Yellow Lab Life Capital

EUCALYPTUS TREE, Jan 3, 2022 (Newswire) 7:00 AM: The koala is an unrestricted free agent There is no pre-contract or handshake on a max deal to be signed on a certain date What will come in '22, let's see, but until then no compliance regime Let the mayhem begin...

As a natural resources investor, a thought from the koala Remember how due to shale gas, US thermal coal died, and then with LNG growth and basically no electric demand growth ex China (self sustaining on thermal coal) the global thermal coal trade got wounded Then Net Zero 2050 / COP26 happened When a sector or subsector gets priced to extinction, you can go to 20-35% unlevered fcf yield Need principal back plus return ASAP because “we all know it’s over in 10 years because innovation and rapidly improving and deployed technologies” narrative exponentially snowballs Being a touch hyperbolic but…the supposed death of coal is your corollary here for non-AI software etc And look, some legendary single managers are closing due to “returns not meeting their own standards” What does that really mean? We didn’t own NVDA / AI and that’s become the singular long narrative that matters And now the active AUM is concentrated in those that caught that narrative wave, and human nature is such if you catch something early you become a true believer (how else does a liquid 10x become a 100x) so the narrative accelerates even faster So now because LPs can redeem you can’t catch the falling knife with OPM that’s career risk So you need HNW and retail to say “3-4 yr payback and if dies in year 5 or 6 I still make a return and if it makes it to year 10 a great return? Sure f- it, basically back door short via a long the snowballing narrative isn’t sustainable” TLDR answer: start thinking 5x true (deducting SBC) free cash flow/earnings before saying “deep value”, there are circles of hell Dante didn’t write about the coal people saw when going through something similar

@marketplunger1 Dude you know who was smart enough to IPO at the top last time…let’s not stop the party yet

Everyone is obsessing over the SpaceX, Anduril, and Anthropic IPOs. But I am telling you. A Cargill IPO in this commodity environment would hit like crack.

@AlchemyofFinan1 They’ve been pretty open they are hunting which frankly, is the right way to do it Personally think Saturn would be a master stroke for them but let’s see, seems quiet clear everybody in gold is actively either buyer or seller right now, no one is “just an operator”

The need to get bigger market cap and attract flows makes rational sense but we also need to acknowledge this is Ross helping Lassonde out of a situation that sort of run out of runway And for Equinox it’s an implicit confession there wasn’t an attractive bid to be consolidated which means empire building was the path forward, so Lassonde is helping Ross too Is the next step Discovery and Equinox get hitched in 2027 and spin off Mexico? Idk but this is an investment bankers dream while the gossip is everything at Barrick is for sale so sure why not create a new gold major, and given the new chair let’s call it Goldcorp2

@JordiEngineerd Why not Discovery Silver? Let Tony really get the chance to avenge his Agnico assassination

If I had to guess the next Equinox $EQX transaction will be them taking over Gold Candle after it IPOs 🔮 Keeps the narrative of a growing Canadian (and North American now with Orla) producer. Beaty and Lassonde already in both tickets. And they’ll grow their exposure to EQX.

@JohnWayne_Park Guess people liked what Gary said at BAML past 2 days

Someone is taking a large position in $GLEN.L @YellowLabLife it’s on a ripper

@CEOTechnician Sulfuric acid is a wonderful by product credit for smelters these days

Smelters are paying for the luxury of being supplied with copper concentrate

The koala knows it’s south beach but when a large black coffee costs $7.00 before taxes the move in metals past 12-18 months feels more nominal than real

@jtourzan Don’t make the koala post it…

What do I panic buy? $mari.to $cs.to $hbm $teck $ffx.to so far

A great example of regulation red tape causing a headache… Colquipucro Silver zone is <2 km north of the Ayawilca zinc zone for Tinka Resources $TK.V Open pittable, open to the west, 27 mm ounces, not drilled since 2014 Obviously would be incorporated into Ayawilca in some way in a development plan But can Tinka do an updated resource right now while market waits for them to get back on the ground at Ayawilca in 2H? Since silver is $80+ an ounce? No because a project can only have one live technical report at once so if you do that for the silver zone the Ayawilca PEA basically goes stale So probably can’t formally give an updated resource until the Ayawilca PEA is rescoped/updated or a PFS comes out But there’s 27+ million open pittable ounces of silver RIGHT THERE that wasn’t included in the last Ayawilca PEA Tinka market cap Çevir

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@gossip__Center For now yea probably Never know what happens post some clarity but wouldn’t be surprised to see Americans move in on those assets if there is a “change of control” on the island At a minimum it’s in the too hard bucket

@YellowLabLife Koala, is S.to finished?

Throw away observation here from the eucalyptus tree but looking at Marimaca $MARI.TO lag copper here, someone could slap a 40% premium on it here and probably get a deal done Looking at you South32 $S32.AX And also probably Capstone $CS.TO too

Wesdome is on the wedding diet and fitness regime

Starting to wonder just how fast those warrants are going to get accelerated, happy problems in the eucalyptus tree

@jonathan682 Whose the buyer though?

@YellowLabLife Lol capstone is a target at this valuation, not a buyer

@HorribleDisgust Yep, the royalty isn't the only part of Los Azules capital structure the Koala is exploring investing in

@YellowLabLife You see this Koala: mining.com/web/mcewen-cop…

There’s something almost impressive about the cognitive dissonance required to be talking about share buybacks in the exact same tweet TNR Gold $TNR.V $TRRXF are marketing the proposed Altius share placement which would dilute existing existing shareholders And that placement hasn’t closed even 35 days after announcement (if it doesn’t close these tweets are going to be amazing to look at) It’s almost like the regulators realize management is doing it for the wrong reasons But to every shareholder of TNR Gold reading this, how long have we seen this management and board talk of buybacks and dividends one day, while now they celebrate a not yet approved placement to Altius diluting all of you He is showing you in his words and actions what he actually thinks of his shareholders

Yes I know the first upload to SEDAR for some reason formatted the quotes weird That’s been fixed $TNR.V $TRRXF

@aedesalbopictu Wouldn’t say we have any signs Tanbreez is any better than thought Just that they are trying to collapse the EUR AU / CRML arb Still don’t believe in the project at all

@YellowLabLife What is your thoughts now? $EUR.ax Many underestimated Tanbreez and Co. I am intrigued to see where you stand now respectfully.

You know why the koala isn’t chasing European Lithium $EUR.AX higher on the ASX as the proxy for the $CRML Reuters article? Because the koala has confidence someone in DC will do their actual DD both on Tanbreez and the team Tony isn’t exactly a well regarded figure in mining

Multiple people have told the Koala this morning if that C$500,000 proposed placement that TNR Gold $TNR.V $TRRXF management implicitly rejected by refusing to engage “needs to be bigger” they’d take a piece of it Not sure why a company that management has said expects first revenue shortly would need more, but hey, very little out of this management team has made sense in the past ~49 weeks