Europa Metals Share Discussion Threads

[bootie64] 31/8/2018 15:15

Hi Fest fancy seeing you here :)
I bought some last week too

[edgein] 31/8/2018 14:42

For those of you that may have missed it:



Regards,
Ed.

[hedgebetter] 31/8/2018 14:35

I Agree Ed, this has a massive upside potential. I am here for the mine :-)

[edgein] 31/8/2018 14:22

Hedge,

Makes interesting reading that broker note. Those couple of ozzie companies are valued at x10 where EUZ could be and should be and look at that whopper at the top, some $500m. Those ozzie companies have much smaller discoveries too. Just imagine if they convert more of the known resource up to indicated let alone measured from the infill drilling. This one could explode on the extension drilling let alone the infill or SS.

Regards,
Ed.

[hedgebetter] 31/8/2018 14:02

hxxps://www.voxmarkets.co.uk/squawk_content/5b87867fedf1e.pdf Turner pope Broker Report

[festario] 31/8/2018 13:26

Bit of pressure building for a further rise....I bought 7m earlier, not showing up yet.

[edgein] 31/8/2018 09:00

Well Spec my strange way of investing has worked very very well for me over this last years, this year being no exception. These have been oversold through lack of delivery. The same thing happened at KOD, if a company doesn't deliver on AIM it gets punished for it and its market cap falls well below fair value. Where EUZ remain right now. If you don't compare companies to their peers you'll never get an idea of what companies should be valued at, which represent good upside and which are frankly overbought which runs folks head long in getting trapped or spiked into stocks. Like you I haven't found a Zn/Pb miner with equal upside to these. They've $bn of metals in the ground and are preparing to drill to firm up reserve category and approaching scoping study with a remarkably low £4m cap. I'd imagine when the SS is released the NPV will be many times that. As already discussed 40,000m of cores already would cost many times the company's value to replicate, so a very valuable asset at this point too to have all that data. Twinning some holes to confirm viability is all that's need to confirm the consistency of that data. And by your theory you'd find it hard to explain KOD which has recently doubled, not on JORC, but on anticipation of it. Likewise EUA has been very lively too not on ML release, but anticipation of said release.

Regards,
Ed.

[spec7] 31/8/2018 08:32

You have a very strange way of investing. what you are saying is if these are undervalued as they stand then the share price should rise on no news to reach their true value. I buy stocks knowing full well what i am paying but with a potential for the share price to rise on news or developments, not because they are undervalued at the time. I don't look at a stock and think that's worth more i will buy it, i look at a stock and think that "will" be worth more in the future and buy it.
You are saying you buy over sold and wait for the market to wise up ? The market has wizened up here, its now waiting for news to base a future valuation on.
anyway we all have different strategies but i do get a little bored with people telling me where i went wrong ? My entry price here was based on exactly your strategy. A jorc proven asset in the ground. a high demand for that asset from China. a proven pelatised extract and transport system, a take off agreement with an EU company and a BFS in progress as well as a management that read like a who's who of australian mining. Hopefully this time things will turn out a little better but the reason this is valued at .12p is because the above is pretty typical of small start up miners and the markets know a commodity can go from in demand like ore to unwanted in days and projects like this take years..
All i am saying is there is a very good reason why the whole of the market is apparently ignoring this and its not because its a secret...lol, they are waiting to attach a value to it based on the proven asset, not what you think its worth or what its peers are worth.
Lets face it if you were right these would be 1p buy now :-)

[edgein] 31/8/2018 07:55

Spec,

That's unfortunately not how the stock market works I'm afraid, I cannot sell at the price I see these worth as folks can buy at this oversold level. A stock isn't worth what the market will pay for it, that's peddled nonsense that I've heard many times before. Mostly from highly conservative CEO's. I only buy undervalued stocks, if this was a realistic price on these now I wouldn't have bought. That may also explain why you bought these considerably higher, you probably at the time thought your entry level was the right price. Take UKOG for example the market price they recently acquired more of HH was around £2m for 5% or there abouts. That values their current stake in HH at £21m or there abouts, now look at their market cap! Cheap, fair value or over-bought? Market gets things wrong more than right and that's why I consistently make money in this game. I buy them over-sold and wait until the market wises up. Yes the SS may well be the catalyst that sends these to their correct level, so might the drilling if the extension drilling provides evidence of possible extension and more than the current 16Mt, also upgrade in category with the infill could also do that.

I'll say it again, I only buy stocks that are oversold (can be tempted for the odd punt too) by and large. This one is significanly oversold based on its current 16Mt of high grade zinc eqv. If you can find a Zn/Pb explorer/miner with as shallow and high grade discovery and a market cap lower than £4m then let us know. This is the cheapest one that I can find all the others are valued at multiples of this with lesser assets.

Regards,
Ed.

[hedgebetter] 30/8/2018 20:17

It’s not the current price I am talking about. We buy because we expect the share price to rise, to do otherwise would be illogical. The value they bought the asset for is inconsequential - it was bought when zinc was out of favour. However another way of looking at it is they bought the asset for cents on the dollar - buffet would approve!

Market gets valuations wrong all the time, that’s why people buy and hold waiting for market value to catch up - that’s what speculation and investing is all about. I am holding for the mine potential.

[hedgebetter] 30/8/2018 17:18

Spec, I agree that the scoping study will be an important artefact that the market will assign value to. I disagree on the asset comments. Without an asset there would be no scoping study to perform. Industry interest is what the management need to satisfy and that is happening as we know. We were able to raise money twice recently because we had another important set of artefacts - a maiden Jorc supported by a NI 43-101, and 40,000+m of drilling - that’s a massive set of assets just there.

In the meantime the market will try to forecast value - that’s one of its jobs to an extent. Individual research allows us to identify the perceived gap between price and value. I see a huge gap when compared to other companies assets but it needs to be proved up. The market does not see the gap, or is unwilling to act on that gap just yet. That’s the opportunity for early buyers of EUZ. As we increase tonnage, grade, resource classification etc (likely imo) and maybe even another credit (copper?) then more buyers will emerge imo.

It could be argued that location - road, rail, power, workforce, political support is also an asset :-)

[edgein] 30/8/2018 17:17

Hedge,

Good post, if you stick to those two principles you'll rarely loose and it'll avoid the spike chasing that most do on AIM.

Spec,

A heck of a lot more than that. 40,000m of cores would cost somewhere between $10-20m to drill that now in Spain with multiple rigs and several years. The company has that in a large warehouse. The data from that alone is worth considerably more than the cap here. They've already established a JORC. Look at the link I posted, all of the companies in Justin Waite's video are valued at multiples of EUZ and they pretty much all have lesser assets. All the company has to do now is twin some of these holes to prove the accuracy of the older cores and they'll be well on their way to PFS/DFS. They've already enough data for the imminent scoping study. The first real indication of value was the JORC at almost 7% zinc equivalent for 16Mt. Yeah the scoping study is likely to hammer the fact home that its economic and has an NPV many many times this current cap. I don't mind folks on AIM having ridiculously conservative views on stocks as its why I can buy oversold companies time and time again. The right RNS will put these to where they ultimately should be. If you can find another Zn/Pb miner with as big an asset and as small a cap I'd like to see it (as I would buy some of those too). Its not all about PE and profit and loss in this sector either, SOLG for example hit a £500m cap and it wasn't even close to a JORC (yes the thing that EUZ already have!).

Regards,
Ed.

[spec7] 30/8/2018 17:03

I don't disagree with anything you say Hedge but i do think the value here is completely up in the air as the company is basically just a lease. It has no offices, staff to speak of, production, assets or fundamentals to work on at this stage which is why the SS is so important, it will be the first real indication of value. I agree a trading company with accounts, a PE and profit loss and assets has a pretty definable value which may or may not be realised in its Mkt cap....but in my opinion EUZ is still trying to bring together the foundations to build a value from.
This is why i say it's worth what people will pay at this stage and it's very hard to say it's worth more or less than that. Things will change rapidly with the SS and further drills could add to that.

[hedgebetter] 30/8/2018 16:38

Interesting notes made from a Berkshire Hathaway meeting 1986 discussing Benjamin Graham’s influence on his former student Warren Buffet. Basically, Graham breaks the art of investing down into two simple variables –price and value. Value is what a business is worth. Price is what you have to pay to get it. Given the stock market’s manic-depressive behavior, numerous occasions arise where a business’ market price is distinctly out of line with its true business value. In such instances, an investor may be able to purchase a dollar of value for just 50 cents. Note that there is no mention here of interest rates, economic forecasts, technical charts, market cycles, etc. The only issues are price and value.

[hedgebetter] 29/8/2018 17:34

I guess that’s what speculation is all about. We all take the information we get at different stages and make a decision. I choose to accumulate now because I think I have sufficient information. If I am wrong then that’s my choice. If I’m right then I am in ahead of the herd. ;-)

[spec7] 29/8/2018 17:00

I tend to think the share price is what it is.
It hit this level 18-12 and 6 months ago so i think its a pretty fair valuation given there is now 70% more shares in issue than 18 months ago, its done well to maintain a high of .12, that would have been near .3 now in the run up to the SS without dilution. We can start to value this by whats in the ground once we have a scoping study and a jorc and feasibility but until then it is what it is and there are dozens of factors exclusive to this company from its history or if you think it's a new company, its lack of history to its major investor to the possible continued dilution eating any significant rise in the share price
This is not to say that i am not hopeful for the SS and the subsequent share price but the SS is just a very small step on the way up a long ladder and i wonder about investors commitment to the time scale needed. (re: the share price being where it is today)

Not trying to be negative but offering another point of view for discussion. I am currently in for 20m so i must have some faith :-)

[paleje] 29/8/2018 15:31

Spec, 207 of 212

It was the discount I meant.
However, as I've just bought in, fair to say I thought the price was cheap too but so seem lots of juniors at the moment and they won't all make it.

[the manini] 29/8/2018 15:26

Thx Hedgebetter for that reply and others for chipping in re. current and future valuation. Much appreciated. From a chart point of view I like what I'm seeing and as I said should we dip I have more cash to inject. This has a good feel about it to me...

[greatfull dead] 29/8/2018 13:28

Spec,

With mining companies it swings and roundabouts, big and small. My feeling is PI here know that and have got in early. That is one just one of the reasons I have bought in recently. I'm here, fingers crossed to 2 - 3 bag minimum on my investment in EUZ...

ATB,
GD

[edgein] 29/8/2018 12:36

Spec,

If these were valued properly they'd be several times this cap in anticipation of the SS based on what the company has proven to date. Look at that youtube clip above, many examples of companies with lesser assets valued at multiples of this one. Its just a classic example of being oversold. Probably as a result of non-delivery of the previous management. Once the market wakes up to this one you'll see volumes significantly higher. It may take the SS to wake them up, but who knows maybe some of the drilling results may do that.

Regards,
Ed.