Cheapskater, If ECR were offered a swap deal would they not consider it? No outlay (if a straight swap) and they could sit on Andrews for a couple of years while SLM & Itogon & possibly a Australian play to utilise the Tax Credits come to fruition. Once these are up and running they than have the cash flow and time to develop Andrews....and with the permits already in place. Andrews would not be a 'prove up tomorrow' play , but would be one to add to the end of the conveyor belt of projects.
It wouldn't be for Andrews. It's not a producer and it's near Copper Flat so the same permitting situation would exist. Even it the mineral resource were proved permitting would take 3-5 years. ECR need to be looking for revenue generating options to use the MGA tax loss or that can just sit on it. I think things will move very quickly once the cheques are cleared ad the BoD have had 1yr+ to work out what to do and recently got a $10m loan facility which can make it happen. Most likely is a small Aussie company making small profits which will be 42% larger profits if no corporation tax is payable, enough to pay off the interest in the loan in cash rather than equity and then maybe add another similar company, combine them for some more economy of scale and then perhaps a third, etc until they're earning enough top fund everything and pay off the loan. Wait until the tax loss is used up then sell MGA with the companies that are under it to anyone that wants to pay the right price, clear the loan if there is any and use to cash to ramp up production in SLM and Itogon and develop any new assets that might come along. ECR operations by then should be self sustaining and the mcap somewhere loser to 10 times what it is now. Timescales for that sort of plan are rather drawn out, >5 years and maybe closer to 10, but it would be a safe strategy if people are prepared to be here for that length of time. Of course I'm just speculating and I hope to be more pleasantly surprised with some amazing transformational deal but I am cautiously optimistic.
ECR wouldn't buy any mine outright as the $10m is for 2/3 years to cover all running and operating costs but if you look at Itogon sitting with 1m oz this hasn't cost a fortune so far only $100k for the JV then with add ons at certain milestones.
Itogon is a maximum of $1.4m to TGR + operational costs so far like the next round of drilling etc.
What will happen if there is such a mine available a cash consideration / JV or share swap etc will be done but we have what people want and that's $80m tax losses, this is huge bait and and even better bargaining tool.
What's about to happen is going to be huge.
Multi operational gold plays in Argentina and The Philippines and now possibly Australia and away from any political tensions.
Strong buy at rock bottom levels and the market is sleeping
I too have added a further 750k . Done a fair bit of research over the past month. Interesting that there is a newly formed shell company with a board full of gold expertise looking for an undervalued concern to develop..... Not to mention strengthen balance sheet. Could be miles out on this however .
OOOOH !!! Interesting thought....Themac holding for Andrew swap ....that would be massively game changing and with no fee payment. That would get me (even more) excited about ECR if that were to happen.
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