Fabio Herrero | Seeking Alpha | April 27 2017
Lion One is exploring for gold in the Fiji, and the main project is in the financing phase.
- The Tuvatu gold project sports an after tax $86.5m NPV5 with an IRR of 52.3% and a payback of 1.5 years. Moreover there is high-grade exploration potential nearby..
- Management is experienced and is gearing up for construction by adding new capable mine builders.
- Project construction will be easily financed and the company has cash on hand to pursue both development and exploration.
Lion One Metals Ltd. owns 100% of the fully permitted Tuvatu Gold Project on the island of Viti Levu in the Republic of Fiji. This project is currently in development and the company is in the financing stage. I am convinced that Lion One is undervalued and could rise substantially in a flat or rising gold environment.
This article will be structured as follows: first, a detailed analysis of the Tuvatu Gold Projec, before mentioning current exploration efforts and the other assets in the company portfolio. This is will represent the core part of our valuation. In the second part of the article we will have specific chapters dedicated to management, capital structure and Fiji as a mining jurisdiction in order to help us get the big picture surrounding the company. Finally, a valuation chapter will provide an out-of-the-envelope valuation of Lion One Metals, before the conclusion that will consist of a buy recommendation and a short cautionary statement about the risk of investing in small caps -always a good exercise before deciding to trade.
The Tuvatu Gold Project
Tuvatu Gold Project is located on Viti Levu, the main island of the Republic of Fiji, and is only 17 km from the Nadi International Airport.
The project is in a caldera setting, and it is located along the ring of fire, that stretches from Japan to The Philippines to Fiji. It is along trend with the caldera-situated Vatukoula gold mine, which has produced 7m oz Au in the last 82 years and is owned by Vatukoula Gold Mines. Incidentally, this is also one of the ten largest epithermal gold systems ever discovered according to a 2012 report by WH Ireland Research.
To read the rest of this article: https://seekingalpha.com/article/4065987-lion-one-will-next-gold-mine-fiji