RE: RE: LMA Auctioning Itself Off Doubled my LMA position today.
The funniest thing is that I was not aware of the NR, but acted on my conviction of the value of La Mancha. Mind you that I have beening breathing and living LMA for the last five years and that explains my sixth sense to jump in.
Sometimes I think we do not realize what a jewel we have in La Mancha. Will give you an example. Today I asked a friend of mine who used to own LMA at one point or another to compare Inmet with La Mancha.
After pondering for a while, he stated that he failed to see any common grounds between these two. Then he remarked something to the effect that anyone knows that Inmet is one of the world's richest copper producers. I asked he what did he think about copper LMA owns in Sudan. He was genuinely surprised to learn that La Mancha is sitting potentially on MILLIONS of tons of copper thus bringing the comparison to Inmet.
Inmet and La Mancha have two other things going on for them - One, they have beautifully tight share float and boast a lot of cash.
I will repeat myself by putting on record that, LMA valuation, solely on reported indicated and inferred resources, based on only 2 out of the 12 properties drilled so far, LMA share price should be $12. And that does not count Frog's Leg and other Australlian operations neither the Ivory Coast mine and prospective properties. All and all, I will not be surpised to see another $5 on top of Sudanese operations.
One more thing. Inmet is in the process of PEA and pre feasibility studies on their huge Panama based copper mine. The estimated project Capex varies from a couple to six BILLION $. To develop its VMS project in its entirety, LMA is looking at several BILLION $ and there are only few commerical interests capable of raising such sum. My first pick on this very short list of candidates is a Chinese- backed entity. AK