EXR Trading 2021, page-70

Good evening fellow EXR legends - long time watcher first time poster on this thread. I too form part of the "954" and share the passion, optimism and conviction of this stock. Having held shares (good, bad and ugly) over many years, the one constant that ultimately dictates success is quality management. Look at all the success stories and the management are the shining light. There are many "good" companies that are poorly managed (TLS, QBE, AMP - should I go on) and the results reflect that. Good management and sound strategy breeds investor and analyst confidence. Might sound simple I know! I have monitored this thread for quite some time and feel part of something pretty special. Whatever 2021 holds we are going to be in for a hell of a ride - comforting to know we have the equivalent of Damian Lane as our jockey and Bart Cummings as our trainer (in horse racing parlance). Below is a promising article I thought I would share - not sure if previously posted - GLTA! Bring on 2021! DYOR!

China likely to be eyeing off activity in Mongolia

In terms of accessing new supply, China could look to Mongolia given its close proximity and abundant energy resources.

One player that we have been monitoring closely is Elixir Energy (ASX:EXR), a company that had a highly successful year on the exploration front in 2020.

Analysts at K1 Capital ran the ruler across Elixir Energy Limited (ASX:EXR) after the company recently released an updated prospective resource for its 100% owned Nomgon IX CBM PSC project.

The PSC as shown below covers approximately 30,000 square kilometres adjacent to the border with China, and with leaders openly stating that they are aiming to reduce emissions, the country could be a source of demand with Elixir’s sizeable acreage being a key attraction.

The independent reserve auditor ERCE Equipoise (ERCE) appraised the project following Elixir’s successful 2020 drilling campaign where seven CBM exploration and appraisal wells were drilled spanning a distance of 62 kilometres. Notably, all of the wells intersected coal.

An initial contingent resource estimate for the Nomgon sub-basin discovery area will be prepared and issued once all of the data from the appraisal drilling program has been compiled, modelled and analysed.

In the interim, a summary of the prospective resource range is outlined below.

K1 Capital analyst John Young was impressed with the updated prospective resource, increasing his valuation from 27 cents per share to 29 cents per share, implying upside of 15 cents per share or approximately 100% to the company’s current share price.

In part, Young said, ‘’The increase recognises greater gas in place and higher geological chance of success (30% vs. 19% previously), based on recent drilling.

"Results from the two core holes indicate high gas content (8.6-8.9 m3/t DAF) and fully saturated coals, indicating good CBM potential.

"With cash at bank and in-the-money options due by end December, Elixir is funded to continue exploration and appraisal in 2021.’’

An initial contingent/discovered resource estimate for the Nomgon sub-basin should be established in 2021 following further analysis of drilling data, and this could well be a significant share price catalyst.

Young sees the prospect of extensional drilling and an expansion of exploration drilling to other sub-basins as potential share price catalysts in the next 12 months.