Value Proposition

Looking at LCL in comparison to Sol Gold in Ecuador I've done a little comparison of implied value as a % of Au in Resource versus market cap value

Assumptions are Sol Gold have 19.4M oz Au. Assume Au price in A$ of 2300 gives $44.6B worth of Au for Sol Gold who have a Market Cap of $US 545M or A$778.5M. The % of Au per Market Cap is 1.74%.

Assume LCL have 1M oz Au from Quinchia Gold Portfolio at this stage for ease, JORC resource of 0.84kt oz is already reported.

With Todays closing price of 5.6c/share and 310,727,754 shares on issue undiluted this equates to 0.76% Au value per market cap. Nearly another percentage improvement in price is necessary to be on par with SOL. To get to a similar value LCL price would need to be 13c/share.. Is the over 50% discount disparity justifiable? I agree a discount is needed on size and stage of project development but LCL does have a FS from the MNC days and needs tonnes for the mill to create a significant life project at Quinchia offset by the lower Au price assumed in that study.

Target pricing on this fundamental alone should be north of 7.5c/share as a minimum and around 0.10 as a realistic target.