LCL - LCL Resources

[Sean K]

Colombia and WA. Like two peas in a pod...

The elections went pro-leftist and pro-environmental. LCL couldn't have a worse outcome here. As mentioned before I'd dump the assets and focus on something else.

Mr. Petro has vowed to restrict open-pit mining

Colombia update – Energy, mining and pension reform among priorities for 2022 Colombian presidential election front-runner | White & Case LLP

On May 29, 2022, Colombians will flock to the polls to elect a new president. The current frontrunner is Gustavo Petro, who is running for president for the third time. On the campaign trail, Mr. Petro has promised sweeping reforms that would affect the country's energy, mining, and pensions...

www.whitecase.com

Not good, and the VP is more radical Left than Bandt. As he doesn't have majority in congress, can only hope that the conservatives hold back any anti-mining legislation. It looks like that's the situation in Chile now as well. So, maybe things won't be too dire for explorers.

This won't be a mine in Petro's first term either, so hopefully he stuffs it up and a conservative gets back in. Still, it's a common trend in Latin America at the moment - moving further Left.

I just wonder whether they can afford to stop mining development, or attempt to nationalise projects when they rely on the royalties and taxes to run their countries. The miners around Quinchia employ quite a lot of the locals and the social programs they run do support the local infrastructure and schools. I know it's part of the bribing process but it's tangible.

LCL now down to almost cash backing which is a bit nuts. Or, maybe holding any of this is nuts.

 

[Sean K]

With this update, I've decided to take a hair cut on this puppy for EOFY off-set. The reason I bought was the prospectivity of the region in general and expected the satellite deposits to be expanded to make it into the 3-4Moz au range, but they're pausing on exploration just to focus on the PEA with what they've got. Probably the right decision to conserve cash. But, the latest drilling is pretty much all dust. Combined with Colombian political risk I'm not sure if they'll go near to mining in the foreseeable future and potential exploration success is now out the door for some time. Will probably get taken over now.

 

[frugal.rock]

Interesting little push today, out of the blue

 

[Sean K]

Interesting little push today, out of the blue


View attachment 145243

That is a good looking bar. Not sure what news is expected. The PEA is a while away. Maybe just bought due for being oversold.

 

[Sean K]

Been watching the past few days as it looked like it might have hit a bottom. There's been a little bit of buying. Wasn't sure why as nothing was due. Only thing was it was trading at about a $4m EV with 2.6moz.

But, now in a halt for a 'material corporate transaction'. Not sure if that means a takeover, or them selling the project off or a JV partner.

 

[Sean K]

Well, this is unexpected and I'm a little confused. They had cut back on exploration in Colombia to save money and focus on the PEA. Now, they've bought another exploration company in PNG and are about to start a drilling program there. Doesn't add up. Perhaps they can see that Quinchia hills was a dud and they are going to roll the dice in the PNG mountains. Opened back up 30% but I see that as a selling opportunity.

 

[frugal.rock]

Looked a little promising today, but settled back.
Might be one to watch.

 

[Dona Ferentes]

Now, they've bought another exploration company in PNG and are about to start a drilling program there. Doesn't add up. Perhaps they can see that Quinchia hills was a dud and they are going to roll the dice in the PNG mountains.

seems to be a good roll of the dice.

Maiden drilling at Kusi, part of the 100% owned Ono project in PNG, has returned 52m grading 3.65g/t gold from 160m, in one hole.

Drill results received thus far have exceeded grade expectations, says the company, which is 5 holes into an 18-hole program

 

[System]

On June 9th, 2023, Los Cerros Limited changed its name to LCL Resources Limited.

 

[Captain_Chaza]

I have just entered the LCL in our magnificent ASF Sept Monthly Regatta

I love the Beauty of a Classical Bottom Formation

Sailing the LCL ----------------------One WEEK at a Time ------------------------&------------------------One DAY at a Time

NB: " There is Nothing like a NICKLE Boom"

Salute and Gods" Speed

 

[Sean K]

Crikey, this was at 2.6c a few days ago. This is quite a discount to the past days, weeks, months. They can't even be bothered to highlight what the actual discount is the the past VMA. Must have been very hard to get finance. Shows what the market thinks of this turkey now.