@dazatoN ...Thanks for the compliments (looking for blushing emoji).
The reason why I bought into Mali was the new gold enterprise plus the company would have a lithium project in the back pocket for when the lithium market turns around (IMHO that will be longer than most are currently saying based on the amount that can come out of WA at literally the turning on of plants, a total of about 468,000T of LCE).
Yes there is a great deal of dilution for the gold plant, mine and tenements, but like any deal all I do is weigh up the pros and cons, look at what history has provided as a guide, then place my bet while setting an 'uncle' point of when the market proves me wrong.
In this deal we have history of when Barrick sold the first mine to Northern Star Resources. I was a nervous shareholder of NST at the time, wondering if NST had been sold a pup, like some have been doing here. Even though I more than doubled my investment there, including on the cap raise, I sold way too early. Virtually all of the NST gold empire is based upon those mines purchased from Barrick, so obviously Barrick left a lot of meat on the bone.
I do not pretend this purchase is going to be the same, because everything changes over time, however I use that experience as a guide and look for familiarities. For example Barrick had not done much drilling for years before NST took over the leases, the drill program immediately added resources to inventory as it was very fertile ground. To me that is very similar to the MLL position, where Barrick have not drilled for years, yet we already know of drilled gold intersections not mined and some fairly good intersections among that lot. We also now have the cash to perform an extensive drill program, something that has been light on in past years for MLL in the gold tenements.
Another aspect of the past experience with NST is that the plant operated without any major breakdowns once NST took over, it had been well maintained even though life of mine plans were short. Going back through records of Randgold (the owner prior to Barrick), we see that they spent plenty on maintenance/upgrades (like new gear box for ball mill etc), only a couple of years ago when they mined the satellite pits.
Overall though I look at the market cap of the company compared to it's assets, especially in a new deal. The Mcap sitting at around $100M seems cheap to me given the total assets of lithium resource, large operating gold plant, inferred gold resource of 1.3M oz, and lots of fertile ground, plus the ability to generate cash to pay for all of the expenses.
Even forgetting all the unknown stuff like the gold ground potential, and only focusing on knowns, I find it impossible to find a better ownership of assets in the mining sphere for the current price, so I'm bullish for MLL.
Of course things will not go perfectly to plan, they never do, but with the cash that MLL currently have, after paying for the gold mine, there is a level of safety to accommodate something going wrong. I'm not especially bullish on gold, and think that one of the biggest risks is a big fall in the gold price, but all we can do is monitor our own positions, or put the cash in the bank earning 0.1% interest. I chose to take the risk because it is an acceptable risk/reward situation for me.
Sorry for the long post..
