Why There Is No Movement In The Stock Price Of ASX: LSX Today?

  • Dec 14, 2018 AEDT
  • Team Kalkine
Why There Is No Movement In The Stock Price Of ASX: LSX Today?

Lion Selection Group Limited (ASX: LSX) is an Australian based investment company that has focus on junior mining space with speculative returns and LSX aims to benefit from five key investments in its portfolio.

The Pani Gold project located in Sulawesi, Indonesia, is a key project for the group. This reported 0.39 m oz gold as measured in the area with a 1.13 g/t grade. Although, LSX is associated with the project since its first investment made in One Asia in 2012, LSX acquired a 33.3% stake in the joint venture with One Asia in April 2018 further acquiring direct ownership in August 2018. 

On 5 November 2018, Pt Merdeka Copper Gold tbk (Merdeka), an Indonesian gold mining company, became a new partner in the Pani JV by paying USD 55 million, an amount equivalent to buy 66% stake in the JV. LSX interest in the JV got uplifted by AUD 22.01 million reaching to AUD 39 million, further increasing LSX’s Net Tangible Assets (NTA) from 29 cents in September to 43 cents at the end of October 2018. There is an excellent potential for a large volume of Gold reserve amenable to bulk mining. It is targeting to get the permit and license to the Pani IUP mining area along with the road access corridor and AMDAL (Indonesian environmental and social approval). Further, it will be conducting a Definitive Feasibility Study (DFS).

Lion also has stake in Nusantara and lately PT Indika Energy acquired a 19.9% stake in the Nusantara Resources Limited working towards the Awak Mas Gold Project. As per the DFS released in October 2018, it has a reserve of 100,000 oz gold pa for 11 years with a capex of USD 146 m, NPV of USD 152 m, and all in sustaining cost of 758/oz. It has a recovery rate of 91% with 3.5/1 scrip ratio. Nusantara reported a cash balance of USD 2.9 m as at 30 September 2018. As at December 14, 2018, the group has reduced the stake in Nusantara to about 25% from about 32%.

Other investments by LSX include the investment in Yaramoko gold project of Roxgold Inc. that reported 30,532 oz gold extracted in Q3 driven by processing throughput of 78,357 tonnes. It is expecting to achieve its 2018 production guidance of 120,000 to 130,000 oz gold. It reported a cash balance of USD 71.0 m as at 30 September 2018.

Then, you have the Rothsay gold project of Egan Street Resources Ltd. that recently completed its 16-hole diamond drilling program confirming an extension to high-grade mineralization beyond the current 401,000 oz Rothsay reserve. It reported a cash balance of AUD 9.0 m as at 30 September 2018.

The Khundii gold district of the Erdene Resource Development Corp. is another significant investment and the Erdene group filed an updated technical report regarding the mineral resource estimate of its 100% owned Bayan Khundii gold deposit for which a Preliminary Economic Assessment study is scheduled in 4Q 2018. It reported working capital of USD 2.3 m as at 9 November 2018.

The annualized TSR for LSX was calculated at -26.3% as compared to 8.6% for ASX small resources. Over the past six months, the scrip price has increased by 21.31%. While director, Robin Anthony Widdup grabbed 100,000 ordinary shares lately, the stock is not witnessing any movement as at December 14, 2018.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK