News: EMR Emerald Resources NL Reports HY Profit A$11.9 Mln, page-14

Corryst - that fits with the Sprott research from Jan. Note their A$1.70/sh is based on their long term gold price in Jan of US$1,700/oz (A$1.55/sh) or A$1.85/sh at spot tUS$1,915/oz. With Gold currently at US$1,931/oz - A$1.70 looks very achievable.

Valuation update: Despite being a top performer year after year, we see significant upside in EMR not from
closing some artificial P/NAV gap, but by the triple-play of i) ounce growth, ii) second-mine production
growth, and iii) premium-lift from ‘domestic’ production and associated dividend franking credits, not the
least given only one covering analyst on Bloomberg in Australia right now. Adding in a nominal A$50m for
Memot ahead of the maiden MRE, we lift our Okvau NAV multiple from 1.0x to 1.25x in anticipation of
resource growth. At our LT US$1,700/oz gold price this equates to A$1.55/sh, or A$1.85/sh at spot
US$1,915/oz. For now we use the mid-point, maintaining our BUY rating and lifting our PT from
A$1.35/sh to A$1.70/sh as we review our gold price forecast. Catalysts ahead are (i) the Okvau MRE
update this quarter including new eastern high-grade feeder; (ii) Bullseye MRE update and DFS by year
end; and Memot maiden MRE mid-year. We expect the updated Okvau MRE to replace reserves at a
minimum. At Bullseye we’d look for ~1Moz, while Memot is harder to forecast with drilling ongoing, but
the very high grades bode well for a third mining centre there. gold price this equates to A$1.55/sh, or A$1.85/sh at spot
US$1,915/oz. For now we use the mid-point, maintaining our BUY rating and lifting our PT from
A$1.35/sh to A$1.70/sh as we review our gold price forecast. Catalysts ahead are (i) the Okvau MRE
update this quarter including new eastern high-grade feeder; (ii) Bullseye MRE update and DFS by year
end; and Memot maiden MRE mid-year. We expect the updated Okvau MRE to replace reserves at a
minimum. At Bullzeye we’d look for ~1Moz, while Memot is harder to forecast with drilling ongoing, but
the very high grades bode well for a third mining centre there.

Note to self high-grade feeder is not a piece of mining machinery - but a high grade source of gold, Every day is a school day


https://sprott.com/media/6067/230122-scp-emr-site.pdf