RE:RE:Looking GoodCharni - thanks.
Yes, on value, ETG is pretty unique in having a piece of a fully-developed mine where production income is coming soon, there are multiple phases that will produce income for decades so incredible leverage to copper/gold if you like the metals as an asset class, and this throw-in of potentially huge exploration upside on a camp play land package because they have halted any real exploration of the massive land package for over a decade due to political considerations.
And then just compare ETG by market cap to the TRQ implied market cap (which I think was greatly undervalued in the recent buy-out), an implied $8.6 billion CDN. As I have said before, if ETG was worth just 5% as much as TRQ that's $2 CDN/share. A fairer valuation is likely around 12% or so .. $4.91 ... absent any further upgrade in resources or monetization of OT by concurrent development of Heruga. The upside for Rio Tinto to come in and pay out ETG at $5 or so if Horizon and managemnet were capable of negotiating that as a reasonable price is they could turn around, bring in another major miner as a partner, and get cracking on Heruga and a doubling of the mill capacity, which would completely change the Heruga valuation to the upside. Especially if Lift 2, as I am convinced, has a much bigger reserves footprint. And if they have a true additional discover, especially shallow, on the JV capable of concurrent development as another open pit ... hello big upside for ETG.
I know, a lot of IF's ... but this play has a distinction of having been undersold on purpose by the two most interested buyers and controlling parties, Rio and Mongolia, who played a game of their own fighting over ownership and cash entitlements from production scaring away investors, when they really are either the only potential buyers, or the absolute controllling party in deciding if any other major miner will be allowed to join in as an investor. And they totally control expansion and monetization of the existing and future deposits in the OT camp.
My thesis ... the longer and harder the fight to get the biggest slice of ownership by the parties best placed to recognize the true value, the more valuable the asset. What do you figure the better part of twenty years of negotiations and infighting suggests regarding the perceived value of all of OT as an asset? Answer - it is literally a gold mine, with free copper in the billions of pounds, or a copper mine with almost zero production costs because it has so much gold.
Ya just gotta luv it!
cg