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Entree Resources Ltd T.ETG

Alternate Symbol(s):  ERLFF

Entree Resources Ltd. is a Canadian mining company. The Company is focused on the development and exploration of mineral property interests. The Company is principally focused on its Entree/Oyu Tolgoi JV Property in Mongolia. The Entree/Oyu Tolgoi joint venture property includes Lift 1 and Lift 2 of the Hugo North Extension copper-gold deposit, the Heruga copper-gold-molybdenum deposit, and a large underexplored, highly prospective land package. The Oyu Tolgoi project comprises two separate land holdings: the Entree/Oyu Tolgoi JV Property, which is a partnership between Entree and OTLLC, and the Oyu Tolgoi mining license, which is held by OTLLC. The Entree/Oyu Tolgoi JV Property comprises the eastern portion of the Shivee Tolgoi mining license and all the Javhlant mining license. The Company has a 56.53% interest in the Blue Rose Joint Venture. The Company has an interest in acquiring a 0.5% net smelter return royalty on the Canariaco copper project in Northern Peru.


TSX:ETG - Post by User

Comment by Countrygenton Jan 16, 2023 7:19pm
263 Views
Post# 35226797

RE:RE:Arbitration

RE:RE:Arbitration
Rats - Your post about the price spikes from 2003 - 2011 got me going back to see what the comparable ETG market cap was in 2009 just prior to the IA negotiations culminating in October of that year.

So at that time the share float was approximately 100 million shares FD, and the share price around $2.50 CDN, with $40 million USD in treasury.  At the time US/CAD were close to par.

So lets say $210 million USD market cap in Fall 2009.  No deal possible, AND big difference, production from the JV was 15 - 16 years off, not 2 - 3 years as now.

That is equivalent to $280 million CDN today.  The average price of copper in 2009 was $2.37, gold was $973.

Today, 210 million shares fully diluted ... implied market cap today is $302 million or so CDN after backing out our little bit of cash in treasury. 

Ha, less than a $30 million improvement after a huge rise in metals prices, certainty in development of the mine and removal of 14 years of delay to cashflow?  Copper projections for the next 15 years extremely bullish?  Ya gotta be kidding me.

Conclusion:  We ain't seen nothing yet.

Pump, pump, pump.  Black swans excepted, do your own DD by all means, Mongolia is definitely not the same as the same property in Canada or the USA.  But the comparison to what the market thought in 2009 took into account even more political risk - the imposition of the windfall profits tax and the down-tools by IVN halting the project pending negotiations to restore sanity had seen ETG plunge to 50 cents in the prior 12 months to conclusion/settlement of the IA and creation of OTLLC as a 34% owner of OT (particuylarly approval by the coalition government at the time which was touch and go to the end).

Here is link to a paid valuation for ETG given in 2018 - the Edison Report.  It pegs $3.41/sh using $3 CU and $1200 AU  - go figure!  Very interesting reading.

https://www.baystreet.ca/articles/research_reports/edison/CA29384J1030EntreeResourcesupdate260418.pdf

Enjoy!

cg











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