Jim Mellon, one of the UK’s smartest private investor, once opined that, “It’s possible to look at an incredible investment and not see it. To be a successful investor, learn to do the latter.”
• Toral, Europa Metals’ flagship asset, is in one of the world’s best regions (NW Spain) for base metal exploration and mining. It boasts excellent infrastructure with sealed roads, rail, electricity, and has direct access to the Asturia lead-zinc smelter that is only 140 miles away.
• Toral contains 640,000 tonnes of Zinc, 510, 000 tonnes of lead, and 13 million ounces of silver, all with a net present value of £90m (based on 2012 prices). A revised JORC resource estimate, with an increased mineral resource, and incorporating 2019 spot prices, should see this value pushed significantly upwards.
• Toral has 15-year mine life, with significant potential for extension.
• Toral has an initial rate of return of 24.4%, implying a 6-year payback from first construction, and a 4-year payback from first production.
• Europa Metals’ current market cap is £2m (0.0018p).
• Cash balance at July 2019, following the March equity fundraising (£960,000 raised), and factoring-in routine working capital and drilling expenditure alongside the December 2018 balance of £212,000, is approximately £735,000.
• Debt at July 2019 is zero.
• The directors’ ‘skin in the game’ is respectable: Colin Bird (313,833,191 shares held in African Pioneer Plc, and Davey Crest Nominees Ltd), and Myles Campion (418,514,491 shares held in Energy Minerals).
• Blue chip investor presence includes the activist, German investment bank Deutsche Balaton (14.61% or 1,749,555,897 shares) and Brandon Hill Capital (5.51% or 660,000,000 shares).
