Entree Resources Ltd ERLFF

If you like ETG, HCU is an even better deal

[lumpy13]

I have posted similar messages before, but the attractiveness of the proposed buy is very good.

HCU's market cap is almost 20% discount to the value of its 25% holding in ETG.  Sooner than latter arbitration should be decided and a buyout of ETG by RT/OTLLC which would be easiest for all parties.  This could be a substantial increase to the current market value.  Buy HCU (altho it is very thinly traded) and get ETG at almost 20% discount.  

In addition, HCU holds a 30% interest in Hod Maden and a NPI in Antaminas.  They have sold gold or silver streams to SAND on the two projects.  Antaminas is operational and generating cash for HCU.  Hod Maden is a few years away, but will be tremendously profitable.  (The majority partner, SRRM had a tailings dam collapse in another project in Turkay and Hod Maden is being further delayed.)

I've been in HCU a couple of years and have built a position in ETG.  Would love to do more, but tapped out.  I expect a major jump when ETG is (likely) sold, with a strong groundwork for the future stock appreciation (Antaminas, Hod Maden.)

For new investors, this could be a tremendous return.  Take a bite, sit back and wait (and probAbly not too long), before seeing nice appreciation.  There are risks, but I see limited downside.

[Countrygent]

Well, although a buyout scenario is the most obvious solution to ETG's status, the parties sure haven't been able to find common ground on a valuation. My guess would be in 2022 when Rio Tinto supposedly solved "all issues" they quietly promised Mongolia they would take care of the outstanding issue of Mongolia gaining a 34% in all of OT production - including ETG's 20

[lumpy13]

NIcely summarized.  

[mrpancake]

They stole TRQ and are using time as their chip. Horizon is not going to roll over without those assays. As has been mentioned ETG management has no urgency to settle. Big salary, expense account and they know their options are worth a lot of money. The reason it is taking so long is Nolan is more difficult than the p....y TRQ shareholders and to ETG Management is like money in the bank. If those

[Rock9011]

Interesting there is no update from ETG managment on the arbitration situation.  If there are discussions going on, theuy are sure being kept quiet.

[lumpy13]

@mrpancake Not sure if I agree that ETG wants to draw the process out.  Mgmt holds shares and if there is a nice premium - and there should be - they'll make good money.  Similarly, I don't see Nolan as being difficult, rather RIO is probably the culprit.   With HCU holding 25% of ETG and SAND holding something like 34% of HCU (and Nolan personally owning 10%+), he would

[mrpancake]

All through the two decades, salaries and bonuses are like gravy to MGMT I see it (salaries) as a coupon on a bond for them. As for Nolan we want to assume Nolan is fighting for fair value and taking us along for the ride.  Sure he would like to see ETG gone and I agree HCU should jump dramatically 

[Countrygent]

Lumpy, they would also be able to take their cash and make some noise about streams and financing of deals.  ETG is too opaque and difficult to explain.  It is illiquid, barely trading. While Rio Tinto doesn't like spending money, ETG is a very attractive asset consolidated into OTLLC in bumping reserves and production in a top tier copper/gold asset, precisely what Rio Tinto has