Sunday, May 17, 2009

The New Lundin Group Exploration Company. CGH.to, SNU.v, TNR.v, LUN.to, FST.v, CDNX, HUI, XAU.

"...But back to the ocean of water: it is estimated that from one thousand drilled holes only 10 will return economic mineralisation. From this ten only 5 after further exploration will be confirmed as an economically viable, meaning grades and size and cost of development. From this five only 3 will become the actual mine. We hope that we err on a cautious side here. So, do not take it as an offence, but if you were ever going to bet your lunch money against the FED in our junior field: keep it - and save a few bucks for our book. We promise a good fun and proper English there...What kind of Reward can we expect in our successful Junior mining economics for all such uncertainly and risks? Let's check portfolio of today's headline hero - Barrick Gold. According to Lundin Group Veladero was sold first to Homestake for 300 million and math is the following: investment was 16.2 million and proceeds from the sale of that stake was 192.9 million.
We can add that one day we will write not a book, but poem about Lukas Lundin's Tenke Mining and opportunity to buy it at the right time."
We have recently wrote about Lukas Lundin ambitions in Global Exploration Play and close interconnections of involved companies. Now we can have a little bit more sense of what is coming from following Presentation. Idea to bring together in one Exploration company assets across the globe and commodity spectrum will consolidate shareholder base. If you would like to be exposed to Risks and Rewards of the Exploration Cycle and do not mind the brand of Lundin this company is an obvious choice. Odds of high risk investment environment will be on your side with:


1. Proven management track record.

2. Strong financial position.

3. Ability to finance the company.

4. Reduced G&A and marketing costs.

5. Year round exploration cycle.

6. Big ambitions, large targets and ability to get the best properties in recent market conditions and develop them for the future.


We need one Veladero or Los Azules here to make a pay off worth Lukas Lundin deal making history.


We will write about Junior Mining cycle later in order to bring you the sense of the Investment Cycle after our recent observations on Junior Mining Economics.


We are monitoring development with following companies and potential M&A plays:



2. Sanu Resources SNU.v - another Lundin's Exploration company based in Africa - will it become part of Global Exploration Company?

3. New Energy plays are not presented in the portfolio of Lundin Group, will Lukas add to his Uranium exposure Lithium in the near future? Will he chose to go for a building the portfolio of properties himself or will buy time in the hot sector by striking deals with other Juniors? How will it play out with our Value Web interconnections in the end?




Post a Comment