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If we can prove up and get a JORC for several million ounces by year end then 10p will be left far behind !
We have the licences, we have the funds to drill, we have the historical data and we have Mark Creasy on board who knows a thing or two about that part of town. Very exciting !!!!
Sensible post and completely agree. This will be trading 10p+ by the end of the year
Yes, the price reaction after a very successful premium capital raise is disappointing! However, if you look at the fine print in the announcement of the deal, we can actually learn quite a lot and take heart from it. In particular the take up of shares by shareholders we know own a large portion of the company, the "Gnomes of Bangkok". The very fact that they seem to have taken up half the issue (that we know about) is very telling. Either that, or they are suicidal lunatics. Chairman Ed Nealon also converted his debt into equity. So has Creasy. Why would he do that if he were not 100% confident in the asset that LEX has just bought, especially given the fact that he is supposed to be something of an expert in the Witwatersrand by all accounts. What is not mentioned in the sub text is that there are probably quite a few smaller, but significant shareholders who also took up shares in the placement too. So my guess is that there is quite a bit to look forward to.
1) We are also owed the results from the exploration work that went on at the Argo concession in the Carolinas which was done before the deal was announced. 2) Now that the deal is confirmed and money successfully raised, you would think that it is probably about time for the house broker to release an updated report. It will be interesting to see what their new target is going to be..... 3) There will doubtless be announcements in the near future about details of the drilling program in South Africa.
Anybody who bought the shares in the placement expecting to make a killing in the short term is going to be disappointed. However, I reckon it is true to say that if a smallish portion of the stock was placed by Peterhouse and WH Ireland to punters, it may well be them selling off the stock and hanging on the the warrants which have real value with a 3 year maturity!! On the other hand, I can't see many holders wanting to dispose of their newly acquired stock at a loss which they would be right now. It is reasonable to assume that 5.3-6.0p may become an important support level, especially as it was a resistance level on the way up.
Patience is a virtue, hang tight and pick up more from those silly enough to sell.
It’s down over 40% from recent highs
Nice tree shake going on by MMs reminds me of 6 months ago before we seen 100% rise
Very low volume. I expect the buy taps will turn on again shortly
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Well well, whatever my opinion re BRICS CBDC, LEX never ceases to amaze. The core shareholding group and the BOD always seem to want to extend a helping hand, even in these markets. Unlike one or two cautious individuals who still seem to be sceptical as to what a bargain LEX has just acquired, they are further piling in there and supporting management to the hilt. Not only that, the placement was done at a premium!! Albeit a relatively small one.
So, looking at the purposes of the deal, and what they are going to do with the funds, it is pretty obvious that most of it will be spent on South Africa given potential amount of ounces up for grabs there, over 35mn! However, its also a fair bet that the company will not want to lose its interests in the Carolinas and will spend whatever is required there too keep and expand the JORC compliant resource. Longer term though, one has to ask the question whether LEX will stay in. Proving up between 500K and 1mn oz in the USA will take up just as much management time as proving up 35mn+ oz (or more, heaven forbid?) in South Africa. I would not be surprised if management decide to maximise the value of the Carolina properties and consider selling them, maybe to Romarco, the owners of the Haile mine which isn't too far away from our JKL spread. But that is all in the future.... I reckon all the attention will be on the South African assets which I still can't believe they have acquired for the price they have!!!
Looks like LEX has come up trumps again, without the help of Donald!!
Frankly, I am not sure anyone will really give a toss about a BRICS CBDC. The main reason is that the participants are all either flawed democracies or autocracies. If the central banks of all these countries are under the thumb of their respective ruling parties, which they are, it would be impossible for a sane human to trust them. However, it has to be said that there are many insane people who believe and live the crypto dream, perhaps they would be silly enough to compound their errors by backing an initiative hatched out of cryptomania last year, just before the bottom fell out of that market. Accept that CBDC may be backed by gold held by BRICS central banks, but would you trust this lot; Putin, Xi, the ANC. Modi (maybe) or Da Silva (maybe, but he is a socialist so has rose tinted specs!!). Its a tall order.
So BRICS will release a gold backed CDBC by the looks of in August. One would imagine an extraordinarily large gold resource in SA would be regarded as something that should receive alot of government support. Stars continue to align for LEX.
Markets, fortunately, are NOT perfect. If they were, it would be no fun investing in stocks because in a perfect market everyone would have info on everything at the same time, which of course, is totally unrealistic!! Hence, if the market is pooh pooh-ing what looks like an amazing deal, just pounce on it and get the stock bought.. It really is very silly where this stock is valued.. Thank heaven for imperfect markets.... much less boring that perfect ones, more opps for making super returns!! Bring it on LEX..
This company needs to get some exposure. The board is doing everything it can to turn this company into a highly successful enterprise. I would've thought that creasy joining the team would have turned some heads. People need to be told
Market doesn’t seem to like the deal
So We're all done and dusted. Agree with your points SJH, and I am sure that we will get the info that you are asking in the fullness of time. Lot's of planning will have gone into this, where to drill, how to drill, etc etc., in advance of the actual takeover. I am hoping that they will hit the ground running, though looking at the share price to day you would not believe it...
I think we just need to get Creasy out talking now. Let's get his followers on board and we should see some near momentum. As I'm a long term holder I'd like to see a structured plan put out that we can judge the board on. I've no doubt we can 5x here in short duration. How will we navigate the current instability in SA infrastructure management. How long to get the WR site reserves proven upto regulatory standards. How do we extract valve from the USA sites. The board still has some convincing to do of the wider market here I'd of thought we would be trading much higher currently than we are but then again it's a opportunity to add a bit more.
Well, its make your mind up day today. The fact that we had an RNS announcement out stating that the 3 major shareholders controlling over 50% of the stock have already irrevocably voted in favour of the deal, together with, I am sure, may of the directors and other insiders, really puts the outcome of today's Shareholder's Meeting beyond doubt. Also, I reckon SJH had it right a week or so ago, the key to making easy money out of this amazing deal in South Africa will be to drill the shallowest prospects first and prove up the JORC compliant ounces. Given the highly predictable nature of gold reefs in the Witwatersrand and the drilling that has already taken place on the property. This is not going to be difficult.....
As and when they are proved up, invite the majors in to either buy out the discoveries or sort out a "farm in" arrangement where the major provides the capital and LEX takes a profit share... Money for old rope, very few employees, easy to manage... I am thoroughly looking forward to hanging onto my position, and , if the inevitable capital raising terms look attractive, getting some more on board. We all know how tightly held this stock is. Being able to bag a chunk "off market" looks like a sensible play to me..... Also worth bearing in mind that Australia's most successful mining entrepreneur also thinks in the same way. He's got options that will and up with him owning 30%+ of LEX. I wouldn't bet against him.... happy to have Mr. Creasy as a partner.....
Why would you mine it? Why not get all the compliance and regulatory requirements upto to scratch and either sell the assets for vastly more than we acquiring them or get let harmony (who already have a deal with) or another big miner do the leg work. I can pretty much guarantee LEX won't being the doing digging.
I would like some reassurances from the board here mainly how all the financing will be done. It is going to cost a fortune (eye watering amount) to even get this new project off the start line (in my view at least) and in a position where they can actually mine it.
We need clear timelines as to when, how and at what level of cost each stage will be. I don’t particularly want to see heavy dilution early doors (as I am sure other SH’s don’t).
The deal does look good but it needs to be done extremely cost concisely and effectively. We will have to see how it pans out but with the expertise and experience of the board one would hope they have the interests of SH’s at all times.
At the moment the SP is heading down and not stabilising.
It's not really Dilution when your gold reserves have 10x and we only doubling the amount of shares. I actually believe the math if done correctly looks better than that for share holders. I think the recent politics in SA have not done us any favours. This is not riskless, but let's dumb it down 200k ounces gold in US plus stratgic rare earth's. 37 million ounces potential in WR, Mark Creasy to be a leading share holder. Whats the MC today £30m? Less? Even if these figures in WRE are adjusted to downside considerably its still well undervalued especially as we likely going into a gold price expansion. Risk vs reward play here is favourable. I'm quite optimistic is anyone can make SA work it's Bernard whom is a SA national, in conjunction with Harmony. Probably plays out over 24 months this a deal with a large miner in US to exploit the US grounds would be fantastic. The last fund raising here was done a + premium to the 3 month SP and I expect if another one was done which we don't require it would be at a very responsible level. Risk vs reward very good here, the flippers come and go but the major holders are looking for 10x on this one. Gold at $3k on my radar and critical rare earth's likley outpace.. Its a AIM stock dyor, I'm happy to keep adding 10% of my portfolio in this one and I sleep well having it.
Because of dilution, what you talking about.. when a share is diluted you get a proportion back, increasing the number of shares you have. None of that has happened. The share has just tanked.
SP has nosedived since the announcement. Not sure why given the latest news but very disappointing nonetheless.
Https://lexingtongold.co.uk/wp-content/uploads/2023/06/2023-06-02-Lexington-Gold-WRE-Acquisition-Circular-v5-Final.pdf
A lot of this is recapitulated from the announcement 3 weeks ago, but this is the statement of the BOD that they are unanimous in recommending the deal to S/H's .
PAF down over 20% today on problems with operating in South Africa
Yep, I may be being a bit gloomy; it's a fair cop! And yes, I agree I was far too trusting of the BBC pre-Covid. I am now highly sceptical of numerous articles it publishes. Having said that RSA does have very serious problems.
I think there is great potential here - let's hope the management team can execute a successful development of this new asset for the company. Creasy, plus the LEXers with RSA experience have excellent credentials. Time will tell and I accept this will be medium to long-term investment. At the current SP, can you believe I am actually in profit for the first time since 2009.