Lion One Metals Ltd V.LIO

Q3 results

[erieshore]

9 million USD in gold production in Q3 is very promising. Plus good new drill results.
I'm in for the long haul.

[Puma1back]

one of the more interesting disclosures is in note 3. Looks like a year ago , just before Q1 ended they tested the carrying value for the mine & mills and they came up seriously negative producing what would have been almost a 40% writedown of the carrying value. Close to a $60 m -  so as part of the year end in Q4 this June they recalculated the carrying value test with an updated

[Puma1back]

Hard to interpret these financials and the discussions on the mine other than it is hard to see them not returning to the trough although they state in their  Notes that they are sufficiently funded for the next 12 months. Hard to reconcile and equally hard to see if this volume pick up is a liquidation event for more than those accumulating?

[manlystanley]

Where are you guys reading the 'Notes' from? I don't see any notes in the press release.

[roberto146]

The only fully funded 'notes' I remember are from news release 6/28/23. I didn't see any "fully funded" notes/comments in '24 Q3 or Q2 or in other news releases. (Possibly I missed them).  A clip from an earlier post of mine: "6/28/23: "The project is FULLY FUNDED and on track for delivery of first gold in Q4 CY 2023." Oh, Good ... but wait ... .

[Puma1back]

you have to go to the audited statements and spend some time. - the fully funded is near the end of- risks discussion etc  

[roberto146]

Anyway, the way the production revenue has been building for the last couple of quarters they should be pretty well be approaching or have reached cash-flow positive/self-sustaining.

[Puma1back]

so on that issue , based on the year end statements & the md&a the 67,000 tonnes of mining has a full costing of $31 million or about CDN$ 465 a tonne. we are about 10 tonnes per oz so in US$ 3,700 an oz. Now this is a very cloudy full cost as it is start up and so not particularly indicative, though it is clear mgmt never properly estimated the costing to get this far which is not good.

[manlystanley]

I have read that the deeper they go, the higher the grade.   Hopefully, this plays out....

[Puma1back]

Initial conclusion is that the news release was used more as a liquidation trade than an accumulation trade - so negative inference. rsi dropped from about 74 to about 52 today - hard pullback. close was almost at the low of the day  

[manlystanley]

I've used this pull-back to load-up. My buy-in price is: US $0.2492.