Landore Resources Share Discussion Threads

[justino] 03/6/2020 16:05

chrissh - even at your $62 an ounce for our 1m oz resource, that equates to 3.6p a share or 3 times today's share price and factors no blue sky (our resource is open in all directions with repeat pattern mineralisation over many km. Also doesn't include Nickel, Iron, other PGMS etc etc. 5p is still cheap IMO.

[robers98] 02/6/2020 22:01

Justino, good to see some positive movement. Hopefully one of your options is not too far away.

[lochlea] 02/6/2020 20:41

That link is strictly an opinion based on his own research at the time. Along with some facts he got wrong when making his judgement on certain companies (which he acknowledged). Plus this research was done 9+ months ago. Gold has increased over 35% since he published article. Although I appreciate he says PoG counts for nothing!! As one poster pointed out to him (and I think has come to pass regarding the NPV with the BAM PEA that was published by LND a few months back) :- "Your chart of acquisitions is skewed, in that all but one junior listed was acquired during a major downturn in mining stocks (before this year's gold breakout). Naturally after years of roller coaster gold prices, investors are wary wither this breakout is for real, I would expect that if $1500 gold holds going into 2020, sentiment in this sector will dramatically increase, money will start entering the junior space in earnest, and acquisition costs for those juniors being acquired will increase along with their NPV."

[chrissh] 02/6/2020 19:50

https://www.google.co.uk/amp/s/seekingalpha.com/amp/article/4293898-gold-juniors-index-how-barkerville-buy-out-stacks-up-against-prior-takeovers$62 per ounce is the average take out price over the years...Sadly we only have a 1 million find to date.. unless there is another drilling update that we could be due perhaps?As Lochlea pointed out before... directors are getting on a bit and won't want to miss this bull market.. average one lasts 18 months...

[lochlea] 02/6/2020 18:52

Many thanks for that justino. That's helped clarify matters for me. I actually posted on another BB recently that any asset be it a house or a car is only worth what anyone is prepared to pay for it. Given what LTHs have been through (to hell & back again) we deserve for there to be a bidding war. Unfortunately I don't see it happening. I think it far more likely someone like Barrick has been quietly 'courted' for quite sometime by BH.

[justino] 02/6/2020 18:30

Lochlea - I agree, my $100-$150 an ounce is on the low side and only represents the 1m oz low grade resource, no Blue Sky, no Nickel, no Iron Ore. I think there is a firm belief after the xtra gound work that has been done, that over the 20 or so kms there are likely repeat occurrences of the mineralisation, so there is a good chance of a multimillion oz resource for the buyer once they start mining and continue exploring. Re the all in cash costs, yes i remember figures of $600 to $800 dollars all in being mentioned. Those costs may have increased (unlikley) but even at higher costs the project is more than viable. All i would say about the project value is that it is only worth what someone is perpared to pay, UNLESS there is more than one potential buyer. Then, and only then can fair value really be achieved which i believe is around 8-10p or $150m an oz and that's still cheap . So let's hope there are at least two potential buyers when the time comes! ;-)

[lochlea] 02/6/2020 18:18

justino - can I ask your take on something please? From memory BH used to bang on about "all in costs" being something between $600 per oz and $800 per oz when at the helm with PGD. Now I fully appreciate comparing one project with another has its flaws. But am I way wrong to be thinking any buy out price has got to be worth a lot more than $100-150 an oz if there's "all in costs" circa $800? especially with POG $1,700 per oz? Not withstanding the inevitable CAPEX required to construct a mine. Personally I have high hopes for an absolute min 5p per share and hopefully nearer the 10p per share. Taking into account not only 1) a realistic premium for the strong potential being demonstrated for BAM to be a multi million oz project 2) Lamaune interest and 3) the nickel for when the time is right. Which no doubt will happen. Even if not in my lifetime LOL. Blimey I can remember pre BAM that the commonly held view on here was that Lamaune on its tod was valued at 3p a share. My registration advice slip from 2011 has changed colour!!

[justino] 02/6/2020 17:12

Thanks Lochlea, current Nickel price is $12,400 per tonne so it stays on the backburner....

[lochlea] 02/6/2020 17:04

BH 29/5/12 ref nickel project:- "....... a simple flotation/concentrate plant would require capital of approximately $50 million, based on similar sized plants around the world. These studies also estimate the operation, refining, transportation and smelting cost to be around $12,000 per tonne for nickel in concentrate, leaving a sound profit at today's nickel prices." That was 2012. Different story 2020. Who knows ref future.

[justino] 02/6/2020 16:35

Yes, chrissh, but the primary play here is the Gold and potential multi million ounce gold resource is the blue sky. The Nickel has value but current Nickel Prices aren't that high and the Capex for the Nickel project would be huge. I suspect they'd prefer to package the whole thing up and sell the lot.

[chrissh] 02/6/2020 16:30

Hi JustinoThanks for that but don't they have a load of Nickel too?

[justino] 02/6/2020 16:00

We've been here many times before but with the low capex, our low grade 1 moz is worth at least $100 to $150m dollars in the ground (that's $100 to $150 dollars an ounce) and thats a steal at current gold prices. So being cautious $100m with 1.4bn shares is worth about $0.07 cents or about 5 to 6 pence a share. I'd be delighted with that and think the buyer would be too. I'm sure most would prefer a buyout but i'm also not averse to a JV if the deal refects the value and the opportunity of healthy dividends in the future. Fingers crossed....again!

[mikeh30] 02/6/2020 15:25

Maybe PUR on the hunt. I'd take 4p take out

[chrissh] 02/6/2020 15:23

Thanks.... that seems a fair price and in line with what buyers are paying for this sized resource...

[thedickster] 02/6/2020 14:04

Well done boys and girls. Looks like somethings afoot, not necessarily on the end of your leg. Been a casual buyer over the last 3 months, slowly does it.

[imperial3] 02/6/2020 09:33

Slowly but surely.

[chutes01] 27/5/2020 22:40

hopefully this is done in couple of months

[chrissh] 27/5/2020 20:51

I read in a Seeking Alpha article that a typical take out for a Gold Junior over the last five years plus would be $62 per ounce.... which I think equates to approx 4.5p for us when taking into account the 1.3bn shares in issue... I think.I wonder if we are due any resource update soon is that done for now?Thanks in advance.

[kfp] 18/5/2020 14:52

Could all be to do with the latest placing ?

[bygdennis] 18/5/2020 14:32

Been quiet for to long here but has been some big buying also on the quiet, Could open up significantly now there may be a bit of awareness of the good value now we have a bit of blue

[chutes01] 18/5/2020 13:47

what are you talking about ? be careful here