Don't forget there is now a massive overhang with EVN owning a substantial holding in ERM. Who knows the intention of EVN regarding this holding. Hopefully, if EVN do decide to off load they will do it via off market arrangements. Even if so, it has been my experience to see the SP suppressed by the potential acquirer until such a deal is done.
Maybe EVN will decide to keep holding??? We don't know and it is just something to keep in mind. Anyway, what it means to me is that the ERM SP will have difficulty getting a re-rating unless some big news is announced. Big news means either profitability being proven in the financials or some of these small mines turning into big mines or some of these 'discovery holes' proving up as major or better. Or something like that
The good news IMHO is the fact that ERM have these options on the table at the moment and a speculation that "big news" is just around the corner is a reasonable punt for this stock.
Cheers
ERM Price at posting:
8.4¢ Sentiment: Buy Disclosure: Held
