Considering how events move in this sector I should imagine that we may hear more about the release from administration this week although the real game changer should occur when there is an RNS detailing the plans for the tax losses. I hope that the SP responds accordingly as it has been a long wait to get to this stage. Casting my mind back to the highs of last year; I remember that it was a gradual build up with an SLM update along the way (40s) and it reached the 70s when the Themac DFS was released and dropped from there. There was a post recently which observed that it also coincided with the anticipated exit from administration, however I cannot recall whether this was indeed the case. I am hoping it was considering the news to be expected over the coming weeks, a new bottom in the 40s or 50s would provide a good platform for the ongoing news from Argentina and the Philippines over the turn of the year.
All of this said I do wonder where Margic has got to.
can anyone shed light at to why this rise and the diference between them and ecr? seems to me other companies rocket on news and we plod or drop :( new to this so some input would be appreciated cheers like!
Hi LG, understandable reasoning. Good point. Lots of cash readily available. You wouldn't ask for a 10 mill loan for a 3 mill outlay on existing projects? Fingers and toes crossed! :D jee's this 3 year old rioja is sinking nicely...
I wouldn't hold ur breath. In aim, u practically need a signed guarantee ur gonna be minted to see movement in sp in a bad market! We could b waiting. However, Mga just might do that. Crusher at SLM with plans might also ;) itogon with earn in also. Themac will prolly be later
Orchestrated silence from the forum by myself as the lower it went the more I bought and I have hoovered up some double figure millions so there's no point me posting how positive I feel about ECR until I was done and my last buy was at .216, unbelievable bargain.
There's absolutely nothing in todays price for the MGA outcome which I feel could be breaking news this coming week and bringing with it those tax losses that at fair estimate are worth twice our market cap.
ECR passing the COT, that is already been taken care of and been shown is our accounts.
ECR have plans of how to off set these loses to maximise the tangible asset forthcoming into out portfolio.
In my opinion the YA $10m facility isn't just for Itogon, ($1.3m on production) the $10m isn't just for SLM which is of a low CAPEX as repeated in RNS's so where will it be going ?
We've drawn $1.371m nett already which I estimate we have a cash burn $160k per month which can be turned up or down and having this money eases cash flow when a large expenditure comes along like further Itogon drilling for example.
ECR half year accounts suggested the bank account would be dry about now and I always thought a straight forward placing would of happened but this $10m is a remarkable achievement and I'm very happy knowing we are financially sound moving forward for the next 2/3 years, surely this was down to Paul's business acumen.
Now let's ask why specifically $10m why not just $3/4/5m ?
For me it's all coming out of MGA leaving administration and ECR buying an immediate mining operation that the industry experts are repeatedly telling us that the global recession / demand has left mining opportunities that only companies with cash are taking advantage off, the timing is perfect for ECR.
Paul told me way back in January there were loads of walk on projects available but were mainly of low quality and since then people have continued to knock on his door and with our war chest perhaps those distressed sellers are not being so bullish on their asking price and just want the green dollar straight in their account.
There's going to be a surprise after the MGA RNS and thats how me monetise the tax loses and this is the news that's going to start the journey north, it'll be one of those moments when all the patience pays off and when this deal is announced but we should remember not to forget the other gold plays which are gathering momentum too.
ECR will have a 3 tier business model all at different stages of mining which will see an immediate cash generator very soon, post MGA, SLM fairly soon Q1 2015 and the almighty hill of gold at Itogon at some point in 2015
Themac in the back pocket and possible MGA avenue?
MGA cheques posted 15/09 so you would expect these to be cashed by now and the rubber stamp to signal the end of MGA in administration surely........
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