RE: ECR3 Jun 2026 09:34
It would be worth while to understand the breakdown on this criteria, it would be beneficial admittedly, but to meet this, the company will have turned into an explorer reliant on market for funds, which is heavily dilutive, to a producer that can hopefully in time, fund itself from within.
We need Raglan results, we need Maddens to deliver, Salt Bush to go well next year and Blue Mountain to come online.
I’ve recently bought back in after a disappointing experience years back. My judgement on my current investment will be 12-18 months from now when a true picture begins to develop, and the news inbetween. I’ve said plenty of times, the company have to deliver, I won’t shy away from that, and they have a lot of hard work on their hands. I just think they’re much better equipped and resourced than they have been for decades now.
In terms of the tax losses and how we utilise them, we wait and see. The company clearly believed keeping them and not selling them on would be a more beneficial to shareholders longer term, we await and see.
“Initially we considered selling these losses which, in practice, means selling the subsidiary that holds the majority of them. We commenced a sale process in 2024 and were flattered by the response rate, ultimately entering into non-binding heads of terms in relation to a proposed sale for a total cash consideration of A$4.5 million. After a protracted period of negotiations, we took the decision at the end of February 2025 to terminate the agreement.
At the time, it was a decision that attracted some criticism from investors, but we firmly believe it was the right call and recent events have supported our plan to retain the tax losses within the Group. As explained earlier, the commencement of operations at Raglan and the expected forthcoming operations at Blue Mountain have given ECR a clear and present purpose for these tax losses. It will be several years before we reap the benefit of the full value but it is abundantly clear that utilising the tax losses within our own operations offers a far greater upside to shareholders than a sale. With that being the case, I am pleased to formally confirm that the sale process for these tax losses has now ceased.”
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