RE:The Why What a good idea !!
I think I've shared versions of this many times on here but with thr new year upon us it's worth a revisit.
why gold?
- Gold has been 'precious' for a long, long time - and I don't think that is going to change.
- Gold and the things typically found around it are critical to the manufacture of electronics - and I don't think the demand for electronics is going to slow down.
- They aren't making any more gold - and the places on earth where it can be mined in predictable and business-friendly ways (for private profit) are limited and becoming more limited.
- Gold super cycle. Look it up.
- if (when) the world goes (more) to sh•t - gold is a safe haven, physical asset.
- I believe the senior producers are committed to continue their operations largely as they are - including their periodic dependence on the exploratory work done by juniors.
- Summary - I perceive very little downside in the gold market, durable and structural upside, a potential repricing event that is BIG to the upside and a catastrophic tail risk that is even more to the upside.
Why a Canadian Junior? - The junior end of this gold business is where the outsized risks and outsized returns can be found. If you believe in gold and the gold cycle - have the stomach for the ride and either the good fortune or skill to find a solid vehicle - this is a place to make some real money.
- Canada - rule of law, property rights, mining-friendly governments, well-regulated markets, home
Why LME (the property)?
- Ring of fire
- Past producing mine
- ''Waste" rock stockpile
- Proximity to existing water, electric and transportation infrastructure
- Gold everywhere - at or near surface and at depth
Why LME (the company)?
- Single share structure
- Significant executive ownership
- Strong, debt-free balance sheet
- On-site, dirty-hands-on leadership and detailed and complete business management.
- Frugality - executive team doesn't waste a penny of their money on the typical trappings of the mining sector.
- Focus on developing to sell the entire company for cash - solidifying our position as we understand it (current ownership, current leadership, current strategy) until we are monetized.
- Forward-looking focus on important things beyond drill results - permits, environmental studies, First Nations relationships.
- Summary - I believe LME presents none of - or at least very little of - the typical risks associated with the junior mining sector. We won't get transaction'ed into a new company we don't understand, we won't watch someone or something come in and take our company over, we won't watch LME execs live a gold-plated Bay Street lifestyle burning our cash, and we won't watch our company run out of cash. We will get to watch them develop the property while they sell it - and navigate the balancing of these two activities including the ongoing raising capital to ensure our strength.
The only 'leap of faith' I think I've take here is that there is as much gold on the Ishkoday as the LME team thinks there is. I'm not a geologist - but I have watched the geologists involved and gained confidence. They believe - so I believe - and it has been proven right so far.
Since investing I have watched them develop the property, maintain and improve the company balance sheet and liquidity, expand the list of credible partners involved in the project and express good-faith enthusiasm when people close by believe they are getting close to a deal getting done. Of course I wish it had happened already - and of course I hope it happens soon - but I don't have to hope - I just have to trust the very unique and advantageous (to us shareholders) structure of LME - and trust the the LME execs and the bankers at USCG want to get done and get paid Both of those things are undeniably and demonstrably true.
This will either get sold soon by USCG - sold for more a bit later by someone else - or get bought for even more down the road a little further. It's just a matter of time.