IMO the share price is way too low and has been brought about by...

IMO the share price is way too low and has been brought about by someone wanting to get out and doesn't care

that they are smashing the price.

My guess is that it it 1832 exiting.

I first brought into EAR at prices way North of here and brought some more yesterday at .11cents

At the time of buying I used NST and 1832 as my yardstick, my view was that if the experts at NST believed it was

worth buying 20% of EAR at about 30 cent and if 1832 also brought 5 million shares (Feb 18) at about 33 cents it was good enough for me.

Now it is 11 cents  (.105 at the time of writing this) you have to wonder who has it wrong,

EAR still has the same tenements

There are good prospects of finding more gold

They have a plant and camp and infrastructure  (valued at 100 million to build new ) which for $40 million all inclusive can be refurbished and mining recommenced.

The recently released BFS is said to be thorough and comprehensive and outlines great profit margins at $1600 for stage 1.

Now the gold price is around $1725 the margin are much better and if they hedge they can probably lock in $1750

At this point without lowering their ASIC for stage 2, then stage 2  is marginal and may not be viable so I am only considering stage 1 mining to try and work out if EAR is good buying at these levels.

The way I see it is at $1725 based on an ASIC of $1035, and producing of 95T ozs per year EAR  will make about $65 million a year less other expenses not included in ASIC

for 4 years.

Year 1

They say they will pay off the debt ($40 million) in a year which should leave $25 million to cover interest, admin, capital expenditure and a drilling campaign.

Year 2,3, and 4 (stage 1)

$65 million per year for after ASIC, they should be able to mount a massive drilling program and even start to build cash.

 

I know my calculations are simplistic but surely EAR is valued at more than $50 million