I'm not an accountant but it seems logical that MGA would retain the loss in separate MGA accounts and MGA would simply remain a subsidiary of ECR. Earlier I was just trying to quantify this 'asset' on a value basis to ECR share price based on some future deal potental.
MGA is not a bookable asset and I didn't mean it to be assessed in that sense.. TalkingSense talks about potential values (or speculative premium) mga does have a lot of potential value because one day it will be a very valuable deal maker. .. it's this potential value of MGA that i am attempting to quantify.. and I still believe that 2.9M is a fair and conservative figure.
About time we moved out of this range. We should be above 0.3 but we have a lot of people taking the 10% profit. The MMS have manipulated this share for far too long and made it a traders paradise. About time they started to play ball and move this north. The AIM is getting so corrupt and it is going to change. GLA
I almost agree with Squiff that Itogon has no value (it does have a current re-sale value) ...but it does have potential. An potential is what drives a AIM share price......you cannot make money if all the potential has been realised as the value is already priced in and the SP cannot rise.
ECR has potential in spades with Itogon and being only c9 months (guesstimate) away from JORC and a provable large resource makes this a good investment. As we move through the process required to move towards the JORC and the resource and commercial potential continues to be proved up then the SP will move towards that final value SP. Monetising MGA is a massive step as it could provide an income stream and prevent further dilution. SLM could come on line relatively quickly and also provide revenue.
Personally I think MGA will cover Itogon, SLM will provide a steady income and once we have the JORC at Itogon we will sell our stake for a considerable amount (the current £8.5m maket cap will be a blip in the rear view mirror) and move on to new projects. No i have recently added a couple more million shares I will be holding at least 75% of my holding until the itogon JORC and may top slice on any peaks and take opportunities on dips with the remainder
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