Lion One Metals Ltd V.LIO

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

Metals & Mining Gold

Lion One Metals Limited is a Canadian gold producer. It is in the business of mineral exploration and evaluation and is focused on the development of mineral resources in Fiji. The Company is the owner and operator of the Tuvatu Gold Mine located on the island of Viti Levu in the Fiji Islands. The Tuvatu Gold Project has been fully permitted for development, construction, and mining by the Government of Fiji with the grant of a Special Mining Lease (SML 62). The Tuvatu project comprises the high-grade Tuvatu Alkaline Gold Deposit, the Underground Gold Mine, the Pilot Plant, and the Assay Lab. The Property comprises four special prospecting licenses (SPL 62), with a total area of 20,170.5 hectares. It also has an extensive exploration license covering the entire Navilawa Caldera, which is host to multiple mineralized zones and highly prospective exploration targets. It holds four exploration licenses for the Tuvatu properties as granted by the mineral resources department.

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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.