G'day
tradedemonYou might be right that much of today's buying "
could be speculating just on wa1 news coming out next week and Enr piggy backs" and if so, that could be a nice tailwind . However, I think there are way more powerful reasons for the buying ENR; reasons fundamental to ENR's inherent value.
ENR's acreage has exciting enough upside, from a lower MC (supported by other attractive projects too)In short, fantastic as Luni is, I don't rule out ENR's block even offering up more riches than that in the fullness of time. I'm not comparing our acreage with the stunning discovery already made at Luni - I'm simply saying that for now - we too might discover something sensational in our very exciting acreage and, IF SO, who knows how big.... the upside is fully open at this early stage of drilling.
If I've bought/added just for ENR, others might have too. I don't mind buying some extras for the long term and in doing so I paid no regard to possible short term influences from whatever happens with WA1 - although in time results from one or the either may lead to some switching depending on comparative MCs at the time.
Buying had substance - textbook chart breakoutThe following data indicates to me that the currently very positive net Buyer -v- Seller dynamic remains strong. It does so by showing that more people - multiples of them - 'paid up' into an offered sale i.e a mindset of just getting their stock, than 'sold down' into a Bid in a mindset of getting their money before the bidder disappeared. Hope that makes sense. There was some chunky buying in some of those transactions too- I watched a few go through. That dynamic suggested to me bona fide net buying interest, rather than (illegal) manipulation.
Daily ChartHere's a simple daily chart, just for fun. I rang a mate mid-yesterday and said it looked like a Continuation Triangle may form, which would be positive. Luckily the 3rd green candle completed, and the triangle did end up sufficiently formed ...(see my orange lines and red text within the chart)
A bit more about possible upsideHere's a bit more big-picture as I see it about possible reasons for buying into ENR at its current MC . I don't have the skills to talk in detail about exploration, especially with a few seriously competent people helpfully offering their thoughts. Shout out especially to
salpetie and
2ic and
ozblueHowever:
- Competent and Diligent Board: The ENR block has numerous juicy targets and I am certain the Board is hell-bent on testing them ASAP - if not sooner! With the discovery at Luni and the comprehensive and intelligent work done by ENR for a while - now supported by excellent results in recent drilling - we're not going to die wondering about the potential of our block. Any target worth drilling will get its day - when its turn comes. So, we have the right attitude and confidence at Board level. An exciting project plan will be prepared.
- Lots of newsflow: There will be plenty, for quite a while - it is already baked in. Remember that the aircore rig is still drilling and a diamond rig too. I don't know how many rigs are going to be enlisted but they'll push it as quickly as is sensible. You can imagine the excitement within the Company. They picked up their block early on - even before WA1, who pegged next to them and got stuck into it and, God bless them, the rest is history and every man and his dog is aware of the area.
- Launch control activated (Are we in a 911 Turbo S?? ): The company knew this very remote region had major discovery potential and now they've seen it unfold; not just at Luni but clearly within ENR's acreage too. I think we're seeing a province emerge - with Luni and ENR's multiple highly attractive geophysical targets starting to get tested - with very exciting early results late last year and more so now after the announcement on 24 June. The turbos are spooling up.
- Early days but tremendous potential: It's obviously still early days, looking for orebodies that warrant mining but getting high grade hits like 16m @ 6%, in an aircore hole that bottomed out in mineralisation - as did others - shows excellent potential in a block so well-located, structurally, and with such interesting geophysical targets - and proximate to an apparently world-class Luni discovery.
- Plenty of cash: With ~$16M in the kitty after the recent raising, we are not short of money, nor will we be while the potential remains even half as exciting as it currently seems. The phones will be ringing hot, with every man and his dog offer the company attractive equity raisings, promising sticky hands and all the usual broker talking points. The presence of IGO and Silver Lake on the register also shows that there is industry money around for the right story.
Compelling other assets with large scale potentialENR's other high potential Projects, coupled with its highly regarded personnel (Projects don't deliver themselves) give the company has a decent chance of making another significant discovery at some stage . They are active, and the fact that it has JVs from BHP, IGO and South 32 shows the scale potential and while ENR has a MC now of a few hundred million $, those are all multi-billion $ miners.
(20min delay)