At the right SP is not a problem, gives a company more scope, bit like taking a bank loan out which most businesses do but with no actual debt ! Happy with dilution around 0.50 or so and by then could make no difference at all to the SP.
You're right Dean. Better to let Aus$80mil tax losses to just sit there in a picture frame, you can buy Aud$80mil tax losses in the local newsagents. They have no use. I wouldn't want them. What a terrible, useless burden ECR will have! ECR may even give them away for free!
Aud$80mil you donut! Have you got any idea what even $2.5mil Will buy a mining company these days? Oh brother! What bills? What expenses does MGA have?
If you had a mine that was producing say $10mil a year taxable profit, but with investment into the mine of say $12-13mil it could produce $18-20mil profit per year plus the rest of the tax relief MGA could offer you, you be pretty comfortable giving 20-25% of the project and maybe even consider handing management of the project over for between 15-25% using the tax benefit to the max, passing all risk over and retaining a huge cut for doing nothing increasing you're overall earning potentail on top, I'd say that would resemble a pretty sweet deal all round.
There is plenty of room to manuver an exepctional walk on project where MGA could benefit someone else whilst working their way in. If ECR had money to boot, they could do much more.
For ECR 100% owned MGA. Make no mistake. The meeting of creditors now has a date. This means finalisation in right under way and this baby is getting wrapped up. Couldn't care less today or tomorrow about the sp, this is a major step to a significant increase of ECR's Market Capitalisation. There may even be better news yet to come from MGA. This truly did mark a major step forward for ECR.
I'm off on me holidays early next week. Can't wait to come back in a couple of weeks.
it should be painfully obvious that there is some quick £££ to be made by getting in now for the news RE: MGA on the 15th given that ECR have been waiting 5 years for it to be released and countless people have said it holds significant value for ECR.
LET US NOT FORGET.... the actual reason people should INVEST here is for the Itogen gold project which is expected to yield 1,000,000 ozs of gold with very low extraction costs.
1,000,000 ozs @ $1,320 per oz with extraction costs (based on neighboring gold mines) at $350 per oz,leaving approx $1,000 gross profit an oz.
50% of 1,000,000 = 500,000 oz for ECR = $500,000,000 over the 10 year life of the mine. so $50,000,000 gross per annum when production is reached. net profit may be half this figure due to Philippine mining tax, I don't know exactly but that leaves $25,000,000 net profit per annum OR £14.57m at current exchange rate (£ is currently very strong)
our market cap is £8m currently. Itogon may well yield in excess of £14.57m net profit per annum for the duration of the mine (10 years)
MGA+ ITOGON +THEMAC + SLM...all for £8m.
Whilst currently ECR's asset valuation supports its current market price with the balance sheet gap being due to anticipated returns, it still looks like ECR is a bargain at its current price.
for those unaware of SLM and THEMAC. SLM is a wholly owned piece of land which significant grades of near surface gold which whilst not an enormous reserve SHOULD yield near term mining and a cash flow to support operations elsewhere.
THEMAC is a long term investment, ECR owns a significant minority share in the company which owns a huge copper flats mine which also has a potential gold reserve. Copper is currently increasing in value as previously mentioned.
As always, do your own research and invest what you can afford to lose, but at these levels, ECR is as safer bet as you are gonna get on AIM with sigificant upside in the short/medium/long term
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.