Member Info for JB73

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.

I think you spoke right on cue Matt. Gold popping again today, it looks like this is going to be THE sector to be in soon enough.

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?

My favourite hobby, living through GDX is obviously slightly off the boil. Nothing goes straight up.

I'm not much of a chartist, but this does look extremely good.

https://twitter.com/SilverChartist/status/1627351948667260928/photo/1

On the next leg up, clear one or both of those gaps.

Majors and mid tiers will be making good money again and will be 'equity rich' again. That is one part of the deal puzzle.

Silence has not proven golden as yet.

It is eerily quiet here though.

Gold just about to get a monthly close around $1930 too.

It's only ever closed the month higher than that in August 2020 and March 2022.

Well. At least that's the first time in quite some time that an RNS didn't chop the share price by a massive amount.

Not sure what they were hoping to uncover with these exploration drills? Seems like a lot of meters that could have added to the gold to me. That said, there was suggestion in the last RNS that they'd like to have a go at battery metals later this year funds permitting and Bill's comments today where quite chipper which can only mean;

a) Bill and the technical team see something that's not obvious to me
b) They've got so much cash coming their way that they'll be able to afford to splash some of it on top of the main aim- a 2moz gold project- which is why I'm here
or
c) Something else

For now, I continue to live through GDX, which is back to the kind of levels it was in May when the 'strategic review' started. To my simple mind that must mean producers are making good money again and there's no permanent destruction of the value of projects from the cost increases/lower gold prices of the last few years.

Spot gold almost hit $1950 just now. A bull market has got to help the share price at some stage, surely?

Well the latest RNS said "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."

So that's the next timeframe target I suppose?

Not long to wait. I'll put a note in my diary for the Tuesday after next and we'll see if they're out!

Thanks for your thoughts Catbert.

It's just difficult when you see so many people who appear to pathologically hate management to see how they restore faith here in order to get to some sort of sane valuation for where this is at right now. Perhaps some of the haters will have exited and won't be back, perhaps the gold tailwind will eventually do it, or perhaps they'll get enough good news in a row to gain some traction?

Communication wise, they really do have to stop mentioning specific dates and then missing them. It'd be a very easy thing to fix- just don't mention specific dates! I don't think TMS help- e.g a lithium deal being a 'christmas present' for shareholders. Constant shattering of specific expectations that didn't need to be set in the first place. With £3m in the bank if they get a lithium deal in 2023 they're probably ok.

I'm not exactly sure what they've got in mind here in terms of new management/structure.

But let's say they find somebody who's got the requisite experience to be CEO- geological expertise and previous commercial success with it. Perhaps Bill wants to semi retire, stepping back somewhat but hanging around in the background so his in depth technical knowledge and relations with the first nations are not lost (as the RNS suggests).

How is a new, high quality CEO incentivised to come in at this stage and get this finished, assuming it's a relatively short job?

A salary doesn't really do that (incentivises pottering), but a significant number of shares would.

How would it work? Would they be expected to buy in? Would a massively suppressed share price help with that?

Would like to hear some ideas from anybody with experience of such matters.

Further to my post yesterday about deal timing, a real world example.

I know a lot of people covet the kind of deal Apollo got with Ramelius. Seems pretty sensible.

That deal closed in December 2021. Ramelius' share price was circa A$1.50 at the time.

If you check page 126 of Ramelius' 2022 annual report 'changes in equity' you see that they paid for a big chunk of it by issuing shares.

https://www.rameliusresources.com.au/wp-content/uploads/bsk-pdf-manager/2022/11/Ramelius-AR-2022-4Nov.pdf

By 30th September 2022, Landore's chosen date for the end of 'phase 1', Ramelius' share price was down to A$0.72.

Ouch. Makes M&A twice as expensive as it was nine months before if you're issuing shares to do it.

I'm not saying Ramelius were a potential suitor here, only that given how they paid for the Apollo deal it is difficult to imagine that deal happening in 2022 on Landore's badly chosen strategic review timescale.

If only management had corrected course more quickly and held their hands up regarding the timing mistake sooner I don't think the share price would be where it is. The word sorry goes a very long way. Prospects here aren't looking too bad.

The timing of the strategic review was comical.

You'd have hoped that a posh sounding firm like 'Strand Hanson' would have somebody with the macro understanding to advise little old Landore not to try and pressure sell a gold asset during the steepest rate hiking cycle in history. I guess fees are fees?

Looking back they absolutely REVERSE nailed the timing with laser precision. GDX bottomed within a few days of 30th September, which was the date for the end of 'phase one' of the strategic review.

"Any mid tiers looking to pay for an acquisition right now with shares?"

"Err...you've got to be joking haven't you? Our share prices have been largely cut in half over the last six months you plonker! We're dying here!"

It is still early days, but two tweets did it for me today and I think the next year or so will prove worth waiting for.

https://twitter.com/zerohedge/status/1614027823844302849

https://twitter.com/miroslavristic/status/1614201818698977280