RE:Recommendation: Buy - strong buy
24.02.2020. Short-term target: 1.00? Medium-term target: 2.00? Billions of gold funds invest in Europe's largest gold deposit! Take advantage of cheap buying opportunities now! For a long time it was suspiciously quiet about our top pick Euro Sun Mining (WKN A2ARP6). But now the company with the largest gold deposit in Europe (10 million ounces of gold equivalent), which is about to produce, is making an impressive return. One million dollars could be secured from one of the largest British investment gold funds (Ruffer LLP - managed several billion). In the recent placement, a total of $ 3.3 million was flushed into the cash register at a rate of $ 0.29, the fund subscribed to all shares in this capital increase and has just exceeded the 10% reporting threshold, which is like a knighthood. Because Ruffer LLP is considered a loyal, long-term shareholder who in the past only invested in large industry players. This confirms our view that Euro Sun Mining (WKN A2ARP6) is one of the most attractive gold stocks in the sector, that the risk-reward ratio is excellent, don't miss to position yourself in time. With the current gold price, the project is highly profitable (USD 752 production costs) - we also consider a takeover by a large industry player to be possible. We expect a lot of news flow from the company in the coming weeks. Overall, the fund now holds over 10% of the total shares, as can be seen from the company's current presentation (page 10 -LINK). We expect the fund to increase further in the coming weeks, the market capitalization of just USD 20 million is out of proportion for a company that wants to make the production decision later this year. New feasibility study will break all records! The company recently announced that the feasibility study of the project is based on new parameters and will combine two deposits (Rovina and Colonic) in order to achieve significantly higher gold and copper production. The company expects to further reduce the already outstanding production costs from the PEA of $ 752 per ounce of gold and increase mine life by another 18 years to a gigantic 30 years (see page 5 of the presentation - LINK)! The investment by the fund shows once again that Euro Sun Mining (WKN A2ARP6) has not been idle in recent months and has continued to advance its Rovina, Ciresata and Colnic projects. The fund sees a much higher potential than the bare figures with a current valuation of just USD 20 million. The 10 million ounce gold equivalent in the Boden Rovina project alone is of considerably greater value. With the current valuation you will receive an ounce of gold for a mere 2 USD! The British investment fund is also aware that this is a unique opportunity to invest in a gold project at such a low price. If you take a closer look at the track record of the gold fund, it is on average in the double-digit percentage range. And that is only possible by investing in absolute top projects. We are therefore exactly the same opinion as the mutual fund. In our opinion, the current level of Euro Sun Mining (WKN A2ARP6) offers a unique opportunity to achieve a long-term return of several 100%. Why the entry of the fund makes a takeover more likely Most funds invest in stocks that have great potential for a takeover. This brings the most profit and ensures a clean exit from the fund. In the following section, we would like to explain why Euro Sun Mining (WKN A2ARP6) is a hot takeover candidate. The most recent acquisitions in the gold sector are listed, with the lowest paid price per ounce of gold for an acquisition in recent years at $ 11 per ounce of gold. Despite the rising gold price of the past few days, it is just $ 2 an ounce of gold! This means a price potential of at least 200 - 300% and we are talking about the absolute lower frame of the valuation scale. Realistically, the takeover price will be well above $ 20 an ounce, which is hard for us to imagine. buyer Seller US $ Per OunceCoeur MiningNorthern Empire $ 115OrionDalradian $ 50Sandstorm GoldMariana Resources $ 226Agnico Eagle MinesSanta Gertrudis $ 86EldoradoIntegra $ 128B2GoldPapilon $ 108Goldmining IncBellhaven $ 11McEwen MiningLexam VG Gold $ 366Hoige Rating. $ 11 Average Rating $ 95 Why is the company much too cheap and why is a sharp price increase possible? The following calculation shows why the stock of Euro Sun Mining (WKN A2ARP6) is an absolute insider tip for investors: The current valuation of the company is approximately $ 20 million (100 million shares at a price of $ 0.40). With 10 million ounces of gold in the ground, you get 1 ounce of gold for $ 2, an unbeatable price! The preliminary economic efficiency study (PEA phase 1) was presented last year. And the numbers read great too, given the current gold price, only phase 1 would make a $ 300 million after-tax profit! Colnic (which contains only about 29% of Rovina Valley's total resources, which is equivalent to 2.89 million ounces of gold equivalent) is expected to produce 139,000 ounces of gold per year over 12 years of mine life from this first production phase alone. The so-called "all-in sustaining costs" are estimated at only USD 752 per ounce, which is the lowest quarter of the cost forecasts in the industry! Furthermore, the processing plant will already have been paid off in the first phase, i.e. in phases 2 and 3, in which over 70% of the gold treasure will be raised, the margin will be even more gigantic than in phase 1! After 800 million record takeover of Atlantic Gold - when will the first takeover offer for Euro Sun follow? So now it has happened. The first major acquisition in the gold sector has taken place this year. Australian gold producer St Barbara (WKN 851747) is paying approximately $ 800 million to acquire Canadian competitor Atlantic Gold (WKN A12AEZ). Is there now a first takeover offer for Euro Sun Mining (WKN A2ARP6)? Expert in taking over mergers obligated! Eva Bellissimo's commitment fueled the takeover rumors considerably. Eva Bellissimo is a leading mining lawyer who has already initiated several large acquisitions and mergers. Among other things, she was responsible for the recent $ 500 million acquisition of Dalradian Resources by Osisko Gold Royalties (WKN A115K2). Also led the $ 1.2 billion merger between Kirkland Lake Gold (WKNA2DHRG) and Newmarket Gold. Large gold producers are now securing new areas At first glance, a comparison between Euro Sun Mining (WKN A2ARP6) and Atlantic Gold (WKN A12AEZ) seems very far-fetched. Atlantic Gold is already a gold producer with a mine in Nova Scotia and a current annual production of 90,000 ounces of gold. But if you take a closer look, you will find clear parallels. Atlantic Gold (WKN A12AEZ) also started as a pure gold and silver explorer a few years ago and was far from running its own mine. Today, production takes place in several open-cast pits and plans to expand the open-cast mine by three more mines. Euro Sun Mining (WKN A2ARP6) will also construct an open pit mine in their Rovina area, on a deposit that contains more than 2.27 million ounces of gold. Overall, the measured and displayed resources in the Rovina area amount to 7.2 million ounces of gold, which is a whopping 3 million ounces more than at Atlantic Gold (WKN A12AEZ). Realistically speaking, investors were able to get into Atlantic Gold (WKN A12AEZ) at an average price of $ 0.60 at that time (currently Euro Sun $ 0.46). The takeover rate today is CAD 2.90, an increase of 500%. We are confident that Euro Sun Mining (WKN A2ARP6) will develop similarly to what Atlantic Gold has done. All the prerequisites, such as the granting of the mining license, specialist competence by experts in management and, last but not least, the world-class area in Romania have been met through the work of the past few months. Video evidence: CEO confirms takeover interest So how likely is a takeover of Euro Sun Mining (WKN A2ARP6)? See an exclusive interview with CEO Scott Moore. In the interview that we conducted in collaboration with our colleagues from Goldinvest.de, Mr. Moore answered questions about the recently obtained mining license, the planned work in 2019 and a possible takeover. At the end of the interview, Mr. Moore confirmed that there was already interest from major players in the industry. Interview with Euro Sun Mining CEO Scott Moore The current rating of Euro Sun Mining (WKN A2ARP6) offers an excellent opportunity to get started in time. Should a takeover actually take place in the next few months, we assume a real course explosion to well over 2 euros. Don't miss the chance to be here! Approved mega project with 10.2 million ounces of gold equivalent in the middle of Europe, very favorable valuation - production decision in prospect! In recent weeks we have been increasingly looking for promising gold projects that are neglected by investors. Our recent cannabis recommendation (LINK) Chemesis (WKN A2NB26) is currently developing splendidly and is still undervalued despite a rapid price increase of over 100%! We expect a multi-year gold bull market in 2019 and beyond, so we believe it is very important to build your first positions in selected undervalued gold stocks right now. In a bull market, today's company is probably one of the hottest takeover candidates ever, with huge potential! It's about Canadian Euro Sun Mining (WKN A2ARP6), which controls the second largest gold deposit in Europe! The Rovina Valley project has a resource measured in the already more trusted categories and displayed by a massive 10.2 million ounces of gold equivalent. That means Euro Sun has already verified 7.2 million ounces of gold and 1.4 billion pounds of copper there and is one of the largest developed gold projects worldwide! Euro Sun Mining (WKN A2ARP6) recently became the first foreign company to receive the long-awaited mining license for the gigantic, drawer-ready project and can therefore proceed to the production decision within the next few months. We expect a lot of news in the coming weeks regarding the further economic assessment of the project (PEA phase 2) and in our opinion this will turn out very well, since almost the entire financing costs have already been considered in phase 1 (more on this later). The first phase of production (Phase 1) is estimated at only $ 752 an ounce with production costs per ounce of gold ("all-in sustaining costs"), which is the lowest quarter of the industry's cost forecasts! With today's first presentation, we expect positive news flow and clear catch-up potential from a wide variety of fronts, the currently still low share price. The market valued the 7.2 million ounces of gold, currently at just $ 3 an ounce. On average, companies are valued at $ 60 an ounce of gold on confirmed reserves! We therefore believe that the 1-2 euro mark can be broken within the next few months. Even then, our top pick would only be valued at $ 20 an ounce of gold and therefore still in the lower part of the rating scale. In the long term we expect prices between 3 and 5 euros, in a gold bull market this is easily possible. Taking over an industry player is also a very likely option. Don't miss the opportunity to position yourself in time, that risk-reward ratio is more than outstanding at this affordable level! Why is the company much too cheap and why is a sharp price increase possible? The project is the second largest in Europe and one of the largest developed gold projects worldwide. We therefore believe that Euro Sun Mining (WKN A2ARP6) will now become the focus of a number of industry players. As already mentioned, the preliminary profitability study (PEA phase 1) was recently submitted. And the numbers read well too, no question: Colnic (which contains about 29% of the total resources of Rovina Valley, which corresponds to 2.89 million ounces of gold equivalent) is said to have received 139,000 ounces of gold per from Minnic over the 12 years of this first production phase alone Year. The so-called "all-in sustaining costs" are estimated at only USD 752 per ounce, which is the lowest quarter of the cost forecasts in the industry! That is why there are huge opportunities However, and this is the crux of the matter, phase 1 of the PEA accounted for most of the cost of building the mine ($ 339.7 million)! This led to the fact that the internal rate of return after tax is "only" at 13.5%. This was understandably not well received by the market, but it may be a unique opportunity for investors who have a long-term perspective and an eye for the big picture! Because, of course, Euro Sun also plans to exploit the deposits of the other two deposits, so that the costs will be distributed and put into perspective quite considerably! The next step in production phase 2 is to open a mine on the Rovina deposit, which again has 2.27 million ounces of gold. For this deposit, too, where the timing of the development can be handled flexibly, Euro Sun has already initiated a PEA (Preliminary Economic Assessment). The highlight: the majority of the costs were incurred in the first production phase or counted towards this, so that much stronger, economic key figures can be expected! We expect an internal rate of return after taxes of at least 40%, at the latest then the market should register that you have an excellent economic project. And finally there is the Ciresata deposit with another 4.95 million ounces of gold that is to be mined. However, Euro Sun will only complete a technical study at a later date. Not to mention that Euro Sun also holds the exploration licenses for the so-called Stanija project, which is a few kilometers away from the Rovina Valley and has two further, large-scale target areas. Here, Euro Sun will conduct exploration activities throughout the year. As I said at the beginning, we had Euro Sun Mining (WKN A2ARP6) on our radar a long time ago. But now, despite the license and partly also because of the "unfortunate" representation of the PEA, the price is significantly lower and Euro Sun brings a market capitalization of just $ 29 million on the scales - with a measured and indicated resource of more than 10 million ounces of gold equivalent! Calculated on the beer mat, each ounce of gold that Euro Sun has detected in the ground is valued at just 2 USD. In our opinion - despite all the risks that are certainly present - this is downright absurdly low! Accordingly, we believe that the price of the Euro Sun share, which has recently made up a bit of ground, has great potential to penetrate significantly higher areas again - especially since the gold price environment now appears to be brightening again significantly. Takeover by an industry player is not unlikely! Most recently, billionaire player Lundin Mining (WKN A0B7XJ) failed with the takeover of the gold and copper property from Nevsun Resources (WKN 901340). Several takeover bids had even been submitted with Lundin. Therefore, the proximity to Lundin Mining is not out of hand to whites. It's no secret in the industry that Lundin Mining is looking for a large gold-copper deposit to further expand their portfolio. But other industry players are also looking for significant gold and copper deposits. For years, exploration has been neglected by the big players, so the large companies are almost forced to replace their mined resources with new acquisitions. We are expecting an extremely exciting and eventful year for 2019 and beyond! Therefore, in our opinion, the right time to start at the still cheap level after receiving the ratified approval, courses below 2 euros should be a thing of the past. The well-known Canadian bank GMP Securities agrees. Which recently published a buy recommendation with a first price target of CAD 2.70 (1.80?)! Don't miss out on positioning yourself in time! Infrastructure and surroundings of Rovina This area has been known as an extremely profitable mining region for gold and copper for 2000 years. The nearby city of Brad reflects the history of this region in its coat of arms. In addition to a piece of gold, there is also a mine and a fir tree. The community symbol, which represents the entrance to a mine, shows how connected and proud people are of their history of gold. Local residents are great supporters and supporters of the project. This ultimately led the Romanian authorities to issue the mining license. In view of the planned opencast mining operations and the waiver of the use of environmentally harmful cyanide, it will be a matter of form in our opinion to complete the environmental study in the coming months. Then the way is clear in the direction of fast production start on this gigantic mega project! But not only the promising land areas and the already proven, enormous gold resource of 7.2 million ounces of gold are a plus for Euro Sun Mining (WKN: A2ARP6). The infrastructure also offers everything that is needed to ensure cost-effective production. In the immediate vicinity there is a hydroelectric power station, rail connection and a newly paved highway. The city of Brad is just a few kilometers from the project. Romania's capital Bucharest is about 300 kilometers away. What we expect in the coming months The upcoming PEA for the Rovina deposit, exploration updates from the Stanija project and, at the end of the year, news about the ESIA (Environmental Social Impact Assessment) and the bankable feasibility study that the experts at Ausenco and SRK will create. Depending on how it turns out, the decision to build the mine is made! The management The experienced management around the CEO Scott Moore has a remarkable track record. Almost the entire management team was involved in the huge success story of Belo Sun Mining (WKN A1C129). Chairman of Euro Sun Mining (WKN A2ARP6) is none other than Canada's investor legend at all. With Stan Bharti, the founder and CEO of Forbes & Manhattan. He is the Mr. Turnaround and Takeover of the mining industry with his world-famous company Forbes & Manhattan. We are therefore firmly convinced that this could be his next success story! Euro Sun Mining (WKN A2ARP6), currently has approximately 62 million shares outstanding. With 4 million CAD in the cash register, you are well positioned. The insiders hold a large part of the shares. According to the company, 50-60% of these 62 million shares are in "strong hands". This high level of insider participation can be seen by exploration companies as a great sign of trust when management invests their own money in the company. Start of the gold bull market 2019/2020? Gold investors have just resigned themselves to the fact that in the wake of the rising US dollar, no gaps in the air can be expected for gold and the gold price is already rising. The return of inflation is one of the most discussed investment issues for 2019. The recovery in the gold price is fueled by the fear that chaos could arise on several fronts: a possible trade war as a result of deteriorating American relations with China, the alleged hacker attack from Russia against political parties in the USA, the complicated exit of the British from the European Union. The gold price therefore has reasonable and slight upside potential. The gold mining stocks have an even higher potential compared to this. Compared to the upward phases of 2000-2008 and 2008-2011 (although the phase from 2000-2011 can also be combined into a large upward cycle), the young gold bull market is still in its initial phase. Now every bull market has its own peculiarities and does not go 1: 1 to previous developments. That is why I do not want to use the chart to outline the exact future development. But they all have in common that they end up reaching a new all-time high that is at least 20% above the old high. The high in the HUI index in 2006 was 515 and in 2011 at 628 points. The next significant high should therefore be between 700-800 points. The HUI is currently trading at just under 200 meters. Assuming that the senior gold producers will only operate highly profitable projects in the next few years and make their investments, at least in the initial phase, with more care than in the last boom cycles, a gold price of around US $ 1,800 would be necessary for such a high , With simultaneous inflation of costs (oil price, steel price, wages), the gold price required for these index levels could also be> 2,000 to 2,500 US $. Strike now before the masses recognize the potential of Euro Sun Mining (WKN A2ARP6)! Conclusion With Euro Sun Mining (WKN A2ARP6) we have found a company that has such an excellent risk-reward ratio that you rarely find it. A massive gold deposit of 7.2 million ounces of gold, in the middle of Europe with almost all the necessary permits for the start of production in your pocket. Investors like Forbes & Manhattan on board who are known for making good investment decisions that often result in a takeover. Read more at: https://de.marketscreener.com/EURO-SUN-MINING-INC-31285363/news/Euro-Sun-Mining-Inc-Milliarden-Goldfond-investiert-in-gro-tes-Goldvorkommen-Europas-Jetzt-gunstig-30050697/[/quote]