The future is looking bright for EAS Hello all!
I must say it is fantastic to see EAS reach 7 cents per share as I am writing this. It was bound to happen as more people discover this severly undervalued company. After the mining permit has been obtained in a few months, I bet people will be astonished over the explosive gains that will follow. Some will miss out while others have accumulated in secret the past couple of years.
I like the recent posts showing how undervalued EAS is, even at 7 cents (or equivalently a market cap of 6.75 million C$). I also like numbers. The Sangihe project has a NI 43-101 compliant resource estimate of about 114,700 ounces Indicated and 105,000 ounces Inferred. Frank Rocca (known from his time at Barrick) even estimates that Sangihe has over 2+ million ounces based on the geology!
Now, assuming EAS can only mine 0.5 million ounces of this gold over an 8 year period and let's be further conservative and say that EAS can sell this gold at an average selling price of 1500 US$ per ounce with an AISC of 800 US$ per ounce (thus 700 US$ in profit per ounce). If we further account for the jurisdiction being Indonesia using a relatively high discount factor rate of 12%, this project alone still has a Present Value in the ball park of 200 million US$. Take into account a capital expenditure of 20 million US$ (much more than what is estimated by Terry and management), we have a Net Present Value of 180 million US$ which equal about 250 million C$.
Basically, a company trading at below 10 million C$ in market cap is with mining permit worth 250+ million C$ based on the Sangihe project alone. I haven't even factored in Miwah with its 3.3 million ounces and its historic high grades over many hundred meters (just look back at the trading chart and see what the market thought Miwah was worth!).
But let's be conservative again, let's say Miwah is worth only 50 million C$. Then EAS as a company is worth 300 million C$ when the market values it at below 10 million C$. That's a factor of 30x in gains (!!!) and that's a very conservative number.
The future is looking bright for EAS, and for me also as an investor with over many hundred thousands of shares in this company.
I wish you all the best! Take care in COVID-times.