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Guys it’s not £1.6 millions in the bank we have. One of CB’s interview he mentioned all warrants will be exercised. So I guess total money in the bank would be around £2.5 to ££2.75 millions. I haven’t taken into account any tax refunds from the Aussie government. GLA
A couple of points in relation to the financial position to clear up some of the points below -
- CB has stated a number of times that with £1.6mil in the bank the operations are covered for well in excess of a year. JV(s) will cover any large scale operations and add tremendous shareholder value.
- The recent financial report shows an operating cost in 2018 and 2019 in the region of £721k and £762k resectively - this includes a number of drilling campaigns during these periods highlighting the potential resource at a number of the licenses.
- Drill rig is owned and already paid for by ECR
This coupled with future reimbursement for R&D means the company are more than funded, as stated, for at least 12 months.
Also as mentioned previously - 450million shares are sat with a number of nominee accounts holding between 4.22% and 12.59% of the company, leaving approx 191 million free float (approx 30% of the shares in issue). Approx 130 mil have been traded over the last few sessions.
The 52 week high got taken out today - and with high volume and the pipeline of news to come, this all points to a significant rise over the coming weeks and months.
Apologies, Reading after posting! Meant some of South America and some parts of Africa.....
Trek
The reality is these companies always need money at this stage. It’s one of the reasons for listing so why are PI’s surprised when they do raise. I actually couldn’t care what the BoD says. You gotta try and work out cash and cash burn and even then how often do you see ‘the BoD has raised to accelerate our operations taking advantage of favourable market terms, bla bla..”
Just look at SGZ recently. I didn’t see that one coming but then they changed plan and brought the 2nd year schedule forward. I was ok as have a lower average there and that is the defence for newbies, that said I bought all I could on the drop to 115! Spread the risk and try to get in early so that when they do raise it’s near or preferably above your average sp.
In terms of spreading risk I am not a fan of South America or some parts of Africa. I don’t mind a little exposure there but prefer Australia if I can. I think we are on the cusp of a small cap mining boom, again!
Whilst a rising tide lifts all ships I’d still rather be in ‘safer’ geo’s and have added ECR, COBR, THR and CCZ to the pf recently. I think after the run at GGP, many, self included have done well and those stocks (and others) will be in demand.
Others held are GRL, SGZ, PUR, GGP and SHG. Tanzania and Ghana are exceptionally mining friendly and have good infrastructure, obviously so does Canada. One could argue that the riskiest place is Scotland! Brexit, Indy vote, covid to pay for and as a precedent the UKCS has seen more fiscal change than Ghana! Lol!
Spread your weighting across a few. I knocked up a little spreadsheet with small cap mining companies down the left and across the top I wrote, mcap, sp, geo, cash position, ops position, grades, BoD etc etc and scored each.
I then allocated as I could. I had to sell elsewhere to add ECR and THR today who were next on my list. Luckily I just got in here in time and am already £70 up!
Usual caveats.
Trek
Craig Brown has stated the company has enough funds for their plans for the next 12 months...his words , not mine.
I said the rig would progress Blue Moon to a JORC. I am sure that they have worked out if they require additional rigs and would have budgeted accordingly (see 1st statement).
If they want to take it in to production I would expect more funds would be required, however CB has alluded to the ability to approach mining banks in Oz to reduce/remove further dilution. I'm guessing a JORC resource estimate would be a key component to get any such financing....thats further down the road though.
Talking sense, what a fantastic post which gives many an insight into the potential of ECR. Unbelievably cheap at these levels.
Thanks again.
Yes but your comments allude to no more fundraising which cannot be said for sure. And you imply one rig will take us to a resource. I don’t think so.
Hi Crazyfund
The JORC is initially for the Blue Moon area only. This was stated as a goal at CBs last update. I'm sure if required they will get in additional rigs.
The estimate for getting Creswick proven up is £20-30m which is why they are seeking a JV partner to take the financial strain.
The 42% may not be the case when they next claim for the R+D tax refund. It all depends on how much R+D they have done verses what they have spent.
Sorry but I have to pull you up on two comments you stated earlier on today. 1 drill ring is no where near enough to get us to a JORC compliant resources. You will find 10 of them will be more appropriate. Secondly 1.6 million is no where near enough to prove up a resource. Plenty more fundraising will be required if they go it alone. Please don’t mislead investors who are not in the know.
* The Diamond rig lets us drill 12 months a year and is not weather dependent....and gives better quality results to progress towards JORC.
* We have c£1.6m in the bank to fund the drilling so no more fund raining is required (and we get a 42% R&D refund for this spend)
Talking sense is the man here....he has it all of
Talking sense,
You did not have to g out of your way with your post, but you did :-)
Thanks for putting in the effort though!
Although I have done my own research, your summary is much appreciated and informative.
ATB!
Advice!....https://www.youtube.com/watch?v=iDVuQi4gdtk
TalkingSense talking sense. Top post guv.
Hi Talking Sense, THANK YOU for taking the time to write out a synopsis of where ECR are, much appreciated. I shall complete my DD and almost certainly purchase.
Cheers
MEM
The fund raising was in June/July for £600k (presumably to fund the new diamond drill rig).
Craig brown has repeatedly said that ECR are FULLY FUNDED for at least the next 12 months and therefore there should be NO MORE FUND RAISING in the next 12 months. We have c£1.6m cash in the bank.
The expenditure on drilling is helped as we can claim back 42% of exploration costs from the Australian Government.
Also...New Creswick, Graytown 1, Greytown 2 & South Creswick licenses.
A bit of reading to do !!!!
Talking Sense. Excellent post and overview, your information will be of value to anyone looking in--and indeed myself having first bought here at 0.11 when it really was a different kettle of fish and sold up ages ago.
I would be particularly interested in finding out where that 'fund raining' is forecast as I would like to turn up with a few buckets to fill. Maybe I'll just buy some stock- again. ATB.
Just noticed a new license application on the website: Wirrate
You can also check out the new Mercator Gold website for more info:
mercatorgold.com.au
Js1990 great call, only just the beginning here! GL
Thank you. Sounds great! purchase of shares complete. Won't disclose how many as its very little but it all counts :-)
Great summary TS
js1990 https://mercatorgold.com.au/
Hi Js.
A few things we know below:
* Craig Brown said there could be up to $8bn of gold in the Creswick license...since that interview the increase in the price of gold means that could be nearer $10bn
* We have twointerested parties for a JV deal at Creswick who are continuing their DD
* We know that one of those parties is Newmont, the 3rd largest miner in the world.
* We know that a Diamond drilling rig has been purchased to enable us to perform our own drilling programme with lower costs and more flexibility....the drill is due on site this month
* The Diamond rig lets us drill 12 months a year and is not weather dependent....and gives better quality results to progress towards JORC.
* We know that a Bailieston drilling programme which gives us a JORC compliant resource at Blue Moon is a priority.
* We have c£1.6m in the bank to fund the drilling so no more fund raining is required (and we get a 42% R&D refund for this spend)
* Gold is still around $1900/oz.
* At our last fundraising we were getting approaches from many companies wishing to give us funds (shows confidence).
* Victoria lockdown restrictions look to be about to be eased enabling site visits for potential partners.
*After these visits a Creswick JV deal could drop any time.
*Hundreds of thousands of oz's confirmed at Bailieston (CB interview)
*Ridiculously small mcap of c£15m (compare this to companies further down the process such as GGP).
* New licenses recently acquired and expect these to be progressed in 2021
Lots and lots of gold.....what a great time now to invest....JV on cards....we are in the heart of Victoria islands!!!