Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Thanks for posting this David.
In some ways it's good to compare Landore with other small companies, but in other ways it's terribly damaging to even be remotely associated with a lot of them at this stage. AIM contains an awful lot of garbage and I wouldn't park twenty quid in most of it.
I only buy into companies who already have defined resources in top tier jurisdictions.
If I have to get an atlas out, or the country where a company is based is an instant win in a game of scrabble (Kyrgyz Republic?) then it's a no.
Associated with Russia or some other crackpot dictatorship that's likely to start a war or nationalise my investment? It's a no.
Don't have a defined resource that I can place a rational value on yet? It's a no.
I invest in undervalued resources. I never park any money in hopium or story plays that AIM is stuffed full of. Ask any of the guys who jumped in on Landore 17 years ago when they had no defined resource if they regret that decision. Most do. Some terribly.
I am a value investor, not a wing and a prayer gambler.
I have never bought a lottery ticket. It's irrational.
I do not and never will bet on horses or football games. It's irrational.
I went to Las Vegas as part of my honeymoon and went no further than putting a dollar in a one arm bandit. It's irrational.
Given the top tier jurisdiction, support of the first nations to see a mine here and the serious size/value of the growing deposit, Landore need to start disassociating with AIM and it's gambles/gamblers at this point. I have on occasion wished that some folks would just sell up here. I'd rather have a dip in share price and see them replaced with more serious people- like the guys from Primorus or Eric Sprott.
Landore are valued at well under 10% of NPV on the drilled gold alone.
It is an incredible opportunity if you are an investor- i.e somebody who buys undervalued companies based on logic and does not gamble on the hope that a company with nothing bankable might find something of value at some point.
The youtube video from the 26th May event is still on 519 views. Many of those will be from people who watched two or three times and are existing shareholders. It shows you exactly how ridiculously under the radar this investment still is.
Hidden value opportunities really do exist. Search hard, discard the gambles and take advantage of irrational sales.
Congratulations to this week's buyers.
I can't say I'm particularly fussed about the new options.
If they get a corporate transaction this year all will be forgotten and they are well deserved. In terms of dilution, if it's a total sale in the next few months then it's the same result/dilution as we'd have had before the 4th July ones expired.
If they don't get a deal of some sort, there's just about two million quid in options that they can start executing to roll the company on with a bit more work for another six months. Kind of a self funding option that could come in very handy if the world is a recessionary mess by Christmas and other sources of funding are hard to come by. Good insurance policy/forward planning in my view.
No doubt the folks who were disappointed that more of the 20p warrants didn't get taken up will now complain that options at 25p are not an acceptable way for an already heavily invested management team to keep the company going if required. No pleasing them.
That said, I would like to see some of the options start to get taken up soon. There's still a distrust of management by shareholders here despite the excellent geological progress and repeated confirmation of multiple interested parties.
Bill took up his warrants recently, dropping £37k at 20p/share, but people do seem to have very short memories about anything positive that happens here.
If you've been buying around the 20p level, know that the CEO has been doing it right beside you.
If you've managed to snare some sub 20p then congratulations.
It has been an incredibly irrational sale.
Battery metals in Ontario are a total shoo-in Bail1968.
The government are greasing the way both locally (Doug Ford) and now nationally (Trudeau). It's politically extremely important to Canada, not just because it will create jobs but also because they want to stay all cosy with the USA by being the friendly neighbour supplying key minerals. Indispensable Canada.
Bill said last year that 'he's almost had more calls about the nickel than the gold'. Hardly surprising! There's a major trend here and Landore have a relevant, oven-ready project that was paid for and parked years ago. If the western politicians want the green transition to be quick (it seems they do), they'll want all oven-ready projects to be put in at gas mark seven immediately.
Who has Bill been talking to? Maybe not just mining companies, but perhaps also politicians who are keen for Landore to get the nickel back off the shelf? A cheeky couple of million quid grant wouldn't half help.... and it looks like the government will be sloshing a much bigger sum into that plant, so receiving a little boost of public money in Canada for critical minerals projects is certainly not out of the question.
I'm only quoting you what's visibly stated here BodRuncie.
Granted it's not 100% accurate and has now swung (slightly) the other way. The point is that there are plenty of buyers including folks who took up several million warrants at 20p and an institution (who made millions on GGP) and willingly paid 22.25p a few weeks back.
A nice little panic is always entertaining though.
If you want to hand in your shares at 18 and whatever pence, I'm quite confident that a nice big shark will come and take them off you in the next week or two.
Particularly enjoying the 'it could be over' comment.
Hilarious, Oscar winning stuff there. Maybe just a tad over dramatic chap?
Millions in the bank, sizeable and growing gold deposit in Canada with a variation in interest from potential suitors and 'it's over'.
Humm.
More buys than sells now today.
Looks to me like a few retail holders couldn't wait a couple of months and are having their shares taken from them by larger holders with conviction or an institution like Primorus (again!). Lambs to the slaughter through panic and impatience.
Quite funny really.
Nothing new in human behaviour.
Here's the funding logic I have been working to BodRuncie.
On May 26th Glen told investors that Landore need about half the July warrants. He confirmed that nothing much had changed last week in the podcast.
It is recent information that came straight from the mouth of the finance director.
The annual report confirms that as of 6th June there were 15,958,643 July warrants remaining.
Since 6th June (including 6th June RNS) 4,770,110 warrants were exercised (299,999 + 125,000 + 400,000 + 185,185 + 1,444,444 + 1,308,982, +1,006,500).
Subtract 4,770,110 from the number outstanding on 6th June in the annual report and you get 11,188,533 unexercised.
Half of the total 18,816,679 total July warrants is 9,408,339.
Subtract 9,408,339 from the amount un-exercised (11,188,533) and you get 1,780,194 warrants that Glen would have liked the money for but didn't get.
The cash figure at 20p for those is £356,038. Very close to target. I'd say they've aced it.
Please check my maths and also logic, I think it's pretty sound.
Personally I would still like to see a statement from Glen along the lines of 'fully funded till x date' just to give 100% certainty.
In a dream world I'd also like to see some director options executed at this point to;
1) Cover the little shortfall
2) Add some value with the money they'd bring in (dilution just before a sale would be a little bit rude- we don't really want a penny left over that hasn't been spent growing this!)
3) To let the market know that they're serious about moving this onwards and upwards right now!
Options at 16p = £289,000 (already in the money)
Options at 24p = £567,000
Options at 31/33.315p = £719,930
But I thought there was going to be a raise at 15p AM90?
Joking aside it is about time we saw some new institutional interest. Those guys made an absolute packet on GGP too.
https://www.proactiveinvestors.co.uk/companies/news/933124/primorus-investments-cashes-out-of-greatland-gold-shares-with-significant-trading-profit-933124.html
There is no prospect of a 15p raise scott240.
Glen said on May 26th that 'conservatively' they'd need half of the July warrants.
That'd be just over 9 million and some have gone since then.
They're down to needing about £1.3 million.
More than £1.3 million would arrive if directors exercised their 16p, 24p and 31p options over the rest of 2022 and into 2023. Personally I'd rather that is how the rest of the funding is secured. Same result, less total dilution, lots of warrants binned.
Insiders would obviously exercise options if there was a sale. Therefore they must either already have the money sat waiting to go or a plan to get hold of it fairly quickly given the stage the company is at (actively considering a sale).
While everybody has (apparently) been fretting about funding if the warrants aren't taken up, I've been hoping that not too many more of them are.
The idea that Eric and friends will not be cashing their warrants in order to playing Bill for 'cheaper shares later' because 20p ain't cheap enough is fanciful. Bill can just point to the ability to 'self fund' with options and state very clearly "THIS IS THE LAST TRAIN OUT OF THE STATION AT 20p!"
Another £80k in the bank today. That makes the outstanding tally to fully fund Landore's complete 'plan b' campaign for the entire next year 1.32 million by my maths.
As Glen said on May 26th, all the May warrants were cashed. With that fact banked, he didn't seem particularly worried about the rest. This is a company that has raised circa 65 million pounds over it's 17 year history I'm told. Forgive me if I don't fret about a poxy million quid plus change at this stage of the game given the track history of raising tens of millions.
Obviously the 'Landore Resources Chronic Bed Wetter's Club' will be disappointed if, very boringly, another six and a half million or so warrants tick in over the next three weeks. It will mean that they will have to find something new to spread worry about here if they want to win the coveted 'Yellow Mattress Award' again in 2022.
Bill and Glen are speaking publicly AGAIN in the next week or so having only last done so on 26th May. This is highly irregular behaviour given the track history of longer periods of silence at this company. Certainly intriguing.
I know that various people (including myself) have asked that they spend more time explaining things to investors. There are one or two long termers here who swear that the company have contempt for shareholders or don't care, but that seems like extraordinarily unfair criticism based on my experience.
If that's all it is and they're out in public again so soon after the last effort because they've realised that they need to explain things more thoroughly and more regularly to get to a realistic valuation then fine. It'll be great to hear what they've got to say.
People with Bill's level of expertise and experience are always educational to listen to. Obviously I'm hoping for a nice little wedge out of my investment here, but I'm also hoping to learn things that serve me well in the future.
It'll be nice for him to talk to people who actually know enough about gold mining that they understand what we've got here and what its (even approximate) value is.
The gambling chancers who buy AIM shares based on their favourite chart pattern but don't have a clue what they're buying deserve to miss out on this one.
7am RNS, trading suspended please Bill.
Teach them a lesson for all the times they've screwed the share price on good results lately.
Why would news of a sale leak?
Landore would be breaking the law (possible prison time at 82?). As long as the share price is this low, long term holders who have faith in Bill and the team have the opportunity to average down (some definitely have been).
The buying side would weaken their negociating position. The daft share price helps them, so they're going to be Johnny Tight Lips.
Not every company on AIM is a shoddy, fly by night ramp-fest run by criminals.
It has been said on here by plenty of the long term holders, but today has provided empirical proof that the lack of promotion to retail investors (or the lack of understanding by retail investors with the current materials?) is largely to blame for the pitiful share price here.
Bill can explain things marvellously to us geological mere mortals. There just hasn't been enough of it and I don't think they've realised how important it is.
A solid 10% added from one presentation that was far too short, didn't contain anything like all the details and has only been seen by 236 people since it went live on Friday.
Whether plan A (sale) comes off in the next few months or not it is quite clear that this company HAS to explain its complicated history, geology and future MUCH more extensively if it's to be valued remotely fairly.
https://www.youtube.com/watch?v=jNdiwIOyrcs
Just dropping the direct link to the Youtube video of Thursday's talk/Q&A here.
It still only has 188 views. Totally mad and really needs pinning here!
https://www.youtube.com/watch?v=jNdiwIOyrcs&t
Options that were awarded to directors on 5th July 2017 expire on 4th July 2022...at the end of this week.
Exercise price? 63.8p.
Those 'in the know' thought the share price would be far enough north of 63.8p by now to make these options worthwhile.
Yes, we've had some Covid delays. We've lost a bit of time with some forest fires and a bad winter. But it's not like the geological work has gone badly over the last five years. We've seen steady, consistent growth of the resource at a bargain basement price of $11.45 per oz discovered. Results are all rather consistent and boring, which is really the dream scenario. Success is in progress and it could probably be repeated almost ad-infinitum.
The IRR is so exceptional on the project currently planned that somebody is going to want to turn this into a mine.
Ready, Fire, Aim!
Get some cash rolling in from that first build. Get a tailwind from the (almost inevitable) rise in the price of gold over the next few years. Then steer the further development of junior lake towards the rest of the strike length or go for depth as the initial profits roll in. This does not need all (probable) 5moz banking before it is a smoking hot project for somebody. The risks of open pit mining with such easy recovery of the gold are minimal....turning this into a mine is about as straightforward, cheap, fast and low risk as it ever gets.
This looks like a nailed on winner, still being given away for buttons compared to what directors thought it would be worth five years ago.
Incredible.
There's always a chance that some people have actually been doing proper homework this weekend (valuing this based on fundamentals) and have developed the conviction necessary to start buying with confidence at this increasingly ridiculous level.
Bill did mention in his presentation that 'medium sized companies' were now showing interest too when it was the majors that were following them before.
How much more has to be said to generate some interest here?
Have a good week everybody.
Forgive me if this comes across as a shameless FOMO post, but Ctw2014 & Biker888 both posted their intention to scoop more of these up within 4 minutes of each other. Not everybody is going to be able to scoop these up at this price indefinitely.
I keep an eye on Twitter, Telegram and on here. There have been quite a number of these kinds of posts over the last few months. "I'm waiting till x event until I buy in/buy back in/buy more" or "I'm waiting for funds from x until I buy in/buy more". Ok. Except maybe you won't be able to?
There are some seriously committed sizeable holders here. There isn't an awful lot of free float. Once you add in the thousand of professional momentum traders who will start buying in because the price is going up rather than because they know anything of the geology or value here and you have a recipe for a very rapid rise, along with lots of very disappointed investors. The door is narrow and lots of people appear to be waiting on the wrong side of it for the sake of penny pinching. It's tragic.
One of Eric Sprott's favourite sayings is that you have to be comfortable partying on your own as an investor in this business. Get in the room as an early entrant and then wait for the herd (the sheep) to arrive when the party starts. If you're distracted by the option to money chase for a few quid elsewhere in the interim you run the risk of not only missing the cheap seats here, but missing the boat here entirely.
Yes, there are a few long term bag holders here who de-ramp on a regular basis because they paid too much for shares a decade or more ago in a company that didn't have any resources banked. They are almost certainly aggressively averaging themselves down after 17 years while trying to give you self doubt so you don't take the shares they secretly want.
I know absolutely nothing about AMC, only that it isn't Landore Resources.
Also FYI I attended on Thursday and met other mining CEOs who have nothing but great things to say about Bill/are genuinely impressed with what he's achieved here. You don't really get an impression of it in the video because you can't see the audience much, but the room was MUCH fuller for Landore's slot than for the other 4 companies presenting... the atmosphere was electric and you could hear a pin drop. People were on the edge of their seats. The desire to ask questions was absolutely through the roof- Sarah really had to cut it off or it could have gone on for hours when there was little interest in asking questions of the other companies. Landore absolutely stole the show. As I said, the video does not do the reality full justice.
Also FYI, the guy who asked the technical questions, including the one about the strip ratio, turned out to be the CEO of the last company to present, Blackjack Silver. He was sat right in front of me and I didn't know who he was at the time, but I could hear him utter 'wow' under his breath with Bill's answers...he almost fell off of hi
Ontario is REALLY going for it.
Pulled out at Junior Lake. Sent to Sudbury for refining. Onwards to Windsor/Brampton.
The red carpet is being rolled out in Ontario for the Nickel to come out of the ground.
https://news.ontario.ca/en/release/1002141/major-investments-secure-automotive-manufacturing-futures-for-windsor-and-brampton
I don't think we'll see a raise now, but there was a window where that would have been a little more likely (see Feb 21 raise). It's too late to use the money meaningfully with a larger gold drilling campaign over the summer now and we know they've got the money for the planned teaser campaign at Felix already.
The list of evidence for the version of events Bill spelled out to us last year is getting very, very long though.
"Get the PEA done and we won't get far into the PFS as the appetite is so strong in this case."
If you aren't constantly plagued by self doubt and aren't obsessed with timing things to the nearest week or month, then this appears to be progressing largely as described.
That is quite unlike many mining companies who drill dusters, operate in warzones, have their mines stolen by dictators or suffer severe geological problems.
Smooth progress towards a goal without major hiccups?
Sounds good to me.