EQR v Almonty Industries, page-5

we have been scratching our head about this for a while. Some of the reasoning includes.

1. Almonty is dual listed, so it has exposure via German, Canadian and Aust exchanges. We think most of the volume going through the ASX is arbitrage from insto from the other exchanges as there doesn't seem to be many Aussies in the stock. This gives them a wider audience (especially to US investors).
2. Lewis is a good marketer and HAS PAID a reasonable amount for that marketing including the research pieces pumping up the stock target prices.
3. Sandong is a major mine and will be the biggest Western producer if and when they get it going. Some of the assumptions being used are very high bars. Recovery rates of 85% (from the get go) and the cost assumption hasn't been changed for 6 years. But it's only likely to be 1 to 2 times MC (i think).
4. Lewis has given the market and his paid researchers the view that they are the only serious non Chinese producer (so they don't go looking for the alternatives).
5. Almonty is yet deliver on Sandong which means they can assume it all works perfectly (recoveries, costs, no breakdowns, no Govt interference, no environmental issues, no complaints from the locals).
6. EQR is producing out of two mines. Saloro is working well and is probably worth $133m (the current market cap of EQR). MC production has been patchy and we are still in that patch. However, they know the ore is there and they can recover it when they get to that level. The open pit is only 19% of the resource and EQR only trades on the ASX. I have heard that European insto like Saloro, but can't be bothered with the ASX exchange.

There are probably more. Unfortunately, we have seen it before with Wolf Minerals, G6M and now Almonty. Fortunately, or unfortunately our management team wants to get MC working before they start crowing about it. They are spending more time working with offtakers (5 for $150m) and governments than marketers.