Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Situation for Gold Miner in Fiji 'Explosively Bullish'
Contributed Opinion

Share on Stocktwits


Technical analyst Clive Maund explains why he believes both the fundamental and technical outlooks for this company look strong.

Lion One's Tuvatu Project

Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX) is certainly showing signs that it is turning up here, and so it should given the company's steadily improving fundamentals and the brightening outlook for the sector, notwithstanding any modest near-term correction. Links to articles about the company's improving fundamental situation will be added to this article later, but notable developments include the company undertaking its own drilling operations, thus saving money, performing assay work locally on Fiji and setting up a solar power facility to power its operations.

BREAKING NEWS: QUINTON HENNIGH TO BECOME LION ONE TECHNICAL ADVISOR. Hennigh was the driving force behind Novo Resources, which as we know turned out to be a spectacular investment for early buyers.

On the latest 6-month chart we can see that "something is going on" because Lion One broke sharply higher on good volume in January and has since been consolidating in what looks like a bull Flag that has allowed the earlier overbought condition to partially unwind and the 50-day moving average to close up the gap with the price somewhat and with the falling 200-day moving average—this is thus a setup that will lead to a bullish cross of the moving averages on the next upleg, the so-called "Golden Cross," which normally marks the start of a new bull market.

The 3-year is useful and interesting as it enables us to see in its entirety the grueling downtrend that started in August–September of 2016 and has persisted to this day, so it has been going on now for well over two and a half years, and the odd thing about this is that the company has been making great strides towards its objectives during this period, but you wouldn't think so to look at the chart.

We therefore have a situation now that is explosively bullish—and the good news for buyers here is that even after the sharp rally in January, the stock still hasn't broken out of this downtrend, so the news that Quinton Hennigh is getting involved should really light a fire under it. Here we should recall that many stocks had a big run-up during the first half of 2016, only to slope off into a long downtrend after the summer, but the difference between Lion One and many of them is the improvement in its fundamental situation that include the construction of an assay lab on Fiji which is nearing completion, the construction of a hybrid solar-diesel power plant to power the company's operations and the purchase of drilling equipment to facilitate further exploration at the company's properties.

The long-term 18-year chart is also interesting as it shows us that Lion One has had a long build-up to its soon to be enviable situation with its stock having made no net gain over the years—a situation that we can expect to change very much for the better going forward, and a breakout by gold into a major new bull market soon, as looks likely, will be the "cherry on the cake."

Lion One website.

Lion One Metals, LIO.V, LOMLF on OTC, closed at C$0.50, $0.386 on 28th February 19.

Clive Maund has been president of, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.


1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Lion One. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Charts provided by the author. Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Resources Report Newsletter Free and be the first to know!

A valid email address is required to subscribe