Mason Resources Inc V.LLG

Retail ignorance creates buying opportunity

[NewOpportunist]

I think most retail investors here have a poor understanding of LLG. I have invested in them, on and off and followed them for almost 10 years now. After the failure of the former CEO - Benoit Gascon - who ironically is still on the board of GRA after having sold LLG's stake in GRA at a ridiculously cheap price, it was always clear that Lac Gueret would not come to fruition under LLG. They were simply too small for that to carry out a project that size. There was urgency in doing this transaction - with all the Canadian government initiatives in the EV & battery sector, geopolitical interest in graphite due to 80% being in China and foreign interest in Canada - because it would have been easy for a foreign player to scoop up LLG and with that 49% of Lac Gueret (or Uatnan as it is called now) for a nickel and a penny. This has been preempted now and LLG is still going to participate in the upside. Thus, current retail selling in LLG is most likely from disappointed shareholders who were still following pipedreams, but don't get the bigger picture.

Reality is that LLG now owns 2 great assets, almost 10% of NOU and 39% of SWAN, both of which will have major catalysts coming up this year. Buying LLG when retail investors are panicking at 40% discount to BV is a gift! I have used today's selloff to get back into LLG.

Cash burn at LLG is a valid point, but as a holding company, I would expect this to be rather minimal going forward.

[1student]

You make some good points NewOpportunist. Although, I need to emphasize that after the optioning of 50% of Lac Gueret to NOU.V, not all retail LLG.V shareholders entirely expected Mason management to take Lac Gueret into production. It's what many were headfaked into expecting and once again headfaked when the company management elected to change the company's name to Mason Resources Inc.

[StockscoutX]

I totally agree with you 1student but the deal doesn't really bring in anything of real value except to wait for NOU SP to rise sufficiently and then sell to cash in. Then what? Back to square one? Mason is starting to ressemble very much how FNC.V operates going forward and I don't like it at all. IMO.

[NewOpportunist]

Anything has its price, and at $0.165 it's simply too cheap based on its holdings. Couldn't be more simple looking at the underlying value of NOU + SWAN + Cash.

[StockscoutX]

The market decides what it's really worth no matter what's written on paper. The market has decided that LLG isn't worth what's written on paper because the value of those assets fluctuates with SP movement and also it generates cash for Mason when it's sold but it's not a recurring source of cash. Therefore, if Mason can't generate revenues then it becomes a cash

[NewOpportunist]

No different from before, Mason was burning cash before. Only difference is that instead of directly being involved with Unanat, now it is via NOU. I expect cash burn to decline significantly and they could even buy back shares with the cash they have on hand. If you liked Mason because of the assets before, they are still there, but if you buy Mason now, you can buy those assets at a 50% discount

[StockscoutX]

I hear you NewOpportunist but the best way to lose cash is to averge down hoping for a hail mary to save the day. imo.

[NewOpportunist]

Yup, not a winning strategy to average down on losers ... different for me, starting a position now ...

[1student]

New Opportunist, You suggested you expect cash burn to decline? Why are all the officers and directors going to be declining their salaries, equity based compensation awards and remuneration? In fact, at this stage, this company doesn't need a CEO, as there is no board of directors approved of plan to do anything other than to keep milking this company dry. When Mr. Fahad Al Fatimi & Co

[StockscoutX]

I agree with you 1student. Mason has become in fact a shell company that is a stake holder in other companies. The whole purpose of Mason was the development of a graphite mine but that is now gone. What do they have left? The gradual liquidation of holdings in NOU and SWAN going forward when the cash on hand is gone to keep paying salaries, pension funds of insiders and keep the lights open? It

[1student]

StockscoutX, I seldom utilize the word guaranteed because little other than death and taxes are guaranteed. Never the less, I'll stop just short of guaranteeing that the 10% equity ownership of Nouveau Monde Graphite, which LLG.V received in exchange for it's previous 100% ownership of Lac Gueret project, won't be outright just sold for peanuts during the first quarter of 2024