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rocket32

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06/01/23

13:05

Post #: 65562183
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Originally posted by bkkrider: ↑

I think everyone needs to be reminded that there are 2 parties to this transaction. ESR and the extraction facility. The commercial in confidence may well be in place due to the insistence of the facility itself and have nothing to do with the desire of ESR to be transparent to the market. It may well be a super sweet deal for ESR and Murrin Murrin don't want that publicised for all we know.

The Murrin Murrin Process Facility is owned by Glencore, I'd be 99% sure they include the commercial confidence clause in every single contract. Happy to be wrong but I did a quick search to see if any financial transaction information had been released from Murrin Murrin and couldn't see anything. 30 seconds google however doesn't cut it vs 20 years in the industry so any salty miner want to elaborate?

For me, not at all uncommon in the business world to have commercial in-confidence clauses in place to avoid playing your hand to other competitors in the space.

Either way, the purpose of this project was to make profit (let's see how they go in the quarterly) and to build a picture around what areas are commercially viable to extract based on the previous drilling results.

The plan was to conclude the DFS and use that to secure alternative finance to transition to a working mine, but that information was from Q2 last year when I called the chairman. Management and the board aren't in favour of capital raising anymore than the SH. I'm just pleased to see they're delivering on their strategy to fund further exploration at CB. This is a great financial opportunity following the market price for Ni but the long term play is CB and that needs a lot more $$ than ESR have in the bank. If it transitions to producer/explorer with positive cash flow the market cap will most certainly move from today's lows. The question is whether it will get back to the elephant hunting levels from the pump 2 years back. personally as a long term holder I'd be keen if it got back to 5c!

If that happens before July 2023 then there's also money from options that can also come into play. They're a 2c strike price from memory. Can't recall how many of them there are but more money = more drills = more elephant hunters.

Keep up the good work and ESR convert the asset to cash in the bank, then we go elephant hunting yet again.

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makes the most sence

ESR Price at posting: 1.6¢ Sentiment: Hold Disclosure: Held
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Last 0.5¢		Change -0.001(16.7%)		Mkt cap ! $8.796M

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