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Be careful trading it. They hit a couple hot holes and they will just buy LKA. This is what makes the GW mine so different. Everything found is essentially money in the bank as all the groundwork has been laid. Both companies are priced for disaster.
Youre right. I was speaking generally about the type of deal. Its initial drilling results that they are paying for. Its no different than paying a property owner 500k to explore for oil. If they want it, they take it. LKA is WAY beyond this point. Kinross is going to run a full exploration project here. They aren't drilling a few holes, they are moving in. I see your point I just think you are looking at this incorrectly. I also think it COMPLETELY validates the drilling results of the past year.
Chuck- These are all classic "little company" deals meant more to keep a constant source of news coming than to actually further the project. We are talking about Kinross. We arent talking about some mid level producer that no ones ever heard of. Additionally, those companies had to get some cash in the deal as they will be left with next to nothing if all options are exercised. I understand your point but completely disagree. Additionally, those deals are constructed that way to prevent companies from sitting on options. The property owner doesn't want to be hamstrung if the other party can't come up with cash or is financially unable to continue exploration efforts. I think its safe to assume that LKA has no such worries with Kinross. With all due respect, those comps you posted are completely irrelevant when it comes to looking at this deal. Once again, we are talking about Kinross, a $2 billion company
It's Kinross. You think they sign deals like this to sit on it??? Why? Just spoke to Kye. Kinross is mobilizing drilling equipment as we speak. As for the market, who know and who cares? Everyone not buying now will be fighting for shares when they are a buck or more. Chuck, look at production history. Look at recent drilling results. Look at financing with the koski family. Look at this deal. You dont need to be a CFA to understand that fundamentally something has changed. LKA just partnered with one of the biggest gold producers in the world. Not sure what else you could ask for.
Not to mention that its a deal with the worlds fifth largest gold producer. These guys are moth balling and terminating exploration projects all over the world. And they cut a deal like this with LKA??? This project has NEVER had a bigger vote of confidence. Majors have absolutely slashed their exploration budgets. They get it. They must think its there, and in a big way. I'm absolutely blown away anyone could be anything but ecstatic
Chuck, you must be new to the industry. I have never seen a major do a deal like this. Period. They agreed to take on 100% of the exploration risk. Its an ok deal??? Well, what would be a good deal? This is fantastic! Exploring all of those claims could take 40-50 mill. LKA gets a free ride. No money up front? Man, thats an interesting take on this deal. I have never seen a joint venture like this where the small company doesn't have to put up a dime. Youre a hard guy to please
Well, then so did Kinross. WOW. I knew those drilling results would do something positive but Ive never seen a deal like this. Kinross has to take 100% of the risk and LKA gets the option??? Kinross thinks theres something big there or they would never cut a deal like that with a company of LKA's size. They also included a one way buy out provision. Well done LKA!!! LKA basically just got gifted $25 million for exploration. Apparently, thats the minimum it will take to explore all of the claims and Kinross is already moving drills into place.
The price of gold would explain it but it would need to go A LOT lower. LKA's cash costs while in production are $200. You could actually make the argument that sub $1000 gold makes them even more valuable. Miners need margin. Virtually all of them are burning cash. This thing is going much higher, sooner or later
This stock is cracking me up. They get an awesome financing deal done, straight equity at reasonable prices with no warrant or option overhangs, start drilling, produce awesome drill results and the stock goes down. Now that my friends is a COLD market. That's the kind of price action that defines a bottom.
Stick with it. I was able to pick up a good chunk of stock at .40 yesterday. Had to wait a while though.
Participating preferred stock? Not sure what you are talking about
Nope. But like I said, it's going to take time. We probably wont have solid results with definitive conclusions for AT LEAST 1.5 years. Thats just the way drilling goes. The big action will happen on this one way before that though. Other mining companies wont sit around and wait til LKA proves they have another 1.5 million ounces in the ground. Too expensive. My guess is they will be bought or partner with someone on the project way before the drilling program is over. They are just too cheap and too attractive. No debt, super tight share structure, stable geographical location etc etc. Ive said it all before, probably too many times:) Best risk vs reward exploration scenario I have ever seen. Not saying its the best exploration project ive ever seen, just most attractive on a risk reward basis.
Yeah, I'll take a stab at it. I expect nothing significant in the form or quarterly results from LKA for a while. Regardless of how well drilling is going, it takes time. It's like playing Battleship, you know you have hit something but you have no idea how big it is until you get additional hits. However, when you consider LKA's history and past production, this thing is going to move a lot faster than normal operations. Everything about the project has been proven except how much gold is there. When you consider LKA's cash cost per ounce, they are even more attractive to other mining companies considering the pull back in gold. These initial core results are fantastic. It's early, so they dont mean a whole lot. But, it's better than you could have hoped for. Anyway, something is going to happen here. Bigger mining companies aren't going to sit back and wait for LKA to hit it. It will be too expensive at that point. Someone is going to step in here for a piece of the action. They have to. Every good core that comes up just drives the price up. I believe the gold is there and I believe they will find it. All of the geology suggest they have just scratched the surface and drill results seem to confirm that. However, I expect to make the big money on this one before the mother lode is uncovered. Gold is expensive to mine, getting more so all the time. LKA has obscenely high grades and low cost. They have no debt and a mill in cash. Some big miner will want a piece of this. My guess is it will happen in the next 6 months. Simple supply and demand. All of the major gold miners need more margin. It's that simple.
What does the price of the stock have to do with anything? There are all kinds of reasons, especially with a mining company. Waiting on core analysis to come in, waiting on grades from lab, possible development/deal and hoping to make it part of the press release (we can only hope!). Anyway, theres tons of reasons. Plus, not sure what you are expecting to see in the release anyway. Its all about the drilling program which the company has been providing updates on along the way.
There are A LOT of reasons why you would file late. RELAX
I'm trying!!! Man, this market has really tightened up.
I get it. And I understand the question completely. But the stock lost value simply because it went down. If you split a stock 1 for 2, the immdediate consequence is half the shares at double the price. Thats exactly one of the reasons I have been pounding the table on this one. Reverse splits suck. But its the first time LKA has ever done one and I can't see a need to ever do one again. The result however has created a big opportunity. People that have just casually tracked the price see a stock that hasn't moved. However, post reverse split has seen the company lose 50% of its value. At the same time, they raised $1.8 mill on a straight equity sale, which is unheard of in the junior/exploration market right now. It's started the drilling program and results have been better than could have been expected so early on. Not to mention that the float has been cut in half. This isn't just an LKA problem. This is the same song that virtually all gold mining shareholders are singing. Just a brutal market and has been for some time. LKA completes a financing with a committed, involved and ridiculously deep pocketed investor, in a straight equity deal, launches new and first ever core drilling program to expand operations, releases phenomenal initial results, cuts the float in half and eliminates ALL debt and their share price gets cut in half. Like I said, brutally cold market
Not a stupid question. They did a reverse split, which cuts the number of shares you have in half, it doesn't cut the value. Now typically it does hurt the value of the stock because USUALLY its a signal of weakness and a float that has gotten out of hand. That wan't the case for LKA. They wanted to raise money to expand exploration and they wanted to get rid of some debt. Reverse split made the most sense considering the state of the gold market. You might want to hold on to those shares a bit longer. Theyve had some pretty awesome drill results recently. Its still early on in the drilling program, but the results are looking pretty dang good. It's not being reflected in the stock price but it WILL impact this company. Something is going to happen. It has to. The only thing LKA has left to prove is that the gold is there. When you consider the current price of gold, industry average of cash cost per ounce, Lka's cash cost per ounce, the exploration potential at the golden wonder and most importantly, the relatively obscenely low cost and turnaround time of converting new found gold formations into actual production (mining it, milling it and selling the gold) in relation to other exploration projects, it's just not comparable. Someone is going to want a piece of it and my guess is sooner rather than later. Every hole they drill that comes back with measurable gold is just driving the price of any proposed deal much higher. Anyway, thats my take on it
Yes. I believe sometime next week
Gotcha. Agreed. Especially when you consider how horrifically undervalued it is. At the current price, there is absolutely ZERO upside priced in. As a matter of fact, the company is trading at a substantial discount to book. I'm still absolutely blown away that recent drilling results haven't produced a big stock run, but I guess thats the kind of value you have to target as an investor. Also, most investors and market commentators dont truly understand the gold mining industry. I'm still absolutely certain that historical results of the golden wonder mine, current exploration efforts and recent drilling results will prompt SOMETHING to happen. It has too. A bigger gold miner or a savvy institutional investor will step in to get at least a piece of this thing. They have too. Exploration has gotten CRAZY expensive and the price drop in gold has moth balled nearly every major exploration project. LKA, as it is an operating mind with mind blowing grades and ridiculously low cash costs per ounce, presents a low risk high reward exploration opportunity with unprecedented turn around time as it relates to the time and money necessary to produce gold after it has been found. Call me a Kool Aid drinker. This stock is going significantly higher
Rock on brother. I'm not sure I get your point.
Must be from newsletters. A couple have picked up on LKA's story and the drill results. Looks like we are finally gaining some traction (fingers crosse)
Buying at 75? What do you mean?
It is the real deal. I know for a fact that those initial drill results made some waves, both with institutional investors and other mining companies. I can't get any action below .50 either. I'm siting at .44 now. Is that you that keeps jumping in front of me by .001? Guess I will just have to keep walking up the bid. And the lack of liquidity is one of the things I love about it. Makes it a real pain to buy the stock but speaks volumes about the company. They are the only exploration opportunity out there that doesn't have to rely on diluting existing shareholders to finance ongoing operations. They sold some equity but that for the sole purpose of ramping up exploration.
When I wrote that post, I had just picked up 1000 shares or so at .43. Rest of my order sat there all day. Trying for more at .44. Doubt I will get it. But a guy can hope, right?
Buy it now fellas. Gettin it at sub .40!!! You boys losing faith? Dont. This is what we have been waiting for. I'm telling you guys, you cant do cores like that and not get some serious attention. Everything else is noise. Buy it. All this stock at below .50 is free money. I just put another bid in at .40 for 25000.
Sure has been quiet on here. Looks like we may get another shot to buy this at .40 or less. That would be awesome. Keeping my fingers crossed. I, for the life of me, cannot understand why someone would sell this stock at these prices, especially after those drilling results. LKA could fire sale this mine tomorrow at a price that would be comfortably more than double the current market cap. As they have no debt, that means we have a stock that is trading at less than half of book value. An exploration play with phenomenal drill results at that. Absolutely mind blowing. But I guess thats what makes a market.
It was in the very first release of drill results. Its there. It was 30 ozs and change.
It was worth the wait!! Picked up another 25k or so at .43
Yes. I was hoping to get more at .50 or below but that time may have passed. I actually need to pick up a lot more. Keeping the fingers crossed that we will be able to get our full position in place before this thing goes nuts.
Agreed. Its go time on this one. All of the things that have held this stock/company back in the past have been addressed. They did a fantastic funding (which in this market for junior minors is unheard of right now), amazing drill results, no more debt, no more enviromental liability, etc etc. Market will catch on. Gonna be a fun ride
I'm chasing it now, which i NEVER do. But those drill results. You all know my thoughts. This is, conservatively, 40-50mill company ALL DAY LONG. When you consider their location, their cash cost per ounce, average grades, cash in the bank, no debt, and now those drill results, I'm telling you, they wont be dancing alone for long. This stock will have a 100-150 mill market cap in the next 12 months. Now, they will have to earn it from there. But they are going there.
Terrified. About to enter a bid for 25000 @.51
Sellers getting nervous??? Come on folks! I'm stacking up bids in the .40's. Where have the sellers gone? You post blocks of 30,000 shares or more and just sit there, 10% above the last trade? If you want to sell either break up your trade or hit me at .45. It's a simple game
They didn't contact kye. I guess he contacted them and asked them to cease and desist. Then, they actually had the stones to request that he pay them for a marketing campaign and the negative messaging would be replaced with enthusiastic and positive posts. He then threatened litigation and got his lawyer involved. The guy went away pretty quickly. It got started because i forwarded Kye a few posts that were being put up. The "desert dirt scam" was my favorite. Apparently the guy was referring to that famous desert in the Colorado rockies at an elevation of 10,000 feet. Lol!!
Alright pal. For those of us who have followed this stock for years, and have heard this all before, state your case. Lets hear it. Desert dirt scam?Pump and dump? Lets have it (yawn). These are always good for a laugh. Oh, and the "some guy" reference? This is a message board. Guy had a screen name. I asked for his social security number and DOB but he stubbornly declined. Sorry I couldn't be more specific in my references as it relates to a message board. LMAO!!
Couldn't agree more. I'm with you. I will buy all you got at .40 or below. I've been to the mine. Call Hinsdale County. Call Kinross, Barrick and Klondex (to name a few) who have/still do process the company's gold. I'm a big believer in due diligence and skepticism. But this one is super easy to vet. When this thing hits $3 or more, you can't say I didn't tell you. Been investing in mining companies for more than 15 years. You cannot have their production history and then produce those drilling results and not get noticed. Its when not if. I give it 6 months at the MOST.
I'm so cofused. Do these guys get paid for posting things like this? I actually spoke to Kye, LKA's CEO, about some of the comments that have been posted on here. Cant remember the guys name, but there was a poster on here every other day saying LKA was a scam. Same guy actually contacted LKA and said that negative posts "could be prevented" if LKA hired his firm for marketing purposes. There is certainly a scam afoot, but its not with the gold company!!
Gotta love these block sellers. I'm hoping they push this thing down to the .40 range. Another bite at the apple. I'll take everything they have at .40 or below. Should probably take it at .50.
Cracks me up when someone enters a sell like that on a micro cap stock like this. Guys probably SHOCKED his order hasnt been filled.