Lol, Cortexlux. Yes, CLY was my first thought with the mention of Leogang. I can't really make sense of the Austrian geographical coordinates as listed by QNL and CLY. From what I can see by comparison of the Quest map (Map 3), CLY maps and Google it appears that QNL has got the historical mines at both Leogang and Nockelberg as well as most of the mineralised outcrops.
From CLY :
Clancy continues to hold priority interests in 172 licences covering approximately 68 km2 at Leogang. This includes the areas around, but not immediately surrounding, the historical mines and extensions through the dolomite which was the target mineralisation for the original applications. As a result, the Board will continue to explore the potential of the Leogang Project as planned with the view of identifying a new cobalt mining precinct in the heart of Europe and on the doorstep of the battery and renewable technology sectors.
It would appear that the most prospective part of that missing ground now belongs to QNL. Perhaps more importantly that's only one project for QNL.
It's important to note that QNL has just acquired 8 individual projects - hence ASX concerns around scale. QNL now has nine projects. It's also relevant that Steven Formica has a great deal of skin with 5,900,000 shares and would appear to be happy with the vend and impending dilution. I believe that he also has related interests in First One Realty Pty Ltd which from the T20 release (31/07/17) held 4,368,791 shares - obviously assuming that they're still there.
Personally I'm not overly pleased with the level of dilution however I think that there is an easy pathway to at least 0.06 here given current market conditions. I'm not concerned with the Performance Shares as the bar is set high enough on both Class A and Class B and as a result would only trigger upon a substantially higher market cap (vaguely from memory there were a few complaints at WMN/EUC over the same issue). At 0.03 QNL has a fully diluted market cap (excl. Performance Shares) of $16.513m with EV at $8.388m. Compare that to CLY who at 0.005 have a fully diluted market cap of $22.263m and EV of $13.287m*. Sure they have Lenigas, Cranston and Kumova, but they don't really have a viable project at this point.
I'm happy to hold but obviously the key questions are how the market will respond and whether this is just a liquidity event trigger or something more significant and worth holding. I know nothing about prospective gold and cobalt in Austria lol, so we'll see.
*In both examples I calculate cash using cash held + cash value of option conversion. The CLY figures are from their AR2017.
QNL Price at posting:
3.2¢ Sentiment: Buy Disclosure: Held
