RE:RE:RE:RE:RE:RE:RE:Liquidation of Eastplatscolt451 wrote: The idiocy here is real eh. I've picked up just under 300,000 shares @ .35 over the past few weeks. ELR doesn't have any liabilities, the stock is an easy double and perhaps even triple from here, its simply a question of pateince.
As at September 30, 2016: $29M cash + $5M cash restricted from Croc, cash burn $3M/quarter.
Full year cash burn = $12M, September 30, 2017 cash on hand = $16M approx.
$50M Croc sale approved as worst case scenario + $16M + $5M break fee moved from restricted cash = $70M approximately.
$70M USD to CAD = $95M/93M shares = $1/share approx.
So assuming that Spitzkop - Vale is worthless (which is ELR's most valuable asset) there is still $1/share conservatively to be made...eventually.
Of course, if we even ascribed 50% of the 2014 $140M offer for Spitzkop - Vale and Mareesburg we get $50M Croc + $14M cash + $5M restricted cash + $70M Spitzkop - Vale and Mareesburg = $140M USD or $190 CAD or $2/share.
The only issue with ELR is the agency problem and getting the cash out of the company. So is it worth the risk to buy at .35? For me its a no brainer. Barely any shares have traded below .70, a few days where the volume was around 3M but that is pretty pathetic in the larger picture.
GLTA.
Right, no liabilities as of the Q3 filing (and, prior to that as well as ELR was fiscally quite conservative). But, now a new Sheriff is in town who is about as crooked as it gets. A few Sheriff's, actually, if you consider Harrington (and all the nameless individuals who voted for KA) as part of the same group.
Q4 will be very telling as of cash burn. And, if they remain in the same dilemma for a few more months, Q1 etc, will not be reported. ELR remains rangebound in price
The current SP does not consider the downside risk to larger than expected losses. SP has assumed that the fiscal situation of ELR has remained consistent from Q3 '16 and prior.
Of course, ELR has always been a nice story when you look at the asset valuation and how it'll benefit you... but, current management cannot be trusted.
If the idiocy comment was directed toward me, not exactly sure how the aforementioned argument/risk scenario can go over your head...?