I don’t interpret “we’re not going to give this up easily” as suggesting Estrella is entertaining a takeover — quite the opposite. It sounds more like management are open to injecting further capital, but, resist any approach that comes in at what Daws considers an unsatisfactory price point.
Remember this campaign is fully funded!
That said, a takeover would be an ideal outcome if the valuation reflects the true upside. And with every metre drilled, that upside becomes clearer.
ESR has only drilled 8 metres of a planned 13,000m campaign — and already intersected 6.75m of high-grade manganese, with readings up to 69%. That’s an extraordinary early result.
The priority now is clear: keep drilling, keep defining, and work toward a maiden JORC 2012 resource.
This is only the beginning. If the next drill is fit for purpose, we could see this escalate — and fast.
Takeover conversations today, in my view, shouldn’t even start below 12c ($250 million market cap). That number will only increase as the drill campaign steps out and the scale of mineralisation becomes undeniable.
Others thought?
Fyi
Im looking closly at ESR's volume today!
(20min delay)