Good morning LRVers - another beautiful and exciting day ahead...

Good morning LRVers - another beautiful and exciting day ahead for us! Thank you!

Perpetua (TSX: PPTA) went up 11.5% on TSX and was up 16% at one point and now has a MC of AU$860m (CA$782m) valued at almost 8x the LRV MC of A$111m! One could argue that they have a higher MC as they have higher gold reserves but to offset this valuation difference, LRV has more antimony. Also the key difference IMHO is Perpetua is an EXPLORER and LRV is a DEVLOPER, a big difference. This valuation difference gives international traders a bit of an arbitrage play and use the stock volatility to profit.

Even if we say that we should trade at half the value of PPTA, i.e. A$400m, that is a SP north of A$1. To me this valuation difference is going to disappear by LRV increasing its value (see next para below) over time. For me it is a question of "when" not "if".

Given that all reserve banks are buying up gold and given the strategic importance of antimony, prices of both gold and antimony will continue to go up. Fed cutting interest rates is almost a given and all experts are expecting gold prices to go up. I am just curious please add your comments. In the absence of substantial holder change notices regardless of recent sell downs, I would assume that the recent SP volatility is likely come from trading by HSBC and City bank nominee holders, holding more than 15 million shares.



Given where LRV is at in terms of assets on the ground and nearing production, I thought international investors will take notice of the arbitrage (between Perpetua and LRV) available to play in the antimony/gold space. This got me thinking and compared the price changes of the two stocks to see if there is any link (statistically) between the two share prices. Since the antimony news, there seem to be an inverse relationship between two shares - could it be that someone is using the two shares to arbitrage? I am not sure and appreciate any views from someone more knowledgeable in this area. As highlighted in the graph below, you can see the inverse relationship.

If this arbitrage play is correct, then we should see a spike in LRV share price today.