Sprott Talking Today 14th., page-5

Dear Fatoomch,

"EMR are effectively treading water..."??? The company is developing with a clear plan more like it! Don't treat the Sprott research reports as a script for management, the research reports are reflection of management's plan! What the Sprott reports do is allow shareholders and potential investors to compare plans with results.

If you believe that the gold price will stay elevated around current levels, then consider the below in light of the current gold price (as estimated by SCP):-

C3 cost (US$/oz)
CY21A $710
CY22E $947
CY23E $988
CY24E $985
CY25E $988

C3 costs comprise C1 cash costs, depreciation, amortisation, royalty and other expenses; thus making them more comprehensive than C1 costs (but not as comprehensive as All in Costs).

In 8 months time the company will hopefully have its DFS finalised for WA. The debt is coming down during this 8 month period and then the debt can go up to fund the WA plant. With a higher current gold price, the WA debt needed is reduced because of cash generation now! Sure the debt will likely increase to fund WA, however the company is generating very good margins between now and the end of the plant build just out of Cambodia. The company is not in a debt trap. The company has access to a expansion/development facility if required, however, the need for use of the facility reduces each day with a high gold price!

The Sprott research report doesn't need to talk its book. The plan has been clear for nearly 4 full years (since June 2019). That's the beauty of the company, as Sprott keep noting, the company is properly run. As Sprott also keep noting, the directors own plenty of shares are clearly aligned with shareholders. The recent posts by members highlight that the directors have bought their way into their positions, and not gifted themselves their way in large shareholding positions.

Your scepticism bespeaks of a lack of understanding about the current and future plans of the company. Drill heavily; prove up the ground in Cambodia and WA; develop a WA mine and be a low cost medium sized producer. It's readily conceivable that after 2025, having become a 250,000oz per annum producer and paid off the debt to fund the WA development, to possibly use the profits generated to buy other tenements/companies to become a 500,000oz producer? The company is walking a well worn path, isn't it?!

It's not hard to see what is unfolding and that's the beauty of this company, it's sign posted and management deliver on their plans. This management remind me of the great Guido Staltari, former Executive Chairman of Saracen Mineral Holdings Ltd. Talk about a gift, a largely self funded, no repeated capital raising cash machine which delivers for its owners!