Entree Resources Ltd ERLFF

Primary Symbol: T.ETG

Metals & Mining Industrial Metals & Minerals

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

Entree Resources Ltd > Rising price on low volume

<< Previous

Bullboard Posts

Next >>

Comment by Rock9011on Mar 31, 2024 2:51pm

293 Views

Post# 35961802

RE:RE:RE:RE:RE:RE:RE:RE:Rising price on low volume

Still like Edison's evaluation from 2017. And it was established before the significant increase and copper / gold prices

Valuation: Adj for FY17 results, otherwise unchanged

We have performed a SOTP valuation for Entre Resources, with the majority of value derived from using the Entre-attributable production and cost data contained within the 2018 updated Feasibility Study on HNE Lift 1 and PEA on Heruga/HNE Lift 2 (2018 Reserve Case and 2018 PEA), our long-term gold and copper prices and a 10% discount rate to reflect general equity risk. Attributable capital expenditures to Entre are contributed on Entre’s behalf by OTLLC. Contributions (plus interest at prime +2%) are repayable from 90% of available cash flow. We have also factored in Entre’s legacy Sandstorm Equity Funding and Participation Agreement. On this basis, we value EJV HNE Lifts 1 and 2 at C$2.76 per Entre share, to which could be added C$0.65 per share for the in-situ valuation of Heruga’s inferred-category mineral resources. Adjusting for an 8% (used as the base for the AMEC technical report) discount rate results in a valuation of C$4.46 (US$3.18).

If one subtracts out MG's pound of flesh / 2 = say $0.75 Canadian / share, (assuming ETG and Rio were to split the haircut down the middle)
This still leaves C$3.70 ($2.73 US)
The current trading price of C$1.51 is on sale..

This would be a screaming buy for RT as it doesn't even put a value on all the other JV lands.

Rock