Lion One Metals Ltd V.LIO

P/e = 3 at current gold price

[Aton]

At 1700oz per month LIO will have around 50 million dollar yearly revenue. At 11.000 ton per month and 137$ cost per ton (cost estimates for mining of US$56/tonne, processing of US$56/tonne and G&A of US$25/tonne) = 18 million total yearly cost. So profit of 32 million at this early stage => 14 cent per share p/e = 3

[QualityTest]

Lion One confirmed they will need another financing in the latest quarterly. I think that P/E will be short lived after we get slammed with more dilution, which shorts think is happening quickly. 

[Puma1back]

there is the usual blurb in the liquidity section of the MD & A that says will need additional capital, but the wording is pretty boiler plate.  

[QualityTest]

I hope it's boiler plate with no additonal raises, but the shorts have been in the know on this one so far.  We will see.

[Puma1back]

they did however drop the line that mgmt believes they have liquidity to meet next 12 months which was in the December md&a, but given the next 12 months also includes upgrading the mill output capacity, makes sense they will need capital. They have until August to make the last draw on the credit facility- $3 million or maybe $4 million. Shorts still minor but did pop from 500k to 1.2

[QualityTest]

Good point.  I'm not sure what to make of it, but I will feel better if we get to the end of the week without any financing NRs. 

[Aton]

If they need additional financing to expnad the mill from 400 tons per day to 700 tons per day it also means thet profit will surge from around 32 million / year to a bit over 50 million per year if the costs that  LIO released still holds. A 100 million company adds 5 millions and the profits goes up 28 million per year, it makes perfect sense to me and I will just buy more shares on sale

[Aton]

Profit goes up 18 mill it should be.  400 tons per day => 1700oz per month 700 tons per day => 2975oz approx Revenue at 2400$ / oz  and 2975oz per month =  85 million a year.  This stock is crazy cheap here. 

[Puma1back]

Last quarter the costs of production were $5k per oz. It will improve but will still be in the $1,000's per oz

[steve55]

why is it trading so low? financing is at 0,50. Is it a lack of confidence in Beruckof;we don't hear a lot about him these days after that crazy financing at half price.This company is well below its value because of his decision to finance at such a low price.

[Aton]

Remember that it took 681.000  shares in short to hold the stock on monday, now they have to buy back 1.200.000 shares in the short. That will press up the shareprice a good bit. 

[steve55]

common LIO, wake up; gold over $2400.