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Good question. Zero mention about this from relevant parties. Agreed this is a likely risk.

Fundamentally little justification for the drop today. Shares never rose to factor a silver price above $20. Furthermore, the key upside is from iron ore in my view and that’s positively correlated to global macro.
Great entry point.

*Shares need to catch up soon to mirror 35% rise in #silver resource stocks since end Oct (on rising silver p)
*Ironore assets FAR from accurately priced in shares
*Final ironore sampling results due imminently
*Key catalyst: Stake increase in ironore

Some idiot got my post deleted.
Cadence owns 15% of EMH. The rise in past two days of EMH should equate to £6m or 30% on the asset value here.

Stock trading at the same price as at end of October, when silver was at $23/oz. Did not benefit at all from the commodity re-rating. In contrast, silver resource stocks are c30% higher since.
No brainer.

Silver p now at close to $26/oz...
Stock discounting here unreasonably low $20 silver, meaning you can arbitrage this for a lot of alpha.
Add to this game changing upside from the iron ore assets, and you are talking of hundreds of millions of mcap potential

I have said it before. People are totally missing out game changing impact to share price from the iron ore assets.
These are what will catapult the market cap to a whole new level.
Simple calc: Fenix resources in Australia has 10mt Fe and USD40m market cap.
Do the maths however you want, you ll end up and multiples of current market cap just on iron ore.

EWT I see your points though for me today and recent derating is market fear + sentiment and has nothing to do with fundamentals of the business. This just makes the stock look even cheaper.
Iron ore project is valued at 1/5th- 16th of its potential fair value so really, Fe prices declining today should have zero impact on the share price, fundamentally.

Stock down while silver price up >1%. This obviously doesn’t make sense, and particularly since the stock is discounting a silver price well below spot (c$20). As such, the share price sensitivity to rising silver should in fact be well above 1 to 1.
Stock discounting here a total back sky-scenario, offering a great risk/reward.

Worth comparing the grades of UFO’s ironore assets in Australia (exploration targets) to those of Alba’s in Greenland.
UFO: 40-70% Fe. Alba: JORC inferred at 31% Fe.

Remember Fenix Resources is valued at USD3.8/Mt.
So here we have 74-245Mt
=>3.8*74= USD 281m. 3.8*245= USD 931m @ 100%
At 51%: USD 143-474m!
Where is the market cap now?
Company is going to raise its stake in them. Game changing upside!

Next catalyst in the pipeline? Stake increase in the ironore projects, I expect. This would be transformational for the company and the equity story.
Say they go to 100%, the fair value of ironore alone could be between £200-700m! Current market cap? £50m.
No Brainer.

HUGE exploration targets confirmed!
“prospectivity of these 2 prospects extends well beyond the bounds of the historical deposits identified by BHP.”

RNS Here we go.
Confirms (monster) exploration targets expl target of 74-245Mt.
“prospectivity of these 2 prospects extends well beyond the bounds of the historical deposits identified by BHP.” These assets in my view are going to be real game changer for the valuation of the company. Currently priced is 1/3-1/10th of the potential.

Discounted here:
-Ironore at 10Mt (vs expl target of 74-245Mt)
-SanCelso at 20Moz Ag at $20/oz (vs my est 50-200Moz)
-D2 at JV value (ie few million£)
-EH at few million
-Los Campos at ZERO
-Greenland at ZERO

=> Upside potential? 9p+, fundamental floor: We re pretty much at it (c1.3p).

Reasonable upside potential on my numbers? 9p (6x share price). Floor valuation? 1.3p. Great entry point on no-brainer risk/reward profile.

Recap of what’s discounted here in the shares:
-Ironore at less than 20Mt (vs expl target of 74-245Mt)
-SanCelso at 20Moz Ag at $20/oz (vs my est 50-200Moz)
-D2 at JV value (ie few million£)
-EH at few million
-Los Campos at ZERO
-Greenland at ZERO

This is the CHEAPEST UK listed gold explorer, considering the low level of risk. Mkt needs to wake up to this.
*NPV of current resource (1Moz) at $1900 #gold: up to $370m=> 13x mcap (!)
*14km of drilling started & to run til March
*Potential to extend resource significantly: 2km stepouts

Indeed. The cheapest gold stock I know of and yet to holders’ frustration it just can’t hold on when it rises.
I keep my holding, as what’s the downside for here? Very limited... The day when people really wake up to this, the stock will fly.

Next catalyst in the pipeline? Stake increase in the ironore projects, I expect. This would be transformational for the company and the equity story.
Say they go to 100%, the fair value of ironore alone could be between £200-700m! Current market cap? £50m.
No Brainer.

Yes this company has had loads of issues and the share price performance has been shocking. But now the company is active exactly where you want to be: clean and green! Funds this year have gone crazy about this.
Battery metals + storage...
Look at the battery targets Elon Musk has set for Tesla. Nickel is going to be a massive beneficiary of the EV revolution. This should be at 5x market cap at least.