Sprott Talking Today 14th., page-3

https://sprott.com/media/6385/230413-scp-emr-1q23prod.pdf

Nice commentary - as I've said previously, Sprott have a substantial finger in the EMR pie - so coverage from an analyst who doesn't would be welcome, less talking up your own book. Sprott does provide some welcome coverage, however.....

This is the beauty of a group that does not need further equity to achieve multi-asset ounce growth: per share upside

EMR have current cash and assets of AUD$79.4M - as at end of 2022 they owed Sprott USD£50.4M (repayable by March 2025 - 6.5% + LIBOR)
EMR, via Sprott, have an extended credit line of USD$100M

EMR have access to borrow equity to fund growth - from Sprott. That comes at a cost (interest, plus I'm sure Sprott will also tie in some reward for themselves related to ozs recovered as they have on the current loan)

So EMR current cash and assets are mainly offset by the current debt to Sprott - USD$50M to be paid back over the next 24 months - against a backdrop of high interest rates.
What does a new facility in Australia cost to build?
Once built, they are likely to be further in debt to Sprott - so a chunk of any income will have to service that debt for (how many years?)

EMR have access to credit - but they're not really cash positive. EMR are effectively treading water, profit from gold mined is being used to service debt

It's a bit like buying a house, working to pay off the mortgage payments. Then getting a better job and borrowing money to buy a second house. In the the short term, you don't own those houses - and if you sold them, you'd have nothing to show for them. (Possibly not the greatest analogy as an old house has value, an old mining/gold facility, less so)

Hopefully that makes some sense. I am positive on EMR, but take analysts report with a pinch of salt -- especially those who have a tied in interest in the company they are covering. Been burnt that way before.

GLA