RE:RE:RE:Folks Starting to Take Notice?If you look at the $6.4 billion USD implied market cap of TRQ backed-out from the $43 buyout by Rio Tinto ... just for comparison ... that's $8.7 billion CDN.
ETG at $1.20 CDN is trading at an implied market cap of 2.9% of TRQ's.
For 20% of the JV, HNE, Heruga, plus all the JV drill targets, plus ETG's 100% western property, all fully financed to production with non-recourse except to production cashflow? And ... if they find anything shallower than 560m, ETG's entitlement is 30%. Prior to 2004 ETG had zeroed in on two very interesting shallow gold dominant targets - the X-Grid and Zone III in particular, and then major further exploratory drilling dried up for ... 18 years. No doubt because the last thing negotiations with Mongolia needed was a valuable shallow discovery. BUT ... now? One good shallow gold deposit on the JV, and ETG starts to move up towards ... 20% or so of TRQ's value? That would translate to $8.25 CDN!!!
Dare to dream. One drill. Lol.
In all honesty there is a lot of upside potential here without further discovery, just a more reasonable valuation, particularly if HNE is extended North which will substantially increase the NPV of Lift 2. And the leverage to higher copper prices is virtually beyond compare for a share of mine production on stream with underground and topside infrastructure nearing first stage completion.
Strong buy! Do your own DD, this pumper has a boatload and isn't selling anyth8ng at these levels or substantially higher. I expect I'll be bought out anyway, hopefully not at some brutal discount to true inherent value.
cg