% of GLD ($178.38),

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RATIO: US$4.315 = 7.89% of GDXJ ($54.71), 2.42% of GLD ($178.38),

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==

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Orphan period is when the Uncertainties are Highest

BUY when the uncertainities start to go away... with the Production decision

mining-cycle.png?w=1024

Using this, you can see that it’s good to get into projects early, then sell at a peak – then when it is decided they will construct a mine, to get back in then. The further to the right on this sheet, the less risk. The less risk, also means less upside.

Now, there are other things to consider in what miners to buy….

  1. Who are the jockeys? Have the people running this had great success? Have they done this before? Are they well respected?
  2. What are the horses? Are they decent projects with volume? Are they cost effective to mine? Is there infrastructure in place, or would a billion dollars need to go into infrastructure to buy? Is it close to another mine where you could truck pay to it?
  3. What is the jurisdiction? I tend not to put my money in certain jurisdictions. You are mostly safe in Canada, the US, and Australia. But every jurisdiction has its pitfalls. Political unrest. Government seizing a mine. The US and environmental permitting issues. Governments shaking down companies for taxes. Each jurisdiction at the country level has its own pitfalls, then you have to go deeper in to that. For example, Nevada in the US is a great mining jurisdiction, but Alaska just shut down a potential trillion dollar mine before it was ever built due to environmental concerns.
  4. Share structure and funding. Who are the big backers? Does management have skin in the game? Is share dilution a big issue? For example, if you need to raise $10 million for drilling, how are you paying for it? Issuing more common shares and private placements to dilute me? Share dilution is almost inevitable in some instances. In others, maybe a company takes on debt, exchanges shares for land, sells projects to raise money, or gives streaming deals on future gold/silver to fund projects.

> https://renaissancemen.org/2021/01/19/how-to-invest-in-mining-stocks-the-asymmetric-play-of-a-silver-miner/

 

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WM.t  is GROWING AGAIN

"The company expects higher drilling productivity during the second half of the year as the resource focused directional drilling gives way to resource expansion drilling and regional exploration..."

Wallbridge is moving again... even in a weak market.  Moreover, it has announced it will reveal the size of its maiden Deposit next month... and Now it is turning its drills back to EXPANDING the deposit.  This plan is helping the stock price.

WM.t / Wallbridge's Gold resource is set to grow again - Stock is out performing GDXJ:  last: 0.65 / Gdxj: 33.00 = xx%

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vs. GDXJ:

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VIDEO : Wallbridge Mining (WM) - Settling into a Multi-Million Ounces Rhythm

===

Wallbridge drills 27 m of 3.75 g/t Au at Fenelon

2021-08-05 10:28 ET - Mr. Marz Kord reports

WALLBRIDGE PROVIDES UPDATE ON FENELON RESOURCE DRILLING

Wallbridge Mining Company Ltd. has almost completed its resource definition drill program for the upcoming maiden mineral resource estimate on the Fenelon gold property.

Drilling has been focusing on multiple areas, within the approximately one-kilometre-by-1.2-kilometre central portion of the Fenelon gold system, to better define the gold mineralization in support of the MMRE. Approximately 260,000 metres drilled by the company at Fenelon within the three years since the commencement of systematic, continuous exploration drilling will be incorporated into the MMRE. With the drill program for the MMRE now substantially complete, drill rigs are being transitioned to focus on resource expansion and exploration drilling at Fenelon as well as regional exploration on the company's other projects along the Detour-Fenelon gold trend (see Wallbridge news release dated July 22, 2021, on the commencement of phase I drill program at the Martiniere project).

"As we near the completion of the resource drill program in support of our maiden mineral resource estimate at Fenelon, we are excited to turn our attention again to more widely spaced exploration drilling to continue outlining the ultimate size potential of the Fenelon gold system and to discover additional gold deposits on our underexplored Detour-Fenelon land package," stated Marz Kord, president and chief executive officer of Wallbridge.

"We are excited to reach this important milestone and to move forward with our MMRE," stated Attila Pentek, vice-president, exploration, of Wallbridge. "The MMRE will provide an initial snapshot of the true potential of the Fenelon gold system, the limits of which we have not yet defined."

> more: https://www.stockwatch.com/News/Item/Z-C!WM-3120859/C/WM

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GCM... Still waiting for the bottom of this 7-8 month correction.  Last: C$4.65,  Yield: 3.87%

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$4.65 is a 42.5% drop from 12mo H of $8.40.  And a 40.8% drop from the prior High of $7.86

Financing of the Second mine is now in place...

Gran Colombia closes $300M (U.S.) note offering done on Aug. 9th

2021-08-09 : GRAN COLOMBIA ANNOUNCES CLOSING OF OFFERING OF US$300 MILLION 6.875% SENIOR UNSECURED NOTES;

...With the net proceeds of this offering, we will be fully financed to develop our Toroparu gold/copper project in Guyana and we will not need to go to market with any dilutive equity financings to carry out our strategy.

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OSISKO Group history

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ODV, Osisko Development is putting two mines into production now, and is on the path to becoming an intermediate producer

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> ODV Presentation

Market Cap :  Shs. OS : MktCap : Prod.Range: Mid.: MCp/oz
OR  : $15.32 x 168.1M= $2575M:
ODV: $ 5.75 x 190.8M= $1097M : 000k-000k : 275k :  $3,989
GCM: $ 4.60 x 98.49M= $ 453M : 200k-350k : 275k :  $1,647
====

ODV vs. OR,etc... update: 10d / odv: $5.75, / or: $15.32 = 37.5%,  gdxj: $42.68, and odv is 13.5%

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x

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LION CLOCK (& A/R Link)... is "liquidity driven" /. Clock position "under review" in mid-2021

8aMWOeo.png

The change in sentiment of the investment market toward exploration stage companies recorded during 2020 opens the door to a new and exciting stage of the boom and takes the Lion Clock to 10 o’clock.

The Lion Clock does not move at a steady pace, rather it reacts to indicators of liquidity and these tend to occur in irregular surges rather than a
set tempo. The time between 10 o’clock and 12 midnight in previous cycles has lasted for years, and importantly for investors substantial capital returns are most readily available through this stage. This is especially the case for junior miners and explorers, as this stage is characterised by liquidity moving into smaller companies as investors search for value. With exploration funds now being raised in the market and deployed widely, we expect to see discoveries take place and new projects developed as well as growth in the form of M&A to form larger companies

===

LSX: 5yr: 2yr: 1yr: YTD: 10d / Last: A$0.45

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LION SELECTION GROUP LIMITED 2020 ANNUAL REPORT | 3
Lion Selection Group Investment Summary
AS AT 30 SEPTEMBER 2020
                                                        COMMODITY MARKET VALUE
A$M
Pani Joint Venture (33.3% Interest)  Gold        60.7M
The fair value of Lion’s interest in the Pani Joint Venture increased
to A$60.7M at 31 July 2020. This increase reflects the sustained
escalation in gold prices from the time of the most recent arm’s
length transaction in November 20181.
Portfolio
Nusantara Resources                    Gold.        15.5M
Erdene Resources                            Gold.          5.3M
Sihayo Gold                                      Gold.          1.8M
Celamin Holdings                              Phosphate 1.2M
Other0.6
Portfolio holdings measured at fair value
Includes investments held directly by Lion and the value
to Lion of investments held by African Lion
                                   Net Cash.                        10.5M
                                   Net Tangible Assets:   A$95.6M
                                   NTA Per Share:               63.7c
Capital Structure
Shares on Issue:                 ].                   150,141,271
Share Price:                        50¢ps30 September 2020

> Reports:  2020 A/R:  https://www.investi.com.au/api/announcements/lsx/16245efd-690.pdf

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LSX / Lion Selection

LSX.        04.30.  Shs.OS: MkValue: /LSX < MkVl < 09.10:
PANI JV:  - N/A -: prv.33%: $62.0M : 41.3C: 62.0M: same?
NUS.     : $0.255: 49,800k: $12.7M :  11.5C: 17.2M: 0.345 :
ERD.      : C$0.35: 11,400k: $ 3.9M :   3.1 Ct  4.6M : 0.405 :
SIH ayo : $0.014:  78,600: $ 1.1M :    0.7 Ct  0.7M :  0.009 :
CNL cel.: $0.080: 17,500k: $ 1.4M :   0.8 Ct  1.1M: 0.065 :
Other.   :              :               : $  1.3M :   0.9 cts 1.3M
Cash.    :              :               : $  7.7M :  5.1 cts 7.7M
===== . Overall  : 150.0M:  $90.1M : 63.4Ct 94.6M:
*=150M   ————————->  $ 0.60 : $ 0.63 :
————   LSX stock price :  $ 0.41 : $ 0.45 :
————   Discount to NAV :  - 32% :  - 29%  :

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:Company Overview;

LSX - Listed mining investment company established in 1997

Target ReturnHistoric ReturnsGold LeverageSustainabilityKey InvestmentsInvesting Significant investment in early stage mining companiesPani & Nusantara: two multi million ounce high quality gold projectsAims to generate 5 times initial investment amount within 5 yearsReturned almost $4 per share since listing at $1Commodity supported by perfect storm of fun

> Corp. Presentation: https://www.investi.com.au/api/announcements/lsx/5533a7e2-085.pdf

Portfolio Performance
Strong Shareholder Returns
ASX:LSX lionselection.com.au 5Value Returned
Since Inception
ValueDividends 97cpsOffmarket Buyback 81cpsCatalpa 155cpsCurrent value of Lion
share (vs NTA
60cps)41cpsTotal 374c

PANI value, in LSX... at Sep. 2020

Fair value measurement of the interest in the Pani project
Refer to note 3(d)
At 31 July 2020, the Company recognised a fair value of its investment in the Pani project of AU$60.7 million, including an unrealised pre-tax mark to market increase of AU$20.0 million this year.
Certain valuation techniques were utilised to determine the fair value of the Company’s investment in the Pani project at 31 July 2020, including:
the comparable value method – this primary method involved an assessment of market comparable companies to consider relative movements in the implied value per resource ounce during the year; and
the yardstick method – a secondary valuation method to provide a cross check of the primary technique.
This was considered to be a key audit matter given:
the significance of the Pani project’s value as a proportion of the total investment...

> xx

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