I’ve penned numerous articles about Europa Metals as a spectacular contrarian investment opportunity; I’ve done extensive research and analysis of the company, the sector, the zinc and silver markets, and countless other junior mining companies to verify that Toral, the company’s flagship asset, truly is an exceptional value. However, not even that extensive due diligence prepared me for today’s RNS.
It is simply outstanding!
A 12m intersection of visible mineralisation in the main contact zone plus two further occurrences of visible mineralisation identified in the hanging wall (20m from the main contact zone) is nothing short of spectacular. It, in effect, establishes Toral as one of the premier, undeveloped, base metal (zinc-lead-silver) projects in Europe.
And given the significance of the intersection and mineralised occurrences, a 'daughter' hole (wedge) is now being drilled off the parent hole TOD-023, enabling EUZ to secure an even larger sample for metallurgical testing. That translates into a much bigger JORC resource estimate than first observed in 2018.
Thus, heaven only knows what house broker Turner Pope’s revised target price will be as today’s announcement technically blows the doors off the 0.95p guidance.
However, with over £2billion worth of metal in the ground (in situ value…), a net present value of circa £117m (based on the 2018 JORC), today’s significant update, and a paltry market cap of £3.1m, EUZ shareholders should also brace themselves for a possible approach from both internal and external actors wanting to capitalise on this market anomaly.
Remember, the key to reaping meaningful gains here is to go LONG; the stock is profoundly mispriced.
Meanwhile, Alfonso Mañueco, President of the Junta de Castilla y León, Juan Carlos Fernández, the Regional Minister of Development and Environment (who also controls the General Directorate of Energy and Mines), and selected Spanish high-net-worth investors continue discussions with the BOD. The topic? Toral.
