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Most Undervalued Gold/Copper Stock?
1 share 0,23 CAD, Target 3 CAD 2022
https://www.barchart.com/stocks/quotes/ESM.TO...st-ratings
That is at current gold/copper prices; 5% - 10% or more increase in price...
and the target price can fly up to 4,5 - 6 dollars.
https://eurosunmining.com/
CEO high insider shareholdings (initial funding 2017) + gold funds.
POST and SHARE and "Like" helps stock price?
Giving STRONG news yesterday, the re-rate has now begun. Gold price etc is major influence to the market.
However, your purchase of shares has also effect!
If you (and you do want a good gain/profit, then Share and Post and "Like", all things Euro Sun Mining to support the company.
Your voice matters to, so use it friend.
3 weeks to 0,60 june/july - the same NOW is very possible!
https://www.barchart.com/stocks/quotes/ESM.TO/overview
https://www.barchart.com/stocks/quotes/ESM.TO/news
Sprott target price; 1,45 dollars
Euro Sun Announces Robust Definitive Feasibility Study for the Rovina Valley Gold-Copper Project in Romania
.
Mon, March 1, 2021, 12:00 AM
Average annual gold equivalent production of 146,000 ounces over first 10 years at an average AISC of $790/gold equivalent ounce
Total initial capex of $399 million
Pre-tax Net Present Value of $447 million; IRR of 21.3% at $1,550/oz gold and $3.30/lb copper
TORONTO, March 01, 2021 (GLOBE NEWSWIRE) -- Euro Sun Mining Inc. (TSX: ESM) (“Euro Sun” or the “Company”) is pleased to announce the positive results of the Definitive Feasibility Study (“DFS”) on the Colnic and Rovina open pits - the initial phase of development of its Rovina Valley Gold and Copper Project (the “Rovina Valley Project”) in Romania. Along with the DFS, the Company is also providing an updated mineral resource estimate for the Rovina Valley Project incorporating current metal prices and operating parameters. All amounts are in US dollars unless otherwise indicated.
Euro Sun is utilizing a phased development approach for the Rovina Valley Project. The Rovina Valley Project consists of two open pit gold-copper deposits, Colnic and Rovina, and the underground Ciresata gold-copper deposit. The DFS is focused on the exploitation of the two open pit operations. The Ciresata underground deposit is expected to be phased in following the completion of the Colnic and Rovina pits.
HIGHLIGHTS
Average annual gold equivalent production of 146,000 ounces in year 1-10, consisting of 106,000 ounces of gold and 19 million pounds of copper per annum
Average AISC of $790/gold equivalent ounces in years 1-10
Initial capex is expected to be $399 million (including $12.7 million in pre-strip)
Pre-Tax NPV5% of $447 million with an IRR of 21.3% and Post-Tax NPV5% of $359 million with an IRR of 19.2% at $1,550/oz gold and $3.30/lb copper
Processing 21,000 tonnes per day incorporating simple flotation and dry stack tailings
Phase 1 production of over 1.3 million ounces of gold and 400 million lbs of copper (185k tonnes) over 16.8 years
Scott Moore, Euro Sun’s CEO states, “The 2021 Definitive Feasibility Study highlights a positive economic project for our initial phase of development at the Rovina Valley Project. An expanded life of mine to almost 17 years coupled with a conservative metal price model has delivered an NPV almost 100% higher than the PEA of 2019. The DFS delivers a much higher degree of confidence in both the capital required to build the project and the operating costs, even when utilizing higher cost dry stacking. At spot copper and gold prices, the NPV almost doubles again highlighting the enormous leverage of the Rovina Valley Project.”
https://finance.yahoo.com/news/euro-sun-announces-robust-definitive-050000887.html
"Largest supply/demand mismatch of Gold ever! (History of Gold" - Tavi Costa
WHY Euro Sun Mining Will Gain Either Way.
Billionaire P Lassonde on Gold & Advice for Speculators (by the way, he says a gold/copper deposit is the ultimate deposit!)
IT`S TIME TO SHARE - If you want to be pro-active and "cover" your position and/or jump in on the Opportunity.
Either way, it`s up to yourself (partly) to protect and hopefully see a good return on your investment.
The ESM will/do promote the stock to some extent, though to get a larger base of traders and/or investors, SHARING is the way you can make a different.
So, I get some PM about this topic... I just want to say; do what you want and CAN! If it`s trough this site, another one... well, just do SOMETHING
As I see it today; coming news in Q1, BFS (and possibly more) will be a BIG DIFFERENCE in valuation of the share price - so, help me/yourself to get the word out on the ESM opportunity.
LIFE CHANGING NEWS Q1?
ESM may be in a radically transforming phase;
Bankable Feasibility Study
• Including Colnic and Rovina open pits
• To be released Q1 2021
The new feasibility study will be MUCH different, then previous; Now all three deposits will be included. The other report one had only one deposit!
It`s possible we will see a REALLY big run, when the news hits the market.
This can be any day now. Will you take a position and/or re-fill with a new buy?
http://eurosunmining.com/
Digging for modernisation - mining law UPDATED;
Digging for modernisation - mining law
MPR Partners | Maravela, Popescu & Asocia?ii
MPR Partners | Maravela, Popescu & Asocia?ii logo
Romania January 13 2021
1. General context
Since the Mining Law no. 85/2003 (“Mining Law”) entered into force on March 27, 2003, the economic and social environment in Romania has undergone a major evolution, marked by the increase of investments, especially with the accession to the European Union, in 2007. However, the legislation did not manage to keep up this fastened pace and the Romanian authorities are now trying to adjust the legal framework to the requirements of this continuously changing economic life. In this regard, after three years of debate in the Parliament, Law no. 275/2020 for amending and supplementing the Mining Law no. 85/2003 (“Law no. 275/2020”) entered into force on December 17, 2020.
As anticipated, Law no. 275/2020 aims to overcome certain legal and economic issues, trying to give Romania’s mineral resources their deserved value.
Thus, the main purpose of this legislative process was to bring financial benefits to the local communities where the mineral resources are located, by distributing a part of the mining royalty to the local budgets. Nevertheless, Law no. 275/2020 also brings important provisions as regards the approval of the exploitation licenses, as well as their transfer. Last but not least, Law no. 275/2020 additionally provides for the amendment of the National Agency for Mineral Resources’ status.
2. Turning mineral resources into a more valuable asset for local communities
The most important amendment implemented by Law no. 275/2020 refers to the royalty paid by the authorized economic operators, holders of a concession right, for their mining activity. Thus, if until now, the mining royalty was paid in full to the state budget, starting with January 1, 2021, the royalty will be divided as follows:
(i) 45% to the local budget of the community where the exploitation activity is carried on;
(ii) 35% to the local budget of the county where the exploitation activity is carried on; and
(iii) 20% to the state budget.
However, it is important to note that the above indicated division of the mining royalty will only be applied in the cases where the object of the exploitation activity is represented by surface resources and natural mineral waters (gaseous and non-gaseous). Hence, in the case of the other mineral resources, the mining royalty will continue to be paid in full to the state budget.
3. Licenses transferability
With respect to the transfer of rights and obligations undertaken under a concession license, until the amendment of the Mining Law, this procedure was allowed only if the license was entered into force. Therefore, in the case of a concession license being under the approval process, this possibility was not regulated.
This legislative gap has now been covered by Law no. 275/2020, which states that the rights and obligations undertaken under the concession license not yet entered into force may be transferred in case of merger, division or transformation of the holder or in case of sale of its mining assets.
4. Enhanced competences for the National Agency for Mineral Resources
Another major amendment brought to the Mining Law gives the National Agency for Mineral Resources (“NAMR”) the authority to approve by order the exploitation licenses for construction materials, concluded in the period 1999 – 2019, and which have not yet been approved by Government decision. Thus, if the usual procedure for the exploitation of this type of mineral resources is completed by the issuance of an approval decision by the Government, an exception to this rule has been provided by Law no. 275/2020.
This decision to broaden the competences of NAMR for this certain type of exploitation licenses has been grounded on several factors, as NAMR, however, approves by order such licenses for mining concessions in the exploration phase and, also, approves prospecting and exploitation permits.
5. Summary and further updates
In addition to the above amendments already entered into force, Law no. 275/2020 also provides for a future major change regarding the mining sector, this time from a political point of view. Thus, it is stated that by July 1, 2021, the Government shall amend the organisational and functional structure of NAMR, in order to change its status from agency to national regulatory authority in the field of mineral resources and oil. This way, the control over NAMR will be switched from the Government, to the Parliament.
In conclusion, we may state that Law no. 275/2020 brings significant amendments on three segments:
(i) from a legal perspective, corelating the provisions of the Mining Law with other legal provisions at national level; (ii) from an economic perspective, by sustaining the economic development of the administrative units where the mining activities are carried on and encouraging the investments in this sector; and
(iii) from a political perspective, by aiming to modify the status of the regulatory agency in the field.
MPR Partners | Maravela, Popescu & Asocia?ii - Gelu Maravela and Alina Savastre
Longlife European porphyry project, 10Moz plus and DFS in Q1 2021.
Mine builder in the emerging West Tethyan District
With a multi-millennia mining history, the West Tethyan belt has enjoyed a resurgence as investors and majors are drawn in by the region’s geological upside, skilled but cheap workforces, and world class infrastructure. Euro Sun is developing the Rovina Valley Gold Project (RV) in Romania with a 28km2 property with three porphyry deposits containing a total of 10.1Moz of M&I ounces (AuEq). The company is finalizing a feasibility study by Q1 2021 targeting a 130kozpa producer with first production estimate.
Straightforward low strip porphyry benefitting from infrastructure
ESM has the key traits of successful porphyry mines: low costs and good
metallurgy. Advantages include cheap grid power at 7.4c/kWh; low strip ratio at 1.9x LOM; simple geology; mining (open pit), and metallurgy (flotation to produce a Cu-Au concentrate); and a skilled local labour force that does not require FIFO expats. These result in SCPe unit costs of US$16.5/t (0.27g/t AuEq) of ore, delivering strong margins on a grade of 0.67g/t AuEq.
Initiate coverage with BUY rating and C$1.05/sh price target for 2021 .
The 2019 PEA provides a starting point, outlining a 20ktpd (7.2Mtpa) open pit to flotation operation producing 108koz Au and 6kt Cu per year (130koz AuEq) based on exploitation of just the Colnic deposit. Excellent logistics drive US$340m initial capex, with AISC of US$878/oz AuEq (co-product). We model a similar scenario per the PEA for Colnic, increase unit costs and sustaining capex by 20%, and add in the Rovina deposit, which management has guided will be incorporated into the feasibility study. We have assumed 60% debt and equity funded at 0.2x NAV. We apply a 0.75x multiple to this and US$50/oz for
resources outside our mining inventory to reflect ounce upside. As such, we initiate with a BUY rating and C$1.05/sh. On our estimates, ESM is currently trading at 0.1x unfunded NAVPS or 0.3x SCPe fully-funded NAVPS.
Delivery of Colnic alone could deliver a double on FF NAVPS
We estimate that ESM is trading at just 0.5x fully funded NAVPS on a Colniconly scenario, even with our conservative unit cost (increased by 20% over PEA) and sustaining capex (increased to US$86m from US$12m) estimates. We estimate an NPV5%-$1850/oz-$3.00/lb of US$348m and IRR of 19%. Rovina and Ciresata could double NAV on conservative conversion
Majors favour porphyries for good reasons: They tend to offer long asset livesthat deliver a robust return profile and multi-cycle exposure, shifting emphasisto execution, rather than cycle timing.
In Rovina Valley’s case, the Rovina and Ciresata deposits offer this LT optionality. Adding 50Mt from Rovina (30Mt
containing 463koz Au and 102kt Cu) increases our NPV estimate by US$211m (US$0.30/sh FF) and IRR to 23%. Incorporating Ciresata (58Mt for 1.9Moz Au and 104kt Cu) in a bulk stoping operating increases NPV by US$279m, or C$0.43/sh to C$1.66/sh, IRR to 27%, and mine life to 24 years in total. Euro Sun Mining (ESM CN)
(CEO SHAREHOLDER 2,6 Million Dollars)
SHARE DATA
Shares (basic, FD) 169 / 177
52-week high/low 1.40 / 0.37
Market cap (C$m) 59
Net cash (debt) (US$m) 15
1.0xNAV5% @ US$1850/oz (US$m) 488
1.0xNAV5% FD (C$/sh) C$3.70
1.0xNAV5% FD + FF (C$/sh) C$1.03
P/NAV (x) 0.09x
Average daily value (C$k, 3M) 192.1
FINANCIALS CY24E CY25E CY26E
Gold produced (000oz AuEq) 109 161 152
Revenue (US$m) 199 296 277
AISC (US$/oz AuEq) 796 763 912
Income (US$m) 35.5 68.8 49.5
EPS (C$/sh) 0.21 0.41 0.29
PER (x) 1.7x 0.9x 1.2x
CFPS (C$/sh) 0.11 0.20 0.16
P/CF (x) 1.1x 0.6x 0.8x
EBITDA (US$m) 89.5 138.5 100.3
EV/EBITDA (x) 3.0x 1.3x 1.2x
SPROTT VALUATION 1Q20E 1Q21E 1Q22E
1xNAV5% FD (C$/sh) 1.05 1.55 1.12
ROI to 1xNAV (% pa) 0% 344% 79%
1.2xNAV5% FD (C$/sh) 1.26 1.86 1.34
ROI to 1.2xNAV (% pa) 0% 433% 96%
SOTP 1xNAV5% US$1850/oz US$m C$/sh
Rovina Valley NPV 3Q20 548 4.14
Central SG&A & fin costs 3Q20 (157.1) (1.19)
Exploration 82.4 0.62
Net cash 1Q20 14.6 0.11
TOTAL 488 3.68
Cash raised 166
Source: S&P Capital IQ
C$0.35/sh
http://eurosunmining.com/
Good morning friends, how is the mood for some ESM promoting? It`s easy to just share something you like with the company and it can give us more eyes on the stock.
On your facebook page, or other media, maybe Twitter anyone?
Active small steps, will grow over time, like rings on the water they spread out!
We had a little push up yesterday, maybe the downtrend is broken, time will tell.
Good luck all
CEO owns stock for 2,6 million CAD ;
HAPPY WITH ESM PERFORMANCE? I don`t know about you guys, me not so happy. Yet, I`m striving to influence it, to connect with other shareholders. Cause I know, my voice alone want much different. Still, it`s SLOW. All are busy today, and each one of us choose to spend our time on various areas in life.
Usually things are not what they have been the past year - this effects the stock as well. With many factors uncertain, on macro and micro picture globally, the companies ability to (or not) communicate with us investors.
IR-department on ESM, fb community, video interviews with CEO... etc, etc.
Neartime facts; Q1 is of big importance, as I see on the future valuation.
BFS study, resourse update and possibly other news, should be of interest. Though, not much talk in media, on the fb page, youtube or investor forums. Reasons are several, meanwhile the stock is struggling.
Despite having all this undervalued great assets, no promotion. No interest /time from majority of shareholders AND the company to MARKET and do PR on ESM.
Maybe it`s enough with the news coming up, but what if a great BFS study and more make no noise, get a little attention instead of be a CATALYST?
Intrested can contact me here (public reply), or on fb ESM fan-page/PM.
Thank you, U R H
Thanks for the update AlexUlf !
Looks like the BFS is in tack with what they said last Q. It will be ready within the next 2 months.
Also very important that the copper prices are going up ! Copper is a significant amount of ESM's resources . Can't wait to see what the NPV of the combined (ROVINA+COLNIC) will be
The Big Difference; Peter Vukanovich STEPS UP!
Euro Sun Appoints Peter Vukanovich Non-Executive Chair And Provides Rovina Valley Project Update
GlobeNewswire - Tue Jan 5, 4:00PM CST
Euro Sun Mining Inc. (TSX:ESM.TO) ("Euro Sun" or the "Company" is pleased to announce that the board of directors has elected Mr. Peter Vukanovich as non-executive chair of Euro Sun Mining.
Mr. Vukanovich is an entrepreneurial leader and experienced corporate board member.
Mr. Vukanovich has held senior executive roles during his career including Genworth Financial Canada/GE Capital Mortgage Insurance, CFF Bank and Teranet Inc. He is a Chartered Professional Accountant, holds a Bachelor of Commerce degree from the University of Toronto and has been a member of numerous not-for-profit boards and advisory committees.
Primis Player Placeholder
G. Scott Moore, President and CEO stated, "We are pleased to have Peter become our independent chairman. His appointment further highlights the Company's approach to continuous improvement in corporate governance."
Project Update
The company and its key engineering consultants continue to make progress towards completion of the definitive feasibility study ("DFS" for the Rovina Valley Project as well as ongoing submittals to support our required permitting path for construction.
During this quarter, the Covid-19 global pandemic has made it more difficult to finalize the DFS. The Company now expects completion of the definitive feasibility study during Q1 2021. Euro Sun continues to progress all permitting for the project in a timely manner and in conjunction with all Romanian laws.
G. Scott Moore, President and CEO also stated, "During this global pandemic our team at Rovina has been challenged with the ever-evolving restrictions in Romania and elsewhere in the world and its impact on our progress at Rovina. They have done an outstanding job to keep all aspects of the project advancing and we endeavour to continue our efforts towards a successful outcome.
While the gold price has performed well since our PEA of 2019, we would like to highlight that copper prices are trending higher and should have a positive impact on the DFS given the large size and highly recoverable nature of copper in the Colnic and Rovina deposits."
About Euro Sun Mining Inc.
Euro Sun is a Toronto Stock Exchange listed mining company focused on the exploration and development of its 100%-owned Rovina Valley gold and copper project located in west-central Romania, which hosts the second largest gold deposit in Europe.
For further information about Euro Sun Mining, or the contents of this press release, please contact Investor Relations at info@eurosunmining.com
review from sprott
link that works now below
insert-text-here
Great piece - and London Stockexchange is on for Q2!
Review from Sprott
An interesting review from one of its largest shareholders (Sprott Asset Management
https://sprott.com/media/3394/201117-developer-scp.pdf" rel="nofollow" target="_blank" >https://sprott.com/media/3394/201117-developer-scp.pdf
New Year, The Year-The quarter!
This quarter is expected to be significant for ESM. It has been waiting for a long time for 2 major events to occur. The BFS which is expected early on, on the quarter, and the final permit for the mine construction which is expected later on but in Q1.
Reminding: NPV is expected to be 1B USD with only half of the project in the study. That is significant!
With the Gold bull kicking in again (already breaking out today in USD terms), and with the positive news expected for ESM, nothing should get you more exited ! The opportunity won’t last for long. You rarely see a 10M ounce deposit, so close to production on such a small MCAP (40M USD).
Gold Chart Breaking Out from a multi month slide from its ATH
ESM Chart also Breaking out from multi month trend line
Now its the time to act and create a position before its too late . And remember ,if you begin a position soon , your average will be a lot lower that the average of the major Gold funds who own significant amount of ESM. If you are already a shareholder, it seems to be the last opportunity to strengthen your position.
For more information about ESM check my Last post where i explain why its potential is huge and why the valuation is so low .
Have happy new year everyone,
Konik
P.S Click the image of the chart to see the prices on the right side of the Chart , couldn't fit it all.
Thank you konik, great piece! You have done a lot of work with this I can tell. Much appreciated of me and I`m sure of others who follow the stock on the board.
I take the opportunity to encourage others also to add your opinion on ESM (trades on OTC as well on TSX), it would be nice if we could help each other and the company to get some more attention in the market place!
Wish all out there a peacefull holiday. Take care and stay safe!
The Ultimate Leveraged Gold Play
Well, there are quite a few ways to ride a gold bull market. One of them is by following the big gold stocks that provide steady and slow growth, and the royalty stocks. If you are quite late you’ve probably missed this part. That means you have to find something that is still undervalued and usually moves later on in the bull cycle.
Lucky for you, there are development and exploration companies which move later but a lot further in a real gold bull market. If you leave aside the exploration companies due to their enormous risk (uncertainty of finding an economic deposit, their risk of dilution) you’re only left with the development space.
The most undervalued development company out there is ESM. It’s the second largest undeveloped gold-copper deposit in the EU. It has a total of 10Moz of Gold equivalent (7Moz Gold and 1.4B lbs of Copper) and that makes it a Tier 1 deposit!
Tier 1 deposits are rare and Precious. That is because the effort and the risks involved when bringing a project into production are the same weather it’s a huge or a really small deposit. The only deference is that the big deposit in much more economic and provides the owner company more free cash flow and a bigger mine life.
Now let’s have a quick run into ESM. It’s a company run by a good management team with a proven track record which can be found in detail in their website’s presentation. Its asset is a combination of 3 deposits (Rovina,Colnic,Ciresata) which are really close to each other and they will use the same facility for the material process. They are all owned 100% by ESM
Colnic ?2.2Moz Gold & 302M lbs Copper
Rovina ? 1Moz Gold & 573M lbs Copper
Ciresata ? 3.8Moz Gold & 518M lbs Copper
The CAPEX for the facility is ($339M) and the production of the mine is expected to be around (139koz/year). That is a very low CAPEX given that most projects in a similar size need closer to 1billion in order to build the mine.
The stock is valued as of today 22/12/2020 at 4$/oz in the ground when projects that have measured resources are valued at an average of 40$/oz. That is calculated by dividing the MCAP of the company (in USD) by the number of ounces that exist in the ground. Now I don’t suggest that it will be a (10-20) bagger in the next year, but it’s really probable that the valuation will be closer to a higher number than a lower.
The MCAP is $40M, while the company has enough cash to fund its work($15M in the bank), at least until spring 2021(as mentioned by the CEO from the last interview to date). The NPV is 750M US$ only for the Colnic deposit. It’s expected that in the beginning of the next quarter they will have completed the bankable feasibility study (BFS) which will include the numbers of the Rovina deposit, and the NPV is expected to be around 1 Billion $ and the mine life will be expected to be 20 years. During a bull market, development companies usually tend to trade and 1 X NPV or sometimes even higher.It also worth mentioning what Leveraged gold play means. Spot Gold 48% higher than PEA delivers 340% Higher NPV.
They also expect that in the next quarter they will get the final permit that is needed and they will bring the company into production decision. After these 2 events occur the company will be probably rerated significantly. Now, you will probably have the question,” Why is the company so undervalued? “That is happening because a company named Gabriel Resources didn’t get one of the permits for the mine because it wasn’t environmentally friendly (it was using cyanide). The ongoing BFS of ESM has less NPV that it should have, because it’s not recovering as much gold as it should if it was using cyanide in order to get the final permit. Also, the relations between ESM and the government seem to be excellent, while ESM’s workforce is mainly from Romania (with the exception of the CEO).
There is also strong fund support in the company while some of the biggest gold funds in the world own 35% of the company, and during mid-summer Sprott Capital Partners invested $20M in a price higher that the price the company is trading today.
More information about ESM and the topics mentioned above can be found on the company’s website while I strongly recommend, to give a look at the latest interview of the CEO by Mr. Crux Investor
ESM Analyst Valuation of 3$: insert-text-here
ESM presentation can be found: insert-text-here
ESM CEO interview by Crux: insert-text-here
The Ultimate Leveraged Gold Play
Well, there are quite a few ways to ride a gold bull market. One of them is by following the big gold stocks that provide steady and slow growth, and the royalty stocks. If you are quite late you’ve probably missed this part. That means you have to find something that is still undervalued and usually moves later on in the bull cycle.
Lucky for you, there are development and exploration companies which move later but a lot further in a real gold bull market. If you leave aside the exploration companies due to their enormous risk (uncertainty of finding an economic deposit, their risk of dilution) you’re only left with the development space.
The most undervalued development company out there is ESM. It’s the second largest undeveloped gold-copper deposit in the EU. It has a total of 10Moz of Gold equivalent (7Moz Gold and 1.4B lbs of Copper) and that makes it a Tier 1 deposit!
Tier 1 deposits are rare and Precious. That is because the effort and the risks involved when bringing a project into production are the same weather it’s a huge or a really small deposit. The only deference is that the big deposit in much more economic and provides the owner company more free cash flow and a bigger mine life.
Now let’s have a quick run into ESM. It’s a company run by a good management team with a proven track record which can be found in detail in their website’s presentation. Its asset is a combination of 3 deposits (Rovina,Colnic,Ciresata) which are really close to each other and they will use the same facility for the material process. They are all owned 100% by ESM
Colnic -> 2.2Moz Gold & 302M lbs Copper
Rovina -> 1Moz Gold & 573M lbs Copper
Ciresata -> 3.8Moz Gold & 518M lbs Copper
The CAPEX for the facility is ($339M) and the production of the mine is expected to be around (139koz/year). That is a very low CAPEX given that most projects in a similar size need closer to 1billion in order to build the mine.
The stock is valued as of today 21/12/2020 at 4$/oz in the ground when projects that have measured resources are valued at an average of 40$/oz. That is calculated by dividing the MCAP of the company (in USD) by the number of ounces that exist in the ground. Now I don’t suggest that it will be a (10-20) bagger in the next year, but it’s really probable that the valuation will be closer to a higher number than a lower.
The MCAP is $40M, while the company has enough cash to fund its work($15M in the bank), at least until spring 2021(as mentioned by the CEO from the last interview to date). The NPV is 750M US$ only for the Colnic deposit. It’s expected that in the beginning of the next quarter they will have completed the bankable feasibility study (BFS) which will include the numbers of the Rovina deposit, and the NPV is expected to be around 1 Billion $ and the mine life will be expected to be 20 years. During a bull market, development companies usually tend to trade and 1 X NPV or sometimes even higher.It also worth mentioning what Leveraged gold play means. Spot Gold 48% higher than PEA delivers 340% Higher NPV.
They also expect that in the next quarter they will get the final permit that is needed and they will bring the company into production decision. After these 2 events occur the company will be probably rerated significantly. Now, you will probably have the question,” Why is the company so undervalued? “That is happening because a company named Gabriel Resources didn’t get one of the permits for the mine because it wasn’t environmentally friendly (it was using cyanide). The ongoing BFS of ESM has less NPV that it should have, because it’s not recovering as much gold as it should if it was using cyanide in order to get the final permit. Also, the relations between ESM and the government seem to be excellent, while ESM’s workforce is mainly from Romania (with the exception of the CEO).
There is also strong fund support in the company while some of the biggest gold funds in the world own 35% of the company, and during mid-summer Sprott Capital Partners invested $20M in a price higher that the price the company is trading today. Last , some analysts value the stock for 3$ CAD
More information about ESM and the topics mentioned above can be found on the company’s website while I strongly recommend, to give a look at the latest interview of the CEO by Mr. Crux Investor
ESM valuation of 3$ : insert-text-here
ESM presentation : insert-text-here
ESM CEO interview by Crux : insert-text-here
CEO Scott in Romania site video and interview;
E S M in Video Review 4 month ago;
6 minutes into the video it starts (Euro Sun Mining)
If you are invested or about to, please share the info about E S M.
USERBOARDS are a great way, to get some more attention to the stock.
ANALYST TARGET PRICE TODAY;
https://www.barchart.com/stocks/quotes/ESM.TO/analyst-ratings
YouTube makes a review of ESM soon!
Good news, we need to increase the awareness and opportunity of the stock!!!
Use the Userboards, post some facts that can make them look more on ESM
Will we get our place in the sun within 2020 or 2021? Though I`m sure 2021 will be a big year for ESM, I still would like to see it move up a bit/consolidate so we will be more steady and less volatile.
By the way, one YouTube channel with a significant number of subscribers, are willing to do a story (updated) about our Euro Sun Mining!
Good news, we need to increase the awareness and opportunity of the stock!!!
Use the Userboards, post some facts that can make them look more on ESM.
FRIENDLY, NATO AND LOVELY
Romania's new tourist promotion clip; (2019)
BFS, 2 Certificates, Resource update (now 2 deposits!) and construction decision.
These four (4) catalysts shall all be in early Q 1, 2021.
Within a month they can all be here... when they arrive, how many stocks have been purchased - to be among the first and get a handsome profit?
Or is it smarter to get in now at the lowest point?
Robert
giving close to holidays, tthe good news is probably to be in Q1 2021.Tgeb we want; BFS, certificates and updated resource with contruction decision.up listing to London Q2 and production start.
possibly we can see the beginning of either a slow yet steady trend up for the stock price - or will we see a fast and high rise any day before christmas?
SECOND BREAKOUT ATTEMPT?
https://www.barchart.com/stocks/quotes/ESM.TO/interactive-chart
Euro Sun Mining Inc (CPNFF)
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Hi, I`m talking to YOU Assist Moderator?
If you are interested to make a difference - join me and let`s have fun.
Though rather low numbers of visitors, it will change with 3 near time catalysts!
Leave message on the board, see you.
Robert
To evaluate the point of entry - and the variety of factors that we consider.
1, General rule; the longer a stock has been under sell pressure, the quicker up.
2. No news for some time, makes it harder to gain momentum again.
3. To position yourself now - or wait for the good news?
For my own part, I think this one will move so fast due to long term decline - so I went in on 037,5 (CAD) and will re-fill if it goes further down; the bounce will be magnificent
All strong facts back this up - the question is how much and how fast it move up.
3-5 bagger within 12 months is a fair prediction. (If we keep the company/stock)
IF WE GET THE RIGHT BUY-OUT OFFER - IT CAN GO FAST; EARLY 2021!
THE ROAD TO A RE-RATE 10M OUNCE GOLDMINE. (Part 3 of 4)
Despite the increasing world-class interest being generated by Rovina Valley’s huge promise, an enormously persuasive argument for Euro Sun’s undervaluation exists elsewhere.
[b ]With a market cap of C$53.2 million, it is presently valued at just C$5.30 an ounce – far below the $20/ounce usually commanded by projects of such size and advanced status.
After its recent recapitalization through May’s placing, Euro Sun is now in a better position than ever to close this gap – and this could be just around the corner.
The firm is confident this money will see through the completion of all of the work needed to deliver a bankable feasibility study and win Land and Project Urbanization Certificates for Rovina Valley before end-2020 .
Why is this so critical?
Because Rovina Valley will be construction-ready at this point, and Euro Sun’s focus will shift onto winning debt financing and construction permits.
With the support of financiers and the Romanian government on its side, Euro Sun’s long-term future at Rovina Valley is looking very bright.
As it pushes through these critical near-term project milestones against such a hot gold market backdrop, the inevitable re-rate can only be prolonged for so long.
This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Euro Sun Mining Inc to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of one hundred and twelve thousand USD to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.
Friends/traders and investors - today we made a reverse - up again. Let`s try to keep this momentum; you who have traded, tell everyone about this great opportunity!
You who have not (yet) decided/purchased; the time is now - we are on the way up and we will have at least 2 catalysts within coming 6 weeks that is left of 2020
(study board/website etc, if you join (I hope so for all of us!) - spread the word about this "once in a decade" stock.
This will be a mine - the question is will we build it/mine it - or do we accept a fair buyout offer?
It`s time to let Euro Sun Mining come out from the shadow.
GOLD IS THE SAFE HAVEN.
The ultimate safe-haven asset has shot up almost 30% over the last 12 months and recently crossed $1,800 an ounce (“/oz”) for the first time since 2011.
This already puts the precious metal among this year’s top performers.
Still, many analysts expect the bull run to continue well into the future – some even see the precious metal passing through $5,000/oz!
Institutional investors are now on the hunt for the highest-quality gold developers likely to prosper the most in these conditions.
After all, if history has taught us anything, it’s that we are likely approaching an intense phase of gold market M&A activity, as cashed-up gold miners look for ways to boost their reserves.
Against this backdrop, one stock that has just captured incredible institutional backing is Euro Sun Mining (TSX:ESM | OTCQB:CPNFF).
This Canadian gold developer has attracted more than $20 million of smart money in the last three months alone to accelerate advancement of its 100%-owned Rovina Valley gold and copper project in Romania.
With few milestones remaining before this 10-million-ounce monster can enter the construction phase, a re-rate of Euro Sun’s current C$53.2 million market cap could very well be on the cards.
EURO SUN – WINNING WORLD-CLASS SUPPORT
Back in May, Euro Sun announced the launch of a C$12 million bought deal public offering underwritten by mining legend Sprott Capital Partners.
For those who don’t know, a “bought deal” is a securities offering where the underwriter commits to buying the value of the entire offering from its client.
In other words – it ensured that Euro Sun would raise its intended amount in full and represented a strong vote of confidence from Sprott.
Sprott’s instincts were vindicated twice over when Euro Sun quickly upsized the placement to C$20 million in response to market demand before eventually raising a total of C$22.3 million.
Among those who took part was long-term investor Ruffer LLP – among the UK’s biggest investment companies, with some $19 billion of client assets under management.
Having doubled down on its support for Euro Sun, Ruffer today sits as the company’s largest investor with a 9% stake.
Joining Ruffer in the raise was world-leading asset manager Franklin Templeton, which took a new 8% position in Euro Sun through its $331 million Franklin Gold fund.
Meanwhile, ASA Gold and Precious Metals – one of the world’s oldest metals and mining-focused investment management firms – also entered the fray, taking a 7% position.
With Euro Sun continuing to enjoy support from the likes of BNP Paribas’ Ixios Gold fund (2%) and Hong Kong’s APAC Resources (2%) the institutional presence across its shareholder base is truly remarkable.
After all, these are long-term investors – not only is there an opportunity for them to add to their stakes, but also their involvement and interest places Euro Sun on the radar of yet more professional investors.
Euro Sun is not just winning institutional support either – it’s courting some of the industry’s top management figures.
In June, it added Peter Vukanavich and Paul Perrow to its board of directors.
Over a 30-year career, Vukanavich sat as president and chief executive of both Genworth Financial Canada/GE Capital Mortgage Insurance Canada and CFF Bank (now Home Bank).
Perrow, meanwhile, was senior vice president, director of sales and marketing with CI Investments and currently sits on the board of CI Financial – one of Canada’s largest investment management firm by assets under management.
ROVINA VALLEY – THE ROMANIAN GOLD PROJECT CAUSING A STIR
So, what is it about Euro Sun is causing such a stir among these gold mining and financial powerhouses?
For starters, with 10.11 million equivalent ounces of gold in the highly prized Measured and Indicated categories, Rovina Valley sits as the second-largest commercial gold resource in Europe.
And that’s not even counting the upside potential at the neighbouring Stanija prospecting permit, where sampling has returned grades of up to 25.9 grams per tonne gold and 0.34% copper.
As if this strong grounding in one of the world’s most stable and supportive mining jurisdictions was not enough, Euro Sun also leads the bulk of its peers when it comes to bringing its project into production:
Existing infrastructure and labour are already in place thanks to the nearby presence of the historic Barza mine.
In November 2018, Euro Sun became the first-ever non-state-owned firm in Romania to be awarded a mining licence thanks to its deep-set rooting in sustainable environmental, social, and governmental principles.
The firm has devised a two-phase to Rovina Valley’s development to maximize its net present value and internal rate of return.
Phase I will see the firm bring two pits called Rovina and Colnic into production as open-pits. An updated Preliminary Economic Assessment (“PEA”) in 2019 put Colnic’s output at 139,000 ounces of gold equivalent annually for 12 years at an average all-in sustaining cost of $752 an ounce.
Following this, Euro Sun will bring a third deposit called Ciresata into production as an underground deposit during Phase 2.
Taking all this into account, Eurosun is highly leveraged against gold prices.
When its PEA for Colnic was completed using a gold price of $1,325/oz, the project’s pre-tax Net Present Value (“NPV5”) came in at $228.1 million.
If we use today’s spot gold price, which has risen by 35% to roughly $1,808/oz, then this same NPV5 increases by 280% to $634 million!
THE ROAD TO A RE-RATE
Despite the increasing world-class interest being generated by Rovina Valley’s huge promise, an enormously persuasive argument for Euro Sun’s undervaluation exists elsewhere.
With a market cap of C$53.2 million, it is presently valued at just C$5.30 an ounce – far below the $20/ounce usually commanded by projects of such size and advanced status.
After its recent recapitalization through May’s placing, Euro Sun is now in a better position than ever to close this gap – and this could be just around the corner.
The firm is confident this money will see through the completion of all of the work needed to deliver a bankable feasibility study and win Land and Project Urbanization Certificates for Rovina Valley before end-2020.
Why is this so critical?
Because Rovina Valley will be construction-ready at this point, and Euro Sun’s focus will shift onto winning debt financing and construction permits.
With the support of financiers and the Romanian government on its side, Euro Sun’s long-term future at Rovina Valley is looking very bright.
As it pushes through these critical near-term project milestones against such a hot gold market backdrop, the inevitable re-rate can only be prolonged for so long.
This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Euro Sun Mining Inc to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of one hundred and twelve thousand USD to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.
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Ben Turney
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Completion of Urbanization Certificate and BFS in 2020
If I`m right, one or more major miner (-s) are in talk with Euro Sun Mining today.
Discussions have probably going on for some time and it`s close to decision.
The 2 things above; urbanization certificate and more; BFS is the final pieces.
When they are done, the biddingwar begin/goes higher (see Lassonde post).
All is set up for the final negotiation; who wants it most? The option is to move ahead and have a open pit production, starting in Q2 next year.
Either way, the big major investors - gold funds, Sprott etc will make the most value for all shareholders of the company, feels good!
IDEAL M&A GOLD/COPPER DEPOSIT TAKEOUT TARGET 2021.
https://miningmaven.com/blog/1049-euro-sun-mining-s-rovina-valley-project-an-ideal-takeout-target-in-a-gold-rush-tsx-esm-otcqb-cpnff
Pierre Lassonde (Franco-Nevada Founder and Legend) on $20,000 gold price and ‘most unbelievable margins’ ever.
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