Sure, and this is what is addressed at 1.30 hour/mins in this Money of Mine interview in April 2025 talking about the mining clock and entry points according to liquidity of money coming into the market. Lion still set the clock in May at 4. He says exploration IPOs need to come into the market.
(noting the doesn't address the binary situation of a liquidity crisis plus a run on gold, both of which IMO are on the cards and which some companies like Capricorn metals and arguably Barton Gold have insulated with staged production and sales driving their development, but I digress).
They're cautious because of the uncertainty early on in discovery/development.
Basically if you load up too early you can miss out later on when they do CRs and dilute your capital. You have to have the liquidity to back up your investment at that point so there's no sense in going too early. I think that's a valid proposition. Dilution can be a killer of your equity no question of that and distress CRs are really a curse on LT investors.
BTW I find it odd that there is so little discussion in here about LSX. Is this a set and forget investment? Apparently so.
This explanation see above, seems to be why LSX are keeping their powder dry and retaining large amounts of cash. And to have the flexibility of funds to take advantage and/or defend by participating in distress CRs is necessary when it's offered.
He knows Alex Scanlon from Barton gold (discussed earlier see the timestamps) and recognises that Alex has a sophisticated understanding of capital markets and connections he doesn't have. Implicitly therefore it seems BGD doesn't need their capital.
I think his explanations about this are well worth considering. Risk is what dogs retail investors. The other fund that is switched on about gold is Collins Street Fund and they hold BGD they are however only open to sophisticated investors.
I think they may be a bit on the late side on the mining clock but equally there can be a capital shakedown and liquidity crisis. He doesn't mention it but that is also apparently why many funds are ready to strike when the SHTF. The Oracle of Omaha is also doing this but he is retiring. But plenty of funds are doing this also.
Worth considering. Retail investors often aren't alert to what they don't know, so to speak.
LSX Price at posting:
73.0¢ Sentiment: None Disclosure: Not Held
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(20min delay)