The high price tag for this acquisition is alarming, especially considering the project's early-stage nature. Lode is committing significant capital to a project with no proven resource and no guarantees of successful development. In contrast, other companies with established resources and lower acquisition costs provide a much stronger value proposition for investors.
Tasmania is already a difficult mining jurisdiction due to strict environmental regulations and strong local opposition to mining. Lode’s decision to pay a premium for a project in such a high-risk region raises doubts about its strategic planning. If permitting and development hurdles delay or block progress, this acquisition could become a financial deadweight.
LDR Price at posting:
10.5¢ Sentiment: Sell Disclosure: Not Held
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