Member Info for Malik-

Discounted in share price today, on my numbers:

-Ironore at less than 20Mt (vs expl target of 74-245Mt)
-SanCelso at 20Moz Ag at $20/oz (vs my est 50-200Moz)
-D2 at JV value (ie few million£)
-EH at few million
-Los Campos at ZERO
-Greenland at ZERO

=> Multiple times UPSIDE

IBK’s marketing of UFO Mexican silver assets started. Remember this is a Canadian inv. bank and so I wouldn’t be surprised if E. Sprott was presented the investment case. To me, its high grade silver in both Mexico and Australia and still low mcap fits his selection criteria.

Then add 1) The potential for 50-200Moz of silver at SanCelso - just have a look at past drill sections; and remember they have 3km strike length and you ll get to similar numbers.
2) FREE optionality on rising silver price
And you are looking at some VERY serious re-rating potential ahead.
This is THE stock to own

Back to what matters - ie fundamentals:
I don’t think people anywhere near grasp the magnitude of the upside from the ironore pjcts (let alone silver). Look at the upside in my post below. That’s for 51% stake. What if they go to 100%? Double it. Downside to shares here? Limited. Upside? Mcap in hundreds millions

‘ASX listed iron ore peer Fenix Res. has USD40m mcap for MRE of 10.5mt/64% Fe (USD3.8m/Mt)
UFO has iron ore expl targets of 74-245Mt/50-63%. These are 51% owned by UFO.
Applying same multiple to UFO’s target range we get vals of £110m-365m just for iron ore‘

So shares were -22% post JV. Implicitly the market says it was pricing a cUSD25m JV for D2 & 1/3 mcap was being allocated to D2. REALLY?!
No one priced the JV at anything more than USD5m... The derating is just making all the other assets look VERY cheap.
Clear buying opportunity. Limited downside/potential for hundreds of millions co.

Market wasn’t pricing a JV value any bigger than that unveiled. What’s priced now:
-Less than 10Mt of iron ore (vs monster expl target 74-245Mt)
-20Moz Ag at $20/oz silver (vs my est 50-200Moz)
-ZERO value Los Campos
-Donov2 at JV value

Healthy de-rating as technicals were overbought. Fundamental story intact: BIG upside pending from market having yet to fully price shear size of iron ore assets, as well as SanCelso. Upside to silver price as further significant optionality.

Just posting posting a follow up write up by MiningBug today, doing the rounds on twitter This evening. Great piece of analysis from them, again. Definitely worth a read.

https://miningbug.wordpress.com/2020/10/19/update-landore-resources-lnd-wham-bam-thank-you-maam/

I suggest you: 1) look at the sections of past drilling at San Celso. Bear in mind that strike length is 3km. And work out how big that asset can be given past drill grade. You will find like me that this can easily be 50Moz Ag and potentially 200Moz... 2) Look at company’s iron ore exploration targets: they are huge. If delivered iron ore alone could take you to £400 million market cap.

Over the next 1y this has the potential to become a multi hundred million market cap in my view. Patience and conviction is what you need.

People think of Alien as a silver play. In reality, at the current silver price, there is even more valuation upside coming from its iron ore assets - and that’s going to be even more striking once the company increases its stake in them; which in my view, is a game changer for the equity story and transformative for the company.
The market had totally overlooked iron ore til last week. It’s only started to price some of the upside but we’re nowhere pricing it fully.

I sold my Alba at 0.55. I found anything above that is betting on Clogau resource growing considerably - a punt I am not willing to take. UFO has in my view a lot more upside at lower risk. Iron ore the elephant in the room!

...To the MASSIVE upside from the iron ore assets. Look at UFO exploration targets: 74-245Mt Fe. ASX listed iron ore peer Fenix Res trades at USD40m mktcap for 10mt iron ore asset! Then you have San Celso silver pjct which looks to me as easily having 50 and potentially 200Moz+ Ag. This could end up being a multi hundred million market cap.

woodfromthetrees Forget silver. Just have a look at resource exploration target of iron ore asset. This is where the true game changer for shares lie.

STAKE INCREASE IN ORE ASSETS IS TRANSFORMATIVE FOR COMPANY

Company says it is looking at increasing its stake in the iron ore projects from its current 51%. This is a big positive because moving to 100% for example would mean doubling the upside I mention in earlier Elephant in Room post . This would be really huge.

No you haven’t.
See my Elephant in Room post from earlier today.

This has been deemed as a silver play.
Actually that’s not entirely accurate. The iron ore asset is what’s going to catapult the market cap to a whole new level. The add the silver price upside optionality if you believe Sprott and I let you Have a guess on what could be a blue sky valuation.

Back to iron ore - what the market is totally missing:
ASX listed iron ore peer Fenix Res. has USD40m mcap for MRE of 10.5mt/64% Fe (USD3.8m/Mt)
UFO has iron ore expl targets of 74-245Mt/50-63%. These are 51% owned by UFO.
Applying same multiple to UFO’s target range we get vals of £110m-365m just for iron ore!

Alba... beyond 0.55 you are taking a punt on them expanding Clogau considerably. UFO is different. We have data points; exploration targets, graphs showing past drills and hits. UFO has much better risk/reward profile at those levels at Alba in my view.