TSX:LSG.DB - Post by User
Comment by
soladadeson Jul 25, 2012 5:21pm
396 Views
Post# 20152335
RE: RE: RE: RE: RE: Why LSG over other fast movers
RE: RE: RE: RE: RE: Why LSG over other fast movers The biggest difference is LSG is a producer - with positive c/f - no need to go to market for financing for expansion plans etc. $800 M capex for NKL - yeah, and then factor in 20% cost over-runs. Biggest question is, where are they going to get the financing? and at what cost/what dilution? You are comparing a flower blossom (NKL) to a half-grown apple (LSG) (which is on its way to a full grown apple). In this type of environment, if I was you, I would stick with projects that have been "de-risked" as much as possible - with bias towards undervalued producing assets. Even if NKL gets financing, mine permitting et al will see production in maybe 2014/2015 at earliest. Not even close IMO. One is quasi-speculative, the other a good solid producing asset - ghee, in this day and age with these markets, gotta go with the producer b/c, afterall, it's all about $$ flows and profit. Why not buy a bit of both? 70% in LSG and 30% in NKL.