It's been unbelievable seeing everyone buy in 'because our grade's are the best...'
Equally frustrating seeing how you gave so much information to this forum that pointed to drill results being exactly like this, but it was obviously largely ignored because people fell in love with a few posters and the company. You wouldn't have believed anything could have gone wrong reading this forum.
To everyone else, grades are not the most important factor in a cobalt mine. The other side of the equation is just as equally important, what it actually costs to produce! There is a reason the DRC is the largest producer and it isn't actually the child labour. The mineralogy there is super simple which makes it cheap and easy to extract the cobalt and copper from. This is yet to be proven here yet.
EUC (then WMN) acquired this project more than 10 months ago and have only just reported the first 4 assays. How was this not ringing alarm bells to anyone here? How long is it going to take to get in a position to actually mine should everything go well? First a resource has to be proved (difficult when holes aren't being drilled with any urgency), met results completed (whats the point when the resource itself isn't being drilled and defined). Not to mention a SS/PFS/DFS to prove that the whole thing can actually be profitable.
How this managed to reach a $200m market cap is proof the power and influence HC has at the speculative end of the market imo. No wonder they took the opportunity to raise a large amount recently.
Compare this to an ASX listed company with a project in the DRC (granted not everyone's cup of tea), but it already has a very conservative Feasibility Study done showing strong profitability and should be producing within 12 months. All this and the market cap was around half of EUC's before this Ann. Another ASX listed cobalt explorer based in Namibia has just completed a drilling program with 5 drilling rigs and 99 holes. 138 holes drilled since project acquisition less than 12 months ago, with 84 assays reported (I think). Met results happening concurrently look positive, JORC soon and SS to follow after. Undiluted market cap still under a third of what EUC peaked and this company is actually making rapid progress.
In my opinion EUC has been pumped extremely hard on HC and it's no surprise it has come crashing down. I am certain anyone still holding and reading this is probably feeling crap and very angry (even at me for this post probably). I actually feel upset for everyone who is currently looking at a loss on this company fwiw, so this isn't a told you so post. This is a post to try and make you think about what to do next so you are less likely to find yourself in the same position. I'm not going to tell you to hold/buy more and hope they uncover something or to cut your losses (or gains if you bought in long enough ago) and try and make it back elsewhere.
It's YOUR money and YOUR choice, hearts can be good to find promising opportunities and general sentiment etc, but their investment strategy is probably different to yours, simple as that. Following them in blindly is very dangerous. Clearly not doing enough research has burned many here today.
EUC Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
