Australian (ASX) Stock Market Forum

ERL - Empire Resources

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Jus said:
Thanks for the info.
Click to expand...
Hi Jus,

Concerning the Yarlarweelor Uranium Prospect, once the two exploration licences have been granted ERL plans a major exploration program on this project. Past drilling results have been good, it could well be interesting times ahead for ERL.
DYOR
 
Things are pretty quiet at the moment in terms of share price movement. Hence, I recently wrote to David Sargeant and received the following response from him last week. I currently have a good stake in this one.

..We will note that we have been a little cautious and conservative since listing, yet have been advancing our exploration efforts at a fast rate.
The quarterly report is due out shortly and a full update is described.
Most importantly is the immediate role of Penny’s Find which have always described as being a potential early cash flow project.
We announced some special news from there last month, and more is following.
The market has not picked up on this but being so close to Kalgoorlie , I am sure it will.
Drilling is well advanced at this time.
Everything has been moving very quickly on all fronts except Troy Creek, which got caught up in the cyclones.
Troy Creek and Torrens are special to us in the portfolio because they can each be special company makers on a grand scale.
We have advance Torrens a lot but have been unable to source a rig yet. We have 7 good drill targets and the new work defined more.

Examples of being cautious include not making a huge thing of the new discovery at Penny’s find until we checked the assay data. This has been done and updated in the Quarterly report.
Another example is not making a lot over the Yarlarweelor project yet because the tenement is not yet granted, and similarly for Larkin’s Find.
Both are special prospects for us (due to our portfolio mix and goals) but we can expand on these when the timing is right. The new data for Torrens is also very special.
I am keen not to get caught up in any emotion of current market trends without having a solid base. For example, the uranium buzz is getting some wildish statements coming out from explorers who are clearly been associated with uranium for very long. As it happens, I was involved in the U exploration in the early 1970’s when WMC made their announcements. Our new Exploration Manager did his thesis on a uranium topic. We believe the Yarlarweelor project has some good potentially economic mineralization and we can advance this in a productive way. We are still very keen on our Noondie project but waiting the tenement to be granted.

Once these are advanced more, I will be in a position to do a comprehensive road show around Australia and put Empire before more brokers.
Most advice I get for road-shows is to make sure one has plenty to say new things, etc. not wear out the welcome mat.
In our case, developments on Torrens and new projects will be good, but getting to a position of identifying a significant resource at Penny’s Find will have a big impacts.
Obviously commencement of drilling at Torrens would also.

As far as the Option issue coming up is concerned, there will always be a balance in deciding the best scenario.
Considerations include the number of shares ultimately on issue, price etc.
By pitching the exercise price at higher than the IPO is designed to confirm the director’s view that the price is currently undervalued and potential upside is substantial.
A Prospectus/Offer document is currently being prepared and due to be released with associated announcement on schedule towards the end of this month

All in all we have been very busy since listing on February 1st.
I will be away for a few weeks but more than willing to follow-up on any queries you may have.
If you deal with a particular broker, pls let me know and I can ensure they are contacted when I go around.
Otherwise we can catch up separately.
Best regards,
David Sargeant

DYOR
 
We can catch up separately?
Damn, you must be top20 for sure.
Well done greggy, youve done very well ;)
 
nizar said:
We can catch up separately?
Damn, you must be top20 for sure.
Well done greggy, youve done very well ;)
Click to expand...

Hi Nizar,

I've now got 250,000 in total. Since I recently began purchasing ERL, the share price has been steady at best. Its been comparatively underperforming and I've used recent weakness to add some more. As I've mentioned in previous posts, it has a number of interesting prospects most of which are at the drill ready stage. Mr Sargeant, ERL's MD, comes across as fairly conservative which IMO is not a bad thing. I also like the fact that he's been thorough in his response.
DYOR
 
from ERL's Boardroom interview Audio Broadcast, the director has estimated that its Pennys Find project should start generating cash flow by end of the year or early next year, another report on the project should be out sometime this week, not a big find, but should generate some interest.
 
The options bonus announcement was released last night which explains the activity this morning. It will be a 1 for 2 issue at 1c.

Kevro
 
More drilling results out by end of week could really see this takeoff.Alot of upside if they have cashflow by years end:)
 
kevro said:
The options bonus announcement was released last night which explains the activity this morning. It will be a 1 for 2 issue at 1c.

Kevro
Click to expand...

The ex-entitlement date for the option issue is 3 May 07 which is not that much time. The options will expire on 30 Jun 09. Nice rise today in the share price to 24c at the close on volume of over 1 million shares which is quite high for this stock.
DYOR
 
Greggy/anyone else re the options entitlement is it for original buyers of the IPO or for anyone jumping onboard(me)prior to ann/ex date.Would expect this to creep up as people buy in if it is the latter.Also looks as if they are on the verge of breaking out at 24c and seems like little to hold it back till 28c-shaping up nicely.As i and others have said management look like they mean business as they deliver on their promises-just need some more positive anns to carry on this momentum
 
Sorry for being a newbie guys, bt wats the difference btw "Shares commence trading ex Entitlement basis" and "Record Date for determining Entitlements"? so is the entitlement calculated on the Record date or teh ex Entitlement date?
 
petervan said:
More drilling results out by end of week could really see this takeoff.Alot of upside if they have cashflow by years end:)
Click to expand...

May I ask how do you know drill results will be out by end of week? Reliable source or just hear and say?
 
There's an audio cast in the announcement section, I think during the interview the MD did mention abt a report coming out next week.
 
That was according to boardroom radio:) :) May take an extra day or two. Still see alot of upside:)
 
by the sound of the MD, he's rather a modest n conservative guy, doesn't like to hype up the news. so even things r quiet doesnt mean the news is gonna be bad.:)
 
UPKA said:
by the sound of the MD, he's rather a modest n conservative guy, doesn't like to hype up the news. so even things r quiet doesnt mean the news is gonna be bad.:)
Click to expand...
As I've mentioned in a previous post, he increased his shareholding back in Mar 07 which is a positive sign. He's definitely a conservative guy, but he is strving for ERL to be recognised as an active explorer on a number of fronts. Drilling is set to take place soon at its Torrens Project in SA. Its just waiting for a rig to arrive. The Penny's Find Gold Project will hopefully find enough resources to give the company a reasonable amount of cashflow in the short to medium term.
DYOR
 
Yep, we just struck gold!!! The share price will head up north tomorrow, look at the buy order now! The new came in 5mins before the closing of the market, that’s why theres no movement on price yet


EDIT: share rocketed!!!
 
Bloody hell,think Greggy will go ballistic when he sees where it ended.Think he mentioned that he 250K-looks like Greggys round
 
Not to mention the 1 for 2 bonus oppie issue at 1c. Today was the last day for qualification I think, correct me if I am wrong. Could mean there will be a few more shares on the sell side now that the entitlement date has passed.

All in all a very happy camper.

Kevro
 
Just had a look at the advice and it shows the record date for entitlement as the 9/5/07 - today

Shares commence trading ex Entitlement basis 3 May 2007

Kevro
 

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