focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
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.
Dealflow could mean more than one deal. From a JV, to a sale and or a sale of the tax losses. First things first are the Kuboid Hill initial assay results. Those for Davey Road took time but as I understood it those at Kuboid Hill (perhaps the earlier samples) were being fast tracked.
Correct Tamer - they have delivered on three which are namely salary sacrifice, disposals and drilling.
They are NOT, as stated in your earlier post, delivering on tax losses. I am not critical of that fact. There may be negotiations but it is not a done deal as implied by you.
Inaccurate posting does not help investors and potential investors.
AJ101 - I understand what you are saying to ReeTech. Unfortunately SmartPunter started a war of words with Persana investors on the PRE board and they - Ree Tech included - counter on this board.
If SmartPunter would only wise up and stop attacking Persana maybe ReeTech and others would quieten down here.
I personally find the exchanges childish and unhelpful to investors generally for at the end of the day unless one is shorting a stock one should be wishing all bulls success. Nasty, childish and stupid.
BlackHopper - Nicepair is Notrex who in turn was rxdav. It is quite possible that Nicepair is one and the same as ScarletVixen. Together they appear to be embittered losers who have lost money in the market and attack companies in which they were invested and in which they (he = Adrian) have/has lost money. Unfortunate but as you say C'est La vie. I will no doubt get a reply attacking my use of English!!!! He likes to criticise as if he is an expert which he is not.
TS - Nick Tulloch suggested in his interview with Sarah Lowther that ECR might (no more than might and along the lines of why not that's what we should be doing). Altho not specified by him I read that as including ECR being a partner in a JV.
My penny worth. I have averaged down and am pleased with the measured approach conducted by NT, MW, AJ et al. I like the explanations of progress. My recollection of 2019 is that ECR had a decent drilling campaign at Creswick and that there was the possibility if not probability that ECR could JV with A N Other but that Craig Brown decided that ECR could and should go it alone. Feel free to correct me or add detail to what I have written.
We know that MW has been an ECR investor off and on over the years and I believe he has followed ECR's progress in detail. I further believe that Adam Jones has had discussions with another or other geologists regarding ECR's geology and has a clearer idea where best to drill following on from the 2019 campaign. I hope that I am not being patronising when I say that. In short, if the Kuboid Hill assay results are as good or better as/than Davey Road and with or without any other target, I am hopeful that ideas of a JV can be resurrected and discussions with a third party take place and lead to a JV.
Any deal with regard to the tax losses could be left to general management costs and costs of exploring Lolworth and if the application for the new licence is successful exploration of the add on Queensland licence. ECR could land up a very decent investment subject to the restrictions and poorly regulated AIM market. Every thing has a value. Perhaps by their novel approach, the regulators can learn from NT and MW how to regulate.