Lion One Metals Ltd V.LIO

Alternate Symbol(s): V.LIO.W | LOMLF

Metals & Mining Gold

Lion One Metals Limited is a Canada-based exploration company. The Company is engaged in the business of mineral exploration and evaluation and is primarily focused on the acquisition, exploration and evaluation of mineral resources in Fiji. The Company owns 100% of Tuvatu Alkaline Gold Project, which is located approximately 24 kilometers northeast of the town of Nadi on the island of Viti Levu in the Republic of Fiji. The area surrounding the Tuvatu gold deposit and resource area is covered by approximately three-square kilometers of special mining lease (SML 62), with the broader project area covered by approximately 13,613 hectares of special prospecting licenses (SMLs 1283, 1296, 1465 and 1512), covering the balance of the Navilawa caldera. The SML 62 provides rights for the potential development, construction, and operation of mining, processing, and waste management infrastructure at Tuvatu. The Company holds over four exploration licenses (SPLs) for the Tuvatu properties.

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Lion One Metals Ltd > Back of the Envelope calcs:

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Post by geolteacheron Nov 03, 2023 11:06am

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Post# 35715796

Back of the Envelope calcs:

I see about USD 34 - 70M per year of revenue (money in, before any costs are subtracted) when LIO is in the 500 tpd production zone. (calcs below...). I think it'd be closer to $70M, and possibly more.

Is anyone confident enough to model a share price when LIO is processing 500 tpd?
If I were competent to model a share price I'd also include costs for:

high ongoing capex(?) for advancing UG works. and for expansion over several years to a capacity beyond 500 tpd.
cost (opex? capex? ...IDK) for infill and grade control drilling.
cost for surface exploration and scout drilling elsewhere in the caldera.

I cal'd USD 34-70M annual '500 tpd' revenue as follows:

6 days/week operation + 13 days holiday/downtime:

Assume 2024 production at: recovered yield of 4 grams/tonne, x 460 tonne/day pouring, x 300 day/year operation, x 1/29 ounces/gram conversion factor, x $1800/oz = $34.3 Million/yr.
More aggressive modeling: recovered yield of 7 grams/tonne, x 480 tonne/day pouring, x 300 day/year operation, x 1/29 ounces/gram conversion factor, x $2000/oz = $69.5 46Million/yr.