Member Info for AM90

Maestro1 - re. Australian gold miners

Appolo consolidated - Australian gold miner - Taken out for $US 135 million earlier this year - their resource 1 Moz at 1.2 g/t - no pre-feasibility

So the same development stage as BAM, very similar resource in terms of size (BAM Is now actually larger), grade and indicated vrs inferred.

Landore may or may not sell, the market suggests it is not this time round. But there is no way they would ever consider anything close to the levels you suggest above.

I do not disagree that in general comms need improvement, but that is another matter.

The actual deadline is today, not yesterday. Theoretically at least, they could still receive a letter of interest of some form of information that may help determine how the company progresses today. So there was always zero chance of any update in September.

I do think some form of update next week is important, even if it is just some form of holding RNS, silence for a couple of weeks would not go down well.

The way I see it there are 3 possible outcomes.

1) A sale. There could be multiple parties interested and asked to make a bid in the coming weeks. Granted the market says this is not happening. But equally it has been possibly the worst 2 weeks in market conditions for a long time, that no doubt creates some fear - initial selling - further selling. There could be also be low ball bid. We don’t know, we find out soon.

2) A partial sale of something/ offload non-key asset. This could be the lithium royalties in Green Technology Metals Root Lake project that has been flying. They (Green Technology) want to get that into production. The longer they wait the more expensive the purchase back of the royalties will be. It could also be the sale of the Lithium project/ground. There has been little development, but this is still worth a few million I suspect judging by recent deals. Maybe something else.

This would not be a bad outcome. Cashed up and ready to go with 1.5 million ounces proven and some battery metals, with drill results and soil sampling to come. But it would have to come with some form of strategy for how the company continues to develop. I don’t just mean we plan to drill x y z regions in the next few months. I mean how they intend to maximize shareholder value and ultimately sell the key assets. I suspect without this, it would be met with a muted to negative reaction without a decent strategy presented.

No offence to Bill, but there comes a time were fresh impetus and energy is simply needed to boost shareholder morale and sentiment. This could be the perfect time for this. A new vibrant and energetic CEO working both retail and institutional investors, Cashed up, drilling underway, hopefully heading into a period of positive price of gold action (Hopefully!). #With time, this could be an excellent outcome.

3) A raise/ No communication in the coming days
A raise at these levels would be very unlikely, they are not strapped for cash. Silence for a couple of weeks (would not out it past Landore), would almost certainly be punished by investors. I would not necessarily expect an RNS on Monday, but certainly something next week?

Terrible in many ways.

Possibly good news if you own shares in a gold stock who are essentially valued in $

This time last year $US 100 million would have equated to a SP of 52p fully diluted.

Right now an offer of $US 100 million would equate to a SP of 75p fully diluted. This is a huge difference. Perhaps makes any sale easier to agree. Lets hope so.

Back up plan I guess is the sale of the Lithium and Green Technology Metals 3% royalty on the Root Lake project, which is progressing at some pace.

if you were a potential bidder, why would you send an EOI now and risk a leak. Better to wait until the last minute IMO.

Like posts below, I do not disagree over the long term, the SP is the SP, but at the same time it has created opportunities for investors over the past couple of years (well I hope so!) and even more so now.

It seems to be forgotten that everywhere has taken a beating this year. GGP went from 38p to 9p during which Shaun Day was in charge, who on the face of it has done an outstanding job. Its not the same of course because GGP made longer-term investors bucket loads. My wider point is every junior (even those with outstanding management) have taken a beating recently. What could the board at Landore done differently over the past 12 months? Yes of course some promotion and better communication (especially post MRE), but would it have made a huge difference? I am not sure. Of course we don’t know what conversations there have been or have not been with other companies, they are probably the must important ones to judge.

Formally requesting expressions of interests is a big step up on previous rhetoric because it is actually action and not just words. I really don’t think they would have done it without expectation/knowledge that a few will bite (at least in the expression of interest stage).

This is different than past attempts, not least because EOI’s are more formal but also A) because the Gold asset is now stronger. B) Because the gold market is stronger. It might not seem like it, but gold price of 1675-1900 range is of course much higher than 1100-1300. C) Gold/commodity producers are in a better position, debts paid off, strong cash reserves, albeit earning less now than they were 12 months ago because of inflation. But still much much better balance sheets than 2014-2019. D) Finally battery metals basically went to near zero at around 2016, they are now at a very decent price and perhaps more importantly the sentiment is very mush there for the future.

The above are not excuses for a long-term decline in share price, but they are rational facts as to why I think now is considerably more likely for a sale than at any other point in Landore’s history. Apples and oranges comparing this to other periods in Landore's very long history IMO.

I do apologise Mads for that bonkers comment, it wasn’t aimed at you, equally it was certainly not the right words to pick and should not have been typed. I have read a million rumours as to why JH sold, no idea which one if any are true. I am hope it will come out one day.

Michu,

For balance (I know you like both balance (although you seem to be becoming less and less balanced over recent times) and parenthesis), please can you direct me to a gold based resource stock that has gone up over the past 3 months? Or quite frankly is not down 25%+..... I doubt it.

By the way. If you told me there was a stock on AIM where there was a 20% chance (the sale) of a 3/4/5/6 bagger in the next few months and the downside risk was maybe -15% from here, I think most would bite your hand off.

Your logic just does not add up for me. Pretty obvious I think this is going on some form of a run in September. Then maybe another run if there are expression of interests. I spoke to a member of board a while back, they were acutely aware that this cannot be 'business as usual' i.e. a raise. They highlighted the need for someone to take it forward either a full sale or asset sale, JV or strategic investment with new blood on the board. I fully expect one of the above to happen. After all, as you are well aware the assets are quality.

I cannot for the life of me understand why you would hold for so long, only to sell when finally they undertake the strategic review and specifically ask for expressions of interest, bonkers. More bonkers than holding for a decade plus. But of course folk are free to buy/sell whenever they want.

Bod I think the process of the strategic review has been somewhat missed in the below post.

It has been somewhat forgotten in the SP turmoil, but the RNS was such a significant step forward in terms of a sale and maximising shareholder value because it is the first time expression of interests have been formally mentioned:

“An Expression of Interest (EOI) is one of the initial transaction documents shared by the buyer with the seller in a potential M&A deal. The EOI indicates a serious interest from the buyer that their company would be interested to pay a certain valuation and acquire the seller’s company through a formal offer.”

From the internet, not an exclusive definition but something along those lines seems about right.

It is only at this point where we discover who is interested in Landore. If any expressions of interests are received, it will result in an RNS soon after the 30th September deadline. Plenty of examples of this. This could result in the company immediately going into the formal sale process (A few examples of this). Or having a further whittling down period. Of course receiving expressions of interests or even entering a formal sale processes is no guarantee of a suitable agreement being reached, but at the very least would give the SP a decent boost potentially providing other paths forward (The SP will be considerably north of current levels in the build in September and after if expression of interests are received)

I just don’t buy the notion that any suitor would have Landore under a barrel. They are a junior miner, none of them have sustainable cash reserves by definition. The key point is the SP at the end of September. Dont rule out some cash raising beforehand by the sale of non-core assets as well.

Of course, I have negated one possibility, no expressions of interests being received. I think this is unlikely. Companies are already undertaking due diligence, which by definition means Landore has been speaking to them. There was even a photo on the Landore twitter page of BH giving a tour. BH and co will have surely got an indication of the level of interest before inviting expression of interests, knowing that not receiving any would look really bad. It would be akin to hosting a party, sending out the invitations, but them nobody turning up.

Indeed, wonder who has dumped. Some warrant holders expecting a bit of a SP run post the expiry? Who knows.

Also, who or will be the buyer? Any market maker would have to sell that at higher than 18p to make money. Suspect there may be a large buy coming as well? PRIM?

I think you are spot on there Samval. Totally at a loss as to why mind you. The warrant overhang and the wider market clearly dont help.

Appears there is still some obsession about funding. They still have some very decent non-core assets. The 3% royalty on the Lithium land now owned by GT1 who recently raised $55 million and then the lithium targets in JL fully expect them to be disposed of for some extra $

But the board aint taking this so deep unless they really believe something is coming

Greendave - Gold companies do not look at the POG on a day to day/ week to week basis when making acquisitions. Its a long term view. When gold spiked to over 2000 earlier this year, they didn't suddenly go out on a buying spree. Bare in mind that even when someone buys this it is going to take a good 18 months/2 years for this to be anywhere near a gold producing mine. So i don't really see any logic in those comments. POG is course in important - but only really in terms of longer term averages.

We should find out if there is serious interest and bids early October.

I guess I was more directing the comments of 'no placing' to the several on here who had previously suggested that a placing was needed for drilling. Will be interested to see what the 'anticipated income' is....

But come on Michu, even you must be a little excited for the end of September....

"The strategic review is ongoing, with mining companies currently being solicited to provide expressions of interest and participate in the initial due diligence period, which is scheduled for completion by 30th September 2022. The remaining participants at that time will be invited to advance to the next stage of the process."

Do you really think BH is the type to bulls**t this? I think they are clearly expecting/know there is substantial interest in the company one way or another.

And lets not underestimate the significance of the drilling.. Some decent hits along that 11 km stretch and this starts to become HUGE! LND has never been in such a strong position.

Go one.... say it... you must be a little excited

Fantastic RNS.

- No placing
- Drilling commences next week Felix stretching to Lamaune
- Interested parties carrying out ongoing due diligence, expression of interest due end of September.

Positive drilling results across that multi-km section and we are clealery talking 4-5 Moz. Perfect timing to twist the arm of any interested parties. Would imagine we would start to see drill results early September. In exploration drilling would have thought any interesting core would be immediately sent to the labs - to guide further drilling. Different to resource drilling when they sent batches.

Bod - it's a very good question and Its not entirely clear at the moment, aside from the fact that there will not be a fundraise in the next few months.

They stated in a couple RNS that drilling would commence in July, but we have yet to have any confirmation of this. In the recent Interview seemed to suggest that they were waiting for the soil sampling results before drilling. Soil sampling has been proved to be a near perfect indicator of gold at BAM, so they might be waiting for that.

They could just be waiting for what interest there has been in the Strategic Review before deciding what to do next. It's been over 2 months since they announced, must be getting to the stage now where they must have a firm idea.

They could have been waiting for July 14th to release something, no point doing it before the warrant expiry. The volume would just be used to flip warrants and dillute.

It could well be the case that majors have said to drill more and we will pay more later as older mentioned. This could result in a new board and some fresh blood imo

We just don't know, but I would suggest that they are in a pretty decent position right now. Decent amount in the bank, minimal dilution eg. A £1 per share take out is now only $145 million. More than possible.

Hopefully there is an update in the next week or so.

BodRuncie, I am afraid you are mistaken wit the funding situation.

The warrant uptake was close to the optimal level, enough funds in the bank vrs minimal dilution.

They have circa £2.5 million in the bank enough to get some drilling going, they also have some non-core assets they could get rid off. For example the 3% royalty on Root Lake Lithium.....

There is zero and I mean ZERO chance of any fundraise in the next few months particularly at these levels!

They are in an excellent situation, dilution has been reduced, the $/£ exchange rate is favorable, they have more than enough to get some drilling done. The message to any potential suitor is clear, buy now or pay more late.

Its not Cenkos by the way.

Net volume this week is already over 2 million, 75% have been buys at least. Dont think its far away at all.

Good wack has already been cleared (1.5 mill this week already i reckon) and I would suggest that not all are being flipped.

Appolo, for example, did not have a full BFS or PFS and they went for something like $125 per oz.

Seems unlikely that Sprott will exercise at this stage, apparently there has been very little engagement between Sprott and the board since he got in at an absolute bargain price. Would be nice for the extra funding. But on the other hand we are saving quite significant amounts on dilution. Literally a few days to find out.

There could be other non-dilutive ways the board could raise a little bit of cash *if needed* by disposing of non-core assets.

I dont think the price of gold matters one jot between 1600 and 2000 in the short term. Miners primary reason for buying new deposits is nothing to do with the price of gold, its that they need to replenish their reserves, or they go out of business.

The reason M&A increases when POG increases is because miners then have loads of spare cash, this has already happened.

BAM is not a marginal project, it i projected to be at or below average AISC. POG is not the most important thing here in the short term.

https://www.lse.co.uk/rns/PRIM/investment-update-tdugec3jcprtbtj.html

"In addition, the Company is pleased to announce that it has acquired 1,000,000 shares in Landore Resources Limited ("Landore Resources") at £0.22598 per share which equates to a total amount invested of £225,978.

Landore Resources is an AIM listed holding company for its 100% owned reporting subsidiary Landore Resources Canada Inc which is an acquirer, explorer and developer of precious and base metal projects in Eastern Canada. It is primarily focused on the development of its 100% owned Junior Lake Project, together with the contiguous Lamaune Iron property (90.2% owned) (jointly the "Junior Lake Property")."

Nice vote of confidence there!