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….BoooooOOM
Following on from yesterday, if they sold the Victoria assets, what do you think as shareholders we would get from it? what price?
An excellent theory daramuda! Any potential buyer of Vic would want to see some potential in the ground and let's not forget that every hole that has been drilled prior to DR and KH has been a duffer, hardly a come and get me ad. I suspect the board are conditioning the MGA package, cleaning the tarnish from the last 8 years and actually producing some evidence that gold exists making it more attractive to a buyer. Throw in the property on brewery lane with planning permission and you have an attractive package with tax losses to boot.
If they've had interest, just enter an FSP, see if the sp rises in anticipation, raise as sp increases at various intervals, if they then got an offer for the Victoria assets alone, and it's a good one, they can decide whether to put it to shareholders and see? or keep it but then abandon the FSP, but the sp will have hopefully risen in the interim and they will have been able to raise more funds. That's what EUA did, and they didn't sell a bean, and had virtually no production either. Entering the FSP would be legit if they are prepared to see what interest they might get in say Victoria alone? If they got a very good offer for the whole company, well who knows, but that's unlikely of course, but yes, Victoria is a possibility, but why not make it public?
Whilst there have been several comments by main board members that hint at potential developments we know not whether the board intend to approach the various assets in a multi-faceted way. However it would be easy to break the main elements down to tax losses, Victoria (Creswick, Bailiestonand Tambo) and Lolworth. MW recently referred to "inbound enquiries" from someone or someones east of our Lolworth tenements and several posters have posted their desire to see developments at Lolworth. They suggest a JV with a neighbour but JV or not development may require capital. How does one acquire such capital in addition to the monies raised in the two placings.
In my view the answer is available through a sale of the Victoria assets which could include disposal of the tax losses. Should a buyer be interested and given that ECR's subsidiary MGA holds the tax losses (the Lolowoth tenements were acquired by a separate ECR subsidiary LUX in 2022), a sale of MGA to a third party could include several limbs a) the tax losses with ECR receiving an annual percentage over X given years of the saving to the buyer who can offset the losses against its profits over those years; b) a payment to ECR of part of the historical outlay for past drilling at Creswick and Bailieston; and c) a JV in respect of mine development and production at say Creswick and Bailieston and any other agreed area within the Victoria tenements. The return of part of past drilling costs plus income via mining/production and tax losses could come in very useful in supporting ECR's LUX share of a JV at Lolworth or if terms with an "inbound" third party partner could not be agreed, support a go it alone policy of exploration and development.
The board have done a very good job of stabalising the company, raising capital, cutting costs and drilling in Victoria. There have been various discussions via interviews and tweets. Is it not time to bite the bullet and get value from the assets - I advocate selling MGA leaving Lolworth and its satellites as the ultimate asset upon which to concentrate with the proceeds from MGA as the available funds to explore and develop Lolworth and its satellites.
A revenue stream would be a big deal
Nick T has mooted the concept of small scale production several times….
I suspect he is not doing so lightly
We're talking small scale, open pit. We've all seen the Aussie gold hunters make 100 - 400kper season using a wash plant and a JCB. There's a lot of talk about replicating the rise at EEE, anybody who thinks this is possible should go and take a look at EEE and see how much they've got going on.
Takes so long for a junior explorer to get through to production though, years and years, better they play the eua card, put themselves up for sale, sp starts to climb, they can do raises as it climbs, and more likely they will attract JV interest with some money stashed, and then we get to production faster. There's enough shares in circulation to create an awesome market if they got things moving, but they need a boot up the backside to play the game! Proper PR on X is a good way to get the ball rolling, Shaun Day at GGP is using that effectively, but EUA really played the blinder didn't they!
The have been pretty good with PR but you can quickly saturate the momentum if it becomes repetitive. It's a bit like seeing a TV advert too many times that you ignore the meaning. We've had snippets of "this and that" but nothing concrete. I agree with TS, if that gold's there then mine it and take this from an explorer to a producer.
They do need to get the PR machine in to action, it would help!
Perhaps they should play an EUA card and say they've put themselves formally up for sale, that will shift the sp, and in the meantime, work towards JVs and production. If EUA managed to spin it out for so so long, like 8 years and counting, then why on earth shouldn't ECR? plus EUA's sp rose from the ashes to 43p, so if we had a dose of that here, I think we'd all be celebrating!
* re-test
Dan, It's not the results for the re-trzt that I am most interested in (although an upgrade causing an uptick in the SP would be welcomed).
The main thing I am interested in is what is planned next. Its pointless finding hold if you have no plan to get it out the ground.
The results will move the SP....moving towards extracting the gold will move the company to a different level.
Food for thought Dan1605.........!
if you have to go quiet, it can be for a positive reason.......! :()
All the best (just a thread title highlighting thought........! :)
Going back to daramuda's point about walking the walk. Unfortunately the market has spoken over the last two weeks and giving us a stark reminder that "talk" is cheap. Interestingly it's gone rather quiet other than a few ominous tweets from MW. If the bulk samples come back favourable then lets look at the small pit mine opportunity, not talk about it for another 6 months. I can't knock what they guys have achieved to date, they came into this as the company was about to go under but they have managed to pull away from the rocks and steady the ship.
Morning Peeps..........!
the x2 delayed trades from this morning look like a poorly executed (could've been done manually) account swap/Bed'n ISA type trade.......! :)
15-May-24 08:18:00 0.279 2,372,761 Unknown* 0.27 0.28 6,620 O
15-May-24 08:11:20 0.265 2,495,322 Unknown* 0.27 0.28 6,613 O
All the best (V.similar values...........! :)
"now which beach should I choose today" Use the same thought process when deciding which Twitter account to use.
Just finished my morning run through X to catch up on the latest. Ouch!!! Not sure the gif for Doc Holidays tweet about "If people think when I'm quiet, I'm doing nothing. " You've got to be kidding me, lol " (https://twitter.com/DDS_DocHoliday/status/1790116986069955044 accessed 15/May/2024 10.32am) is the best gif for him to use.
Certainly wouldn't be the one I'd use if I was a COO of an AIM listed company, but just as I am entitled to my OPINION of the gif, Doc Holiday is entitled to use what gif he feels. My own personal opinion is that it maybe deemed offensive linking the image to the words and any possible cultural stereotyping.
Have a good day all, I'm off out to enjoy the sunshine, now which beach should I choose today?
We look in to theirs! apologies for missing the we!
Just listen to that YouTube vid again of AS interviewing MW 4 months or so ago. MW simply cannot contain himself, look at his smile at the end. And remember he says "outsiders looking over our fence as look in to theirs"! So so much to take on board in that interview.
ECR Minerals #ECR - Review of Lolworth Project - YouTube
Plenty of volume this morning with buyers and sellers exchanging shares
Expect we pop higher shortly
Talking the talk is not to grind - walking the walk is.
The first casualty of the day is Mr 1,242,767 who bought yesterday at 0.279 and sold this morning for 0.272. I'm sure there will be a few more.