$300k on 200,000 Oz being proved up - resource estimate Q2
$500k on gaining mining licence - don't know how long it takes but PB at TGR says it's not a problem
$500k on production - this IMHO will not be paid as it will be sold
When Itogon has the resource estimate of significiant size + license = full package to Chinese $$$$$$
SC has publically said Itogon will be sold at any time if the right offer comes in
The cost of mining from a labour point of view is cheap and the infrastructure is in place however running a mine isn't what ECR or TGR have experience of and thus will be sold
I will check through my correspondents with PB as he's been sitting on this for 15 years waiting for the biggest pay day of his life
SC has been familiar with the area and worked with PB as for back as 10 years and TGR archive info sees SC commenting on Itogon and TGR spiked to $3 and they still havent produced hence .20c today (bargain) but we have now over the last 12 months found more gold and significiant veins + supergene
My thoughts are ECR will of outlayed $900k to TGR ( no $500k production instalment ) and ECRs cash burn is £100k per month ( across the business ) however cash burn / cash flow will be high during drilling etc and low in the waiting periods but nevertheless lets budget half towards Itogon for exploration costs alone = £600k / $900k
Itogon cost to ECR approx $1.8m / £1.2m when the for sale sign goes up
Itogon if holding 1m Oz at £1200 oz ......you do the sums and get a big calculator
50 / 50 with TGR ( + our 400,000 shares )
This is why Itogon is a transformational game changer
2nd drilling schedule of 990 metres / 7 holes to commence 15/02 for 10/14 days and results end of February
Yup, this was lifted in March 2013, of course (and if you listen to SC at the Philippine Mining Luncheon on You Tube) you will hear reference by the interviewer and SC to the fact that legislation to conclude the Mineral Production Sharing Agreement (MPSA) issue which is still to be concluded, this of course is just a 'glorified' tax that the Government levies against companies, this isn't going to effect ECR / TGR unless you think ECR / TCR will take it to production ( unlikely) IMHO as it will be sold long, long before this and the 50% Earn In can be changed to sell the asset whenever they choose, I just don't see this as an issue.
Question for LG - have you discussed with PJ the issue surrounding the current Moratorium in the Philipinnes on certain types of mining licences and if so what was his view? see below " ECR can earn 50% by 2018 if it makes staged payments of $1.4 million (£886,000) and, crucially, if it secures a mining licence from the Philippine authorities despite a moratorium on certain types of new licences in force since 2011".
Appreciate the effort you guys went to type all that up. I have a clearer understanding now, and my anxiety has reduced greatly. I thought that each time they offload my investment value will go down with the share price. But after what you gents wrote, I can kick back and relax and carry on loosing money on IG Gold contracts. LOL
Great post as per usual LG and recommended Alll in all really looking forward to the news flow unwinding here, with so many options, but first we need to be shown to be earning some crust, and what CASH being KING can do for us in that respect bring on next week ATB F
Zainafzal - from the start ECR need money and YA provide a $10m facility in exchange for shares - bad news more dilution but catch 22 as we need the money
YA shaft every company they lend too but not in this deal - most unusually they can not short this stock either
YA have a weighted sell ratio against daily sells which now PROTECTS the shareprice from being suppressed / hang over of shares
YA hold at this stage 185m approx but they have allowed us $1.5m (1.377 nett) to do the following ;
A) working capital B) second round of drilling at Itogon C) SLM mapping and extras D) buy a stake in TGR (£40k) doesn't sound a lot but TGR is illiquid and hard to buy E) due diligence in Thailand with multi optional payment plan F) provide the opportunity to talk to vendors knowing cash is king and worth more than and actual £1 what I mean by that is for every pound spent add 20% as a premium as a cash buyer so a £500k price tag will be bought for £400k simply because ECR can pay tomorrow.
So all the above means ECR can now grow and grow quick and while we know YA have 185m shares to dispose of in their return on investment the higher ECR goes the better so drip feeding their stock daily is win win
At the end of this first tranche of YA it's added 243m + 94m warrants at some point so 3.6b shares in circulation but if we sit at 1p - 2p area who cares.
The MGA money will stop immediate YA money and further dilution however there's something BIG going on behind the scenes that will blow the back doors off I'm convinced as YA's behaviour is for a reason.
Now 3.6b shares is 1/2 share for every person on the planet ( PJ quote from April 2014 investor show when at 3.2b )
How do we address that - easy share consolidation 50/1 and with all the assets and 'other' plays going on ECR can easily move away from a penny share like Condor / VOG etc and become a 50p a share or whatever
Didn't need to write all that but the more people understand the mechanics the more people will buy
Expect .25 next week and a return to that price we saw in September which was without MGA leaving admin / Thailand etc
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