Been a long time coming ...
ETG has some wind beneath its wings this week, and its the right kind, moderate volume and no crush of paper into the ask. Maybe there just isn't that much more to be had. Rio, TRQ and SSL have above 40%, management probably the better part of another 10% fully liquidated, there isn't much institutional money but in the retail block an unusual number of long-term, large position individual retail holders, I know because we have been chatting amongst ourselves for many years.
In all honesty I can't recall any play this speculative where modest holders have taken such aggressive positions and held them come what may. The driver is a belief in sharp undervaluation and now Rio Tinto and the Mongolians are running out of time to try and make OT look like a lame duck. It is anything but - perhaps the most promising new mega-mine and copper source bar none in the world. Or at least a podium finish. With a huge attached expansion potential, exploration, camp play, all thrown in. Heruga alone would be a major attraction if it wasn't A: in Mongolia, and B: overshadowed by Hugo North and Underground Phase 1.
For long-suffering longs, enjoy. Copper talk is ginning-up interest in all copper miners and explorers creating a momentum and sectoral rotation trade, helped by the whole "post-Covid stimulus, inflation bias, US dollar weakness yada yada chatter, which is actually looking reasonable and sound. You can count on a few more sensible people sitting on ridiculous gains in bloated tech stock valuations turning their eyes towards commodities and diversification, all being a rising tide which will give TRQ and ETG a lift.
And we wait and watch what Mongolian wants in terms of leadership and consensus, it may be for the first time in a long time this June they deliver a more solid and unified national government, which is good - they can negotiate from strength and speak from a position of better political stability. Mongolia has so much to gain from OT, lets hope they see partnership and cooperation as the best path, everybody will prosper from this fantasic asset that is OT, nobody more than the Mongolian people? For ETG, we have poured tens of millions into Mongolia, never received a cent back, yet we paid for and are liable for a lot of the drilling and exploration that became OT.
Much promise, hopeful looking trading, fundamentals underlying the market for a junior copper and gold miner only improving day by day. Vindication for SSL and Nolan Watson perhaps?
Lets get 'er done and negotiate a payout, payoff, and fair exit from this 18 year roller-coaster!
Still extremely cheap and undervalued IMHO, but do your own DD, have a look at this opinion ... not rhe last word but go through their number and plug in todays spot prices for copper and gold and your eyes should pop! How can that be? Um, it has suited Mongolia and Rio Tinto to make ETG look, well, awful. That is far far from the real truth. The one thing they had for many years was time. Now time is running out becaus they have put their money into development, and production from HNE underfground, oh so rich, beyond any estimates I bet, drawns nigh.
https://www.edisongroup.com/publication/de-risked-cash-flows-from-a-world-class-mine/20190/
Ya just gotta luv it. This train is just sitting in the station and they are still selling discounted excursion fares. LOL . All aboard the Trans-Gobi Cannonball. Departure delayed by several years, but it should be a helluva ride.
FMCDH! (with thanks to the Late and somewhat detestable Charlton Heston - thank goodness he wasn't around to pump the Trump tires) From My Cold Dead Hands go my ETG shares, and I have a major pile, the result of 15 years of accumulation, patience and disappointment, blood, sweat, trars and sacrifice to get to here, but we'll see, we'll see. Looking much better these days.
CG