Lion One Metals Ltd (LOMLF)

[ctoivo]

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,