High-Potential Exploration and a JV With Rio Tinto The commodity market is expected to realize a significant amount of growth this year as China exits their COVID restrictions and returns to full-scale manufacturing. This means that companies who are providing the raw materials and resources are going to be the ones who capitalize the most on this growth. $EMR.V has already positioned itself well with numerous properties in Quebec and Nevada targeting copper, gold, and other base metals.
One of their properties in Nevada, the New York Canyon Project, has a JV with one of the largest companies in the world, Rio Tinto. Kennecott Exploration (a subsidiary of Rio Tinto) has the potential to earn up to 75% ownership of the property only if they spend $22.5M USD on exploration. In 2021 alone, Kennecott spent $5 million in exploration drilling over 14,700 meters as a result. When you think about it, why would any company want to spend $22.5M for only 75% ownership unless there’s potential for a significant ROI.
- The numerous properties allow for the company to hold a significant amount of upside ($1.00+ easily) when considering the valuation of all the properties combined as $EMR.V continue to add value to the brand.
- Even their strategy is to look for asset acquisitions, add value through computerization and remodelling of historical exploration data, new exploration, and application of modern geophysics, and seek asset divestitures through sale, JV, option, royalty, etc., to advance projects and create value.
https://smartstreetinvesting.com/emr/
Overall, considering the potential of their strategy and ten properties, the current $9M valuation definitely makes this one to watch. With the recently raised $1M in December, they’re also cashed up for exploration, especially as they commence drilling for the Trecesson Property in Quebec.