STTCOMP EAR, FA Long (ASX: EAR - Echo Resources Limited) SP:...

STTCOMP EAR, FA Long

(ASX: EAR - Echo Resources Limited)
SP: 0.23
MC: 117M
Cash: 14.7M
SOI: 488.7M
GOLD PRICE $1651.31 AUD $1243.65 USD
Website: http://echoresources.com.au/
Theme : low capex emerging gold producer

Near-term Catalyst:

• Likely positive BFS ( overdue)
• Finance discussions already taking place.
• still lots of exploration upside etc
• NST have a clear exploration game in the area
• could be a potential takeover suitor (nearology play / free plant thrown in)

Northern Star Stake

• On 8 December 2017 Northern Star purchased 80 million shares in Echo on-market at an average price of $0.29 representing a 16.4% interest.
• on 19 January 2018 that Northern Star had purchased a further 13,761,200 at an average price of 34.6c per share to increase this holding to 19.2%.
• This is a clear endorsement well above the latest price.

Bronzewing Processing Hub

• strategic and high-value asset is currently on care-and-maintenance,
• studies undertaken by Echo demonstrate it can be refurbished in a 6 month timeframe
• made operational when required for approximately A$17 million.
• Access to such a valuable and low-cost asset provides a very low risk and timely access to cash flow for Echo.

TA

• YTD double bottom currently respecting 22c level
• This is the price of the $15m placement which was fully underwritten by Canaccord