OTCQX:ELYGF - Post by User
Comment by
Austrian007on May 28, 2019 9:01pm
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Post# 29780245
RE:True Tenbagger potential
RE:True Tenbagger potential Yes, this seems like a really good value buy.... and of the 650k, they have to pay only 300k now... from the second year, the income from the stream would automatically pay the amount dues. So yes a great buy. I would have liked without the dilution, but not a whole lot (less than 0.5%) ... so ok I presume.
& I agree with your overall assessment. I think Ely has taken the Metalla route to growth... they are going to acquire a number of near producing royalties and a lot of payment for the same would be thru equity. Although my guess is that at some point EMX would take this over...
I think the deal with Sprott would have opened their doors to a number of smaller royalties that are available for purchase... so much more than the financing, Sprott provides an insider view into the financing markets which is great.
NestStep wrote: ELY is heavily undervalued today, but also relativly easy to see that this has a certain likelyhood to be a tenbagger over the next 24 month. 3 Reasons: A) 3 Producing small roylaties: *Jerrit Canyon *Isabella Pearl *Fenelon Bulk sample Together with the Option payments by partners that should cover all G&A and ELY should be earnings positive by end of 2019 B) Huge Database and deal flow *impressive to see in the very competative royalty market what great deals they can make. 650k for a 150-200k per annum royalty is very cheap C) 3%NSR on Fenelon Listen to this about 12min mark on: https://soundcloud.com/sprottmoney/sprott-money-news-weekly-wrap-up-52419 So if this would become a Detour like thing we would be talking about one of the most valuable PM royalties out there 300mm Can$ on that NSR alone could happen. So assuming they have to double the share count over the next 24 month to do more deals we`d have like 200mm Shares, but then likely a company comparable to Meverix Metals. I currently don`t find a better opportunity in the PM royalty world. For now it should at least have an EV like V.FISH - Sailfish Royalty. Which would be 100% upside. Cheers