EAR 0.75% 33.3¢ echo resources limited

Update from Euroz - 45c target remains. Lots of exploration...

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  1. 6,851 Posts.
    lightbulb Created with Sketch. 259
    Update from Euroz - 45c target remains.
    Lots of exploration upside etc. On these numbers, EAR looks like its on a forward PE x 3 times.
    I would imagine that the stock valuation would be well north of 60c when its up and running this year..


    Column 1 Column 2 Column 3 Column 4 Column 5
    0
    Column 1
    0 Echo Resources Ltd (EAR $0.24) Speculative Buy

    Column 1
    0 Analyst
    Date
    Price Target
    Andrew Clayton
    24/05/18
    $0.45/sh
    Bankable Feasibility Study UpdateKey Points The Yandal Gold Project Bankable Feasibility Study (BFS) is expected to be completed by end Jun’18:· EAR are awaiting the receipt of tender submissions for the mining contract to finalise the BFS. This is expected during June.· All major cost items have been advanced to formal tender or quote stage. In anticipation of the BFS, EAR have appointed debt advisors and early discussions with potential financers are underway. Additionally, a Process Manager and Mining Manager have also been appointed. Investment CaseWe continue to like EAR as a low capex, emerging producer with excellent exploration upside. The DFS should demonstrate a robust development with reserve of ~ 850koz and annual production of >90koz ( Yrs 1-4 @ 105koz) at AISC of ~ $1,200/oz. We rate the exploration potential highly and expect further high margin ounces will be added over time. The recent Ramone discovery by NST just to the north of EAR’s tenement boundary has opened a new area of interest. Our valuation remains at $0.45/sh which is risk adj by 80%. Corporate action can’t be ruled out NST holding a 19.2% interest and its share price close to record highs. [/table]
    Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11
    0 Echo Resources Ltd (EAR)
    Share Price
    0.24
    A$/sh

    Price Target
    0.45
    A$/sh

    Valuation
    0.45
    A$/sh

    Shares on issue
    488
    m(dil)

    Market Capitalisation
    110
    A$m

    |
    Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11
    0
    Enterprise Value
    98
    A$/m

    Debt
    nil
    A$/m

    Cash
    11.6
    A$/m

    Largest Shareholder
    NST 19.2%
    m(dil)




    [/table]
 
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