I agree with you regarding the lack of transparency....

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Red.Adair

296 Posts.

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12/10/22

10:18

Post #: 64152910
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Originally posted by ThinkinLoudly: ↑

If you were to read the tea leaves and extrapolate the share market endless discounting of ELE as evidence of operation progress, I expect you'd be at best very despondent; at worst looking for the exits.

At some stage in the very near term I expect will get a qrtly report which might shed a little more light on state of operation. Sadly, I've not found ELE as transparent as I'd like which I think goes some way to the heavy discounting. I expect the next qrtly will be riddled with just as many questions as answers.

I note that 65% Fe concentrates are currently trading at around USD120/t today which is encouraging and certainly better than the past month.

Today i put together the following table for shites and giggles. No warranty! Maybe one of the resident geos or process engineers on the forum might critique it ... i'd certainly appreciate any commentary. The short version I think is that nestled within the dark corridors of ELE is a valuable project which if can see the light of day, will reward holders nicely.

A few notes:
1. None of the media releases indicate gold (Au) recovery. Odd me thinks but maybe there a geo reality that I'm not aware of;
2. I've had wild backside guesses at benefication costs for Cu, Co.
3. This basic analysis suggests the project is worth around A$90m ... a far cry from current market cap of A$25m. Any number of possible reasons to discount:
(a) management (?);
(b) financing limitations. (?)
(c) skittish investors compliments of Shaw's (?)
(d) the average temperature on the west die of the Moon ... who knows?

Have a great day

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I agree with you regarding the lack of transparency. Additionally, management do not appear to meet their promises with announcements often delayed.

The only solace I take is that Regal Funds Management are still believers as they tipped $900,000 into the recent CR.

I believe that the discount rate in your model is too high. CAPM produces a rate of 9%:

ELE Price at posting: 2.3¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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