London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Ah gotcha. Good to have open minded discussion. Doesn't hurt anybody outside tampers/derampers. In the hands of the operational team now.
lptuf93, shares hadn't been consolidated then, so I paid 17-18p a share at the highest. I think market cap was probably in the 10m-15m range then, so it has always been a tiddler.
BoracicLint, I agree with the points you make.
I believe this is indeed the best prospect the company has ever had. In Tanzania with illegal mining and dubious support from officials it was never going to happen. In Australia, well we just bought a pup.
My caution is just based on my long association with this company. I would liken it to somebody about to be married for the third time. Exited by the prospects for the future but somewhere niggling at the back of their mind are the memories of what happend to the previous two marriages, where the prospects at the time had seemed equally rosy.
Of course, not everybody carries the baggage from the old versions of the company, so they will feel differently about the prospects of LEX and they will I hope make significant returns if the company is successful in its stated objectives.
I see this a a bit of a race. Cash and time are intrinsically linked here. Drilling and sampling need completing, reserves proved, a suitable partner found to take the project into production so Lex can move on to the next prospect, all, ideally before cash runs out.
For reasons of my current exposure I don't want to see a capital raising, I'm not suggesting people shouldn't participate if there is one, in fact it may well be a good idea. I just don't want to invest more unless I feel I really have no other sensible option.
Rising inflation forecasts here and in a number of major economies, and significantly increased fiscal stimulus in the US, that will certainly bring forward that prospect, will bring the price of gold into sharp focus during the year.
The price of gold in relation to the cost of extraction will be crucial elements in making a deal with a production partner, and in turn rewarding shareholders, which is what we are all here for. I think!
Do you remember what the market cap was at £1.79?
I agree with munpip that this company does not have a history of success. If I was a better investor, I should have sold out many years ago and probably not long after I started investing in Tanzanite One in 2009. Hindsight is a wonderful thing!
Having said that, it does seem that we are in a much better position now for a number of reasons:
1. Major private investors who did not sell out prior to the RTO and have, on the contrary, increased their holdings since relisting as LEX. The instils some confidence.
2. We are prospecting for gold, no longer mining for sapphires etc. I had the impression that the marketing and pricing of stones would have been much more difficult than gold, for which there is a stable demand. The Capricorn mine seems little short of a disaster but we are now a slightly different beast, with enough cash for now and what seems a more cogent plan for making LEX profitable.
3. The macro background. I know I've mentioned this before but massive fiat printing since the financial crash was only partially clawed back by governments/central banks. This has now become far worse by having to prop up economies during the corona epidemic and is continuing. Although the GLD fund has now passed a technical 'death cross' of the 50/200 day SMA, I feel this background is likely to support the gold demand and price in the medium to long term.
4. We are working in the USA. A developed country with a stable democracy (yes, I think the Trump wobble was grossly exaggerated, though substantial divisions do exist) and an established and respected state and federal law system. There is no illegal mining or a likelihood of one industry being picked on for 'special' tax treatment. I know we could say that about Australia, too.
5. We have 4 prospects in an area with successful historic mining, plus the current example of the Haile mine. With modern technology, it seems if we manage to find suitable deposits, they are likely to be extractable at a level of profit that means we can sell them that brings a large increase to the SP.
Perhaps I'm being too optimistic. I reckon that this time we will achieve a big SP increase over the next 2-3 years. I'm waiting with bated breath to see what the initial drilling results bring and how the SP reacts. (Though it may never reach the effective highest price I paid, of a mere £1.79.)
I copied this extract(excuse the pun) from a newsletter I receive.
The truth is, regardless of inflationary risk, I’d be looking at gold right now.
That’s because we’re entering a secular bull market in gold.
Here’s what that means:
Many assets — especially commodities — follow predictable patterns, on semi-predictable timelines.
Let’s take gold as an example.
Say that gold prices are relatively low. Indeed — they’re so low, that a lot of the stuff in the ground isn’t economical to dig up.
So, gold will remain low . . . until supply dries up. With fewer miners digging — and those mines aging — eventually demand will outstrip supply.
When that happens, prices start to rise.
As prices rise, miners that were sitting on the sidelines get in on the game.
In fact, as prices keep heading upward, it’s not uncommon for veins that had never been considered economical to start looking attractive.
More and more miners get in on the action, trying to take advantage of the high price of gold.
Until, eventually, demand outpaces supply to such a degree, gold prices start to fall again.
But that doesn’t matter for miners. Once a mine is operating, it makes sense to keep it operating as long as it’s profitable.
After all, it takes years to get a mine up and running. And a lot of the cost is front-loaded — as part of exploration and finding rich ore veins in the first place. Once that money has been spent — back in the boom times — the mine can just keep churning out gold.
Until, at some point, the price of gold drops so low, simple mining isn’t economical anymore. We’ve got a glut.
And the price will remain low, until we’ve worked through that glut.
At that point, demand will outstrip supply, starting the whole cycle all over again.
They won't be digging out any gold relephant, they will prove up the prospects and hope to sell on to a miner that will. See the company presentations and the interviews Bernard has given. They are hoping to duplicate what happened with the Haile mine.
It is probably a good time to be mining gold with possible inflation on the horizon, which could send the gold price higher. However, the company still has to find and dig out enough quality gold cheaply enough to be profitable. Ultimately the share price will reflect the business fundamentals and come down to the profitability of mining the sites they have licenses for. They couldn't do this for sapphire, but this is a different project entirely, and things could be very different this time around. Richland was a Gonna company - always "gonna become profitable but never did". Hopefully, things turn out differently for Lex shareholders. Good luck to you Munpip, and other shareholders taking a speculative punt on this. I hope you do well, but no harm in being informed about the past and risks involved.
A bulletin board should be the place for rational discussions (and that includes the airing of alternative views) rather than a cancel culture only tolerating positive spin in bullish posts. Keep posting Munpip
All views are welcome Munpip. Glad to see you're still here for the ride. Re the old management hanging around, OK, tanzanite one wasn't the greatest success, but this is a hit and miss business. The likes of Nealon, Sturgess and Olivier have all has their successes over the last 3 decades. Let them get on with it.
I'm looking forward to the drilling results... 5 to 6 weeks tops... Hopefully...
Thank you relephant,
Indeed I am not a deramper. The fact I have one post does not mean that I haven't followed this company for many years, I have.
I was seduced long ago by the siren voices at Tanzanite One and invested on several occasions. I am still holding and loosing a considerable amount of money. I merely wanted to point out a possible reason markets are cautious about this company. I sincerely hope that this time everybody's optimism is not misplaced. However, if alternative views are not welcome I shall not post again.
True but Bernard got BZTs license to JORC and I'm not sticking around until production so if the license does have more potential, I expect him to find it. Hopefully the legacy men stay silent in the background and let him get on with the planning and drilling.
He who has no sin, let him cast the first stone
Meanwhile people are busy buying up Lex for when this replicates Haile Gold mine. Even a quarter of what Haile achieved is a success. Then times 4 or 6.
Currently and more due, TR1 is now overdue, £32,000 was bought in two trades to end last week.
1. Orasa aka Doris
15.06 % 39,390,187
2. Pure Ice Ltd
15.06 % 39,371,636
3. Mark Greenwood
13.00 % 33,994,999
If you don't like marmite, don't buy it. Move on. Simples
Ps. We've all suffered a loss somewhere, clinging on will only hurt us, not the company. People should stop marrying stocks, buy, sell, move on.
And Goodluck, after all, we are just here improve our lives.
Munpip is not a deramper Oaber - just stating the truth and giving very fair comment. You are attacking the messenger! Tanzanite One and then Richland in the past made terrible capital allocation decisions and massively destroyed shareholder value over many years.
Iptuf - While two non-executive directors are new; the CEO was a previous CEO of Richland for many years when it was in Tanzania and then for much of Richland's failed attempt to mine Sapphires in Australia. The Non-Executive Chairman has also been with the company for many many years. I don't have my files at hand, but I think the latter may well have been on the board when the company paid out most of its reserve capital in the form of overly generous dividends. This left the company in a financially weak position, and it was less able to deal with problems that emerged in Tanzania and then Australia. The company was left with so little cash that continual and very dilutive capital raises were needed just to survive (to the detriment of ordinary shareholders). There was also the ill-fated Tsavorite acquisition - nothing came from that. The listed Group Company Secretary and CFO also had ties with Richland in the past. Thus Lexington does not have a completely new management team and board.
On the positive side Bernard Olivier has a PhD in geology and with new exploration and mining methods the company may be able to locate and dig enough quality gold out of the ground cheaply enough to make these old deposits profitable again. I hope that Lex shareholders will be more fortunate than those invested under previous guises of the company when Tanzanite, Tsavorite and then Sapphires were the mining targets.
Munpip is 100% correct when he said the company overpromised and underdelivered in the past. I hope those putting money into Lex are fully aware this is still speculative and the company has failed in a number of previous guises. Is there enough working capital to keep going if early attempts are not successful? Just would be wise to not get carried away with a sexy story and bet the house on this, as mining is unpredictable. While this could "hit gold" with shareholders doing very well, it could also fail.
I wasn't involved in RLD (or previous iterations) but new operational team leading the way so think they deserve a chance on what looks like a promising license
Nobody cares about the opinion of a deramper with one post.
There is of course another possible reason the share isnt moving. The company, in all its previous guises, has over promised and under delivered. Markets only give you so many chances, so you must accept scepticism.
Just the advertised. Actual spread this morning was 3.95-4.25p
MMs will take 450k shares all in one go for 3.75....looks like they need shares
Oh yes, and 3. The idiotic spread of 25%. MMs are short and they don't want to get further into the hole...
There is not much volume about, but once we get any positive news, this is going to fly!
There are 2 reasons this stock is not moving. 1. MMs, 2. MMs.
When this finally breaks whatever is holding it, am expecting a decent rise. I've seen similar happen to another Gold discovery company.
Let's enjoy the quite days, when the right news lands, so will the p and d crew. But looking forward to serious gains from this.
Not sure the source of this resistance but it will crack eventually.
TR1 is overdue.
Hopefully we'll keep doing single digit gains, keep the P&D crew away...
The market is so short of Lex they are really trying to keep the bid low so not to ruin their Mark to market p&l . Sooner or later the Dam will breach and they will be desperate to cover their short.