After reading some of the great posts on EAF thread by Tarecq, Fibonarchery and TH in particular (Thanks for your contributions) and after spending the last hour or so looking into this company (primarily Reading past announcements and research on the web) I have to say that there is a hell of a lot to like about EAF and am glad that I have found this today after a call from a friend who may I add also has this stock on his radar!
Have to say am also very surprised that there is not more buying on this stock at the moment especially considering that:
*As stated already, Mantra was taken over for over 1billion cash and we are currently only worth 3mil and are currently (and I quote this from quarerly released 31 July) "pursues all options to gain access to explore in the Selous Game Reserve." to gain access to explore Madaba! And based on what they said in the quarterly activities report 31 July re Madaba this area was subject to exploration undertaken in the 70’s-80’s which was found to locate uranium minderalisation which also bodes well if/once we get the access. The company purchased airborne survey data covering the Madaba project and surrounding areas and the analysis of this data by the consultant geologist is ongoing. Agree that this is the most exciting thing at the moment because even just getting the green light for access to this area would re rate this company significantly (you would think anyway!!!) Who knows in this crazy market!
*On 14 June 2013 announcement bottom of page 2 the CEO said “The company will keep the marked informed of drilling progress with initial results [expected] in July 2013 (and it is now August) so cannot be much longer for some sort of update or results imo considering it is 15 August tomorrow.
*Kores funding drilling through JV (with 50% interest) for Mkuju South project with investment of $3.5mil which is very good so this aspect of business is not chewing up much of our capital which we can then spend elsewhere (the investment amount by Kores in Mkuju South is more than the amount of the entire EAF market cap at the moment!!). There are two major exploration programs at Mkuju South; Phase 1 of JV where US $2m will be spent it says.
*2nd drill rig from Wallis drilling mobiled to site done primarily to increase speed of drilling program and together the drill rigs will drill approx 10,000m over the next two months (which was said on 14 June 2013).
*Uranium sector showing some signs of recovery which can only be good for EAF I would say.
*Various notices of CEO acquiring additional shares in the company however small or large that they may be, investors like it when Director's do this as with most companies.
*Placement of 24,933,506 at .007 out of the way and still hardly any selling additional shares which is quite amazing (check out current market depth).
*23 July announcement said 38holes and 3441m had been drilled at Mkuju South so I would say significant headway on the remaining 6559 would currently be making some ground given that the company Said that they are confident that permission to access quarto and post anomalies would be obtained and “expects to resume drilling in the next two to four weeks” which if my rough calculations are correct, from 23 july is roughly 6th to 20th August which is the period we are in right now! Hence why I’m further surprised there’s limited buying atm. Zero volume traded today 14 August on EAF!
* $451,639.34 raised through rights issue which closed on 17 June and still hardly any selling.
I agree with others here that I like very much that much of it was taken up by directors/employees and/or LT shareholders which is good for share price because they very clearly intend to hold and not trade, and hence the share price strength.
Announcements from 20 June dictate the following numbers of shares were acquired all at .007! 566,957 shares – Ernest Myers 24,172,654 shares – Henry Kennedy 656,077 shares – Lindsay Colless 2,935,408 shares – Peter Munachen
Now you would think that these being acquired at .007 and with share price hitting a high of 2.2c recently which is a 314% premium to the price paid for the above shares, that more people would have sold out on these spikes.. but the volume history for EAF would say that the fact that hardly any didn’t shows a lot of confidence in the LT story developing here and to me suggests that they are holding for bigger and better rises ahead.
A lot of news to be released soon, cannot believe how undervalued this share is at the moment even just on speculation value, A share price that hasn’t dropped and is remaining fairly well in tact after rise to high of 2.2 and presntly at 1.2/1.3, very light volume being traded, and holders holding a lot of the stock being held very tight = Time to Buy this imo.
EAF Price at posting:
1.2¢ Sentiment: None Disclosure: Not Held
