LRS 3.13% 15.5¢ latin resources limited

@RisklevelchancyIt's very rare to make true wealth unless you...

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    @Risklevelchancy

    It's very rare to make true wealth unless you are willing to hold a stock with conviction (i.e. holding a stock when it's not cool to be holding it). If you're holding something that everyone else is holding, you almost certainly paid too much for it, or you'll end up holding it until well after the smart money has gone. Obviously this isn't advice on what you should or shouldn't do - just my thoughts based on experience.

    LRS isn't sexy because it doesn't have the 100MT deposit totals or the 100m+ widths of some WA plays. It doesn't quite capture the headlines like some WA deposits. Also why I'm assuming there's very little retail money attracted to LRS right now.

    But it's ignorant to think that these huge widths are necessary in order to make large profits on a hard rock deposit. Maybe in high cost jurisdictions like Australia and Canada it's necessary, but not in Brazil.

    Sigma shows a $15.3bn NPV from 85MT. Why? In part because they have the worlds lowest capital intensity and one of the world's lowest costs of production.

    LRS is well on track to replicate Sigma in almost every way (almost identical JORC for project stage (45MT v 50MT), almost identical forecast C1 and AISC costs, same forecast fast track permitting and construction costs, same consultants working on our project who did Sigma etc.

    One item in LRS's favour are the ridiculously high recovery rates (at Met test level). Actually the second item is the fact our 45MT is in one single open put whereas Sigma is scattered across multiple

    The only box left to check for LRS is tonnage. If we can get our 45MT nudging 70-80MT, then there is no reason LRS should not be trading at $2bn market cap at DFS (75 cents a share undiluted)

    You can't find a faster track hard rock deposit with such low forecast opex and capex unless you go looking in Africa (and most investors rightly won't touch Africa).


    Last edited by dawgfather: 20/11/23
 
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