LCL 8.33% 1.1¢ lcl resources limited

Disclaimer: just typing out my thoughts and going through...

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    Disclaimer: just typing out my thoughts and going through semantics and pure speculation (literally nothing)

    So with the recent selling putting pressure again on the SP, how low will MNC go?

    Historically, we hit a low of 1.5c before we bounced back up to 3c seemingly on nothing (although there was the news of the appeal) and whilst I did place a minor support region at 1.8c, breaking through is not the end of MNC but I still do not see good tidings for the SP in the short term. Next support level is at the previous low of 1.5c and if we don't break that point, technically we are still in a higher high higher low situation.

    So the second question is, was the previous rise a good indicative of what's to come? The bridging loan facility provided by Bergan will allow us to acquire a near-term cash flow project and obviously the company will be choosing the best NPV to risk project. Or will they? I say this because the company can choose weaker NPV projects to weaken the acquisition target potential of MNC as essentially, we have extra (and possibly unwanted) baggage now.

    By getting this loan facility, it allows me to assume that the company is definitely in a defensive position and pretty much every acquisition proposal will be thrown out the door, not to mention that we are now less likely to be an acquisition target. So whilst the Disallowed acquisition scenario is definitely out of the equation in my books, the blue sky future of MNC will be that much more closer with the help of this 'near-term cash flow project'. It just means I have to expand my horizons to the dollar range a few years down the line...but that has always been on the tables and the risks are just higher now.

    Interestingly enough there was a change in the Corporate Highlight as "The Company continues to engage with interested parties regarding the Los Calatos Project with a view to establishing a Joint Venture with funding provided by the incoming party."
    changed to the LC Project
    "The Company continues with discussions to secure a strategic partner for the funding and development of
    the project."
    Could this be a signal that talks are indeed advancing?

    So where will the SP go from here?
    Expanding the LC will bolster the SP slightly unless we encounter a fantastic find.
    Positive ruling on Mollacas will definitely be good in the short term, but then we would have on our hands another funding issue and looking for JV may take years.
    The company finds a solid near-term cash flow project, marginal affects because lets be honest, a 2 bagger rise from MNC is never off the tables and that's something I would classify as 'marginal' in the grand scheme of things to come.

    IMO, the SP will head no where soon but I am hopeful for the ruling on Mollacas and a return to the positive trend will be possible in the next two quarters. A curveball from LC is what we're all hoping for but that's something that we just can't time.
 
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Last trade - 16.10pm 28/03/2024 (20 minute delay) ?
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