LeagoldMining:Woodyer&GiustraAreBuildingEndeavourMining2.0

LosFilosMine;aerialviewheapleachpads1.Introduction

Sometimesithappensthatanassetcanbenefitfromanewsetofeyeslookingatitfromadifferentperspective.ThatisexactlywhatseemstobehappeningattheLosFilosmineinMexico.Goldcorp(GG,G.TO),thepreviousoperatorofthismine,decidedtofocusonotherprojectsduetoitsnew20/20/20strategy(inthenextfiveyearsachievementof20%growthingoldproduction,20%growthingoldreservesanda20%reductioninourall-insustainingcosts)putinplacebynewCEOGarofalo,andputthemineupforsale.

Severalpartieswereinterested,butLeagoldMiningCorp.(HTXFF,LMC.V)madethewinningbid.Leagoldappearedtobeaspecialpurposevehicle;createdforthesolepurposetoacquirethismineinMexico’sGuerreroGoldBeltbutitismeantformuchmore.Lookingatthecompany’smanagementteam,builtaroundwell-knownfoundersNeilWoodyerandFrankGiustra,theLosFilosmineistheveryfirststepofLeagoldMining.Thiscompanyisdestinedtoachievegreataccomplishments,andthecurrentvaluationofthecompanyisdefinitelyjustthebeginning.

Allpresentedtablesaremyownmaterial,unlessstatedotherwise.

Allpicturesarecompanymaterial,unlessstatedotherwise.

AllcurrenciesareinUSDollars,unlessstatedotherwise.

2.Thecompany

LeagoldjustfinalizedthefinancingwhichwascompletedsimultaneouslywiththeacquisitionoftheLosFilosmine.Asthecompany’smanagementteamisoneofthemainpartsoftheinvestmentthesis,Iwilldiscusstheexecutiveslaterinthisarticle.

TradinginLeagoldiscurrentlystillhalted(howeveritwillresumetradingonMondayApril10)asthecompanyhasjustcompletedtheacquisitionoftheLosFilosprojectfromGoldcorp.TheCompanyisalsoclosingtheconcurrentfinancingstofundthepurchaseandtomakesureithasadditionalworkingcapitaltoensureasmoothtransition.

Afterallfinancings(twoequityfinancingsandonedebtfinancing)willhavebeencompleted,Leagoldwillhave151millionsharesoutstanding,givingitapro-formamarketcapitalizationofapproximatelyC$415M,basedontheC$2.75sharepricelevelthecompanyisraisingmoneyat.Asthisacquisitionwillbeacompletegame-changerforLeagold,whichwasashelluntilnow,theaveragedailyvolumeshouldincreaseprettyfast,makingthisoneofthemostliquidcompaniesontheTSXVenture.Itdoesn’thappeneverydaytoseeashellacquiringaproducingassetwithanaverageannualoutputofinexcessof200,000ouncesofgold,givingitinstantcashflowtoimmediatelypursueitsgrowthplans,toadvancetowardsamid-tierproducer.

Shareprice;1yeartimeframe

Afterthefinancingsmanagementwillownapproximately9%,whichmeansitsinterestsarealignedwiththeinterestsoftheshareholders.WithNeilWoodyerandFrankGiustraasfoundersofLeagold,wehavenodoubtthiscompanyisdestinedtobesuccessful.

OneofthemostimportantaspectsofLeagoldMiningisn’tnecessarilytheasset,butthehumancapitalrunningthecompany.Afterall,agoodorbadmanagementcanmakeorbreakaninvestmentcase.Agoodmanagementcanmakeanaverageprojectgood,butabadmanagementcantotallyruinagoodproject.

ItwouldbeaseriousunderstatementtosayLeagoldisn’tthemanagement’sfirstrodeo.Thecompany’sCEOisNeilWoodyer,amanwehavetheutmostrespectfor.

In2007,WoodyerdecidedtoconvertEndeavourFinancialintoafull-fledgedminingcompany,ratherthanbeingafinancier.EndeavourstartedoffbyacquiringCrewGoldandEtruscanResourcesandcontinuedtogrowatanextremelyfastpaceafteracquiringfiveothergoldcompanies,andappearedtobeverygoodandefficientinintegrating,revampingandoptimizingacquiredoperationsontimeandonbudget.IstilllovethebuyoutstoryofAvionGold,wherethefirstactionsafterthetakeoverweresendingawayandreplacingallcontractors,personnelandminemanagementoftheTabakotomine,asexistingoperationswerehopelesslyinefficient.

Therealapotheosiscamein2015whenEndeavourMiningannouncedtheacquisitionofLaManchaResourcesandtheItymine.ThisimmediatelycatapultedEndeavourMiningintotheranksofmajorproducers,andthepurchaseofTrueGoldMiningforitsproduction-readyprojectinBurkinaFasowasthefinalstepforEndeavourMining,whichaimstoproduceinexcessof600,000ouncesofgoldin2017.Atrueclass-act,whichwasrewardedwithasubstantialincreaseinEndeavour’smarketcapitalization.

EndeavourMining;marketcapgrowth

IhavenodoubttheEndeavourgrowthpatternwillbeusedastheblueprintforLeagold,asthecompanydoesn’thidethefactitwantstogrowthiscompanyintoasignificantgoldproduceraswell,asfeaturedprominentlyonthehomepageandinitspresentation.

ManagementalreadyindicatedthisinthisnewsreleasefromJanuary12,2017whenannouncingtheacquisitionofLosFilosfromGoldcorp:

"Leagoldaimstobuildanewmid-tiergoldproducerwithafocusonopportunitiesinLatinAmerica;LosFilosisthefirstacquisition"

ItwillbeveryclearbynowthattheLosFilosminewillbethefirststeppingstoneandtheincomingcashflowwillthenbeusedtofundtheacquisitionanddevelopmentofnewprojects.

ChairmanFrankGiustraisinaleagueofhisown.Havingfounded5(multi)billiondollarresourcecompanies(forexamplePacificStratusEnergy,thepredecessorofPacificRubialesEnergy,andWheatonRiver,predecessorofGoldcorpandSilverWheaton)andamultibilliondollarfilmstudio(Lionsgate),hebecameabillionairehimselfbecauseofit.Thatwasn'ttheonlymasterstroke,asGiustradidsomeremarkablethingsbeforehestartedfoundingcompanieshimself.Forexample,whenhewasstillwithYorktonSecurities,aninvestmentbank,hefundedsomeofthemostlucrativedealsinthehistoryofmining,ashedidthefirstfinancingofRobertFriedland'sDiamondFields.Itwillbeclearhemadealotofmoneyforhimselfandhisclientsandinvestors,anditlookslikeLeagoldishislargestundertakingatthemoment,afterreturningtominingalmost2yearsago,andhopefullypoisedforlotsofgainsalongtheroadagain.

Thecompany’sflagshipproject,LosFilos,islocatedinMexicowherealotofminingactivitytakesplace,andhasasolidminingculture.AccordingtotheFraserSurveyof2016,Mexicoscores#53outof104jurisdictionsforPolicyPerceptionIndex(PPI),whichisaverageforLatinAmericancountries.However,IwoulddefinitelyliketopaysomeattentiontotheGuerreroregion,wheretheLosFilosmineislocated.

Theregionhasn’tbeenthemoststableregioninMexicoasthereisalotofcrimegoingon,andmostcompaniesoperatingintheregionarereallyinvestinginsafetytomakesuretheirprojectsandtheintegrityofthestaffareensured.GoldcorpandnearbyTorexhavehadsomeseriousissueswithsecurityontheaccessroadstothesites.Whereasthesituationcurrentlyseemstobeundercontrol,Idoliketoworkwithacertainmarginofsafety,andthereforewillapplya10%discountratetothecompany’sproducingminelateron.

Additionally,thefactthecompanyisfocusingonMexicomightbereallyinteresting,consideringPresidentTrump’saggressivestancetowardsthecountry.TheMexicanPesohasregainedsomeofitsgroundafterfallingbyinexcessof20%onthebackofTrump’selection,butthecurrencyexchangeratemightplayanimportantroleinLeagold’sfuture.Afterall,itsmineplansarebasedonanUSD/MXNexchangerateof21Peso’sperUSDollar,butthePesoiscurrentlyapproximately10%strongerthanbudgeted,whichmighthavea(slightly)negativeimpactonLeagold’sNetPresentValue(NPV)andInternalRateofReturn(IRR),whichIwilldiscusslateron.

3.TheprojectTheLosFilosmineisoneofthelargestgoldminesinMexico,andinTheAmericasingeneral.The

openpitmineproducesinexcessof200,000ouncesofgoldperyearonaprettyconsistentbasis(231,000ouncesin2016).Andnotonlyisitalargemine,Goldcorphasalwaysbeenabletokeeptheproductioncostsverylow,andtheanticipatedAISCisjust$850/oz(AISC$878/ozin2016).Thiswasdefinitelyoneofthekeypointstoattractnumerouspotentialbuyers.

LosFilosMine;locationmapThemineislocatedintheGuerreroGoldBelt,approximately225kilometerssouthofMexicoCity,thecapitalofthecountry.Asthepropertyislocatednearamajorhighway,thetripfromMexicoCitytoLosFilosusuallytakeslessthanfourhours,bycar.Thatisamajoradvantageasitisefficienttobringpeopleineitherviathehighway,orthenearbyairstrip.LosFilosalsohasimmediateaccesstowaterandpower,whichimpliesverygoodinfrastructure,abigplusforanyminingproject.

ClaimmapProductionatLosFilosbeganin2008whenminingcommencedattheopenpitmine,andallgoldhasbeenrecoveredthroughasimpleheapleachoperation,followedbyanadsorption-desorption-recoveryprocess.Thecurrentopenpitandundergroundminingoperationsstillcontainsmillionsoftonnesoforeinreserves,ascanbeseenhereinthistablerepresentingReservesandResources:

2016resourcestatement(excludingsilver)ThecurrentmineplanexpectstoceasetheminingoperationsattheLosFilospitin2019.Thisdoesn’tmeantheentireminewillbeshutdown,astheBermejalopenpitisexpectedtobebroughtbackinproductionin2018(miningatBermejaliscurrentlysuspendeduntiltheLosFilosopenpitisminedout).TheLosFilosundergroundminecontinuesoperationsto2023.

AerialviewofoperationsFrom2019to2024,themajorityoftheore(9,000tpd)willbesourcedfromtheBermejalopenpit(90%),whereastheLosFilosundergroundminewillcontributeapproximately1,000tpd(10%).Theundergroundorehasahigheraveragegradeandresultsinacombinedproductionprofileofinexcessof150,000ouncesofgoldperyearuntil2020,whereafterthecombinedoutputwillgraduallydecrease,asshowninthenextimage:

ExistingproductionscheduleLosFilosWithatotalsustainingcapexofUS$79Mandatotalgoldproductionofalmost1.2MozAu,thecapitalefficiencyisveryhighasthesustainingcapexperproducedounceofgoldwillbelessthanUS$65/ozAu,resultinginalowallinsustainingcost(AISC)ofUS$805/ozAu,orC$1073/oz.Andthatisquitelow,consideringthisincludesthecontinuousdevelopmentoftheLosFilosundergroundmine,whichtraditionallyisn’tcheapatall,withAISCfrequentlysurpassingC$1200/ozlevels.

Anindependentconsultants,Stantec,completedatechnicalreportforLeagoldandpresentedaneconomicstudybasedonthemineplanwith1.26MozAubeingproducedfromthetwoopenpitsandtheLosFilosundergroundmine.UsingthebasecasescenarioofUS$1200/ozAu,thecurrentmineplanboastsanafter-taxNPV5ofUS$334M.Thecompany’stechnicalreportalsoprovidesasensitivityanalysis,andIamgladtoseethatevenatanaveragegoldpriceofUS$1100/ozAu,theafter-taxNPV5isstillUS$263MandevenifIwouldapplya10%discountrate,theNPVwouldstillbeinexcessofU$230M.ThisemphasizesthestrongoperatingmarginsatLosFilos.Notwithstandingthis,itisneededtocloselymonitortheUSDollar/MexicanPesoexchangerate.

USD/Pesoexchangerate;sourceStockchartsAnexchangerateof21Peso’sperUSDollarwasused,buttheMexicanPesoiscurrentlyinexcessof10%moreexpensivethanbudgeted(ascanbeseenintheaboveimage).Thiswillverylikelyhavea(modest)negativeimpactontheNPVandproductioncostsasthelocalcostswillbeabit

higherwhenexpressedinUSDollar.Notadeal-breaker,butit’sdefinitelysomethingtokeepinmind,aslocalcostsforoperationslikethisareusually40-50%inlocalcurrencies.4.BermejalUnderground:ExpansionatabargainpriceAtfirstsight,itdoesn’tseemtomakealotofsensetopayUS$350Mforaminewhichhasanestimatedafter-taxNPV5ofjustUS$334M.ButLeagoldisfocusingonthenextphaseattheLosFilosmine.OntopofthetwoopenpitsandtheLosFilosundergroundmine,asecondundergrounddepositwasdefinedclosetotheBermejalopenpitmine.

Schematicmineplan3DLeagoldhasalreadycommissionedatechnicalreportontheBermejalundergroundzone,andtheeconomicsofapotentialundergroundmineseemtobeprettystrongaccordingtoa2017PEA.KeepinmindthecapexandopexestimateswereestimatedbasedonjustaPEAwhichusuallyhasamarginoferrorof25-35%,butgiventheextensiveexperienceintheregionandthefacttwoopenpitminesandoneundergroundminehavealreadybeenbroughtinproduction,IassumethisPEAtobemorecredible,advancedandreliablethanotherPEA’s,whichtendtobejustafirstlookateconomicsandmineplan.TheinitialcapitalexpendituresatBermejalwillbeverylow,asLeagoldthinksitwillneedlessthanUS$50Mtobringtheundergroundmineintoproductionin2019.Ofcourse,asitisanundergroundmine,thesustainingcapexwillberelativelyhighinthefirstfewyearsoftheminelifeasthecompanywillbecompletingasmuchundergrounddevelopmentaspossibletomaketheminingprocessasefficientaspossible.SoontopoftheUS$47Mininitialcapex,theBermejalprojectwillrequireanadditionalUS$106Minsustainingcapex,ofwhichthemajoritywillbespentinthefirstthreeyearsoftheminelife(US$87M)beforealmostbeingnegligiblefromthefourthyearon.ConsideringthetotalamountofgoldtoberecoveredfromBermejalisexpectedtobe1.39MozAu,thetotalcapitalintensity(initial

capex+sustainingcapexdividedbythetotalamountofrecoveredgold)isjustUS$110/ozwhichisextremelylowforaprojectofthissize,asthisusuallyattributestoUS$200-300/oz.

Pit/resourceoutlinesThisshouldn’tcomeasasurprise.Afterall,thesurfaceinfrastructureisalreadypresentanddoesn’tneedtobetweakedinordertoprocesstheBermejalundergroundore.SoLeagoldwillonlyhavetocompletetheundergrounddevelopmentwhichisn’ttooexpensiveconsideringthemineralizationisn’ttoodeep.ThisallowsLeagoldtoreachtheorebyconstructingaramp,ratherthandiggingashaft.

ThePEAhasbeenbasedonaresourceestimateof8.9Mtatanaveragegradeofalmost6g/tgoldand24g/tsilver.Takingtheminingdilutionintoaccount,Leagoldisanticipatingatotalmillfeedof10.5Mtatanaveragegradeof5.15g/t.Thisorewillbeprocessedduringan8yearlifeofmine(LOM)whereinatotalof1.4MozAuwillbeproduced,startingin2019.Theaverageallinsustainingcost(AISC)isexpectedtobelessthanUS$450/ozAu,whichwillmakethisoneofthefewhigh-marginpuregoldminesintheworld.ThischartbasicallytellsitallwhyLeagoldispoisedforgrowth,productionwillriseconsiderablyandtheAISCgoesdownsubstantiallytoo:

Existingvs.Plannedproduction/AISCscenariosThebasecaseusedintheundergroundminescenariocontainsagoldpriceofUS$1300/oz,whichismorethan8%higherthanthemineplanofthecurrentoperations.ThisindicatesLeagoldismoreorlessexpectingahighergoldprice,whichisn'tveryconservative.Toremaincautious,IwillonlylookattheeconomicsusingagoldpriceofUS$1200/oz.Andthankstotheextremelylowinitialcapitalexpenditures,theafter-taxIRRapproaches100%,whereastheNPV5comesinatUS$418M.Usinga10%discountrate(whichmightbeasaferthingtodoinGuerrero),theBermejalundergroundminestillboastsanafter-taxNPV10ofUS$315M.Again,thisscenarioalsousesanUSD/MXNexchangerateof21,versusthecurrentexchangerateof18.75Peso’sperAmericanDollar.

5.ThedealLeagoldfinalizedquiteanarrangement,andwillpayGoldcorpUS$350MwhichconsistsofUS$279MincashandUS$71MworthofsharesofLeagold.Thissharepositionwillincentivize

Goldcorptomakethetransitiongoassmoothaspossibleandallowstheseniorproducertoretainexposuretotheassetaswell.

Thefundingoftheacquisitioncouldbebrokendowninthreemajorparts.Firstofall,LeagoldcompletedaC$179Msubscriptionreceiptoffering,pricedatC$2.75persubscriptionright.TheserightswillbeconvertedintocommonsharesofLeagoldnowthatthetransactioniscompleted.AsecondtrancheisadirectUS$50Mequityplacementattheexactsametermsofthesubscriptionreceiptoffering.OrionResourcespartnerswilltaketheentireUS$50M,toensureanequitystakeofapproximately24%inthecompany.AfinalpieceofthefinancingpuzzleisanUS$150Mloanfacility,providedbyOrionaswell.This5-yearloanwillhaveaninterestrateofthe3monthLIBORinterestrate(or1%,whicheveristhehighest),increasedby700basispoints(7%).Thisisn’tacheaploan(consideringtheinterestratewillbeatleast8%)andasLeagolddoesn’thavetostartrepayingtheloanuntilthethirdyear,theprincipalamountwillhaveincreasedtoUS$175M,whichwillthenhavetoberepaidin12quarterlyinstallments.TheacquisitionfinancingalsoprovidesforagoldofftaketoOrionof50%ofthegoldproductionatmarketpricesfromtheLosFilosMine,untilcumulativedeliveryof1.1millionouncestoOrion.Agoldofftakeisn'tverycommon,itismoreofabasemetal/commoditything,buttoseeOrionbuyingwithoutadiscountatmarketpricesisn'thurtingLeagold'scashflows.Basedontheexpectedcashflowprofileofthecompany,thisshouldn’tbeaproblematall,consideringthehighmarginBermejalundergroundwillstarttoproducegoldin2019atamarginofalmostUS$800/oz(consideringtheBermejalUGAISCislessthanUS$500/oz!).Thisputstheprojectatthebottomquartileoftheproducinggoldminesintheworld,asshownhere:

AISCvs.amountsofgoldpaid/producedWhenallissaidanddone,Leagoldwillhaveapproximately151Msharesout,forapro-formamarketcapitalizationofC$415M.IwilldiscussinthenextparagraphwhyIconsiderthistobeagooddealforLeagold,andalthoughGarofalohasastrongfinancialbackground,itshowsyouitisn'teasytooutsmartguyslikeWoodyerandGiustra.

6.Peercomparison

Oneshouldalwayscompareappleswithapples,andthebestexamplemightbetouseTorexGold(TXG.TO)asmainexampletovalueLeagold.NotonlydoesTorexGoldhavethesameproductionprofile,itisalsolocatedliterallydowntheroadfromLosFilos,intheGuerreroGoldBelt.

AsTorexGoldwillalsoseeitsAISCdropbelowUS$800/ozin2019(whichwillhappenatLosFilosasthehigh-gradeBermejalundergroundminewillberampingupitsproductionrate),thiscompanymightbetheverybestwaytogetanideaofhowLeagold’svaluationcomparestoTorexGold.

NeighboursTorexandLeagold;claimsmap

Theresultsareappealing.Usingadiscountrateof7%andagoldpriceofUS$1300/oz,theNPVoftheMorelosassetisestimatedatjustUS$1.3B(orapproximatelyC$16pershareofTorexGold).ThismeansTorexiscurrentlytradingatmorethan1.5timestheNPVofitsonlyoperatingproject.Torexdoeshavealargedevelopmentprojectwhichmightbeincorporatedinthemineplanlateron,butsodoesLeagold.Ihavecompiledatablewithsomeother,moreorlesscomparablecompanies,basedonpubliclyavailabledata,aswellastheresearchreportsfromcolleaguesatCanaccordandRBC.

Pleasenote,whereasLeagoldappearstobeprettycheapbasedontheEVormarketcapperounceinthegroundofTorexandAlamos,notallofLeagold’souncesarepartofthemineplan.AlargerBermejalopenpitminewouldhaveastripratioof5:1,buttheredefinitelyneedstobeahighergoldpricebeforetheseadditionalounceswouldbeaddedtothemineplan.

TheproformacashflowforLeagoldiscalculatedlikethis:EBITDAUS$113M-US$43Mdepreciationetc-US$10Moverhead=US$60Mnetincome.Corptaxesareabout30%includingMexicanroyalties,resultinginUS$18M.OperationalCFisEBITDA-G&A-taxes=US$85M=C$113M.Thisdoesnottakeexpensedexplorationactivities,currencyfluctuationsandchangesinworkingcapitalintoconsideration.

Basedonoperationalcashflow,Leagoldappearstobereallycheap,althoughithasamuchmoreprofitableassetthanforexamplePrimero's.SoifwewoulduseaconservativeMC/CFmultipleof5,thiswouldimplicateasharepricetargetofC$3.75.AndthisisstillhalfofTorex'smultiple,operatinginthesameregionwiththesamekindofassets.AndofcoursethereistheexpansionscenariowithBermejalUnderground,commencingin2019,increasingproductionfrom260kozto360koz,andloweringAISCfromUS$861/oztoUS$673/oz.Aquickbackoftheenvelopecalculationgeneratesalmostdoublethecashflow,implyingalmostapossiblefurtherdoublingoftheshareprice,ifthecurrentmultiplewouldstaythislow,whichIfindabithardtobelieve.Sothereisplentyofupside,anditwillbeclearbynowthatIviewaC$2.75sharepriceasundervalued.

It’snoteasytocrystallizethevalueofMexico-focusedgoldminersfromaglobalpointofview,asthereareveryfewpurelyMexico-focusedgoldproducers.Thatbeingsaid,LeagoldistradingsubstantiallylowerthanTorexGold,whichmightbethebestcompanytocompareitwithbothonaP/NAVbasisaswellonanenterprisevalueperounceinthegroundbasis.

UsingagoldpriceofUS$1200/ozAu,theafter-taxNPV10ofLosFilosandBermejalisaboutUS$612M.ThismeansLeagoldacquiredtheLosFilosdistrictforjust0.6times(andeven0.5timesatcurrentgoldprices)theNPVoftheassetswhichcanbeseenasastagedproducingassetwithverylowcapexneeds,andthatisquiteagooddeal.GoldcorpwasnolongerinterestedindevelopingLosFilosduetotherelativelyshortminelifeofthedepositsandthenew20/20/20policy,butthisacquisitionwasarealopportunityforLeagold.

Afterdeductingthenetdebtandtheestimatedtotalcostofthisdebt,IendupwithanestimatedfairvalueofC$545MforLeagoldwhichisapproximatelyC$3.60pershare.Keepinmindthisisbasedonadiscountrateof10%,andifIwouldapplyalowerdiscountrate,theNAV/shareincreasestowelloverC$4.

Thisonceagainemphasizes,thatLeagoldmanagementhasdoneagreatjobinitsnegotiationswithGoldcorp.TherelativevaluationofLeagold(basedonthecapitalraise)seemstobeconsiderablylowerthanthevaluethemarketisgivingTorexGold,theonlyotherrealpeerproducerintheGuerreroGoldBelt.Buttherealvaluewillcomefromfutureexpansionprograms.Consideringa

muchhighersharepriceatthestart,whichcouldlimitdilution,andamuchbetterassettobeginwith,IfancythechancesofLeagoldtobecomeanother$2BmidtierproducerlikeEndeavourMiningevenfaster,dependingonthepriceofgoldandstockmarket/miningsentimentofcourseasalways.AndalthoughitisGuerrero,IpreferthisjurisdictionovertheevenmoreadventurousWestAfricanjurisdictionsofEndeavourMining.

7.Conclusion

GoldcorpwasnolongerinterestedindevelopingLosFilosduetothenew20/20/20policyofnewCEOGarofalo,butthisacquisitionwasarealopportunityforVenturejuniorLeagold.NotonlycouldrainmakersWoodyerandGiustrabuythismineataseriousdiscount,theinbuiltexpansionopportunitywithBermejalUndergroundisimpressive,andwillpositionLeagoldasoneofthelowestcostgoldproducersaroundinafewyearstime.Idon'tseetoomanydifferenceswithpeerTorex,andviewanear-termre-ratingbasedonthecurrentsituationasimminent.Besidesthis,Idoexpectthismanagementteam,havingbuildseveralmultibilliondollarcompaniestogetherandindividually,nottositontheirhandsontheM&Afrontbefore2019.Asaconsequence,themakingofanEndeavourMining2.0couldmaterializesoonerthanmanywouldthink,andI'mlookingforwardtoproceedingsasashareholder.

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 www.criticalinvestor.eu, and follow me on Seekingalpha.com, in order to get an email notice of my new articles soon after they are published.

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 sedar.com, 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.

Los Filos Mine

TheCriticalInvestorisanewsletterandcomprehensivejuniorminingplatform,providinganalysis,blogandnewsfeedandallsortsofinformationaboutjuniormining.TheeditorisanavidandcriticaljuniorminingstockinvestorfromTheNetherlands,withanMScbackgroundinconstruction/projectmanagement.Numbercruncheratprojecteconomics,lookingforhighqualitycompanies,mostlygrowth/turnaround/catalyst-driventoavoidtoomuchdependence/influenceoflongtermcommoditypricing/marketsentiments,andoftenlookingforlongtermdeepvalue.Gettingburnedinthepasthimselfatjuniormininginvestmentsbyfollowingoverlypositivesourceswhichmoreoftenthannotavoidedtomention(hidden)risksorcriticalflaws,TheCriticalInvestorlearnedhislessonwell,andgoesafewstepsfurthereversince,providingafresh,morein-depth,andcriticalvisiononthings,hencethename.

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