The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
As Rodney said earlier it was a veiled throw down that unless the offer is good we'll go ahead and sink some more holes and hopefully pull out a few more 80g intersections. I think Craig knows this is a critical point for Ecr. Clearly we want a deal but it has to be true and fair value to what we believe we have found to date already.
Stump up the wonga Newmont!
Not enough holes drills this far to give Jorc estimate if that is what you are asking?
Every indication that creswick could be 5moz+ discovery, however due to the nature of the DMS it will require extensive drilling, hence the talk of the JV all but named we know is Newmont if they want to proceed. Newmont deal would transform the company hence the anticipation.
See this is where the confusion in the market reaction is imo. He did say that however he was referring to the two offers received for bailiston license. We haven't had an offer for Creswick but Newmont were on site before Christmas, Craig all but named them. Offer imo will be forthcoming on creswick the question is will it attractive enough for us to sign the deal that's the real question and only reason I'm not throwing the kitchen sink at this just yet
Great update and real intent from Craig to enhance and build on the previous results.
The interview is great for body language alone. On the JV issue I believe he indicates that indeed Newmont had a site visit just before Xmas. They are however yet to come back to the table with an offer but have indicated they are pleased with what they have seen. He alludes to not expecting anything until the 18th as Australia shuts down over Xmas.
He does however indicate that perhaps it may be in the companies long term interests to pout more holes in the ground first at creswick. Also and this is my interpretation, wait for the applications to be approved also.
Sounds like on bailiston it's been a few lower end offers from mid tier companies.
All in all a good update
Agree the size of those sells points to the last Johnson shares. He had some 18m when dropping below the 3% threshold.
It's still a wait and hold for me, nothing has changed, still expecting some news on the JV and bailiston on January
Dr Rodney Boucher indicated that blue moon and fosterville share slot of similarity when drilling 2 years ago. People thinking it's just creswick better think again.
Don't get me wrong a JV will be huge but bailiston will be eye popping as well at 100%.ost likely funding will come from sale down of creswick to free carry
That £1.65m didn't factor in the £400k from recent warrants so ECR are in a strong position which is always what Craig a wanted to be able to negotiate JV(s) from a position of strength being able to turn down low ball proposals.
It was tongue in cheek, I meant the board! Gone extremely quiet from last week most likely as until news nothing to discuss.
UK market undervaluing ECR land package as highlighted by the recent spin out by fosterville. Clearly Canadians are more astute regarding mining plays than UK.
Either everyone one has sold or quietly waiting news!
Fosterville south just spun out the asset we sold earlier this year, raising £7.5m equivalent. Appetite it seems is greater in Canada for Victoria assets than the UK. It was deemed non core for Ecr however the market doesn't appear to value creswick or bailiston greater than 7.5m a piece.
Either Canadian investors are mugs or they know the value of land in Victoria...
True, it's also about your perspective. Lots of new investors won't have previously had ECR on their radar and therefore wouldn't have been aware of a potential JV deal that was being restricted from completion due to covid.
Now if with fresh eyes you look and see ECR would you think £20m is overvalued or a fantastic opportunity to at least double your money short term. Medium long term the impact of a JV could be huge also so you also need to factor that in. So waiting for a "possible pull back to 15-17m seems illogical to Me anyway.
Lol agreed, news will come just maybe not specifically a monday. I would be concerned if we'd moved into the the 30-40mcap range pre news but we're around 19-20m depending on if you include recent warrants. It's not an earth shattering valuation prior to news.
No one seems to bat an eyelid at POW valued at 21m. It's the rise people seem to have issue with
Exactly. You need a bit foresight to compare certainly but if you want the 1000% returns then that comes with a fair amount of risk generally. This however seems much further down the line than a £20m mcap exploration company with a CEO openly talking about a JV partner we pretty much know is Newmont Australian division. They have a license directly above bailiston as well so I could see a Full JV spin off in the future where both take a stake, obviously ecr with the Minor stake say 30%. Now which company on aim does that remind you of?? Then Ecr cashed up can focus on tambo
I think a lot is being placed on the September proactive interview where he said DD is complete and it's just a case of a site inspection and boots on the ground exercise before final discussion which will be over quickly. Not exact quote but pretty much to that effect. Now was he exaggerating or being optimistic, I'm not sure, that's the beauty and takes somes balls to sell for 10-20% pull back now and miss an RNS. Each to there own. My buying is done it's now a wait and see
A dip is certainly a possibility as seen last month, difference now is that news could drop anytime whereas before as Gino rightly pointed out at the time all it took was a quick look and you knew a site visit was clearly out of the question with restrictions. I personally feel JV will be January now but it's the unknowns that drive speculation and Sp action and we have plenty of upside unknowns over this 4-8 week period. Basically I can't see a dip back to 2p again but 2.2/2.3 I can if news doesn't come by this time next week
I always air on the side of caution re share price predictions, don't think there'd be too many left from this board currently of the share did hit 14p. I do like the confidence of Craig though and I always go back to the proactive interview in march where it seemed that a deals were close on multiple fronts. We know a couple were concluded with fosterville south and Argentina. I believe creswick would have also if it hadn't been for Covid. This has enabled many to slowly accumulate over the summer, harvest is now approaching and hopefully it'll be a bumper year!
Interesting day indeed. Hard to say as really will depend of A we get the deal signed and B what the structure of the deal is. Both very much unknown. My opinion is on a good commercial deal initially 6-10p range but again hard to factor sentiment and partly depends on where the sp is prior to news landing from experience. Sometimes the sp gets ahead of itself but we're well off that at the moment.
Craig has indicated he thinks we should be valued at closer to fosterville south which is currently trading at £92m which would put us around 14p. I feel that's quite a high valuation without further drilling but happy to be proved wrong