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Alexandria Minerals Corp ALXDF

Alexandria Minerals Corp is a Canadian based gold exploration and development company. Its project consists of Orenada, Akasaba, Sleepy, Manitoba and Ontario properties together with the Other Quebec properties. It is mainly focused on exploring the cadillac break property which is located in Val-d'Or, Quebec. The cadillac break property consists of approximately 21 contiguous projects of over 460 claims, located in Bourlamaque, Louvincourt and Vaquelin Townships. The manitoba properties include


GREY:ALXDF - Post by User

Comment by NextPhaseon Mar 27, 2018 2:09pm
109 Views
Post# 27788462

RE:RE:RE:Don't think Eldorado will be in the running..

RE:RE:RE:Don't think Eldorado will be in the running..

That's a risky incentive.
 

The author even admits a different scenario is more likely compared to the conclusions made in the original article.
 

My best guess is that EGO will right-size its portfolio; and come out as a much smaller company, with less debt and Lamaque as the flagship asset.


Basically, ELD has an incentive to divest their capitally-intensive projects in risky jurisdictions. This raises cash and reduces future investment obligations, which would have been required to move these projects forward. If Lamaque becomes its flagship asset, then why not drop another $200M for a low risk open pit project like Orenada? Especially after Lamaque's reduced NPV expectation, Orenada's economics will probably look even better.

After these moves, ELD can then rebrand itself as a Canadian-focused miner with low-risk projects, which also would have decent upside. If successful, the whole narrative around ELD would change instantly. Some of these transactions will take acumen, which ELD seems to lack, but the incentives are clear, no?

NP

Disclosure: I own AZX, this is not financial advice, do your own DD

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