Leagold Mining Corp V.LMC

RE:Fun with numbers

[mercedesman]

templetooth2 wrote:
These are somewhat rough numbers, but in the ballpark.

Pro-forma shares outstanding: 263 million. Mkt. cap. @2.80 = $736 million
LT debt about $184 million, giving an enterprise value of  $920 million.

Interesting comparison can be made to EDV, after all LMC is essentially Endeavour 2.0
EDV has 109 mm shares out, at $24, market cap is $2.616 B. Net debt is 233 mm yielding an EV of $2.85 B or a little more than 3X Leagold. Endeavour produced about 663,000 oz in 2017 and is guiding to 670-720,000 for 2018. Call it 700,000.

So, if LMC's numbers come to fruition, in about 18 to 24 months we should be approximately where Endeavour is today. That would be very, very nice. Lucrative, too!!!

I am an owner of both Companies. In fairness EDV has about 4-5 producing mines with low AISC, and a pathway to 900k oz annual production. EDV also went through a long lean period of undervaluation from 2012 to 2016 while they were building up from a couple of hundred thousand oz producer. Also Africa is a different kettle of fish than is Latin America (each with their own set of challenges) I would also say that EDV could double from here in your same 18-24 month timeframe. Nevertheless, all of this makes LMC a good candidate for at least a triple (from here) as well (with only just a tiny bit of cooperation on the PoG). Much more if gold drifts much higher. Management is proven and skilled - and that is a BIG plus. Reduces the "execution risk". MM