Entree Resources Ltd T.ETG

Arbitration

[Rock9011]

My assumption is the arbitration is about who covers the 6.8% of HNE and HER that is likely destined to the Mongolian govt (34% of ETG's 20%). 
ETG has alredy documented in their 3rd q report that RIO has 66% of the deposits on the Oyu Tolgoi mining LIcense and  a 52.8% interest in HNE and HER. 
66% - 52.8% leaves 13.2% of HNE and HER for ETG. 
So who covers the 6.8%. 
Many would say it was already covered in the 80% handed over to IVN and co. 
The real question is - Is the 6.8% part of the costs of developing the mine. If it is, then the 6.8% is part of the 80% already handed over to IVN, TRQ, and the Govt of Mongolia. 
My thoughts are ETG handed over 80% of the minerals (forget about the 30% of the shallow deposits  for the moment) to the big miners and gov't to have a share for developing the deposit.  Mongolia was one of the developers who was supposed to pay their development costs the same as the big miners but ended up with a free ride. 
I dont believe ETG ever planned on giving up 86.8%. If they would have they would have landed on that at the start. 
That being said, What are the Oyu Tolgoi mining deposits worth that TRQ had that ETG did not. Subtract 49% of that value from the total reserves that include HNE and HER and the surrounding properties and one can then figure out  what ETG is worth. 
Unfortunately there hasnt been nearly enough drilling done to put an accurate value on the surrounding ground. 
So pull a number out of the air - say 10 % of what TRQ's 49% was sold for. ($43 Canadian). 
Gives ETG a market value of $4.30 Canadian.  
That is a buy for RIO cause the surrounding ground could hold multiple deposits of minerals. 
If the HNE deposit extends north east another 750M then the fair value is likely $1 higher than that. 
There's the $5.00.

Suffice to say - $1.37 is a screaming buy today. 

Rock

[Ratso07]

Between 2003 and 2011, the stock's share price spiked several times to between $3.50-$3.70 Canadian. That's my initial technical target.  

[Countrygent]

I am bullish on a higher target than $3.50 ... but recall there has been substantial dilution of the share float since 2011.  And of course a decade's progress towards commerical productiuon from the JV at HNE Lift 1. All good to look forward to what the year ahead might bring. Best of luck all. cg

[charni]

Thank you for keeping shareholders attuned of the history of the Entree story. Managememt does take looks at the general tone of social sites discussing their companies.  The potential for a potential buyout is based on Sandstorm's people providing input to mamangememt that portrays your positive perspectives. Also our CEO is a old RIO Executive so let's hope he is more interested

[Countrygent]

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

[Ratso07]

The Edison Report and the share accumulation by Sandstorm is what kept me in the stock. What is even more bizzare is that in Q-1 (2020), TRQ traded down to $5.00 and ETG was as low as 22 pennies a share. I agree with your "Conclusion". We just might see a parabolic move similar to 2003. 

[ukrop13]

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