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Loncor Gold Inc T.LN

Alternate Symbol(s):  LONCF

Loncor Gold Inc. is a Canadian gold exploration company. The Company is focused on projects within an approximately 480 square kilometers (km2) area on the Ngayu Greenstone Belt in the Northeast of The Democratic Republic of the Congo (the DRC). The area is located over 220 kilometers southwest of the Kibali gold mine, which is operated by Barrick Gold (Congo) SARL. It owns or controls a contiguous block of 46 exploration permits covering an area of over 13,000 km2 to the northwest of Lake Edward in North Kivu province. The Adumbi gold deposit is found within the Company’s 84.68% owned Imbo Project area. At the Imbo Project, the Adumbi deposit holds an indicated mineral resource of 1.88 million ounces of gold, and the Adumbi deposit and two neighboring deposits hold an inferred mineral resource of approximately 2.090 million ounces of gold with 84.68% of these resources being attributable to the Company.


TSX:LN - Post by User

Comment by 1kgcoffeeon Jan 12, 2022 12:22pm
93 Views
Post# 34308607

RE:RE:last 24 months

RE:RE:last 24 monthsYou may be right about whats in the ground, but balance sheet trumps everything. Lets look at this rationally point by point:

-To stay solvent, and do further exploration, Loncor will have to massively dilute. Resolute will have to sell their stake. The only reason they don't is because doing so will crater the price. Catch 22. There are no buyers and significant downward pressure. 

-The economy is poised to boom. Crypto is tanking and the dollar is rising. Gold has stagnated, and in real dollar terms has gone down over the last two years.

-Barrick pulled out. There simply isn't enough proven gold for economies of scale.

-They are trying to shop out the company, but no one is knocking on their door. Management is doing the door knocking, which tells me that it's a buyers market. 

There are no positive catalysts in the short to medium term. The company will continue to bleed money. Why would anyone hold this when there are so many other valuable income producing assets?

I bet if one were to sell their stake, they could come back in six months with the same cash and buy at least 50% more shares. That's what I'm expecting in terms of dilution.

You could have sold over a dollar last year, and no we're at $0.6. Nowhere near the $3+ dollars you were predicting. Can you at least admit that you were wrong and holding the bag, or pumping the stock while you sold?
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