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Spoke with PR last week about that...
Joe would neither confirm nor deny....of course.
It's been quite awhile getting this financing package together, longer than anticipated. I would think they are chomping at the bit to release some long awaited good news.
Question is will it sink the price? Buy on rumor, sell on news?
Four year high today. News on financing out this month, I think....hope.
Lotsa gold to be dug up.
I have good reason to believe that there is a lot going on with LION that they choose not to publicize, though I wish they would. They certainly don't release much news.
A little more patience is needed.
I think the $1,20-$1.40 CA mark is very doable. Still hoping for $2 by New Year.
Wally's best project ever? imagine the possibility of even a half Billion dollar mine much less 2 to 3 x that.
Bonne Chance to the Lion Hearted. ;)
Lion One Analyst report, buy target C$1.40
http://www.stockhouse.com/companies/bullboard/v.lio/lion-one-metals-ltd?postid=25008460
June 22nd, 2016
Research Coverage Initiated
Dear Lion One Subscriber,
Today Scarsdale Equities initiated research coverage on Lion One with a “Buy” recommendation and price target of C$1.40 per share.
Scarsdale Equities LLC is an institutional FINRA-member broker/dealer and SIPC member located in New York City, U.S.A., with offices at 10 Rockefeller Plaza in midtown Manhattan.
Please don’t hesitate to contact us for more information on this report.
Contact Us:
Joe Gray | Investor Relations | 604-973-3004
Hamish Greig | VP | 604-973-3008
Toll free in North America: 1-855-805-1250
Email: info@liononemetals.com
New HIGH today!! $.60 close in US money.
$1.80 by new year, me thinks.
I've always thought the shares were in strong hands, and trading lately, indicates that to be true. If someone had wanted to dump a bunch of shares, they would have driven the SP down readily. Smart shareholders.
I think this will be a Billion dollar company one day.
I remember the Goro run up.
It was a thing of beauty.
I made the mistake of selling 50k shares of lomlf a month or two ago trying to be cute and taking a small profit.
Took me 3 weeks of chasing it to get them back. Never again.
I'm not selling until we are north of $2.00 and then only a portion.
That is the one I tried to post.
Glad you found it.
According to scuttlebut, we will get some news in July.
Magazine interview with Lion's PR guy.
Haven't heard of the publication--I wish it was in the Wall Street Journal.
http://www.businessinfocusmagazine.com/e_mag/BIFNAMay2016/#?page=200
LION's still the best gold junior for potential that I know of.
Yeah, link didn't work for me either.
I expect that it will echo what some of us have already known. To me, this is the best junior since finding goro, years ago. I'm up big time but can't bring myself to trim any so far, even though pull-backs in gold are to be expected in the course of it's new uptrend.
Look's like somebody decided to lighten up a little today. Oh well, expect they'll be back along with a lot of new investors before too long. Even if gold doesn't peak to great height like it did in the goro hay-day, it still looks to be pretty darn good. imo
Things could get "interesting" after the election, depending. Either of the democrat candidates will likely continue with the more or less liberal economic policies we have now. But, Trump otoh, has, in effect, threatened default on treasuries, though he periodically tries to reverse himself when the implications of some of his more bizarre statements are called into question. He also seemed to think "printing money" as a way to monetize our way out of debt could be some kind of solution. Talk about flight to safety if that happens. I saw an article theorizing that he is secretly pals with the Clintons and is deliberately acting like a buffoon to shoo voters into the arms of Hillary, simply because she is 'not Trump". Bizarre.
So, the future looks either more-or-less good for gold or possibly frighteningly good for gold. And what's good for gold is good for Lion One investors. :)
Hi Sork. I don't believe link is working.
Nice feature article on Lion One May 2016
https://web.mail.comcast.net/service/home/~/?auth=co&loc=en_US&id=720433&part=2
Eric Coffin update
Lion One Metals (LIO-V; 0.72) came to life in the past couple of weeks. In part, the move stemmed from a release detailing historic results at Lion One’s Tuvatu project in Fiji. The release outlined some of the high grades from past drilling and from sampling in the exploration drifts. I think the point LIO was trying to make was that this is a project that went all the way to feasibility in the not too distant past. Lion One issued a PEA on the project last year but Emperor Mines subjected the project to much more detailed and advanced work 15 years ago and not that much has changed. We’ve been expecting LIO to pull a financing package together for Tuvatu ever since the PEA was released. I know management has been in discussions with numerous groups ever since and, frankly, I know management was frustrated by the lack of progress. The move in the gold price in the past couple of months has to be shifting the balance of power at the negotiating table. High grade is hot and LIO has it. While we’re all still in the dark about the form and specifics of a funding deal to move Tuvatu to production I think the odds of one showing up soon have increased dramatically in recent weeks. I expect management to get this across the fin-ish line if this strong resource market persists for much longer. Buy on weakness in anticipation of a deal to finance and construct the Tuvatu gold mine.
Read more at http://www.stockhouse.com/companies/bullboard/v.lio/lion-one-metals-limited#cwxRtSjLoJTHukEi.99
That is pretty impressive scuttlebutt!!
The gold market is currently way ahead of itself, needs to correct in a big way.
Tough call whether to take some profit here and buy back in at lower prices or just tough it out.
Risky business.
Scuttlebutt--- in slang usage means rumor or gossip,
So don't bet the farm, butt...here's what I was told by a person that should know.
______________________________
***financing will be done soon and favorably
***new surface sampling program to start soon
***they're looking at 3 different companies for mill options--all can be financed through the manufacturers which will save Capex costs.
***the mill will be layed out so as to be able to add capacity readily, which assumes higher and longer production down the road after our 'starter' mine defined in the PEA is going.
***Dewatering to start pretty soon, and they're hoping to start mining and creating initial stockpile from underground mining later this summer..
***Major exploration program to start in about 6 months. They hope to prove up millions of ounces eventually.
***Perhaps $2.00 share price by the end of the year
***Been said that their are a couple of Emperor holes that went down 700 meters and hit the highest grades yet--enough to 'choke a horse'
***that a few years ago a Newmont geologist spent a week at Tuvatu and guessed it may contain 5 to 8 million ounces.
***That, Stephen Mann wasn't kidding when he called Vatakoula, Tuvatu's little brother.
***That Berukoff does indeed think that Lion One may well be his legacy and best project ever.
***That the principals believe this may well have a double digit stock price one of these days.
_________
Bonne Chance everybody
another strong market on good volume for Lion One
Top 5 Performing Gold Equities
(among 93 listed on the various gold indices)
TriMetals Mining Inc. TSX:TMI 15:55 0.19 CAD +0.06 +46.15%
Energold Drilling Corp EGDFF.PK 10:56 0.95 USD +0.14 +17.37%
Comstock Metals Ltd. CSL.V 13:30 0.04 CAD +0.01 +16.67%
Lion One Metals Ltd. LIO.V 15:59 0.63 CAD +0.09 +16.67%
Kinross Gold Corp NYSE:KGC 11:01 5.17 USD +0.47 +10.00%
http://www.kitco.com/
Share price movin on up. I have reason to believe the financing will be done on good terms soon--then a number of long awaited actions will proceed.
Excellent new presentation out.
http://www.liononemetals.com/assets/docs/presentation_may_2016.pdf
If that should come to pass maybe we should meet here at Malcolm Forbes former camp to vote on it. http://www.laucala.com/
It is what Wally does best.
And this is potentially the biggest deal of his career.
I don't think there is any doubt that there is tonnes of gold in the ground at Tuvatu. Maybe even an Elephant down there.
Could he get 5 or 10 dollars a share from a major and just walk away?
Absolutely.
Something to ponder?
There is the possibility, (I certainly don't know how strong of one), that Berukoff has been shopping LION to possible buyers. That would explain the time its taken for new news.
The Capex for getting the mine underway isn't that great so it seems like that should have been done by now. Selling the mine, on the other hand, would be a whole different story, and might take longer. He controls 35% or so of the shares so likely would feel he could get a few more shareholders to have enough votes to OK a sale.
I hear there are would be investors/financiers going to Fiji July 1st, so it may still be a while before anything is cleared up.
I'm just 'speculatin' here while we wait.
Still time to top up on shares like Sir Walter has been doing. :)
Nice gain today.
I received an email from the most important guy in the company and it said in part, we have exciting things happening
I hope thats related to the 19% gain.
Newest Mike Hoy post
20-20 HINDSIGHT DOES EXIST THROUGH KNOWLEDGE AND HOMEWORK!
Behind the world-wide financial scene there exists growing fundamentals and serious financial issues that simply cannot be overlooked. Trillions upon trillions of debt has been created in currencies of all denominations in hopes that these compounding issues will stay hidden and out of sight while those responsible for the coming debacle continue to steal every last penny they can get their hands on before reality inevitably sets in!
Those who believe the events of today have much in common with the events leading up to the Depression of the 1930’s are correct except for the fact that the events leading up to the crash of 1929 were nothing compared to the financial mess that exists today.
As the debt pyramid of the 1920’s imploded, investors overly leveraged in the stock market, were wiped out as the horrors of being on the wrong side of a market financed with 10% margins became a reality. Unfortunately this was just the beginning of what proved to be years’ worth of pain as deflation raised its ugly head consuming everything in its path where growth could only be found in the “food lines!”
No one knows the exact timing when the current day system explodes leaving unprepared investors and bank depositors in a dazed panic desperate to understand why they no longer have access to their wealth. What we do know is bail-ins, negative interest rates and the out-lawing of cash are perfectly clear red flags warning of the imminent dangers ahead!
PROSPERITY THROUGH THE DEPRESSION OF THE 1930’s!
As the masses scrambled to meet their margin calls in a world full of assets backed by nothing but worthless debt, select issues within the gold sector rose to shine brightly. The fact that gold is “pure wealth” and will never be worthless is a pretty good concept to understand in times where assets backed by nothing but debt or should I say “the full faith and credit” of bankrupt entities are liquidated in a panic as the “ability to pay” comes into question!
As the world’s financial institutions move forward with their plans to separate and deny individuals access to their wealth I believe it is now more important than ever for individuals with savings and wealth to target investments which create pure wealth rather than investments which delegate them to being another name on a very long list of creditors hoping to recover their deposits from those they once trusted!
As the US was forced to consolidate or should I say recover from the excesses of “The
Roaring 20’s” beginning with the market crash of 1929; there was at least one stock which returned terrific profits to its shareholders at a time the rest of the Country suffered from a massive “hangover!”
Imagine if you will, owning a stock from 1929 to 1935, where your investment multiplied by more than six times while paying dividends of 150%! Not only did the owners of this investment survive and prosper through the Depression of the 1930’s but the buying power created from this wealth multiplied their gains several times as their profits were redeployed into assets trading for a fraction of their pre-1929 levels!
HOMESTAKE MINES (HM);
Shareholders in Homestake Mines multiplied their wealth through the Depression of the 1930’s as the share price of HM rose from $80/share in 1929 to greater than $500/share in 1935! As nationwide mass unemployment deprived families of income; shareholders of HM were gifted with dividends of $126/share through the same period of time.
Shareholders in Homestake Mines owned the perfect hedge in the 1930’s to survive and prosper. Investors in today’s world not only find themselves in very similar circumstances but the pounding in the precious metals sector since 2011 has created “Black Friday” sale prices on select individual mining stocks. Many mining stocks today are trading at a fraction of what should be considered their “fair market value” making the potential in the mining sector much greater than what existed in 1929 for shareholders in Homestake Mines!
HISTORY IS ABOUT TO REPEAT ITSELF!
As gold prices topped above $1,900/oz in 2011 the multi-year correction in gold created that “once in a lifetime” opportunity in precious metal equities. The most pressing problem for investors looking to buy and build positions came down to the skills, knowledge and experience one had in being able to pick the survivors in an industry where just being able to keep the doors open was and still is a daily challenge!
Those who believe the recent strength in gold prices may have signaled a bottom in gold from the lows of below $1,050 have started to build gold positions once again. We have recently witnessed a recovery in select precious metals equities as their prices begin to rebound from lows which history will record to have been “bargains of a lifetime!”
I personally believe it is inevitable that gold prices will rise sharply over the next several years as investors and the overall population scramble to regain control of their wealth. Bail-ins and negative interest rates are a scam to blatantly tax and steal the assets of anyone with deposits in institutions owned and controlled by those responsible for the challenging times ahead.
Regardless of whether the games being played in the gold and silver pits will be successful in their goal to drive precious metal prices back to test the lows below $1,050/oz and $13.70/oz is irrelevant as many of the surviving gold and silver equities have bottomed as astute investors are accumulating shares for what I believe is an inevitable explosive up leg in gold’s next move to much higher ground as the illiquid financial institutions of the world implode and those fortunate enough to see the writing on the wall take control of their assets why they still can!
I personally believe junior mining gold companies who are either currently in production with positive cash flow or have projects with high grades and low mining costs which can be put into production are investments which deserve the utmost of investor attentions.
RICHMONT MINES (RIC-Can RIC-US)
Richmont Mines (RIC) is a very good example of a Canadian Junior Gold Producing Company which has rebounded sharply from its lows of roughly $1.50/sh C in 2014 after hitting a high of $13/sh C in 2011.
Regardless of whether RIC may have been a little ahead of itself pricewise in 2011 at $13.00/sh, as gold began its multi-year correction, means very little at this point as it most definitely was overly discounted at $1.50/sh in 2014 as items from the 2015 Financials below will show
Since hitting its $1.50 bottom in 2014 the share price has recovered to greater than $7.00/sh C with a closing price on 3-29-16 of $7.24/sh C.
2015 Capital Structure and Financial Results reported on 2-22-16:
Fully Diluted Shares: 62,500,000 shares:
Closing price 3-29-16: $7.24 Can $5.56 US:
Can Market Cap $452M US Market Cap $347M
Cash $61,000,000 Can: Debt $7,300,000 Can:
Overall Resource Increase 187% in 2015:
Resource Grades 6.4g – 8.5g:
2015 Production: 98,000 oz gold:
Average Sales Price: $1,474/oz Can: $1,157/oz US:
Rev $143,000,000 Can: $112,400,000 US:
Cash Flow/Share: $42,400,000 Can or $.74/sh Can: $33,200,000 US or $.58/sh US:
Net Income: $6,800,000 or $.12/sh Can: $5,300,000 or $.09/sh US:
Cost Per Oz: $1,034 Can: $774 US:
All-In Cost: $1,373 Can: $1,074 US:
For those who believe, as I do, that gold’s future has never been brighter and it is inevitable that gold’s price will be higher down the road; shareholders in RIC should have much to cheer about as the next leg in gold’s bull market commences.
Shareholders in RIC will benefit as the rise in gold’s price will not only increase earnings dollar for dollar as we go forward but as investors clamor to own the sector once again the cash flow and earnings per share ratios will expand allowing investors to benefit both ways!
Being a producing junior mining gold company, with cash in the bank, does have distinctive advantages over grass roots junior’s where there is a constant need to raise capital to advance projects of merit forward. For those grass root juniors who are in a position to access financing, the current pathetic market caps dilute existing shareholders big-time as financing is raised with shares trading at or very near their lows.
This dilemma poses opportunity for investors who can differentiate grass root juniors from juniors with a project or multiple projects which are production ready and may be financed through means other than the traditional Private Placement package!
20-20 HINDSIGHT:
Why is it important to write about the explosive profits made and dividends paid in Homestake Mines through the Depression of the 1930’s? Why should one pay attention to the 475+% returns on Richmont Mines since it bottomed in 2014 at roughly $1.50/sh?
The answers to these two questions are very simple. Homestake Mines is a blueprint of history where shareholders in Homestake Mines not only survived the Depression of the 1930’s but received handsome dividends at a time mass unemployment was rampant in the US.
Richmont Mines is a recent success story illustrating the multiple profits to be made from investments in out-of-favor sectors that have been completely oversold. I am certain there existed numerous shareholders who were either building small positions in RIC or had “eyes on the stock” of RIC in 2014 in hopes of building a position at or very near the ultimate low as the precious metals market unmercifully pounded shareholders in the company.
I believe investors who took advantage of the ridiculous cheap share price of RIC are very pleased with the returns they have made on the positions they were able to build. Their knowledge and timing are being very well rewarded. Those with “eyes on the stock” who failed to act missed out and can only lament about the opportunity they failed to capitalize on!
I think it is obvious the one feeling both these parties share, using 20-20 hindsight, is the fact that they should have “backed the truck up” taking full advantage of the opportunity to buy every share of RIC they could get their hands on at prices anywhere near the 2014 lows! It is a rare occurrence when investors are able to build “full positions” at prices near the ultimate lows in a correction because the supply of shares simply does not exist in the limited time period necessary to fill full positions.
Unfortunately, “20-20 hindsight” or a “second chance” are gifts that simply do not exist in the real world we live in today!
OR DO THEY!
It is no accident that I chose Richmont Mines as a classic example in which to show my readers the lucrative profits which can be made from very timely investments in stocks that have been completely and ridiculously oversold. We all desire to own shares in companies which mirror the performance of RIC when their time comes to rebound.
More importantly, we all wish we had the opportunity to invest in “ground-floor juniors” possessing the potential to be successful small producing companies climbing the ladder to become mid-tier producing companies and beyond. Knowledgeable investors who identify bargains which fall into this category many times are rewarded with returns of 10X, 25X or even 50+X their original ground-floor investment!
For those who would like a second chance to “roll the clock back” taking full advantage of missed opportunities; I am pleased to say I believe “The Lion is Ready to Roar!” In my opinion, the advances and development of the last five years in my favorite gold stock are about to handsomely reward investors for their time and patience. For investors in search of that undiscovered gem I believe Lion One Metals has earned the right to be considered as a prime investment in your portfolios!
LION ONE METALS (LIO CAN LOMLF US):
I have closely followed Lion One Metals and their Tuvatu Project in Fiji since they came public in January 2011 at $1/share.
Tuvatu is a hi-grade low cost epithermal system which the vast majority of junior mining companies can only dream of possessing as an asset. LIO has successfully advanced its Tuvatu project from an exploration play with tons of potential to a fully permitted mining project including a PEA which boasts a projected internal rate of return (IRR) of 67%.
Since LIO is a production situation I would like to concentrate on the estimated cash flow which will be generated from Tuvatu. I pulled the production and expense numbers directly from the publicly released PEA on 6-1-15.
I know this information is based on a PEA with a + or - 30% accuracy but I have a hunch the actual number will be on the positive side for shareholders as many costs to enter production have fallen over the last couple of years. The cost to acquire a mill is one specific cost that has fallen sharply from just a few years ago as lower paper gold prices has brought many borderline projects to a standstill while demand to purchase gold in the physical market continues to annihilate every law of economics.
Those who believe as I do will find these numbers particularly attractive since I am of the opinion that gold prices will be substantially higher than current prices two years down the road when LIO reaches these production levels.
Much work needs to be performed and carried out by a competent management team to successfully bring production to the table. The past successes enjoyed by CEO Walter Berukoff and Stephen Mann have proven that they have the background and experience necessary to bring Tuvatu into production.
Before I get into the numbers I must also qualify what is written below as I do not know exactly where or how management stands in the production financing as there are several options or a combination of options in which to choose. Actual financial results will depend on the capital structure after the financing has been closed.
Anyone who may be interested in participating in this financing should give me a call as this financing creates several different options for investors which may be the answers they seek in regaining control of their wealth from institutions which may have other plans for their deposits! I can be reached at the phone number listed at the bottom of this article!
I am only going to forecast the first three years production as the stated production listed in the PEA begins to decline in year 4 without addressing any of management’s thinking and plans to bring additional production to the table.
Underground epithermal systems like those present at Tuvatu tend to replace resources as production moves forward; as in the case of Richmont Mines where overall resources were increased by 187% as a result of continuous and ongoing successful work programs performed in 2015.
I believe management at LIO has a very strong opinion that production will increase beyond year three for many years to come versus a decline to zero in year seven as stated in the PEA. Management has always said that grades appear to increase at depth while continuous work programs have identified several additional targets which could add many years’ worth of production to the known resources at Tuvatu! None of this potential is included in any resource estimates! You might say that what is known about LIO today represents only the “Tip of the Iceberg” as only a very small fraction of the property in Fiji has been explored!
CASH FLOW ESTIMATES;
Below is a simple cash flow chart where total revenues are subtracted from total expenses. If the financing is to be raised where shares are issued instead of, or in combination with debt then these forecasted cash flow estimates would be divided by the total number of shares outstanding after the issue to arrive at earnings per share figures.
Since LIO has proposed a debt issue where physical gold is a redemption option versus cash to retire the debt; one would have to deduct the quantities of physical gold from net production while keeping the total all in cost associated with that production as an expense. This would initially be dilutive to earnings until the debt is retired but would result in substantially less shares outstanding which will sharply increase earnings per share after the debt is retired.
ASSUMPTIONS AS STATED IN THE PEA PUBLIC NEWS RELEASE ON 6-1-15;
Year 1; Total Gold Production 68,200 oz Total Cost; $622+$211= all-in cost $833/oz
Year 2; Total Gold Production 78,600 oz Total Cost; $518+$211= all-in cost $729/oz
Year 3; Total Gold Production 79,300 oz Total Cost; $499+$211= all-in cost $710/oz
Total $ revenue/oz – Total $ all-in cost = Cash Flow with the price of gold at specific levels;
NUMBERS LISTED IN US MILLIONS;
GOLD PRICE; $1,100 $1,200 $1,500 $1,750 $2,000 $2,500 $3,000
Year 1;
68,200 oz;
Revenue; $75 $82 $102 $120 $136 $171 $205
Expense; $57 $57 $ 57 $ 57 $ 57 $ 57 $ 57
Cash Flow; $18 $25 $ 45 $ 63 $ 79 $114 $148
Year 2;
78,600 oz;
Revenue; $86 $94 $118 $137 $157 $196 $236
Expense; $57 $57 $ 57 $ 57 $ 57 $ 57 $ 57
Cash Flow; $29 $37 $ 61 $ 80 $100 $139 $179
Year 3;
79,300 oz;
Revenue; $87 $95 $119 $139 $159 $198 $238
Expense; $56 $56 $ 56 $ 56 $ 56 $ 56 $ 56
Cash Flow; $31 $39 $ 63 $ 83 $103 $142 $182
With a lead time of roughly 2 years to achieve production, I personally believe gold prices will be in excess of $1,500/oz in Year 1 making the cash flow of $45,000,000 US almost 2X the current Canadian market cap of $23,500,000 and 2.5X the current US market cap of $18,000,000.
If my thinking is correct and there exists 10-15+ years’ worth of epithermal production at Tuvatu just imagine, if you will, the share price of LIO in the event the supply of gold suddenly disappears and gold prices explode from current levels.
What if, down the road, the public is denied the opportunity to purchase physical gold and silver at a time their emotions trigger an insatiable desire to own true wealth while their funds are being held hostage by the coming bail-in programs and subsequently stolen by negative interest rates? The time will come when investors panic to unload interest rate sensitive bonds and inflated stocks in a desperate act to protect what wealth they have left!
I think there is a very strong possibility in the next few years that the price of gold could be higher than any of the numbers listed in the table above!
Under these circumstances gold stocks will be one of the few remaining options available for investors to gain precious metals exposure!
As you can gather from everything written above, many questions remain unanswered as to the financing, capital structure and the development of additional resources. These are important questions and, in my opinion, the lack of publicly available answers is the main reason LIO has failed to acquire the increased market cap and public following they deserve and have earned!
For those who are not yet shareholders, this is really good news. For existing shareholders this has been a point of frustration as they have very little to show for their time, patience and investment.
Investors who have taken the time to closely follow the development of Tuvatu through homework and research have gained knowledge that they sometimes find hard to believe as the lack of any interest in the volume and share price does not reflect what is going on behind the scenes. These investors also fully understand that it is only a matter of time before the investing public becomes aware of the same knowledge they possess where those new to the LIO story will be buying shares at multiples from current prices!
All these questions and uncertainties can disappear overnight with a fresh approach to PR where corporate communications bring shareholders and potential shareholders up to date on the events occurring in LIO. This is currently in the works!
Most investors dream of making investments where they are “in” at the “ground floor level!” In my opinion; investors currently taking advantage of LIO are not “in” on the “ground-floor” as they are at “sub-surface” in a company, I believe, will make room for them in the “penthouse” when all is said and done; just like shareholders in Homestake Mines enjoyed through the murderous years of the Depression of the 1930’s!
POTENTIAL GAMECHANGER!
As if this story is not enough; let us not forget the potential existence of an “Elephant body of ore,” which may be present at depth below the epithermal system at Tuvatu just waiting to be discovered.
Many investors in the junior mining sector own shares in companies with excellent projects that deserve to be fully explored. Unfortunately, the current market caps of these companies make it virtually impossible to raise funds in which to move their projects forward without massive dilution to the existing shareholder base.
Imagine owning shares in a company possessing the potential of a major discovery beneath a high grade low cost epithermal system in the bountiful Pacific Rim where exploration of this project will be funded with cash flow from the epithermal production above with very little dilution to shareholders? A discovery of this nature would turn this underpriced junior into a whole new ballgame!
This is an LIO Bonus which will have to wait for another article.
PARTING THOUGHT!
CEO Walter Berukoff has enjoyed many prior successes in his career; among those is Miramar which was acquired by Newmont in 2008 for $1.5Billion and Northern Orion which was acquired by Yamana Gold in 2007 for $1.1Billion; Wally believes that LIO may be the best project he has ever had.
LIO CAPITAL STRUCTURE:
63,500,000 shares fully diluted;
3-29-16 closing price $.37 Can $.285 US
Market Cap; $23,500,000 Can $18,100,000 US
As it is plain to read; I like what I see in Lion One Metals! Obviously, there is much more to The LIO Story than what is written here which is why I invite my readers to phone for the rest of the story!
Homestake was a game-changer for its shareholders through the Depression of the 1930’s.
Richmont Mines is in the process of rewarding its shareholders.
Lion One Metals; could be the best yet!
As always folks, the strong opinions expressed in this article are my own personal opinions generated from 5+ years’ worth of ongoing research. It is important for each of you to do your own homework as in the end your opinions may differ from mine.
I invite anyone with any questions or an interest in the debt financing to e-mail me or call me at the number below.
I am biased as we own shares in LIO and I do have stock options in the company.
402-483-4484 8:00 AM-8:00 PM CST;
Mike,
Read more at http://www.stockhouse.com/companies/bullboard/bullboard/t.ric/richmont-mines-inc#jcKaYtouppAY4PuD.99
Good country, good outfit, good ROI.
What's not to like?
Feeling very comfortable with my investment here.
Also, even better, likely good timing.
http://www.valuewalk.com/2016/02/six-reasons-to-buy-gold-in-2016/?all=1
More news--I like how he says Tuvatu is a mine for future generations--I have a feeling he's right.
Fiji Sun Times
GLOBAL mining magnate Walter Berukoff, who is the owner of the Tuvatu Gold Mine project in Sabeto, believes Fiji has the potential to expand and grow its mining culture.
He said the country's Mining Act ensured the protection of the environment while encouraging business investments.
"Many people are not aware of the mining culture and the well-structured Mining Act of this country," he said.
"Fiji, one of the few countries that I have worked in, has such a good rule of law that is interested in its environment and has a strong Mining Act.
"This strong Mining Act which is very similar to Australia and Canada and it is very familiar for us so it made it easier to work with. It's very easy to follow and very fair for both the country and the industry."
Mr Berukoff is the chairman and founder of Lion One Metals. He was the founder and CEO of Miramar Mining Corporation, Northern Orion Resources, and La Mancha Resources, and has operated or commissioned gold mines in seven countries.
He is also managing director of Red Lion Management, a merchant banking company, and has raised over $1 billion for global mining and real estate projects.
He said more than $100m has been invested by his company, Lion One Metals, into the Tuvatu project which he believes would produce high grade gold for the international market.
"Tuvatu is a mine for future generations," Mr Berukoff said.
"Once I saw the geology, the engineers explained this to me so the idea of opening Tuvatu became a passion for me."
Meanwhile, members of the Tuvatu landowning unit — Yavusa o Rarawaqa — from Nagado Village have welcomed the company with open arms.
Unit head Milika Sura said the project meant yavusa members had a secure financial future. She said working with all stakeholders was important to their successful relationship.
Read more at http://www.stockhouse.com/companies/bullboard/bullboard/v.lio/lion-one-metals-limited#ABgg0vQxEoeJEDmI.99
January Presentation
http://www.liononemetals.com/assets/docs/presentation-january-2016.pdf
Some very interesting data here that I've been wishing to see for a long time. (I spoke with Joe from IR because I needed clarification on some of it.)
Slide 8 is particularly important. Emperor took sample channels every 2 meters in parts of the decline. The small map in the middle shows the location of the assays in relation to the decline--the top rectangle is for the one on the left. The 3 numbers are samples from the left, top, and middle of the decline tunnel. The diagram on the right (lower part of decline) used a different methodology, but if you enlarge the map you can see the results.
I can see why Emperor felt ready to start mining the 80,000 oz per year that they thought possible (even at $300+ gold price--, lots of high grade over good distance--- and I can see why LION figures they can jump right in and start mining the good stuff since they can drive right down to some of it, right off the bat.
Slide 7 on the left is showing one of the areas where many veins intersect, creating wider intervals of gold up to 9 meters, and the one on the right showing the verticle nature of many of the ore bodies allowing for efficient, less expensive vertical stope mining.
Slide 6 is a nice view of the mine plan-- particularly intriguing are drill holes, ( the blue lines) showing how few and not very deep they are at the bottom of the mine plan. ('Little brother' Vatakoula is mining down to 1300 meters so far) I asked him if he knew where that 12 feet of 9 oz/ton gold was on the maps but he didn't know. I know it was found at the 332 m level. Higher grade down deeper?
Slide 4 on lower right shows areas in red showing over a gram a ton--more than half the (present) mine area that has seen very little exploration, much less other parts of the greater property.
Good work you guys at PR.
Latest developments at Lion One...
http://www.reuters.com/article/idUSnMKWbHx3za+1d0+MKW20151216
interesting article on lion one
http://southpacificmetals.com/2015/11/lion-one-metals-primed-to-breakout/
Lion One Metals primed to breakout
It’s been a long time since we have looked at any junior mining stocks – there hasn’t been much point with the sector trending ever lower. Now, however, with mining stocks being extraordinarily cheap, it is time to start turning up the better ones. Lion One is thought to be a good investment, since it is now comparatively cheap compared to some years back, has a bullish looking chart, and a positive fundamental story that is easy to understand. It is unusual too in that it is located on Fiji, which should make shareholders meetings a lot more fun than usual.
On its 6-year chart, we can see that after a big rise in 2010, Lion One has been stuck in a persistent downtrend until the Spring of this year, when a sharp rally broke the price out of it, and it is now evident that this rally formed the Right side of a Head-and-Shoulders bottom, with the price having dipped back again in the recent past to mark out the Right Shoulder of the pattern. It is suspected that this Right Shoulder may be almost complete, in which case the stock should advance from here. In adverse market conditions the price may drop back to the support at the Right Shoulder low again, but this is looking less likely now.
The 3-year chart enables us to examine the Head-and-Shoulders bottom in some more detail. On this chart we see that the duration of the pattern has allowed time for the 200-day moving average to turn up, which is a positive development. The current bunching of the price and moving averages, which are now bullishly aligned, indicates that conditions are favorable for an uptrend to begin, which fits with our increasingly positive outlook for the sector. On this 3-year chart we can see several other positive factors. One is the sharp advance in the Spring which resulted in a relative breakout against PM sector stock indices and basket ETFs – we can see how it broke out against GDX at the top of the chart. This advance occurred on good volume, which is another positive sign. Finally the stock is not overbought At all on its MACD indicator, and so has plenty of upside potential.
The 6-month chart is not of much use technically, but it does enable us to see recent action in more detail. On it we can see that after rising sharply in October out of what is believed to be the Right Shoulder low, the price has reacted back to a support level where it is considered likely that it will turn up again and then advance initially to the resistance level in the C$0.60 area shown on the 3-year chart, before going on to break above this level later.
Senior Geologist Nigel Maund, who just happens to be my brother, took a quick look at the company and made the following observations…
“I have had a brief look at this and it looks very good. Here are the key reasons:
1.5 years to production commencing so will benefit from an upturn in the US$ gold price;
CAPEX is modest at US$ 48 million and therefore no great financial burden.
Project CAPEX Payback Period is rapid at 1.5 years.
After Tax IRR is very good at 52% at current gold prices.
Cash operating costs are in the lower quartile of gold mines at US$ 567 / ounce.
All In Sustaining Costs for gold are good at US$ 779 / ounce.
The underground mining grade is good at 11.3 g/t Au during the first 7 years.
The mine life is short at 7 years – however, there is considerable exploration upside potential around the mine;
Management has a good track record and looks competent.”
So – to conclude, Lion One looks like a solid investment in the junior mining space, that should at least perform well, and possibly perform very well, depending on what happens to metals prices going forward. Downside looks limited here, and there is a good prospect that a major new bullmarket phase will start soon.
It’s not all work and no play at Lion One of course, especially as it is situated on Fiji. In this next photo we see a couple of employees relaxing after a hard day’s work at the mine…
Lion One trades in very light volumes on the US OTC market, so it is considered to be much better to buy it on the Canadian market if interested.
Lion One Metals website
Lion One Metals Ltd, LIO.V, LOMLF on OTC, trading at C$0.335, $0.26 at 2.56 pm EST on 25th November 15.
Read more at http://www.stockhouse.com/companies/bullboard/bullboard/v.lio/lion-one-metals-limited#xqPRhYQFJzdzoYek.99
interesting article on lion one
http://southpacificmetals.com/2015/11/lion-one-metals-primed-to-breakout/
Lion One Metals primed to breakout
It’s been a long time since we have looked at any junior mining stocks – there hasn’t been much point with the sector trending ever lower. Now, however, with mining stocks being extraordinarily cheap, it is time to start turning up the better ones. Lion One is thought to be a good investment, since it is now comparatively cheap compared to some years back, has a bullish looking chart, and a positive fundamental story that is easy to understand. It is unusual too in that it is located on Fiji, which should make shareholders meetings a lot more fun than usual.
On its 6-year chart, we can see that after a big rise in 2010, Lion One has been stuck in a persistent downtrend until the Spring of this year, when a sharp rally broke the price out of it, and it is now evident that this rally formed the Right side of a Head-and-Shoulders bottom, with the price having dipped back again in the recent past to mark out the Right Shoulder of the pattern. It is suspected that this Right Shoulder may be almost complete, in which case the stock should advance from here. In adverse market conditions the price may drop back to the support at the Right Shoulder low again, but this is looking less likely now.
The 3-year chart enables us to examine the Head-and-Shoulders bottom in some more detail. On this chart we see that the duration of the pattern has allowed time for the 200-day moving average to turn up, which is a positive development. The current bunching of the price and moving averages, which are now bullishly aligned, indicates that conditions are favorable for an uptrend to begin, which fits with our increasingly positive outlook for the sector. On this 3-year chart we can see several other positive factors. One is the sharp advance in the Spring which resulted in a relative breakout against PM sector stock indices and basket ETFs – we can see how it broke out against GDX at the top of the chart. This advance occurred on good volume, which is another positive sign. Finally the stock is not overbought At all on its MACD indicator, and so has plenty of upside potential.
The 6-month chart is not of much use technically, but it does enable us to see recent action in more detail. On it we can see that after rising sharply in October out of what is believed to be the Right Shoulder low, the price has reacted back to a support level where it is considered likely that it will turn up again and then advance initially to the resistance level in the C$0.60 area shown on the 3-year chart, before going on to break above this level later.
Senior Geologist Nigel Maund, who just happens to be my brother, took a quick look at the company and made the following observations…
“I have had a brief look at this and it looks very good. Here are the key reasons:
1.5 years to production commencing so will benefit from an upturn in the US$ gold price;
CAPEX is modest at US$ 48 million and therefore no great financial burden.
Project CAPEX Payback Period is rapid at 1.5 years.
After Tax IRR is very good at 52% at current gold prices.
Cash operating costs are in the lower quartile of gold mines at US$ 567 / ounce.
All In Sustaining Costs for gold are good at US$ 779 / ounce.
The underground mining grade is good at 11.3 g/t Au during the first 7 years.
The mine life is short at 7 years – however, there is considerable exploration upside potential around the mine;
Management has a good track record and looks competent.”
So – to conclude, Lion One looks like a solid investment in the junior mining space, that should at least perform well, and possibly perform very well, depending on what happens to metals prices going forward. Downside looks limited here, and there is a good prospect that a major new bullmarket phase will start soon.
It’s not all work and no play at Lion One of course, especially as it is situated on Fiji. In this next photo we see a couple of employees relaxing after a hard day’s work at the mine…
Lion One trades in very light volumes on the US OTC market, so it is considered to be much better to buy it on the Canadian market if interested.
Lion One Metals website
Lion One Metals Ltd, LIO.V, LOMLF on OTC, trading at C$0.335, $0.26 at 2.56 pm EST on 25th November 15.
Read more at http://www.stockhouse.com/companies/bullboard/bullboard/v.lio/lion-one-metals-limited#xqPRhYQFJzdzoYek.99
5 mine permits approved in Fiji
http://www.stockhouse.com/companies/bullboard/v.lio/lion-one-metals-limited?postid=24316560
could lion one gain strength?
http://southpacificmetals.com/2015/11/could-lion-one-metals-ltd-gain-strength/
The stock of Lion One Metals Ltd (CVE:LIO) is a huge mover today! The stock decreased 8.22% or $0.03 on November 17, hitting $0.335. About 46,500 shares traded hands or 243.17% up from the average. Lion One Metals Ltd has risen 6.00% since October 19, 2015 and is uptrending. It has outperformed by 8.54% the S&P500.
The move comes after 5 months negative chart setup for the $20.16M company. It was reported on Nov, 18 by Barchart.com. We have $0.30 PT which if reached, will make CVE:LIO worth $2.02M less.
Lion One Metals Limited is engaged in the business of acquiring, exploring, and developing mineral properties. The company has a market cap of $20.16 million. The Company’s material mineral property is the Tuvatu Gold Project located on the island of Viti Levu in Fiji. It currently has negative earnings. It also has non-material exploration properties, including a tenement interest in the Olary Creek iron project in South Australia, and two exploration properties covering around 27,489 hectares within two special prospecting licenses on the island of Vanua Levu in Fiji.
Read more at http://www.stockhouse.com/companies/bullboard/bullboard/v.lio/lion-one-metals-limited#ZKZmiU7T4zhI3tJZ.99
Newest Mike Hoy Article
He said I could post around.
FIELD OF DREAMS:
By
Mike Hoy
11-3-15
I have followed Lion One Metals (LIO C and LOMLF US) since before they came public in late 2010 when the company was known as X-Tal Resources. I wrote my first article on LIO in January 2011 and I have followed them very closely ever since!
I have been captivated by the potential of this company from day 1 as I came to realize the existing hi-grade low cost epithermal system on their Tuvatu project, on the Island of Fiji, is located in “Elephant Country” where many of the world’s largest mines exist.
Much work was performed on Tuvatu through the late 1990’s as 80,000 meters of drilling resulted in an indicated and inferred ore body of 650,000 oz backed up by a feasibility study by Bateman Kinhill in the early 2000’s. The results of the study claimed that Tuvatu was economic at that time with gold at roughly $300/oz.
Over the last five years much time, work and expense has been carried out on the Tuvatu Project culminating with the granting of the mining permit in March 2015, and the release of the Preliminary Economic Assessment PEA on 6-1-15. Both of these events are milestones within any company worthy of notice by the investment community!
Since the public release of this information there have been two news releases stating in the first release that work would begin to dewater the existing drift with plans to build a second drift followed by a second news release announcing the filing of the PEA with Sedar. Other than that nothing!
Why is it, with mining permit in hand, a very positive PEA and an ongoing process where a debt financing to bring Tuvatu into production is in advanced stages that writers and the investment community, outside of two excellent articles written in the last eight months by Eric Coffin, have paid absolutely no attention to the very credible accomplishments performed by the management of Lion One Metals?
Without a doubt, the last several years have been the most challenging market in history for those who own precious metal equities. We are now beginning to see a strong resurgence within that sector where equities, which have been trading for a fraction of their fair values, are beginning to show signs of life. Sophisticated precious metal investors are backing the truck up taking full advantage of fire-sale bargains they know they will never see again!
Which leads me to ask the question; “why has Lion One Metals been over-looked in their purchases?”
Those of you who have worked with me in the past know the amount of time I spend on researching a project I choose to become involved with. All the research in the world is pretty much worthless if I have no idea what management is thinking and their plans to develop a project. They are the hands on experts, not me as my opinion or thinking means absolutely nothing if I am not on the same page as management! Therefore, communication from top level management is a must if any investor is to put any faith in what I say!
I have always taken pride in being able to answer the vast majority of questions from shareholders and potential shareholders. Under no circumstances do I accept “I don’t know” as an acceptable response for any questions I am asked.
Like me, many shareholders have become rather frustrated by the lack of information and communication being released from Lion One Metals. Many of you who have spent time on the phone with representatives from the company know exactly what I am talking about as, more often than not, your calls ended with more questions than you started with.
On 10-22-15 I had a short conversation with Walter Berukoff who is the Founding Father and CEO of Lion One Metals on this exact subject. In this conversation he made it very clear to me the answers I seek simply cannot be released without repercussions from the regulatory authorities. LIO was not allowed to update the previous feasibility study performed by Bateman Kinhill which resulted in the release of the Preliminary Economic Assessment PEA. This appears to be the greatest hurdle keeping a lid on the quantity of information being released to the public.
I have no doubt that some of the answers I seek may have, unintentionally, crossed that line. But, I also believe there is much to be said which can be released from LIO giving shareholders a much better understanding of the progress and direction being pursued by management to bring Tuvatu into production.
WITH THIS BEING SAID!
Regardless of what I think and feel, Wally and his team are obligated to conduct business in a manner which follows the rules and regulations of the exchange. In other words “it is what it is and that will not change until it does!”
After my conversation with Wally and hours of thought I have come to the conclusion that those who are currently shareholders in LIO are in for some very pleasant surprises down the road where their returns which, most likely will be measured in multiples, will more than offset the pain of investment exposure in the precious metals sector for the last several years.
There is much more I would like to say on this topic but that would turn this article into a book. Suffice it to say that the information I have gathered over the last several years on LIO from my research and conversations with key personnel within the company, most of which came from Wally himself, is not common knowledge fully understood among the investment community.
Many pieces to the puzzle exist for those who do their own due diligence; those who take the time to put these pieces together fully understand the potential rewards to shareholders as Tuvatu crosses the threshold into production. I have found that many investors who have built what is considered to be a sizable position in their own portfolios have done so as a result of their own homework and due diligence.
I personally believe the bits and pieces to the puzzle of Tuvatu are quickly coming together where the conclusions and thinking possessed by those who have spent endless hours of time on due diligence and research in LIO is about to become common knowledge understood in the investment world.
My conversation with Wally had some real rough edges to it. He has a company to build with a mess of regulatory restrictions compounding his efforts to do so. In my case, I possess knowledge gathered from research that I would love to have made public so investors and potential investors can formulate their own conclusions from their research publicly affirming to them that they are on the right path. Investors would much prefer to hear what Wally is thinking versus the thoughts running wild in Mike’s head!
A perfect example of this deals with information listed in the PEA which states Tuvatu will be closed in 6.2 years. Wally is not allowed to expound upon this but anyone who believes that Tuvatu is a small mine that will produce only a total of 350,000 oz of gold and then be closed in 6.2 years is sadly mistaken.
Successful work programs over the last several years have identified several hi-grade targets at surface which, in my opinion, when further explored will easily expand production by years. The proposed second drift alone is proof of what the future holds where no information has been released beyond the proposed development.
With the mining permit in hand I also believe there is a strong possibility that surface work is ongoing where a bulk sample program is underway to not only explore the land where these hi-grade trench assays are present but also have the additional benefit of building a stockpile where 1,000’s of oz of gold will be sitting on the ground waiting for the arrival and completion of the mill. The cost associated with the ounces of gold in the stockpile will be as low-cost as it gets. Unfortunately, I am not in a position to confirm this strategy as I do not know! But, I can’t help but think about the possibility of having 10,000-15,000 oz/au stock-piled at a low cost and what that means for any investor looking to participate in the debt financing. Seems like pretty good collateral to me!
WHAT I DO KNOW FROM THE INFORMATION RELEASED ON 6-1-15 IN THE PEA!
Below you will find a cash flow analysis I constructed from information which has been publicly released in the PEA on 6-1-15. I only forecast the cash flow for the first three years in line with what is stated in the PEA as peak production drastically falls off in year four and beyond. As a conclusion to the content in the paragraphs above, I personally believe there is a strong possibility production is very likely to not only extend well beyond the 6.2 years but also increase beyond the first three years stated in the PEA as new drifts and resources are brought online.
CASH FLOW ESTIMATES;
Below is a simple cash flow chart where total revenues are subtracted from total expenses. If the financing is to be raised where shares are issued instead of debt then these forecasted cash flow estimates would be divided by the total number of shares outstanding after the issue to arrive at earnings per share figures.
Since LIO has proposed a debt issue where physical gold is a redemption option versus cash to retire the debt; one would have to deduct the quantities of physical gold from net production while keeping the total all in cost associated with that production as an expense. This would initially be dilutive to earnings until the debt is retired but would result in substantially less shares outstanding which will sharply increase earnings per share after the debt is retired.
ASSUMPTIONS AS STATED IN THE PEA PUBLIC NEWS RELEASE ON 6-1-15;
Year 1; Total Gold Production 68,200 oz Total Cost; $622+$211=$833/oz
Year 2; Total Gold Production 78,600 oz Total Cost; $518+$211=$729/oz
Year 3; Total Gold Production 79,300 oz Total Cost; $499+$211=$710/oz
Total $ revenue/oz – Total all-in cost = Cash Flow with the price of gold at specific levels;
NUMBERS LISTED IN US MILLIONS;
GOLD PRICE; $1,100 $1,200 $1,500 $1,750 $2,000 $2,500 $3,000
Year 1;
Revenue; $75 $82 $102 $120 $136 $171 $205
Expense; $59 $59 $ 59 $ 59 $ 59 $ 59 $ 59
Cash Flow; $16 $23 $ 43 $ 61 $ 77 $112 $146
Year 2;
Revenue; $86 $94 $118 $137 $157 $196 $236
Expense; $57 $57 $ 57 $ 57 $ 57 $ 57 $ 57
Cash Flow; $29 $37 $ 61 $ 80 $100 $139 $179
Year 3;
Revenue; $87 $95 $119 $139 $159 $198 $238
Expense; $56 $56 $ 56 $ 56 $ 56 $ 56 $ 56
Cash Flow; $31 $39 $ 63 $ 83 $103 $142 $182
It is impossible at this time to predict the share structure of LIO until the financing has been completed.
I personally believe gold prices will be in excess of $1,500/oz in Year 1 making the cash flow of $43,000,000 US 2.5X the current US market cap of $17,000,000 and almost 2X the $22,500,000 Can market cap.
What if there exists 10-15+ years’ worth of additional epithermal production at Tuvatu? Just imagine, if you will, the share price of LIO in the event the supply of gold suddenly disappears and gold prices explode to levels not listed in the above cash flow chart.
What if, down the road, the public is denied the opportunity to purchase physical gold and silver at a time their emotions trigger an insatiable desire to own true wealth while they panic to unload interest rate sensitive bonds and inflated stocks in a market full of “Bagholders” supported only by the Plunge Protection Team?
What if the overseas banking issues of Cyprus and now Greece spreads to the most indebted nation of the world where there is a “slight of hand” transformation from traditional US taxpayer funded bank “Bail-outs” to depositor funded US bank “Bail-ins?”
Where do you think the money fortunate enough to escape a massive theft of this diabolical design will find a home? When do you think the public will begin to recognize the inherent risk associated with the deposit of one’s wealth and savings in a bank where there is virtually no return to the depositor and no repercussions to the thieves as they raid their, excuse me as I meant to say your “piggy bank?”
Multiple price increases would be in store for LIO shareholders in the event any of the above scenarios play out. The real payday separating LIO from the rest of the “pack” would occur in the event exploratory deep drilling discovers some very pleasant surprises beneath the epithermal system.
How many junior mining companies exist today with excellent projects where their market caps do not allow them the opportunity to fund ongoing work programs without diluting existing shareholders to infinity?
On a worst case basis; LIO’s epithermal system stands to make shareholders piles of cash for years to come. To be in a position where cash flow is available to fund exploration on a project as exciting as any in the world today with virtually no dilution to shareholders is a benefit shareholders have in LIO that few juniors can even dream about today.
Of the 80,000 meters of prior drilling, 60,000 meters of drill core remains on site where only two holes were drilled to depth. Both holes hit multiple pay zones where one hole returned assays of 284 grams au over 3.72 meters. Does the proposed second drift have anything to do with the results of this drilling?
Bottom line; the occurrence of any of these “what if’s” would create a whole new ball game for shareholders of Lion One Metals!
THAT AH HA MOMENT
This is the point in time where I was clearly able to recognize that all the frustrations built up inside of me, for whatever reasons, was a very large positive and not a negative!
My point of clarity; those who have done their homework are the investors who truly do understand what is going on in LIO and that is a very small group of investors. Proof of this is the fact that as LIO distinguishes itself as a leader in their sector there is virtually no volume in the market where the share price is well below being classified as “dirt cheap” and nothing is being publicly written or said.
Many may be aware of the existence of LIO as they may have had an introduction somewhere in the last five years; BUT, with the accomplishments in LIO and the fact that only one writer, guru or investment firm has jumped on board the bandwagon telling the story in search of future bragging rights preaches volumes to me! I believe the next few months will reveal an awakening in the investment world of LIO’s accomplishments spreading the LIO story in a whole lot of places it has never been before.
For those of you who are frustrated; relax and have a little faith in the knowledge that you possess. This is one time that you are onboard before the HERD! For those of you who do not currently own a position now might not be a bad time to stop your procrastination. I believe the stock has bottomed and the real challenge faced by investors with a desire to accumulate shares will be the availability to acquire those shares from the market at prices anywhere near these levels.
LIO’s recent move from $.29 C to $.45 C on total volume of 180,000 shares is a warning to all that the float is thin and any amount of buying pressure will move this company to a whole new level.
One question I did get a straight answer to from Wally is one that pretty much sums up the whole discussion for those with more questions than answers; “do you still feel that LIO is the best company you have ever had?” His answer, without skipping a beat, was in the affirmative.
The current market cap of $22,500,000 Can and $17,000,000 US with fully diluted shares outstanding of roughly 63,000,000 trading at $.355 Can is a far cry from his successes at Miramar and Northern Orion where they were bought out at $1,000,000,000+ and $1,500,000,000+.
Now you know why this article is titled “FIELD OF DREAMS!” “IF YOU BUILD IT, THEY WILL COME!”
As always, these are my own opinions and I have put my money on the table. I do own 200,000 options @ $.35. Other than that I have received no other compensation from LIO. The fact that my opinions and homework is the overall basis for this article means it is more important than ever for each of you to do your own homework as in the end your opinion may vary from mine.
I invite anyone to call with any questions, as I am sure there are many, at the number listed below or e-mail at the address listed below!
402-483-4484 Between 8:00 AM and 8:00 PM CST
mhoy@neb.rr.com
Mike,
Great looking chart: ready for break out !!!
image: https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcTjPpzydCxarRFTi5W05Lm_G90B-uSODXcYExtBUnuCmqBdtE2E3Q
Afbeeldingsresultaat voor cup handle stock chart pattern
image: https://chart.finance.yahoo.com/z?s=LIO.V&t=2y&q=l&l=on&z=l&a=v&p=s&lang=en-CA®ion=CA
Chart forLion One Metals Ltd (LIO.V)
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Read more at http://www.stockhouse.com/companies/bullboard/bullboard/v.lio/lion-one-metals-limited#AIcw6hxLWuVmT2pi.99
coffin comments on lio
Percentage wise, Lion One has been one of the stronger performers on the list. Management did a great job with it’s Subscriber Summit presentation which I think helped a lot and management was buying when the price was low. That is something shareholders love to see. Tuvatu has great leverage to higher prices and every tick up in the gold price should increase the odds of LIO closing a finance package.
Read more at http://www.stockhouse.com/companies/bullboard/bullboard/v.lio/lion-one-metals-limited#EPu6LkvopkjSL5Kg.99
Nice pop today on no news.
Something is brewing.
Are they close to announcing a financing arrangement?
They need 50 million dollars or so and trying not to dilute too badly. Hope it's going well.
Wally bought $15,000 of stock yesterday ---at least now we know he's still kickin.
Yeah with all of $3,400.00 being traded. Lion will have its day, though, as soon as the financing skies clear in Walley World.
Lion One is the top gold equity performer on the day!
Top 5 Performing Gold Equities
(among 98 listed on the various gold indices)
CompanySymbol Time(EST) Price Change $ Change %
Lion One Metals Ltd. LIO.V 15:30 0.34 CAD +0.08 +30.77%
McEwen Mining NYSE:MUX 11:03 0.91 USD +0.10 +12.35%
Golden Star Resources Ltd NYSE MKT:GSS 11:02 0.22 USD +0.02 +11.73%
Torex Gold Resources Inc. TSX:TXG 15:59 1.26 CAD +0.13 +11.50%
McEwen Mining TSX:MUX 15:48 1.20 CAD +0.12 +11.11%
source: http://www.kitco.com/
Company now worth less than $12 mill.
I never thought it would get this low--I wonder what the heck is going on in Wally World.
Waiting for financing
Investor relations Joe Gray say's financing options being weighed by management. They are doing their best to get a package deal with the least amount of dilution possible.
Looking for about $50 million for production equipment and labor to begin drilling and mining expansion.
Announcement will be made as soon as contracts are signed.
Appears imminent, but could still be another month or two.
New Lion One Mike Hoy article
and also a different article on gold and money posted on Gold Eagle and Kitco Link is below.
http://www.gold-eagle.com/article/gold-current-world-events-and-how-all-pieces-may-tie-together
SETTING THE STAGE FOR LION ONE METALS!
By Mike Hoy
8-19-15
I have been involved with Lion One Metals (LIO-LOMLF) from the beginning when they came public in early 2011. I have written several articles on Lion One Metals with the first in May of 2011 outlining the potential of what I saw in this company. Work programs over the last 4.5 years have brought LIO to the point where it is now time to turn potential into reality!
LIO’s Tuvatu project in Fiji opened my eyes to the “Elephant Resources” of the Pacific Rim. Research of The Pacific Rim reveals multiple calderas which host massive multi-million oz precious and base metals mining deposits which are in production or being placed into production.
It is important to note that not all Pacific Rim calderas host mineralization; those that do have rewarded their shareholders very handsomely. Does LIO host an “Elephant?” Time will tell! What we do know is that this caldera hosts mineralization and the surface has just barely been scratched.
Recent news releases announcing the granting of the Tuvatu mining permit March 23, 2015 in conjunction with the recently released Preliminary Economic Assessment June 1, 2015 is just the beginning.
Highlights of the PEA from the June 1, 2015 news release;
Pre-production capex of $48,600,000 is necessary to achieve production with an operating cost of $567/oz; A further $26,000,000, or $211/oz, is required after preproduction in sustaining capital as all in cost required to develop, sustain and close the operation over the stated 6.2 year life of mine. Total all-in sustaining costs of $779 per ounce;
1.5-year payback followed by production of 91,229 ounces in year 2 averaging 16.5 grams per tonne gold, and 92,056 ounces averaging 14.40 grams per tonne gold in year 3;
Gold production of 352,931 ounces at an average grade of 11.3 grams per tonne gold; current resource of 1.1 million tonnes indicated at 8.46 grams per tonne gold (299,500 ounces) and 1.5 million tonnes inferred at 9.7 grams per tonne gold (468,000 ounces) at a cut-off grade of three grams per tonne gold. Based upon this information:
Pretax net present value of $117-million (5-per-cent discount rate) on the current resource of the Tuvatu project;
Pretax internal rate of return of 67 per cent;
The limited information reported to the shareholders is excellent news as this info is just what I had hoped to see, even though I find it also raises many unanswered questions.
LIO is in the process of raising $55,000,000 US to make Tuvatu a reality. For two years Wally has worked with and entertained offers of finance from 3rd parties looking to acquire a footing in a hi-grade low-cost mining project.
Currently, Lion One Metals has roughly 63,000,000 sh outstanding fully diluted with a market cap of $21,700,000 Can or $16,500,000 US trading at roughly $.315/sh/Can.
BLURRED VISION!
Anyone with “eyes on the stock” is already aware of what is written above; SO WHAT IS MISSING? Easy question to answer; “Eyes on the Stock” and the corporate development plan addressing the fact that this deposit is not just a 6.2 year resource!
I will explain these two issues in greater detail after I lay the groundwork for what I believe is an ideal market to identify shareholders and financing necessary to make Lion One Metals a household name. I believe there exists today a small but rapidly growing contrarian market in search of investments just like LIO. I expect this market to explode in volume as the rest of the world awakens to the fact that gold is not dead, gold stocks are dirt cheap and those who believe otherwise should open a bank account in Greece.
To tap this market one must;
First; find them; identify where the market exists as these investors understand the difference between fact and fiction and that all is not as the talking heads would like us to believe! These people are fully aware of the risks associated with traditional bank deposits and Treasury bond investments; “bail-in” and rising interest rates are just not acceptable risks to them particularly at a time where that risk has never been more dangerous. They would much prefer to invest their money where their returns are measured in the creation of pure wealth via hard assets where they maintain a level of control versus fiat paper being created in exponentially greater quantities of worthlessness. Their numbers are rapidly growing and they are an untapped market.
Second; understand their thinking; these people do not accept normalcy bias as an excuse to avoid issues which contrast with the nonsense being spewed from the talking heads. They are fully aware that the events happening in Greece can erupt anywhere in the world and they are looking to avoid the same fate. They believe it is inevitable and a given that gold will trade at much higher prices as the economic and financial problems of the world intensify. They know and understand that the weakness in gold and gold equities are opportunities at a time when the necessity to own them have never been more obvious. These people have no doubt that physical precious metals and precious metal equities belong in their portfolios today. To be successful in working with these investors one must understand the motivation which has brought them to your doorstep. These investors are trailblazers seeking other like-minded individuals who share the same thinking. Most of the time their own families have very little understanding of what makes them tick! Once they find what they are looking for they will know what to do and they are excellent shareholders who recognize long term potential.
Third; once these investors show up at the door communication with shareholders and prospective shareholders is imperative as no sophisticated investor will invest and keep their funds with those who do not win and maintain their confidence. You may have the greatest project in the world but if you are not successful in sharing a plan to develop your project investors will not be motivated to invest or worse yet, drive away.
We all know and understand that this is the mining industry where change is an everyday occurrence and risk is always present. These investors understand there is a “best case” and “worst case” scenario with each project. If investors have a grasp of both scenarios then any worst case scenarios will not leave investors with the feeling of being “blind-sided” and a best case scenario shows that management delivered and shareholders made a good decision with their investments.
WHAT IS WRONG WITH LION ONE METALS?
The information contained in Lion One Metal’s PEA should have shareholders and anyone with “eyes” on this company buying and building positions even in the face of the weakness in the paper price of gold.
I have purposely sat back waiting to see what attention would be drawn to the stock as a result of the positive PEA. I had hoped to see on a minimum basis trading volume in the stock double on an average trading day. Unfortunately this has not been the case!
I know the weakness in the paper price of gold is a major deterrent which has had an impact on precious metal equities but, I prefer to believe that the positive results of the work performed by management in conjunction with the development of a hi-grade low cost project has just not reached the eyes and ears of those who will recognize this company for the bargain it is once they find and understand the value hidden within.
Why do I believe this way? Very simple! The three points above describe the investors I work with, the thinking we share, the sectors we concentrate on and the frustrations we have. The fact that volume is nonexistent after the granting of mining permits in conjunction with a very positive PEA, where the stock price peaked on the morning of the announcement and since fallen 47.5% on practically no volume, tells me this market has not been touched and there is work to be done in reaching this sector.
It is time for LIO to be recognized for the investment opportunity I believe it is. I plan to use my skills and experience to be a part of that as this project and this growing market is the world I live in. I have been quiet for much too long and it is now time to make everyone who believes as I do that Lion One Metals belongs in their portfolios. The fact that no one seems to have an interest in the stock with the progress this company has made in moving the Tuvatu project into production preaches volumes to me.
NOW TO THE POINT!
In my opinion, ownership of physical precious metals is a given and should be a component on every individuals buy list. On a worst case basis the price of gold and silver will rise and fall but these two commodities will never be worthless and can never be created out of thin air!
Those who believe that the day may come where access to purchase additional above ground physical gold and silver may be restricted, for whatever reason, will then find that precious metal equities may be one of the only options available to satisfy the desire to increase precious metals exposure.
The last several years have been as tough on mining investors as any time in history. Mining equity prices are trading at all-time lows with the paper price of gold and silver as manipulated as puppets on a string. Oddly enough, all this is occurring at a time when the fundamentals for owning gold and silver have never been better.
The bearishness in the gold market is as ridiculousness as the bullishness in the stock market. One is trading near all-time highs supported only by “The Plunge Protection Team” while the other is trading at multi-year lows with barely a bid in sight to buy precious metal stocks while physical gold and silver demand explodes.
If ever there was a time to buy low when “the blood is running in the streets” now seems to be a pretty good time when it comes to precious metal stocks!
Investors like me believe these circumstances have created a terrific opportunity, assuming the traditional markets survive the storm which is on the horizon. I believe junior mining companies which are in a position to begin taking gold out of the ground over the next couple of years is a specific sector of focus as their “first pour” could coincide with the next leg of gold’s bull market run. This next leg in gold will be very profitable for those entering production while those in production today deplete valuable resources hoping the cash flow will keep their mines afloat as the paper price of gold seeks its bottom.
My goal in the next article will be to address specific questions which to date remain unanswered while offering strategies to bring more “eyes to the stock” gaining investor confidence every step of the way. I also plan to share financial numbers which I have put together from information released in the PEA. You might be surprised at what you see.
Any of you with questions please feel free to contact me as the more you know and understand about LIO the easier the decision as to whether this stock belongs in your portfolios.
We own a boatload of shares above 1.50 C with some being purchased above $2.00 C. My only regret with owning shares at much higher prices lie in the fact that the current price would multiply the position by 3-5 times. I would love to own the additional shares in our portfolios.
As always, these are my own opinions and it is up to each of you to do your own Due Diligence. Seems to me that that is what this article is all about. Outside of owning options in LIO I have received no compensation for writing this article.
402-483-4484 8:00AM-8.00PM CST
Mike,
Grade is King
found this post from Stockhouse on Lion One:
came across an interview on the gold report that touches on Lion One......it's a few years old but still worth a read
http://www.theaureport.com/pub/na/grade-is-king-andrew-richmond
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TGR: Are you working on any other projects in that region?
AR: I'm working on a project in Fiji owned by Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LY1:FSE). It's quite fortunate because it has access to infrastructure and a trained workforce. Its Tuvatu project is located about 20 minutes from an international airport. It has good infrastructure, such as ports and roads. It has a trained workforce, because the other big gold mine in the region, Vatukoula Gold Mines Plc (VGM:LSE; VATKF:OTCPK), has downsized its staff. Lion One has also had extensive negotiations already with the local landowners, who can often hold up projects. A lot of them are hired to work on the project.
A lot of the people in the Pacific Islands don't understand mining. They may hear bad things about it. Gold Anomaly Ltd. (GOA:ASX) in Papua New Guinea flew some of the local chiefs to another mine nearby so they could get an understanding of what mining actually is.
TGR: Do you think that Lion One will be allowed there?
AR: My personal opinion is that it will. There have been some political issues over the last 10–20 years with a number of governments being overthrown. The one thing that's been consistent through all that is the security of mining tenure. The governments haven't interfered with those. The Vatukoula mine has operated consistently through all that. It's even changed ownership two or three times.
TGR: What can you tell us about Tuvatu?
AR: Tuvatu is a high-grade underground project. It's an epithermal gold deposit, which tends to be a narrow vein. There was an exploration drive by Emperor Gold Mines Ltd.in the 1990s, but the company decided not to persevere due to the gold price prevailing at that time. A positive about this deposit is that the gold is visible on the drill core. I've worked on over 100 gold deposits during my career and there's probably only three or four where I've seen visible gold. It also has 600 drill holes going through deposits. I'm really confident that there's mineralization there.[color=red][/color]
TGR: Are those all NI-43-101-compliant drill results?
AR: Not all of them are. NI 43-101 compliance means that a qualified person (QP) will have signed off on them. Now there has been an NI 43-101 document issued by Lion One that has been signed off on by a QP, accepting those drill holes, even though they were mostly drilled in the 1990s. The company is also undertaking its own drilling program. There are about 40–50 drill holes, which are going to support the old drilling.
The company is also implementing a very good quality assurance and control program to ensure that the samples are high quality and the assay results are robust. That supports the historical drilling if the results are the same order of magnitude on average.
TGR: There's no resource as of yet, though?
AR: They do have a resource that was announced in late 2010. I've been hired to provide an updated resource estimate that will include its current drilling program, and to make sure all the processes put in place satisfy NI 43-101 rules and regulations on an ongoing basis. The work is still in progress, but hopefully it will be published sometime this year.
Read more at http://www.stockhouse.com/companies/bullboard/v.lio/lion-one-metals-limited#ZWS43VsP2A5ZPYS1.99
Awful quiet lately.
Did they pump out all the water yet?
Would love an update. How many workers, equipment upgrades, roads, etc.
New Interactive Presentation
[This new presentation is pretty cool, . It shows a 3D version of the mine plan in one part, and a 360 degree view of the mine area underground on another, with drill holes. It also has a nice Google Earth photo that shows how large the permit area is. You can zoom in on the icons to the decline portal and the Tuvatu camp.
http://www.liononemetals.com/fiji-gold/overview
Lion One Advances Towards Production In Tuvatu Project
http://fijisun.com.fj/2015/07/20/analysis-lion-one-advances-towards-production-in-tuvatu-project/
Read more at http://www.stockhouse.com/companies/bullboard/v.lio/lion-one-metals-limited#FGw6ibjAGhUCZ65d.99
lion one is 7th highest grade gold mine in the world?
Interesting article today regarding the world’s highest grade underground gold mines. Based on the 2015 PEA of 352,000oz @ 11.3 g/t ----> Lion One should be ranked #7.
Tuvatu PEA: 352,931 oz. initial gold production over first 7 years at average grade of 11.31 g/t Gold
http://southpacificmetals.com/2015/07/toguraci-mine-sits-at-fourth-with-16-gt-grade-of-gold-in-reserves/
Read more at http://www.stockhouse.com/companies/bullboard/v.lio/lion-one-metals-limited#mTuVoMCbEBip7DFV.99
It's the complete PEA that they put out...
it's interesting to see the difference depending on gold price...
Gold isn't going in the right direction right now...
I hope they announce the financing pretty quickly!
Good luck folks...
New Report out today:
http://www.kitco.com/pr/2692/article_07152015131149.pdf
$21 million market cap for LION now that the poor Loonie is going lower. Ludicrously small for this great project. Here's a good blog post from South Pacific News.
Lion One ready to start mining Tuvatu
There is no doubt that Tuvatu is one of the most promising, if not the most promising undeveloped gold project in the world at the moment. And one of the best for a long time. Just look at its location along the major pacific structure, host of many world class mineral deposits from Japan, through Philippines, Malaysia, Indonesia, Papua New Guinea, then off through the Solomons, and then to Fiji. Few of those great deposits, or even Vatukoula in Fiji itself, which has already produced over 7 million ounces of gold (that’s US$8.4 billion at today’s gold price) had that amount of gold in their early days. The upside at Tuvatu both at depth, and along strike, as well as other prospects within a couple of km of the Tuvatu deposit is as good as any project in this part of the Pacific, and many of the Company’s prospects in the area highlight that. Whilst most companies are scrambling to save their cash, with little or no work being completed, Lion One seems to have marched forward at just the right time.The recently completed study is entitled as a preliminary economic study, but with a pre-feasibility study and a feasibility study having already been completed, as well as an exploration decline from which bulk samples were taken for metallurgical testwork,in addition to detailed mapping and sampling, this study is obviously just an update of the previous studies. My understanding is that the Company is ready to commence mining with fixed quotes for the process plant and much of the equipment. Their management has years of experience putting mineral deposits into production in many regions on the world, and in each case, it has been a real company maker. With the following parameters at US$1200/oz gold price, I would have thought financiers would be flocking to Lion One’s door, as this really is a no brainer.
pre production capital US$48.6 million
cash cost per ounce US$567
AISC per ounce US$779
av grade for the first 7 years 11.31 g/t Au
NPV (of starter mine) US$117 million
IRR 67%
and importantly, everything is permitted……everything.
Great gig and moving forward. I've heard financing for my mine will be very favorable.
Lion One Announces First Phase Of Underground Work at the Tuvatu Gold Project in Fiji
June 23, 2015
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North Vancouver, B.C., June 23, 2015 Lion One Metals Limited (TSX-V: LIO) (ASX: LLO) (OTCQX: LOMLF) (FSE: LY1), (“Lion One” or the “Company”) announces the first phase of underground work programs for its 100% owned high grade Tuvatu Gold Project located on the island of Viti Levu in Fiji.
The first phase of work includes both dewatering and refurbishment of the existing decline, which accesses mineralization targeted for development in the initial years of the proposed mine plan in the 2015 PEA. The Company has previously conducted water inflow studies and has also recently renewed the dewatering license it first received in 2011. The second phase of proposed underground work includes the development of a new western portal and 500 meter decline to be driven into the central mineralized zone of the Tuvatu resource.
“The existing underground infrastructure saves the Company considerable time and capital expense and provides a great opportunity to extend mineralized zones, increase levels of confidence in the resource, and identify future underground drill targets”, commented Lion One Managing Director Stephen Mann. “This short work program expedites site preparation and gives us a tremendous head start in the advancement of Tuvatu towards development and production”.
Prior to Lion One’s involvement in the Tuvatu project, previous owner Emperor Gold Mines of Australia undertook numerous technical studies in an effort to advance the development of Tuvatu. During this same period Emperor was an ASX-listed gold producer, and was the owner and operator of the nearby Vatukoula gold mine. Emperor commissioned numerous engineering studies utilizing its own expertise and that of recognized consulting firms such as Bateman Kinhill (for pre-feasibility, feasibility, and process plant studies), Knight Piesold (for tailings dam storage facility studies), Sinclair Knight Merz (Environmental Impact Assessment), AMC (Geotechnical Assessment), Orica (drill and blast evaluation), Vigar and Associates (Geology and Resource Estimate), and a number of companies for metallurgical testwork (Ammtec, Metcom, Amdel). As part of those studies, Emperor also completed an underground decline to access a number of the identified mineralized structures, and for bulk sample analysis. The existing underground infrastructure consists of a 3.5 meter x 3.5 meter exploration decline extending 600 meters to a depth of 250 meters below surface, with 1,600 meters of total underground development including cross cuts, raises and drill stations. The existing decline was completed in 1998 and is accessed from a portal located on the northern portion of the Tuvatu resource, intersecting up to 14 of the lodes identified in Lion One’s 2014 resource estimate.
Lion One engaged AMC Consultants Pty Ltd (“AMC”) to undertake the mining and geotechnical aspects of the recently completed Preliminary Economic Assessment (“PEA”) for Tuvatu (see news release dated June 1, 2015). The mine plan in the PEA indicates shrinkage stoping to be the recommended mining method for the steeply dipping veins of the Tuvatu resource. Mineralization targeted in the first two years of the proposed mine plan can be accessed from the existing decline, and as a result, its immediate dewatering and refurbishment has been recommended to minimize development costs during the early stages of the project.
Surface work will be carried out by Lion One Limited staff in Fiji, with the help of several domestic contractors. The development of the second decline will be undertaken using experienced miners within Fiji. The host rock in the resource area is primarily an impermeable biotite-monzonite intrusive and generally dry, and ground conditions have been rated as “fair to very good”.
The site is perfectly located, accessible by a good quality sealed and partly unsealed road and lies 17 km from the company’s headquarters in Fiji, located 1 km from the International Airport in Nadi. The permanent Tuvatu camp site is fully equipped with power, water, communications, office facilities, and accommodations for work crews
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