Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
All this talk of "developing the strategic metals" reminds me of last year when they started talking about working on the lithium. Don't expect they'll be doing it in house. Fishing for a GT1 equivalent for that I think.
Also interesting;
"due to the prevailing challenging market conditions the Group did not believe it to be possible to maximise the value of the Group's assets through a corporate transaction. Accordingly, the Group determined that it would be in shareholders' best interests for management to continue to focus on developing the value within existing assets in the near term."
Doesn't say that they didn't get an offer of some sort. The way I'm reading it, it says Landore pulled out. Implies inadequate money on the table rather than a lack of any money at all. At 2moz & PFS perhaps there will be an easy match? Who knows.
Anyway, change is coming.
I agree Catbert. The odds of some surprise or another are not zero. Hence my bed and isa trades this morning. Just in case something unexpected happens.
Both the 119k 'sells' and 44k 'sells' showing here were mine (one sell, one buy). LSE showing all as sells. Just about as good as the Landore website is this thing! It is 2023, right? I suspect those reading price action are more sophisticated and aren't also panic selling when they see 'selling' that isn't selling, but god knows.
Also in full agreement about marketing etc. They really should have recruited somebody youthful with some spunk in them to do that, ideally several years ago. There's an old interview somewhere with Rick Rule where he says $10m companies can become $70m dollar companies with marketing alone. IMO it is complete idiocy to have made such little effort on this front. If Bill had done this over the years the dilution would have been lower and he wouldn't need such a good offer for a buyout.
In full agreement with the sentiment/analysis here yesterday. Some very wise posting IMO. The baby has well and truly gone out with the bathwater on this one over the last few months. This market is wild. Panic selling drives panic selling and it's gotten properly out of hand here.
Bill needs to pass the baton with some dignity, accept that it's now a relay race and that he's well into his 80's. It's no time to be trying to make a sprint finish. Sit on the beach. Enjoy the fruits of his labour. Watch somebody else finish the job here.
Come on Bankrupty.
This isn't a punt that's contingent on $5,000 gold. NPV has doubled by $2340. The sensitivity of projects like this one to moderate increases in the gold price is exactly why Sprott is in here.
What percentage of NPV would 25p be at $5k gold?
Assuming it's true HillparkTC (and I have no reason to doubt it) you've got to imagine Glenn must be fuming at this stage.
Do a good chunk of the work, massive opportunity cost, anybody who cares to can pay 1/4 of what you did for shares.
Absolutely ridiculous situation.
It is starting to appear Samroy, that the only news that's going to actually shift this upwards into a more sensible range is Bill officially retiring and a replacement being installed.
Root lake royalty money. Lithium deal. Cenkos sacked. Other gold explorers moving up. Nothing is starting a new uptrend. It's stuck.
Bill mentioned in a podcast that they'd been doing succession planning for him stepping down years ago. That he was never really supposed to be CEO, just that they couldn't really afford a CEO at the time, so he stepped up.
It's been months since he spoke about more time on the beach. There must surely be some likely candidates by now? It's obviously got to be the right one, but come on. Give Eric a call FFS- he must know somebody who could pick the ball up and run with it?!
Time is of the essence. The bull market is well and truly on again and this just sits here. I've been living through GDX for almost six months. It was a joke some way back. A total refresh is due. Junior Lake deserves it.
Sound advice....
https://twitter.com/goldseek/status/1646518834923458562
Looks like a good report but nobody has read it all by 8am!
https://www.landore.com/pdf/04_2019-2022_230331_Soil_Sampling_Report_Final2_ap1-2.pdf
Interesting to hear talk of JV or whatever on the base metals front. I did wonder if they might and that makes sense to me. Raise some money, narrow the focus to the gold and get that sold into a raging bull market!
Easy enough then to let the whole PLC go with some slice of what other companies are doing on lithium/nickel or whatever than trying to develop those in house.
CPI lower than expected.
I continue to live through GDX. The sector is doing well. Gold up, inflationary pressures of getting the stuff out of the ground going away. The good news hasn't arrived here yet, but it will at some stage.
It's roughly a year since Bill was in Australia, rumoured to be having talks with majors/mid tiers. Gold Road Resources was suggested by a poster elsewhere who since appears to have been correct on various news items.
Australia connection. Open pit experience. Their share price is now back to where it was this time last year. That would be important to them as it's how they'd make an acquisition. It is in one of the RNS' from a few months back that management would continue talks post strategic review. Who knows if they are?
Something is going on here as the weeks continue to roll by without news. How long does it take to push out drilling/soil sampling results from last year? Seems well down on whatever the priorities list is that's for sure.
Guessing games continue.
I have pondered if they might let the nickel go here to fund a large final round of gold drilling Bob. It's been parked for years and for too long the company has had too much. The lack of focus just hasn't worked commercially. They need to concentrate on expanding one good gold asset and get paid for it, not being a 'nickel, lithium, cobalt, platinum, palladium, copper, iron and gold' exploration company.
Gold may get its all time quarterly high close today too. Soon off to new all time highs IMO.
Interesting times.
Just on a random and possibly slightly rude note, does anybody else think Bill is on the autistic spectrum/asperger's?
I've been going over some of the interviews/presentations today and it seems quite likely- his eye contact is a bit odd, he seems to get the wrong end of the stick quite a bit/takes things literally, can appear blunt/rude/make clangers and is clearly quite resistant to change. All traits.
Did he misread people he'd been talking to about the benchmark for a sale too (1.5moz or 2?!) and that's how the strategic review muddle occurred?
Could be irrelevant soon anyway if a new CEO steps in, but does seem to explain a lot of his areas of weakness.
Just a few people dipping out to trade the leveraged silver etf or whatever else was moving today most likely.
No action or news here today so some people don't stay.
More news to come shortly though- drills and soil samples at least plus board changes.
Gold having a big day today which is how longer legs up begin. Last one kicked off in a similar fashion Friday 4th November, went on for months. High likelihood that this is it and today's move is the trigger.
Two good bits of news here this week and potentially plenty more in the short term.
What's it going to take for Landore to get a sustained run?
Ok, so I didn't have the appointment of Strand Hanson as broker on my 'still to play for' bingo card.
It seems like a very good move though.
They will know the business inside out after the strategic review, have good relations with the team and will also know how serious how many companies are about making offers once this is at the 2moz/PFS stage. I.e they might treat Landore like a real company who are being taken seriously by serious acquirers in the real world, which should help to attract more serious investors.
Cenkos were ****e and shareholders have been complaining, the board have actually listened, even if it was at Landore speed. Everybody knows what the problems with Cenkos were. It looks like they had sour grapes over their warrants from the Feb 21 placement not being in the money and that's what the poor treatment was about.
Lots to look forward to here still by the looks of it. Starting to feel like it might end up as a fully refreshed company.
Could we be seeing shenanigans to allow a new CEO to buy in at 'market' price?
Would messing with things like that even be legal? Doesn't seem like it should be, but we all know AIM is the wild west! I'm certainly entertained if nothing else!
It would answer the question of how you incentivise somebody new and quality to come in and do what could potentially be quite a short job though. A decent number of shares doing 500-1000% off the back of your work looks far more interesting than a salary. Let's face it, if anybody picks the ball up here and runs it to the finish line after all the struggles the company has had they are not going to find themselves short of future job offers anyway! Legend status achieved.
If the company does recruit somebody but retains Bill a little more in the background for his connections, relations with the first nations and technical expertise this could be a full house and get exciting quickly.
Super interested to see how it plays out.
I missed this on Friday. Looks like they're getting there with an agreement with the first nations (has been a big problem before) and drilling on Miminiska will get going Q2.
https://stormex.ca/2023/03/03/stormex-march-update/
More specifically;
Cenkos had Landore at £3 million cash in a recent note. Use that as the start point.
Storm Exploration made the January payment and have summer and January payments ($1m CAD or £600k)
GT1 have a initial payment and 12 month payment ($1m CAD or £600k).
Puts around £4.2 million through the bank account in cash over the next year. Enough to fund Landore for any previous year with lots of potential avenues to boost it significantly if Storm Exploration or GT1 start having success (sale of shares/other deals). Directors could potentially boost a little by taking up some options.
Still to play for in the news pipeline;
The logged Lamaune drills coming back from the lab being good
The results from last year's enormous soil sampling campaign further suggesting a massive, multi million ounce deposit
Bill stepping down as CEO and there being a decent replacement or adequate fresh talent on the board to ensure this starts moving at pace
Gold continuing north and/or having a pop at the all time high
It's just a question of cahsflow AM90.
In the two most recent heavy drilling years they spent £3 million and £4 million respectively.
With an extra bit coming in from this now on top of what they already had plus the remaining Storm Exploration payments they've probably got about a years worth of runway. Glenn is a fully qualified bean counter so should be well capable of managing this.
Obviously it's quite a complicated deal, leaves plenty of upside for us if GT1 start striking it rich. Personally I'm quite pleased it's with them- they're having good success and not messing about. Root was a big success for them.
Perhaps this is where the 'we might have a go at the battery metals again later this year depending on funds' idea came from? Could be an option if GT1 start having good success here and it leaves Landore in the money to?