Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
It may well be that the PEA is already in Bill's hands and is being discussed under NDA before us mere mortals get to see it. That's my best guess.
He might be 'helping' Cube to finish the PEA in our favour of course, but that wouldn't seem right as their reputation depends on them doing an honest and independent job. Cube's reports become worthless to big companies the minute they turn unreliable and their company dies with it.
Bill might also be on a 'business trip' (jolly boys outing) with Eric Sprott. Not content with the phone or skype to communicate and bored with the British/Canadian weather, these two OAPs have popped to Australia on near 24 hour flights for a bit of surfing and some cage diving with sharks.... gap year style! Can't beat a bit of adrenaline in your seventies and eighties can you?
In fact, Eric is such an adrenaline junkie that he fancies throwing away a well developed 1.5moz open pit gold project in Canada with tier one potential by parking it this year. Instead he fancies rolling the dice on a brand new lithium venture at Junior Lake! It'll help to keep the excitement going once he's back from Australia....party on Eric!
FYI I just booked myself on to the Proactive event in London on 26th May. Five weeks tomorrow.
The PEA will be out by then and the details of the next steps ought to be more communicable.
Obviously I know the story here well and intend to ask intelligent questions if I get the opportunity.
Anyway. Let's step away from handbags at ten paces on here eh? There's lots of interesting stuff to look at. I further suspect that Bill and Co really are busier than ever having done a little bit of looking at the Lithium situation today.
Green Technology Metals (market cap circa £70 million) are our next-door neighbours....very much to the west and arguably to the east too. I'm still fiddling around with maps to get an idea of exactly where their properties end and ours begin, but it's a few km at most at the west end. Our lithium is sandwiched between their main deposit (seymour lake) and their lithium interest at superb lake.
They now hold root lake too, in which we retain a 3% net smelter royalty from when we let it go to Ardiden in 2016, so the companies are linked in more than one way.
It looks like Green Technology Metals have some top quality people and intend to absolutely go for it over the next few years. If conversations have not been had between Bill and the CEO at Green Technology Metals about synergistic opportunities I'll eat my hat. GTM would convert spodumene at Seymour Lake and then concentrate it at Thunder Bay...they are already negotiating a site apparently. Could spodumene be converted at Junior Lake and then also concentrated at the same facility at Thunder Bay for example?
Presentation well worth a quick look.
https://wcsecure.weblink.com.au/pdf/GT1/02509583.pdf
Obviously my primary concerns are;
1) What's happening with the Gold?
2) What's happening with the Nickel?
I say 'concerns'. I'm not really concerned. Somebody will want them, if not straight away then with only a little more development.
But it certainly looks like there might well be a promising future in Lithium for Landore beyond the gold/nickel and possibly extremely quickly given what Green Technology Metals are doing.
I still think it would be mad to start a third serious project (lithium) just because it's hot right now. They need to get the gold/nickel sold and would be crackers to add lithium to their plate unless they're very close to doing so.
'Sod the marketing' would be my approach if there was exciting stuff in the pipeline and I was genuinely very busy realising that value. It is sad that two projects at this stage with a company who have a possible bright future in Lithium beyond them attracts a market cap of £24 million, but that's where it's at. People buy marketing and charts apparently and will not do homework. Their loss, I'm parked and holding to the death.
This one minute clip is a MUST WATCH. If you don't know Rick Rule, he was Sprott CEO so does know a thing or two about mining stocks.
What should you do if a company you're invested in has dreadful marketing that's holding the price back?
I have already made sound use of the first piece of advice, but will move on to the next stage if I'm wrong and there are no sales in the pipeline for this year....
It should play from the right place (48.10) if you click the link.
https://www.youtube.com/watch?v=DxxZOA403dY&t=2890s
If it goes on to 200m shares, even diluting at 20p then they've raised enough to prove the gold up to 3moz+ at current rates of spending per oz.
My share of the pie would shrink, but with a pie that much bigger I've got more pie. Yum! Not forgetting that the bigger pies are much rarer and therefore worth more per ounce.
Rick Rule says repeatedly that he's never in his entire career had a ten bagger without at least one and usually two 50% pull backs. Either he needs basic charting lessons, or people who want to make serious money in this industry need a lot more resilience. If you paid 30p because you thought that was a good price, you should now be wildly keen on buying more at this price.
Had one or two large holders not trashed the SP for the main part of last year, what would the chart look like and what would those with total chart myopia then be prepared to pay for exactly the same company?
All very odd. Herd mentality at it's worst.
I suspect part of the problem Samval is that we've got people like this, with a Twitter account that has 13k+ followers, telling people we're 'boxed in' when he doesn't know anything about the company. Maybe not even what they do, let alone what it's worth.
It's seriously troublesome. This is not a chart. It is a company. If people don't read what it has and instead all rely on looking at patterns on charts all you're going to get is a self fulfilling prophesy of;
Chart looks rubbish
Insufficient buyers
Chart looks rubbish
Insufficient buyers
Rinse and repeat.
Totally ridiculous way for a 'market' to value things.
https://twitter.com/Borg74/status/1514191315826794499
The issue Samval is that the gap between where this is currently and where it will be if what comes from either of the 2 main assets is a route to production (sale, jv, build a mine in house) is absolutely enormous.
The gap was big enough in February 2021 when Bill bought in at 30p during the last placement. There's 50% more gold since then and nickel is on fire. The gap between price and value is now ridiculous, double what it was then effectively.
I wouldn't complain if we were kicking around 40p-ish waiting to see if there is big news. But sitting down here because most AIM traders only buy stuff that's already going up on charts and refuse to look at value is just silly.
I don't know Mads, your 'history of Landore' knowledge was accumulated in real time and through experience.
Mine is only gathered from what I can still find floating about on the internet. Obviously it's not as comprehensive but then it comes without any saltiness about the extraordinary opportunity cost of being here since Adam was a lad.
Mining CEOs with a 100% success record are as rare as rocking horse excrement, but this is not remotely comparable with Patagonia Gold for obvious reasons.
Hopefully you get your double payday in the not too distant future. You are certainly closer to the end of your journey than the beginning and might have an opportunity to make very good here.
I'll add the CEO cashing in warrants to my ever growing list of evidence that they're running up to a gold and/or nickel sale then should I?
Nothing concrete. There are an awful lot of items on the list though.
If they're quietly sneaking up to big news so those with long term holdings/faith in the company can top up and take the spoils then good on them.
A few little snippets I saved that less well researched fellows here may not have seen before. Not the full history, but well worth a look to understand where we are compared to where we might need to be for a nickel sale...
March 2016
"Much depends on the nickel price though. In recent years nickel has been very weak, and the current price of around U$8,700 per tonne isn’t far off the five year low.
With that in mind, Humphries takes the view that renewed strength is likely within the next couple of years, and remains upbeat that the US$13,000 to US$14,000 per tonne level that it would take to make the two Junior lake deposits really pay their way isn’t that far off."
https://www.proactiveinvestors.co.uk/companies/news/123631/landore-resources-limited-strikes-gold-maybe-lots-of-it-123631.html
May 2014
Landore chief executive Richard Prickett told Proactive: "We were actually going to make money at US$14,000 a tonne so this is just all on top of that and really fantastic."
https://www.proactiveinvestors.co.uk/companies/news/58250/landores-chief-executive-welcomes-nickel-price-rally-68557.html
December 2012
"Nickel sulphide mining is not a difficult process.
It's US$50-60 million of capital expenditure so it's a modest amount of capital in comparison to some of these large laterite deposits.
We can produce a concentrate of nickel, copper, or whatever and take it straight down to some of the smelters in the Sudbury region. We have the Canada National Railroad about 13km from the project.
We can either truck it to the nearest area or we can put a spur off the railroad onto it.
The firm can make a "nice" margin, says the company boss, citing an earlier scoping study putting costs, including for transportation and smelter, at US$12,000 per tonne."
https://www.proactiveinvestors.co.uk/companies/news/43293/landore-resources-scorpion-zone-key-to-firms-potential-says-ceo-51660.html
November 2011
Talk of 75,000 tons being enough....which matches my theory that it is once again enough and the nickel is going to get taken out very shortly without proving up to 100,000 tons in house. It's a flexible target and the west wants nickel NOW...which means oven ready projects are HOT.
https://www.proactiveinvestors.co.uk/companies/news/29895/landore-resources-poised-to-take-junior-lake-nickel-copper-project-into-development-35738.html
I know these are old now and costs will need adjusting, but how do these deposits look at $30,000+/ton?
It was only October 2021 when they told us they would be 'revaluating' these:
https://www.proactiveinvestors.co.uk/companies/news/963863/landore-resources-to-re-evaluate-b4-7-and-vw-deposits-amid-higher-demand-for-battery-metals-963863.html
Bill and team HAVE been very busy behind the scenes as they've repeatedly stated. Dealing with a potential Canadian tier one gold project and a decent nickel project in your 80's is no joke.
What we have oven ready here, at the right time, is
Make no mistake Nice, I feel incredibly sorry for all those people who've been waiting over a decade here. If they're a bit salty sometimes, then fair enough. It's been a very long wait for them. Seeing the value of the company effectively evaporate because what they have in the ground went down in value so much must have been horrible, but in fairness to BH he did manage to keep it on life support long enough to find the gold.
That said, as a relatively new entrant, best measuring my porridge in quarters rather than years, I literally can not believe my luck. What I've bought here, almost certainly close to the finish line at an insane valuation astounds me. It feels almost criminal. If 'close to the finish line' is still a year or two (I highly doubt it given the ever growing evidence that payday is close, this morning's RNS included) then that's hardly a terrible downside.
The bottom line is that Landore were getting close to action with the nickel some time ago. The fact that the nickel price went so far south is why shareholders didn't get a payday at some point in that first 7-8 year stretch. I have no doubt that Landore would have finished the job if nickel hadn't bombed. We're not in that economic situation now though and never will be again. The future for nickel is crazy.
I've been refreshing myself on the old information regarding the nickel this morning and I stick to my primary thesis; both the gold and the nickel are tantalisingly close to the finish line, hence the shift of focus to the lithium here as the next step, rather than nickel.
I'll share some sound bites regarding the old nickel info as soon as I can, since lots of people clearly need the spoon feeding that BH doesn't provide!
Fully agree about BH being in shock about the SP Nice. He understands geology but clearly doesn't understand how lazy, emotional and short term many people are.
Trading at a ridiculous discount to the last raise Feb 2021. Remind me, did they waste that cash drilling dusters or is the resource now 50% bigger than it was? Is the gold price up or down? How about nickel?
I've added today's pivot towards lithium to my list of evidence that we are close to at least one payday here, possibly two. It was already quite a long list. If I have to wait a few months or a few quarters then so be it. I will be surprised if it goes another year to eighteen months with no gold sale, but then the continuity of this map will be further proven and my payday will be very large indeed.
https://www.landore.com/pdf/Junior-Resource-Exploration.pdf
In the meantime there's not much I can do about bedwetters or the terminally thick. Yes, they drive the share price down based down on panic, a failure to do decent research, inability think logically or impatience. I just have to accept that people are hilarious mess and try to get some entertainment out of the way they behave while I wait. George Carlin had our species largely well described.
Bill was talking to people last year JH.... there were NDAs....and suddenly we're not even talking about nickel being next but lithium? They've got to be getting there with negotiating something.
A bit of drilling at Felix maximises the sale price as it maximises the likelihood of this being the multi-million ounce deposit the big boys are looking for. Not saying I think they'll pay for a 4-6moz deposit, but that they'll be happy coughing up good money for 1.5-2 if they think it's highly likely 4-6.
PEA in 3-4 weeks. Bill did say last year that there was so much appetite he didn't think they'd get far into PFS.....
Not a question of if now IMHO, really just a question of how much and when. A few months maybe.
They've also updated the website. Not meaningfully obviously, but the map of lithium is now on the homepage. Both the gold and the nickel are mentally sold. They're moving on.
Furthermore they've put a much better map of the gold trends on the homepage for folks who haven't managed to work out the scale of the gold yet. Anybody with a ruler who can join the dots should be ok now.
They did refer to these in the RNS to be fair, but I know people don't read and instead just see the red dot and click sell!
I already had my handbrake on here with chocks under the wheels, but I just clicked another notch on the handbrake this morning.
Suddenly we're a lithium focussed company.
Which can only mean that we're done or very nearly done with both the gold and the nickel.
It's the only reason to divert attention from elements that are already proven to commercial levels to ones that are at a beginner stage.
I think you'll find part of the problem over the last few weeks is Russia Catbert.
Lots of gamblers releasing capital here in the hope that they can make a few quid chasing momentum on stuff that's been hammered before jumping back in. Either that or they'll just find that they lose the lot.
Good luck to them. If there's a 7am RNS here before they're back in then they'll be locked out and very sorry. Bill is clearly fed up of these 'investors' smashing the share price for no logical reason and would delight in severely punishing them I'm sure.
There is nothing wrong with Landore. The case is more compelling than it ever has been. The price has never been sillier.
Apologies for all the grammatical errors in that last one. Making myself look like a right spaz this morning. Of/off twice!
Where's the edit button when you need it?! Brain works quicker than my chubby fingers, that's my problem!
The thing is Nice, is that if they do need to raise a few million at 20p then this summer's 20p warrants will expire and we're in the same place in terms of dilution. It's as broad as it is long, priced in either way already.
In many ways we'd be better of with a raise, since the capital then definitely gets spent making a bigger pie with more drilling (yes, people do have to wait another 18 months or so). If Sprott (who is already minted beyond belief) simply uses the warrants to help himself to a bigger slice of a sale pie just before it happens we'll hardly benefit from his capital diluting us at all (it might benefit us a little if it goes towards finishing of the nickel to 100k+ tons).
Sorry to hear about your experience in Amur. That is some really bad luck! Not happening in Canada though. Yes, Trudeau is a total fruit bat. But Canada won't be invading a neighbour or facing famine/civil unrest over the next few years like many of the African nations now will. The people there have the same kind of values we do and will at least resist mental behaviour by their politicians, which is why it's such a great place to invest.
Thanks for your compliments on my posting, I don't do it a lot. I enjoy hearing another opinion too (yours) as it's the only way to check my thinking.
A raise is the worst case scenario. Another 18 months of drilling, which given past history of success is highly likely to add another 500k ounces at a very low cost per ounce. That's as bad as it gets, which for me is very tolerable. Money coming in from Lithoquest to subsidise it too.
When you add to the balance of evidence pot;
The appointment of Huw Salter
Known NDAs/Bill's statement that he doesn't think we'll get far into PFS
Tweeting appears to have shifted largely to battery metals (psychologically checked out of the gold)
Website isn't getting updated (because it'll soon be totally wrong)
Pushing back of podcasts (because they're running a very tight ship so as not to leak anything)
Yes, one or two of those could be written off as incompetence/contempt for shareholders instead. All of them?
I am parked, with the handbrake on and chocks under the wheels. Hop out because of emotions, impatience or squiggles on charts if you like. I haven't and at this stage I certainly won't be.