East Star Resources Share Discussion Threads

[smackeraim] 08/10/2024 08:29

Yup. Cheap down here and fully funded. Safe to average in a bit if you still like the resources

[kaos3] 08/10/2024 07:03

will be a go trade soon

[soulsauce] 07/10/2024 23:21

Thanks scrwal.
Back in the bottom drawer for these.🙄

[smackeraim] 07/10/2024 23:19

transcription?I'd like to give a short presentation on eStar to update you all on the work we've been doing and the work we're going to be doing in the near future. And specifically just to remind investors and potential new investors of what we still very much feel is an outsized risk reward profile of the company. I'm going to do this by reiterating that eStar's an exploration company. ??Our job is to find commercial deposits of natural resources worth considerably more than the invested capital. And to date, eStar's already done that in spades. Before we get stuck into the presentation, however, I'd like to address something that I think is probably on a few people's minds, being ultimately the VCUBA process, which we've been running throughout the course of this year. ??So we initially announced in March that we had intended on running a process on VCUBA. eStar was drawn into that process, arguably prematurely due to an unsolicited offer that was significantly more than our market capitalization at the time. That's a true statement at three and a half P as it is today at one P, even after the capital rising. ??Unfortunately, it was with conditions and counterparty risk that the board ultimately weren't willing to accept. We advanced and passed technical due diligence with a number of other parties and have since, especially since the 4th of June update, received further interest in conducting due diligence from at least four other parties, the most recent of which was last week. And so we still see this process very much as incomplete and ongoing. ??That said, the management team and board, as was highlighted in the quarterly results, have decided that despite the continued progress in this process, the company doesn't want to be, or doesn't want to continue to be beholden to the timings of third parties. We feel that if we want to achieve a value that provides a greater outcome for all shareholders with timing determined by the company, then it's prudent to spend incremental funds to advance the project, as is the job of an exploration company. This is why I continue to invest in Eastar and have done again so in the last raise. ??This is why our directors, major shareholders have continued to invest in Eastar and also why we're able to attract an investment from a very large mining focused fund, typically which doesn't invest in this market cap range. So reiterating again, the risk reward, outsized risk reward return profile hasn't changed. It's as true, if not more so today than it was in March of last year when we were trading at one and a half P and announced that process.' ??Part of a Turboscribe transcription

[scrwal] 07/10/2024 21:46

I posted this on the LSE board

"Alex didn't state any definitive $values and backtracked on any values given as they couldn't be confirmed.

He was also defensive about the communications or lack of indicating there was nothing that needed a rns. To me this is wrong as there were no official updates on Verkhuba even though Alex posted on a Telegram board.

My take on the Verkhuba process is that it was a waste of time as the board had very clear views on what was going to be acceptable and from Alexs' comments there was no chance that any of the offers were close to being acceptable - this should have been identified at an early stage. Furthermore he made zero reference to a JV so it seems that no-one was interested."

The first sentence is a response to a comment made about hundreds of millions.

They are also looking to drill Verkhuba during the winter season and will start once Alex has signed a drilling contract. He is waiting to hear back from drilling contractors - all the other stuff is ready to go as long lead items have been received.
The drilling will also cover the extra source which the board are cautiously optimistic about - this is at a lower level and caused the upward creation of the deposit ( the technical phrases were mentioned)

Verkhuba was a non event as basically the board weren't willing to sell for what was offered as they took the view that if they did the new owner would just take things forward to a pre mining? stage and then sell on at a good profit so Alex etc took the view that the company would not sell and would do the extra work and then sell. Seems that plan is to realise value from Verkhuba without mining it.

[scrwal] 07/10/2024 21:17

Investor Meet interview and presentation now available.
Q+A to follow.


Can't post specific link as that goes straight to my log-in.

[shortcpx] 07/10/2024 21:14

40:32 of the Q&A. So now he doesn't want to sell for a low price just so someone else spends very little to get to production LOL. Why not just do that then this year? No strategy, just living day to day.

[scrwal] 04/10/2024 18:35

At least they got the subscription away for 1.15p which was higher than yesterdays close. Hopefully the £1.16m when spent on Verkhuba and drilling targets reaps rewards.

[goforgold1] 01/10/2024 15:35

Another one of the 99% failures

[mattybuoy] 30/9/2024 14:55

Don't look a Gift Horse in the mouth.

Funding and cost of capital is the number one problem for junior explorers, not finding deposits. It is extremely rare to have an advanced asset which can be sold to help with this.

Very disappointing.

[kaos3] 30/9/2024 13:17

when such a company wants to go along i see 2 possibilities

- preserving the supposed value
- management does not want to be exposed to the second opinion

hard to decide in each case but this logic served me right many tmes as the second is more frequent then the first

[the count of monte_cristo] 30/9/2024 13:07

Hi scrawl, good summary. I think you should email Alex and send him all of that.

They think they can 'generate value' by doing this, yet at the same time we a) have lost 30% today and b) will no doubt be diluted with a cap raise plus further share price weakness.

I have emailed Alex to ask him how this would create any value for shareholders. Maybe just another way for Alex to further increase his holding at a discount (me being cynical).

We keep hearing about all these supply issues in Kaz with copper in demand and multiple parties who need it, then it seems they have offered a low ball price. Doesn't make sense. A couple of million would have solved the funding issues and enabled money for exploration, why haven't they done that!?

[scrwal] 30/9/2024 12:55

Actually they don't state they are going to develop Verkhuba themselves.
They say "to progress the open pit development concept through to a stage where economic feasibility can be demonstrated."
So they want to incur further costs to prove economic feasibility and then what? Another data room and more interest which doesn't reach company expectations, again.

The market expects a discounted share raise which is probably funded by the big shareholders - not that I would participate anyway. Until the immediate funding requirements are sorted there is a lot of short term risk if a smaller holder wants to top up.

[soulsauce] 30/9/2024 12:51

Spot on scrwal 👌

[papillon] 30/9/2024 12:36

You were spot on SHORTCPX! Unfortunately over 90% of AIM/Standard listed explorers are fantasies and a few are downright frauds. Unfortunately investors like amelio are extremely gullible. Fortunately I follow my charts and when they started to turn Bearish I sold all the remaining shares I had acquired from the small sum (£400) I had invested when my charts turned Bullish. I made a very small profit, but could have made at least £400 profit if I had sold all my shares when the share price went over 4p.

[scrwal] 30/9/2024 12:35

So they are going it alone.

Personally I think that is the wrong decision and the board are failing to understand the concept of adding value.
Whilst they believe the current offers for Verkhuba undervalued the asset they seemed to be completely ignorant of the market reaction which has occurred.
The value to shareholders was not just Verkhuba but what could be done with the sale proceeds. Selling would have produced a sizable cash balance which would have funded all company exploration and drilling costs for several years as well as costs for JORCs etc. They may have found a couple more VMS deposits, in addition to Talovskoye, which could have been progressed like Verkhuba with all but one being sold as that could be fully developed using the proceeds.
They would still have the potential from the Porphyry.
All this would have created significant value for everyone and still have a developable mining asset.

Instead that have chosen a path where we are facing even more dilution and ongoing uncertainty. Can the board be trusted to deliver on Verkhuba - who knows.
The only certainty is that loyal holders have currently been served massive value destruction.

[papillon] 30/9/2024 12:26

Where's amelio? 🤣🤣

[walter walcarpets] 30/9/2024 10:45

What a surprise......the market is now pricing in a massively diluted fundraise. Idiots!

[shortcpx] 30/9/2024 10:06

Would love to have been wrong but it is what it is

[soulsauce] 30/9/2024 09:16

You called it Shortcpx. Well done, wish I had listened.

[shortcpx] 30/9/2024 08:55

Feel for holders today. Many held on because Alex talks the talk but that's all there is to it. Market knows a placing is coming.

[cthompso] 30/9/2024 08:40

Alex couldn't have got a better reward than the fortune he's lost today.He's totally misplayed this, enriching himself before he did anything for his shareholders.