Blue Lagoon Resources (BLLG) - Entrepreneurial Approach Shaving Costs
Matthew Gordon, Ptolemy Capital
2 Months ago
Vig is a entrepreneur who made money in Cannabis. They have 3 projects; Pellaire, Dome Mountain, Big Onion (copper Porphyry). Blue Lagoon IPO'd is July 2019 and Vig explains how he financed the projects. We try to understand the payment schedules in the MD&A against what Vig tell us. A lot of moving parts! He explains how he is approach to costs and process. Vig is keen to show us that he has an unconventional approach to process and planning, and does not feel it is necessary to pay for professional services companies to tell him what he already knows. We are keen to understand the sequence of the projects and how he intends to spend his money. Dome Mountain, near Big Onion, seems to be the want to be flagship project. It has shown some good drill results recently and the market has reacted positively. It's early days and a small mine but can be very profitable as the Capex is very small, about $1.5M. This is because it benefits from an expenditure of $28M on infrastructure by the previous owners. Vig expects to take advantage of the high gold price environment.
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