Member Info for JB73

Surely all anybody was expecting today Samval is that the resolutions pass, they raise a 'keeping the lights on' sum at a dreadful price and it buys Glenn some time to actually do a meaningful deal or deals?

Taking back miminiska? Sale of other non-core assets? Swallowing up Storm to get their TSX listing since they blatantly can't pay? Back at the table with anybody they were talking to just over a year ago hoping for JV, strategic investment or simply with more realistic expectations?

Plan B was always 'we drill on'. Quite how you go from a SP of 18p to a SP of 2.5p over the course of a year without raising once it was clear plan B was necessary is beyond me. As soon as it was clear there was no offer incoming during late 2022 they should have raised enough for plan B, surely?

Anybody on this board still citing 'inflation/production costs in this environment' as the problem here, see point 3 in this article.

BMO are forecasting declining production costs over the next three years.

Production cost deflation. Not more production cost inflation.

The idea that Junior Lake became unattractive at some point in the last two years when inflation permanently ruined margins is total rubbish. It was a temporary thing and is going into reversal. Large, shallow, open pits with high recovery rates will be very attractive again.

Cost of capital to drill on to a size where this is definitely wanted? That is the problem.

https://sprott.com/insights/sprott-gold-report-gold-mining-stocks-a-clear-and-compelling-investment-case/?_cldee=3qo4Bm0LnUJtFgciiCC8GGjr-8SQWLX8pIS5dI20yMjr-5LQSUuks172d95huCs-&recipientid=lead-5dc2a5fc79d6ea11a813000d3a0c8c6d-e11c5af0e2bb40788b1b2e75ecd743c4&esid=f958008f-68b1-ee11-a568-000d3a846077

Quite a biggie for a company 'that's about to go pop' wouldn't you say Goingtomoonufo?

Somebody just throwing £12.5K in the bin?

Big boys making money hand over fist.

Some of it has got to start trickling down to the little fish or there will be no exploration.

https://twitter.com/htsfhickey/status/1745529671892992075

People saying 'management have to participate in the raise or nobody will'.

Bill isn't management. He's still coming in for tens of thousands of pounds more. A very odd thing to do if this isn't going to get mined. Properly dumb in fact.

Only those two know what interest they actually had back in 2022. Not 'LAG' or anybody else.

Rumours of some sort of fallout/Bill wanting too much and therefore rubbing suitors up the wrong way were kicking about. Expectations would have been tempered had they known where they'd end up a year later perhaps?

There's no doubt the strategic review was the wrong strategy. They should have raised again in summer 2022 with the sp north of 20p and kept drilling until suitors approached organically.

Claud's contribution? Changed the branding from blue and red to green and yellow.

God knows what the actual politics is shujja.

It did appear around this time last year that when there was no offer after the strategic review that Bill and Glenn might have had a bit of a fallout. Bill aggravated suitors/wanted too much, Glenn was perhaps more pragmatic seemed to be the theory. There was mention of 'still talking with people' in the podcast as that was winding up.

Noted this in the RNS yesterday;

"exploring potential strategic investor, merger or sale opportunities"

Maybe Glenn will be back at the table this year, granted in a dreadful position now but with a more realistic aim?

I had begun to wonder if Claude was deliberately running it into the ground in order to arrange a 'take under'.

His tenure panned out to be absolutely dreadful.

Some people here suggesting that the project isn't viable in 'an inflationary environment'.

We aren't in one. It's disinflation now and possible deflation scare. Has been for some time.

Unfortunately Peter Schiff 'death of the dollar/hyperinflation' type parrots are popular with gold bugs and have gotten inside a lot of heads. It's an easy to promote message, just not a true one.

See Gary Tanashian's work (notes from the rabbit hole) for a less popular and more accurate view.

Big open pit mines will still pay in the future as gold goes up and costs come down. If Bill hadn't started clowning around two years ago trying to sell and had raised to keep expanding BAM with buyers approaching when ready the mess wouldn't be half this big.

Claude presiding over worse share price damage over six months than Bill did over any six month period and starting out from an already dreadful level.

The old guard both helping themselves to another 1.25 million shares each.

Either they are both seriously stupid or they did hear something they liked in that strategic review from somebody and all is not lost.

Bill coming out of retirement? ;-)

Back just before they launched the strategic review last year there was a rumour that Bill and Glenn the flowerpot men had gone off to meet with Gold Road who were interested in doing a deal.

Gold Road's share price was about $1.60-$1.70 at the time.

By the end of the first phase of the 'strategic review' in late september Gold Road's share price was down by almost a third- to the $1.20's.

Their large 'low grade' open pit operation suffered inflationary costs and from the Fed's extraordinarily steep rate hikes punishing gold that summer. Not a good time for them to do deals. Or anybody. Bill's timing was drastically awful, that is a fact.

Now things are better again their 'low grade' open pit, which is a bit like ours, looks much better again and their share price has taken out the summer 2020 price when there was gold fever. Now $1.94. They're minted and equity rich.

Somebody is going to need to slap me and tell me I'm delusional please.

Maybe the raise has been called off because there is a better option coming for funding, help or whatever?

Bigger companies have got to start helping out the explorers or there is no gold mining industry left.

My last post was about gold at an all time high and Landore at an all time low not making sense, but that was before the cancellation of the fund raise. Not a good look obviously. AIM market no-likey. Share price halved in a week, a new record here I think.

Loads of companies have managed to raise this week too. Google 'gold placement' and click the news button.

This is the bloke who several decades ago set up and ran the red lake mine for Rob McEwen right? Thirty years sector experience? Sorted out Eastmain which got merged into Fury? Filo-fax stuffed full of all the right contacts?

I am quite certain he has done his due diligence on the project and is way too technically capable to sign up to invest his own money and work on an OBVIOUS dud that the industry and his peers are completely rejecting, although some posters have put that idea forwards.

Claude has had a week and has said nothing about the failure which is also odd, surely? He's six months in to this and has largely just been schmoozing old friends in the industry out on the road. He then fails to raise money, his first actual hurdle and he basically just hides?

'Turbulent market conditions?'

What explanation makes all this stuff add up?

Gold; all time high

Landore; all time low

Make it make sense

I see Storm are going for a placement.

I had written off the idea that we'd be seeing the money we're due from them, but maybe not? Keen to hang on to Miminiska and Keezhik with gold on the up? Maybe they're finally getting there with negociating with the first nations?

Come on Claude. You and your Canadian buddies have all had ample opportunity to buy dirt cheap shares in time for both the sector and company to turn around. Get on with it. Other companies are moving.

Gold up again this morning.

Macro shifting and could go quite dramatically in our favour in 2024.

It's getting difficult to imagine that this doesn't look drastically different and better a year from now.

It just needs some confidence to start building and momentum traders to starting to piling in again rather than bailing out. It's too easy to wait still at the moment, once it starts moving upwards it won't be.

Worth saying on the Pure Gold issue that the complications experienced there will not apply to Junior Lake.

2moz of simple open pit will be in the bank by the time a mining decision is made. 10 years at 200k oz/year.

If the geologists are right and there's shallow gold on some of the rest of the length between Bam and Lamaune then it could be 20 or 30 years before anybody worries about the complications of underground mining.

It's off to the TSX-V we go.

I know what you guys will say, the TSX-V is also crushed right now.

The difference is that when sector sentiment turns, it actually stands some chance of attracting real investors on company fundamentals.

AIM has become an utterly crooked cesspool dominated by 10% traders. No serious company can stay.

Claude's pitching in hundreds of thousands of dollars of his own money with the only route to exit being building a mine, be that via a sale or in house. Given his pedigree he's as well qualified as anybody to decide if this is likely to become a mine and he clearly thinks it is.

The wait for him to move the ship and start sailing it is painful, but we are done being valued ridiculously here on AIM.

https://investingstrategy.co.uk/financial-news/is-the-aim-market-an-unregulated-mess/

At least with Claude's experience operating Red Lake taking this into production is no idle threat.

He did a great job refining the project at Eastmain too, there are some similarities.

The primary problem for us lot is now the ridiculously good deal new entrants have been offered. If they can't be persuaded to stay and instead chose to trim or sell out for a relatively quick buck rebuilding the share price to an acceptable level will be a long mission.

This raise, then warrant money, perhaps more non core asset sales, GT1 and Storm money, perhaps future raises at a more acceptable price if they can get it moving.

Personally I think they're being extremely cagey about the amount of drilling/growing the project they actually plan on doing here.

They'll be drilling for a few years and looking to double it I suspect. Go big or go home is the only strategy that makes any sense.

Couldn't agree more JDT, this has been walked down all year to let people in cheaply.

The only question is when the handbrake is coming off.

Sadly I will not be a beneficiary as I'm still scuba diving.

Sorry to hear you're in a submarine hunterguitar. Hopefully it isn't like that one that went down to see the Titanic and imploded!

In all seriousness, what could cause that? As you point out, lots of good stuff has happened or is happening.

If they failed to turn up any more gold they'd be in serious trouble, but otherwise? It's been two years since they were doing useful drilling at BAM and they didn't seem to have problems hitting it.

They've just got to get back on with it.