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#Broker/Analyst Views
stale
Last edited 4 years ago

31-Mar-2020:  Euroz Securities: Legend Mining Ltd (LEG $0.105) Speculative Buy: 70m Step-out Hole to Mawson Discovery Finds More Massive Ni-Cu-Co Sulphide Mineralisation

Before the trading halt that LEG called for prior to trading on Friday (27-Mar-2020), their SP was 6.7 cps.  They closed up +56.72% yesterday at $0.105.  So - have they found another "Nova"?  Creasy has done this before.  He is one of Australia's most succesful prospectors / geologists.  And he owns 26.8% of Legend Mining (LEG).  IGO (who own and operate the nearby Nova Ni-Cu-Co mine) own 14.2% of LEG.  Legend's MD, Mark Wilson, owns around 8.3% of the company.  I used to own some, but don't currently.  I'm now following them again however.  I did very well out of Sirius Resources, which was taken over by IGO back in the day (to get hold of the Nova-Bollinger mineralised system).

Additional update:  I've just bought a small amount of LEG at 11.5 cps, and have placed a trade on Strawman.com to add a very small position to my scorecard as well.  I will add to these positions as the Mawson discovery firms up (if it does).

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#Drilling/Assay Results
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Added 4 years ago

21-Apr-2020:  First Assay Results From Diamond Drillhole RKDD008 at Mawson

Excerpt:  Legend MD Mark Wilson said: “The results and photos from the sulphide zones in hole 8 confirms economic grades of nickel-copper-cobalt. In simple terms this is paydirt. This announcement will not lift Legend’s current trading halt as we are preparing an Exploration Update which will detail the results from the next three diamond holes 9, 10 and 11. We expect the Exploration Update announcement to be released pre market on Wednesday 22 April 2020.” 

--- click on link for more ---

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#Drilling/Assay Results
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Added 4 years ago
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#Drilling/Assay Results
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Last edited 4 years ago

26-May-2020:  30m of Massive Sulphides in RKDD017 & RKDD013 Assays, Mawson

Excerpt:  Legend Managing Director Mr Mark Wilson said: “The 19.8m intercept of massive sulphides makes hole 17 the best Mawson hole we have drilled to date.  Holes 14, 15 and 16 have all intersected sulphides of varying widths and styles and add to the story.

“The assays received from the massive intercepts in hole 13 confirm ore grade mineralisation.  

“These results add to those previously announced and indicate something big and close.  We are excited by the challenge of finding it.”

Disclosure:  I have sold out of LEG already, selling into the euphoria in Late April when they got as high as 19.5cps.  Despite a +16.7% rise today on this latest news, that has only taken them back up to 17.5cps (as I type this - that will likely change).  There are two ways to play these small explorers.  You can hold on and hope that you've picked the one in one hundred that find something really good and multi-bag, or you can buy on positive news, when you know there's more news coming (good or bad, just news, such as drilling results), and then sell on the euphoria when the news is good.  They will usually overshoot to the high side on good news, and there is usually a chance to get back in later if you want to - at lower levels.  Sirius Resources was that one in one hundred company that found the motherload (Nova) and got taken out by IGO, and Legend Mining are drilling in the same area and looking for the same sort of deposit, but it doesn't mean they'll find it.  If they DO, they're going a lot higher, but if they don't they obviously are not.  Very risky.  Highly speculative.  However, they have experienced management and substantial backing from players with prior form in this field, so if you're going to have a punt, you could do worse.  They have reasonable form.  That said, I currently don't hold any LEG shares.

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#Media
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Added 4 years ago
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#Company Presentations
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Added 4 years ago

02-Jun-2020:  Legend Mining Presentation June 2020

LEG are raising capital on the back of recent positive drilling results, hence the company presentation (link above).  Their latest drilling results were released last Tuesday (26-May-2020) - see here:  30m of Massive Sulphides in RKDD017 & RKDD013 Assays, Mawson.  I sold out of LEG at 16.5 cps on May 21st, after selling the majority of my position back on May 1st at 19.5 cps, having bought them on April 1st at 11.5 cps.  They're now back at 15 cps.  Highly speculative, as they are explorers, not producers, and have no income except from capital raisings.  I tend to trade these explorer stocks, buying relatively early as the hype is building, and then taking profits and hopefully selling out before the inevitable capital raising (CR), as I have done here (probably more due to luck than skill).

If a company is investment grade (which LEG clearly is not) then you might want to participate in a capital raising, if that CR is indeed extended to ordinary retail investors (which they often are not, particularly with smaller companies who often go for the cheaper option of placements).  However, with these speccy metals/minerals explorers, I would prefer not to be caught in the stock when they decide to do a CR because I usually don't want to participate (particularly as it's often very hard to put an accurate "valuation" around such companies to work out if the CR price is fair or reasonable), and because they almost always result in dillution and/or a share price slump.  The exception is if they come out with excellent news during or just after the CR period, such as further exciting drilling results.  But my view is that the company's management are probably in the best position to work out whether they are likely to have really good news coming soon, and if so, why would they not wait and raise money AFTER the news is out there and the share price is even higher? 

So, to summarise, I find that these CR's are generally opportunistic, particularly with companies who have no income and have to raise capital regularly to keep going.  With such companies, plenty of practise usually means that they get pretty good at judging when to raise capital and it's not always at an opportune time for ordinary shareholders.  So I generally steer clear of them.  In the cases where I have got involved, the share price was usually lower a month later and I could have bought them cheaper on-market, so participating in (or holding through) the CR turned out to be a mistake in almost every case.

So, I'm happy to be out of LEG during this CR, and happy to have already banked my profits.

If Legend (LEG) hit some really SERIOUS mineralisation later, such as something similar to what the aptly named Sirius Resources discovered a few years ago (they found the Nova-Bollinger system and were then acquired by IGO at a MASSIVE premium), then I'd likely get on board and stay the course (until the inevitable takeover), but LEG are not there yet.

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