Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
Catbert, agree with much of that.
The 5p drop feels very extreme for the contents of the RNS, given much of that content had already been communicated in the December interview. I'm not in the least bit surprised that there is already some recovery in the share price and I expect this continue.
Like AM90, I am very confident a deal concerning the Lithium Acreage will be concluded. Consequently I don't think there will be a raise to support the gold drilling plan to reach 2m oz. It is of course important that they get cash element of that deal right, wouldn't surprise me if this is taking longer to negotiate.
Good to see the plan to 2m oz gold resource in black and white and the board's belief that this will be attractive to a number of large industry participants. Importantly this 2m oz figure is based on industry feedback, presumably gained through the SR process. Still no information on the level of funding required to achieve this, I appreciate this cannot be an exact figure but presumably the drilling plan designed to move the resource to 2m oz will provide these estimates. The fact the scope of the drilling plan will vary according to funding is a tacit admittance that it depends very much on the sale of the Lithium acreage.
They also mention further planning to drill the battery metals in 2023. This may be down to wanting to add value whilst the Pre Feasibility report on the gold resource is completed. If the opportunity to push the gold resource to 2.5m oz and forego the battery metal drilling exists this may be a better option in my view.
So it looks like our next news will be Lamaune drilling results: "Analysis of the drilling results from the recently completed programme at the Felix-Lamaune Prospects will be completed shortly, and the results are expected to be reported later this month."
Which leaves likely news flow across Q1:
• Felix-Lamaune Results
• Lithium Acreage Sale
• BAM Gold drilling plan
• Management Changes
• Pre-Feasibility Report plan
Supported by an improving environment for gold miners, this news flow should see some change in fortune for Landore's shareholders through the quarter. Tough day today!
Thank you for those kind words NicetoMichu and may I say well played on your 20p by Christmas prediction. Almost guru status on that one. Wishing you and everyone else that reads this board a very merry Christmas.
I particularly enjoyed the part where he suggested the interviewer must be long on the juniors he mentioned. What an excellent communicator! Hard not to reflect on the comparison with our own CEO. For me it also showed the value of carrying out these chats face to face, I assume the TMS interview with Bill and Glenn was over the phone, which is definitely more difficult to pull off effectively.
From this interview it was clear that Barrick want to see a minimum of two million ounces to consider the purchase of an asset. Okay this is one company, but it also chimes somewhat with the potential 2m oz figure that Bill has previously referenced. Landore's 1.5m oz resource doesn't quite hit this level so what would it take to get us there? How much money and how much time? No doubt a 2m oz resource in Canada would be very valuable.
The fact there isn't already a production mine doesn't seem to be an issue for Barrick, with the ability to extract value and long mine life potential having greater importance. So, no issues for Landore on that score.
If the PFS is also required, how much of this work can run concurrently with a drilling campaign to increase the resource?
Again, what are the associated costs with completing the PFS?
Will we be able to raise enough from the sale of our Lithium assets to complete both these pieces? I would like us to target the majors for a sale, I think we are more likely to get credit for the Nickel resource this way in addition to the Gold. You can then make an argument that you are then selling a property which can address different parts of the economic cycle for maximum value.
Good analysis JB73. This chap (Rashad Hajiyev) is calling a gold price of $1875 to $1925 by the end of the year. Interestingly he said it would likely retest a level between $1730 to $1735 and rebound before marching on. Yesterday it did drop to $1732 and has since climbed to $1755 today. Not sure if the link will work, this is his video from the 19th November:
https://www.youtube.com/watch?v=cnzG6B9hjUs
I imagine a higher gold price would help an internal sign off for any company wanting to purchase Landore. It only strengthens the financial argument.
The one thing I would add to that Catbert is there may well be some increased flexibility on pricing discussions which didn't emerge prior to the end of September. If it was really down to waiting for an improving environment on inflation and metal pricing it may have been better to extend the SR for a longer period. Granted there has been positive movements on inflation and some recovery in the gold price, but the picture is likely to improve further by the end of Q1.
Personally, I think there is a much higher chance than 5% of the company being sold. I doubt those companies that went on the tour or have been in the data room have no serious interest in getting their hands on Landore's assets. Whether they will meet Bill's expectation on valuation is another matter, but it is now crucial that he gets a couple of companies to move to the second phase of the SR.
The fact that we have several parties interested in the designated Lithium area should mean a good price is realised. I would like to see a strong element of cash in the eventual transaction. This could be a strong catalyst for recovery in the share price.
Now, where are those Felix drill results?
Gold price has pushed up to $1740 today following the inflation data in the US coming in at 7.7% versus the expected 8.1%. I think we will need a statement from the FED concerning slowing the pace of tightening to drive gold back to $1800. Regardless of whether we get that, the recovery in the gold price and improved inflation data should help Landore's sale negotiations.
Good to see the share price recovery here over the last week, long way to go....
Nice to see Landore tweeting about its vast array of resources across its 31km mineralised belt. Hopefully this list can be updated with Felix Gold in a few days. Extra points for anyone that can spot the spelling error in the tweet.
https://twitter.com/landore_plc/status/1589932471508144128?cxt=HHwWgMDQ0ZbKyZAsAAAA
Looks like the key to getting positive movement in your share price is to buy repeatedly in £2.5k amounts. I don't know who Mr/Ms £2.5K is but I would happily buy him/her a pint. Feels like we have turned a corner here. Actually, thinking about it, if NicetoMichu is buying we must have turned a corner.
There is some chat on another board that this is a result of a seller being out. If true, I imagine we will rise in the coming days without any news. It would be nice for the share price to recover to high teens before Felix results. They can’t be far away.
I think if they really wanted to continue the drilling they wouldn't have kicked out Felix until July. But certainly good to have a viable plan if the negotiations don't proceed as expected. Hopefully the Gold & Nickel, if not the whole caboodle will be sold by July.
Well the story of Sprott only being interested in converting his warrants if the money goes towards battery metals certainly fits one of your scenarios. But surely Nickel would have been the first resource to focus on over lithium? The Nickel price has quadrupled since they moved their focus to gold. I guess you could argue that Lithium is more in vogue so maybe that is the reason for leading with Lithium on their RNS.
Either the gold and nickel are well on the way to being sold or the last RNS is completely bizarre. The pivot to Lithium with very little explanation to me suggests they have completed their work to sell the other assets. I don’t think Felix will ever get drilled by Landore, they are conserving cash for their Lithium plan.