The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I do not usually post but feel this share will soon move upwards fast from here. Why if there were so many drilling issues were the drillers buying in big style? Why did they not sidetrack the well? Yes I think certain investors are cashing in on cheap shares today, so if it's good enough for them, its good enough for me to add more at these prices. The story is not over by a long way.
I agree, CB is working hard to get all those ducks in a row. Patience is the ability to count down, before you blast off and with all that ECR is putting into place, hanging onto your shares and building your holding will pay big dividends soon.
GLA
AG1989 - Thanks and yes I agree, Havieron is a super project and I'm invested there too. I think a key difference between the 2 projects is the depth of the gold and also GGP has a Mcap of 765m but ECR is just 25m, so huge upside and as mentioned before in mining terms what could potentially be classed as a 'green mining project'.
GLA
I remember AG1989's great post (see below) and the fact that ECR's mining method could be classed as a green project, potentially near surface or 'open pit' as opposed to under ground mining ECR will 'smash it' when it comes to ticking the boxes regarding being classed as a low environmental impact mine in comparison to "other" traditional methods where they struggle with various challenges posed like energy, flooding and environmental issues. So any JV should be prepared to pay a premium to expand their operations into an environmentally green projects which ECR can offer.
Are they funded? A Yes here decreases the likeliness of further fund raising in the near to mid term future. ECR CURRENTLY HAVE FUNDING UNTIL 2023 WITH THE PLANNED EXPLORATION CAMPAIGN THEYVE PUT IN PLACE. MINIMAL RENT & LEGAL FEES, 2 FULL TIME UK STAFF, FINANCES ARE STRICTLY AND APPROPRIATELY MANAGED.
Do they have a product? CRAIG HAS MENTIONED NUMEROUS TIMES ABOUT OTHER COMPANIES PURCHASING LAND AND DOING NOTHING WITH IT. HES EXTREMELY CONTENT WITH CRESWICK AND BAILLESTON AND WANTS PRODUCTION AT BOTH. BEFORE COVID HIT, THERE WERE REGULAR FIELD WORK ACTIVITIES UNDERTAKEN PROVING THERE IS A HEALTHY GOLD SYSTEM AT BOTH.
Do they have the resources in place to convert the “potential” into real value? CB IN 2020 WENT OUT AND PURCHASED A DIAMOND DRILL RIG. A RIG WHICH SINCE IT STARTED DRILLING, HASNT STOPPED. VISIBLE GOLD HAS BEEN EXTRACTED IN HOLE 1. XRF ANALYSER TO TEST THE CORE AND PLANS TO BUILD AN ON-SITE LAB. TALKS OF A SECOND DRILL LATER IN THE YEAR
Has ECR grabbed the attention of any majors? NUMEROUS OFFERS TURNED DOWN FOR BAILLESTON AND A JV PENDING AT CRESWICK, ITS A HUUUUGE YES HERE
Has the board got the experience and capability of growing ECR? 100%. CRAIG HAS BEEN INVOLVED IN TAKING PROJECTS INTO PRODUCTION AND HAS TREMENDOUS GEOLOGICAL SUPPORT WITH RODNEY AND OTHERS
Is ECR over valued or are there big rewards to be had here .? CURRENT MARKET CAP £20 MILLION. A VERY LONG WAY TO GO BUT THERE HAS POTENTIAL TO BE MULTI MILLION OUNCES OF GOLD BETWEEN BOTH PROJECTS COMBINED. AT CURRENT PRICE OF £1262 PER OUNCE, BEFORE AISC COSTS ONE MILLION OUNCES EQUATES TO AROUND £1.262 BILLION. YOU READ THAT RIGHT. CRESWICK ALONE COULD BE A SLEEPING GIANT. THE POTENTIAL TO GROW ITS CURRENT MARKET CAP IS FRIGHTENING.