Loncor Gold Inc.
Well Positioned Amidst Rising M&A in Junior Gold
Published: 1/8/2024
Author: Sid Rajeev, B.Tech, CFA, MBA
Sector: Basic Materials | Industry: Gold
| Metrics | Value |
|---|---|
| Current Price | US $0.39 |
| Fair Value | US $0.76 |
| Risk | 5 |
| 52 Week Range | US $0.26-0.48 |
| Shares O/S (M) | 153 |
| Market Cap. (M) | US $60 |
| Current Yield (%) | N/A |
| P/E (forward) | N/A |
| P/B | 1.5 |
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Report Highlights
Highlights
We are reinitiating coverage on Loncor Gold. In December 2023, LN announced a deal to sell its Makapela property, located near its flagship Adumbi gold deposit in the Democratic Republic of the Congo (the “DRC”), for C$13.5M. This transaction provides Loncor with significant non-dilutive financing for advancing Adumbi.
LN’s Imbo project hosts multiple targets including Adumbi, Kitenge, and Manzako. The flagship Adumbi deposit hosts a large/high-grade open-pittable resource totaling 3.7 Moz gold (2.4 gpt). The project is 220 km from Barrick’s (TSX: ABX) Kibali mine, the largest gold mine in Africa, and has mining permits in place.
A 2021 Preliminary Economic Assessment (PEA) returned an AT-NPV5% of $600M, and an attractive AT-IRR of 25%, using $1,600/oz gold. LN is trading at just 6% of the AT-NPV. AT
