Good analysis choco. What is interesting as you allude to-- is EQN is quietly re-rating already. "the recent capital raise by Canacord was over-subscribed for the $4m raise and has not been dumped into the market with nearly a 100% gain in a month for those Sophisticates who were lucky to get in at .20c". The stock doesnt sell off becasuse investors in EQN seem to understand the case you have so well outlined above. (for a serious takeover target-partnership)If just either the iron ore or the rare earth picture develops on a reasonable basis, ( AND-- a off take or strategic partner comes on board), then EQN moves up from being a micro cap rather speedilly. Plus--we have a ex FMG and major mining house senior engineer as our CEO/MD- (Zac Kumar) in the prime of his working life, who has proven he can execute and who has locked himself in for the duration.. Also Directors (all) bought EQN stock in last 30 days. There is ALWAYS risk/reward in these plays and this must be admitted;- but the risk/reward proposition stacks up. Do I see EQN as being a commercial operation with larger partners in next 3-6 months viz iron earth, and 12-18 months with TREO >. Near term? Results now pending from the labs in Brazil. Expected time line for TREO results ? Within 4 weeks (early July ?) from guidance from management in previous reports which have been previously 100% reliable and are technically dense & geology based and not hype.
EQN Price at posting:
38.5¢ Sentiment: Buy Disclosure: Held
(20min delay)