It’s a rather long back story…. But the way I look at it is...

It’s a rather long back story….

But the way I look at it is that reputation is ultimately the most valuable commodity for an explorer / potential developer. And Atrum flushed theirs down the toilet in spectacular fashion with Groundhog (mid 2015)… They got some way to rebuilding it with new management (mid 2016), before another unfortunate change in management (early 2017) and doing very little for most of that year before appointing current CEO and eventually pivoting away from Groundhog to Elan (late 2017).

I believe that Groundhog if developed would be an extremely valuable resource. Although its going to take significant up front Capex, and it was probably misleading (or at least farcical) for the original management to claim that Groundhog could be developed how they promoted (with offtake funds and early sales).

Luckily – they were particularly good (perhaps fortunate) at being able to secure high quality resources. Elan was acquired for a steal, and it seems the current management in place are being overly conservative, almost in part as a response to corporate governance failings of the past.

So my view is that Elan’s value is similar valuable neighbouring resources. And it is hopefully a matter of time before this becomes more widely apparent. This seems almost inevitable.

There is also almost an x-factor of what will become of JOGMECs investment at Groundhog. It would be difficult to understand them walking away. Obviously the investment to this point is pittance for them, so that’s entirely possible. But why become involved in the first place - to just prove the resource? Not sure.

All in all it appears to bode well for a bright future. Albeit not for the first time.