Ann: Goulamina on Schedule Post Discussions with Mali Government, page-421

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sf120

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05/09/23

09:36

Post #: 69731909
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Originally posted by pastperformer: ↑

There is of course a lot of upside here if they get into production with no more hiccups.

The response from management indicated that nothing had truly been resolved. The fact Gangfeng have become the majority owners in the project means Leo just lost all of its future leverage.

If the Mali government don't want to play ball with us because of FFX (Which doesn't sound over yet), LLL can continue to get penalised which may lead to future dilution while Ganfeng retain their project ownership.

Right now, I'd be happy to be Gangfeng, Leo to me feels like it's lost all of it's power and with it any leverage. I don't like the feeling of being subject to the new government and Ganfengs whims. While Ganfeng was truly an equal partner I could bank on China getting out of trouble. Now Leo can't, Ganfeng is it's master.

Is it cheap enough? Probably not. The only reason Leo was trading above 90 cents was because of the Ganfeng equity injection. Well it's gone now. So 56 cents feels like 6 month ago prices, which imo is not adjusted for the new risks and the reduced equity stake Leo has.

If it gets back in the 30's I'll be a buyer again.

Expand

67m in cash, 137m injected by gangfeng for 5%

could it trade at 300m-400m? Whilst nothing is impossible, i doubt it.

LLL Price at posting: 56.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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