My outlook on this company remains positive. My views on LNY are akin to Razzle (Dazzle) and (Back up the Truck) Towie , and my sentiment is to buy.
The last qtrly report shows their plans for a significant drilling campaign this year in NZ and QLD including bonanza zones.
I think the yearly report will show Bruce Gordon and Scott Hall are working hard behind the scenes to get this in motion.
Corporate report: "Available funding at the end of the quarter totalled $3.133m comprising cash at bank and the balance undrawn on a loan facility.The Company also continues to actively pursue the balance of funds still owing to Laneway by Maroon Gold from the 2019 mining campaign. Maroon Gold is currently progressing a recapitalisation process which, if successful, would likely see Laneway recover the full amount owed. The amount owing by Maroon Gold of approximately $2m is not included in the Company’s currently available funding noted above.
A total of $997,000 was spent on exploration and development activities in the quarter with $922,000 on the Agate Creek project, $12,000 on the New Zealand exploration project and $63,000 on the Ashford Coal project.Related party corporate, administrative and staff costs paid during the quarter totalled $25,000 being $12,000 for Director fees and $13,000 for payment of office rent, at normal commercial terms, to a director related entity."
Cash burn is not excessive IMO.
Cashflow from processing of remaining ore allocated to Lorena should come in. Payment from ANW will help. Resolution of Maroon money recovery seems to be progressing. And the focus of Bruce and Scott is on a big cash burn for regional and targeted exploration based on careful data analysis.
Market Cap has gone from 32 million to 19 million - so this is now getting underfunded considering even current JORC IMO.
With COVID- my cashflow has been a bit challenged, but I am allocating funds for reinvesting here ... and to give the new guy a chance.
GO FLASH (Gordon) GO .... DRILL .... DRILL ... and STRIKE GOLD. Whack up the JORC, find those pots of gold (Bonanzas).
LNY is a High Risk-High Reward Stock so DYOR. Its a volatile stock and a gold explorer. Its a roll the dice period, at a boom or bust point.
So don't invest here if you don't have confidence in LNYs resource prospects, CEO, staff, board or gameplan.
Don't invest here if you want a low risk ROI strategy.
As Rhazzle has suggested - find another stock. Know when to hold 'em, when to fold 'em and when to run.
I'll wait until after the drilling has been done and the smoke has cleared ... see what they find.
Merc Out
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