Thanks Goldnerd,The optimist in me has me thinking your...

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ryan0

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05/01/22

11:00

Post #: 58650704
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Originally posted by goldnerd: ↑

Hi Ryan. Thanks for your post. My valuation continues to treat the two deposits separately at this stage. I have looked at what Provident have paid to secure the 50.1% interest in J Resources project (by effectively acquiring 50.1% of Andalan which acquired 100% of the project from J Resources) and used this as a guide to what Lion's 33.3% interest in the pre-existing JV (with Provident) is worth (the Pani IUP only).

I think J Resource were originally considering selling their Pani deposit to a subsidiary of Provident but it looks like a whole new entity has been created (Andalan) of which Provident have acquired 50.1% for US$80.16m. I think Provident would have preferred to own the entire deposit but have had to settle for a controlling interest. They would have insisted on that controlling interest.

When J Resource owned the asset there was an attempt to combine the two deposits into a new JV which as you know fell through. My understanding is it probably won't be long before we see a similar consolidation of the two assets again. As I see it the link zone is actually part of the Pani IUP, so I would very much like to see this drilled up properly before any consolidation of the two deposits is made. This will ensure the ultimate consolidation accurately reflects the ounces residing in that Link Zone.

You are right in that these deals are very much open to interpretation and this is simply my understanding. As always I look forward to your response as it would be good to get our heads around this.

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Thanks Goldnerd,

The optimist in me has me thinking your valuation may be on the conservative side.

I have been following LSX for many years as it seems you have. While it has been nice to see the share price spike up recently (albeit on negligible volume) you only have to look at the charts to see the share price is only back to where it was 8 years ago.
From what I can see it is over 12 years since LSX made any return to shareholders, not to mention them rattling the can with a SPP in 2017.
It has been a long time since LSX shareholders had anything to celebrate. All while the gold price has more than doubled over this period and many ASX gold stocks have performed 5 -10x.
It has been the dud performer in my gold holdings.

I can tolerate a long term investment, provided I can see a return when the investments mature. So far LSX 's exits out of EGA and NUS were very underwhelming. I hope the cream is to come with Pani which is why I remain invested. I hope the combining of the two resources, thereby unlocking the link zone will be a case of 1+1=3. If my memory serves me correctly LSX could have 20% ownership.

I have the impression the directors and Lion managers often appear to be putting their personal interests ahead of LSX shareholders. If you follow some of the deals they do, you see the same names come up, which gives me the impression some transactions are incestuous.

I guess I'm not telling you anything you do not already know. Interested if you have a different opinion.

Good luck, let's hope our payday is coming - SOON!

LSX Price at posting: 56.0¢ Sentiment: Buy Disclosure: Held
4 Upvote

2 Great analysis

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