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Leagold Mining: Woodyer & Giustra Are Building Endeavour Mining 2.0

Monday, April 10, 2017 11:46
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Source: The Critical Investor for The Gold Report   04/09/2017

The Critical Investor profiles Leagold Mining, a company that just took over Goldcorp’s Los Filos mine in Mexico.

Sometimes it happens that an asset can benefit from a new set of eyes looking at it from a different perspective. That is exactly what seems to be happening at the Los Filos mine in Mexico. Goldcorp Inc. (G:TSX; GG:NYSE), the previous operator of this mine, decided to focus on other projects due to its new 20/20/20 strategy (in the next five years achievement of 20% growth in gold production, 20% growth in gold reserves and a 20% reduction in our all-in sustaining costs) put in place by new CEO Garofalo, and put the mine up for sale.

Several parties were interested, but Leagold Mining Corp. (LMC:TSX.V) made the winning bid. Leagold appeared to be a special purpose vehicle: created for the sole purpose to acquire this mine in Mexico’s Guerrero Gold Belt. but it is meant for much more. Looking at the company’s management team, built around well-known founders Neil Woodyer and Frank Giustra, the Los Filos mine is the very first step of Leagold Mining. This company is destined to achieve great accomplishments, and the current valuation of the company is definitely just the beginning.

All presented tables are my own material, unless stated otherwise.
All pictures are company material, unless stated otherwise.
All currencies are in U.S. dollars, unless stated otherwise.

The company
Leagold just finalized the financing which was completed simultaneously with the acquisition of the Los Filos mine. As the company’s management team is one of the main parts of the investment thesis, I will discuss the executives later in this article.

Trading in Leagold is currently still halted (however, it will resume trading on Monday April 10) as the company has just completed the acquisition of the Los Filos project from Goldcorp. The company is also closing the concurrent financings to fund the purchase and to make sure it has additional working capital to ensure a smooth transition.

After all financings (two equity financings and one debt financing) will have been completed, Leagold will have 151 million shares outstanding, giving it a pro-forma market capitalization of approximately CA$415M, based on the CA$2.75 share price level the company is raising money at. As this acquisition will be a complete game-changer for Leagold, which was a shell until now, the average daily volume should increase pretty fast, making this one of the most liquid companies on the TSX Venture. It doesn’t happen every day to see a shell acquiring a producing asset with an average annual output of in excess of 200,000 ounces of gold, giving it instant cash flow to immediately pursue its growth plans, to advance toward a mid-tier producer.

To read the entire article, click here.

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter on my website, and follow me on, in order to get an email notice of my new articles soon after they are published.

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The Critical Investor Disclaimer:
The author is not a registered investment advisor, and currently has a long position in this stock. All facts are to be checked by the reader. For more information go to leagold.comand read the company’s profile and official documents on, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

The Critical Investor is a newsletter and comprehensive junior mining platform, providing analysis, blog and newsfeed and all sorts of information about junior mining. The editor is an avid and critical junior mining stock investor from The Netherlands, with an MSc background in construction/project management. Number cruncher at project economics, looking for high quality companies, mostly growth/turnaround/catalyst-driven to avoid too much dependence/influence of long term commodity pricing/market sentiments, and often looking for long term deep value. Getting burned in the past himself at junior mining investments by following overly positive sources which more often than not avoided to mention (hidden) risks or critical flaws, The Critical Investor learned his lesson well, and goes a few steps further ever since, providing a fresh, more in-depth, and critical vision on things, hence the name.

Streetwise Reports Disclosure:
1) The Critical Investor: The author, or members of the immediate household or family, own shares of the following companies mentioned in this article: Leagold Mining. The author personally is, or members of the immediate household or family are, paid by the following companies mentioned in this article: None. The author’s company has a financial relationship with the following companies mentioned in this article: None.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview/article until after it publishes.

( Companies Mentioned: LMC:TSX.V, )


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