ER New Resource Estimate The new RE released today (Monday 11 September, yes it's 9/11) in the link below has caused quite a bit of head scratching. Although, the key words seem to be de-risking, conservatism, etc...as indicated in the NR, a reduction of the RE by approximately 0.3Moz (from 1.6 Moz to ~1.3Moz in all category, M+I+Inf, did not help the share price at all (dropped to $0.34/s which would represent a good opportunity, for some brave souls ?, to scoop up some cheap shares, if you have confidence in the new RE model used in this latest estimate of 1.3Moz total deposit.
One point worthe remembering is that the ozs are still there in the ground, but it's the model and assumptions used in the new estimate, by the new management, that could be considered as super-conservative (don't quite understand the reasons why the current management (Lemasson) decided to take this approach). I am trying to digest the information available today and will come back with a more detailed analysis and comments in a few days. During the meantime, the NR below should be read along with the new Corp Presentation, second link below.
https://www.eastmain.com/investors/news/index.php?&content_id=139
https://www.eastmain.com/_resources/presentations/ER-CorporatePresentation.pdf
I have not followed the conference call, so if posters have some walk-away points they would like to share, please share (and provide the link as well).
From a very simple macro-economic perspective, 1.3Moz is not a bad starting point (certainly, not as good as 1.6Moz), especially if it can be proven as a super-conservative estimate. A value of $100/oz in-situ would yield $130M for Clearwater alone (plus 0.3Moz for Eastmain Mine Project, plus ??? for Eleonore South). Or, a value of $130M/ 193Ms = $0.67/s for Clearwater, which is not bad considering the current share price of $0.34/s (a x2 catch).
This is just off the top of my head. Feel free to speculate and roll your own dice.
GH