ERL 0.00% 0.4¢ empire resources limited

Sufficient funds to see it through to gold production ERL’s ore...

  1. 1,529 Posts.
    Sufficient funds to see it through to gold production ERL’s ore reserve has been calculated at a gold price of AU$1500 per ounce using a lower cut-off grade of 1.41g/t Au, current gold price is 1,608.66 ...with every AU$100/oz. increase in the gold price above AU$1,500/oz. leading to an additional AU$2 million in free cash flow.

    With access to a Resource of 470,000 tonnes @ 4.42g/t , The deal stipulates that Blue Capital will fund mining and related costs – to a maximum of AU$7.5 million – seeing it into full production and until the project is cash flow positive also ERL has a possibility of extending the mine life by 3+ years.

    $2 million cap raise, and the A$7.5 million funding deal, show a far greater confidence from the market than where the company is currently valued..

    Once production happens ERL will /should re - rate, as the risk reduces the market is more confident to re-rate in the positive..the mine is now operating 24/7..with gold ore being produced with little drilling needed , which keeps costs down ..as they stated ore will be ready for haulage to the gold processing mill in July..

    Gold mineralization extends to at least 250 metres depth , with a deeper resource of 170,000 tonnes  
    @ 5.40 g/t .

    Definitely do not see that as unattractive  at all..as Fizzgig  said above - ( Basically ERL are damn close to producing gold and the share price then reflecting the revaluation of the company) .
    It's just a waiting game.
 
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