Like most investors in the mining and exploration space I sometimes get a bit impatient at the lack of progress with various companies, but after more than 50 years of investing, I've learnt that impatience usually costs, and patience tends to reward.
If LSX had invested the proceeds of the Pani/Merdeka exit early this year, it's likely that the NTA would now be significantly lower, as so many of the small@cap miners and explorers have seen their SP tumble this year.
There are now some potentially very attractive companies and projects in which LSX could invest some of its quite substantial cash, and they have apparently been running the ruler over many companies and waiting for the market to bottom before moving to invest. Unfortunately, nobody knows when that bottoming will occur. Some 'experts' are saying that there is another financial crisis on the near horizon, others are saying that now is the time to get into the mining sector, particularly small@cap producers and explorers, and especially in the gold sector.
I tend to agree with the latter view, and I'm progressively building my own gold stock portfolio, and I'm also slowly building my holding in LSX. Although it's common for trusts and funds to be selling at a discount to NTA, LSX is selling at a significant discount to its cash, which I think currently stands at about 53 cents per unit. So for each unit that you buy at the moment, you apparently have a book profit in their cash holding of about 10 cents, and the investment portfolio value comes free.
That gives a substantial buffer to any downturn risk, and a significant upside opportunity as they build up their investment portfolio.
LSX Price at posting:
43.5¢ Sentiment: Buy Disclosure: Held
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