A Broker conversation today :
Me :
" The price of EMH shares has not moved , any idea why there is no interest in EMH , and yet recently AVZ traded $25 million worth of shares ?
Broker :
"I believe EHM has been slow to trade and price as the market is expecting EMH to secure funding for the Project or signing off-take agreement(s). In my view, and given that the lithium market is hot, EMH is well placed to achieve these milestones as it is the most advanced Europe lithium project to date. I have spoken to management and the are actively talking to different lithium batteries producers as well as the car makers in Europe.
In regards to AVZ, I don't formally cover them. However, I am familiar with the story. I can infer that the strength of the trade and price is due to the ~150m drill intersect (released 2-3 weeks ago) with high grade lithium oxide which could potentially rank as a world class deposit (yet to be confirmed with further drilling). Also, last week AVZ did a capital raise and new shareholders from China are backing up the story. A Chinese partner /shareholder is good to have when you have a project in the DRC in Africa.
Hope this answer your queries, "
Me :
"Thank you for the reply , in consideration that the LI market is so hot , I cannot fathom why the lack of interest in EMH . And yes it is largest in Europe and next probably into production the real investors then are waiting for the take off ? Any idea when instos would start looking at EMH then ? The stock really looks cheap in comparison to peers ? "
Broker :
"EHM is an European story, it looks like at this stage it is a hard one to grasp for people in Oz, specially when there are several lithium players in WA. I also believe the stock is undervalued. The catalyst for the Instos are: the funding and off-take agreements.
In my view its a matter of time before it unfolds. If you are Perth based , I m happy to catch up for a coffee. "
Well there you have it my friends Instos are waiting , it seems that most of us here are what is called early investors , and a bunch of traders whom were expecting bigger things from the PFS . The traders are hopefully gone now and the real early investors are still in for the ride . Between the two categories we have valued this company for what it is today , but when the risk is diminished ( ie partner and funding ) the real investors will come on board and value the company correctly . Hold on folks , cause I really don't think that is too far away .
