ERN - Erongo Energy

[boy_888]

Sorry to follow u around Daredevil. IMHO ERN may be onto something very major. They have said that they are looking for a very large bulk tonnage low grade U deposit. There are a collection of these deposits in Nambia and they run at grades 130-140 ppm or 4.5 oz per tonne. Forsys was like ERN about 12 months ago with a very similar share capital and aspirations and ran from 50 cents to $10.00, that is a certified 20 bagger. They have about 30 million pounds /14,000 tonnes of u and are worth + half a billion dollars now.

ERN is worth US $31 million has at least 3 BILLION TONNES of "target rocks" down to 75 meters on its Erongo Granites project at Areas 1-4. They have historical drilling and the five new holes that identify about 3.5% of the target rocks as containing u AND they also point out that grades may be open at depth (maybe several billion tonnes more of potential target rocks). All of these target areas are covered with u "signatures" from various surface tests.

The fact is (1) Nambia hosts a number of very large bulk tonnage u deposits (2) ERN is sitting on on a number of very massive anomolous u areas that have many surface signatures and a very small area that has been drilled out and contains grades that are typical of economic deposits in the area (3) Mineable grades are as low as 130 to 140 ppm (Forsys at Valencia and Treppokje) and ERN's grades are very shallow so far (4) Costs (verified by a number of studies by independent groups) on these low grades are very low at US$22 per pond of u so the operation becomes very profitable on large tonnages (5) U can fast track these deposits from drilling to mine development very quickly.

IMHO with the tremendous shortage of u around the world ERN will attract a LOT OF attention based merely on the size of the targets, the similar geology of nearby massive u mines and the fact that Nambia is a very good place to develop a U mine AND that ERN is in the very early stages of exploration that is generating very positive data.
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Reading back though the ERN thread trying to see the light and justify why i've been loading up on ERN in the last two days, maybe even for a third!

 

[spooly74]

Reading back though the ERN thread trying to see the light and justify why i've been loading up on ERN in the last two days, maybe even for a third!

Brave boy 888 .. Erongo is getting thumped in Germany at the moment...down 14%.
Could just be a reaction to todays action here though ???? Might test the low 60`s tomorrow

 

[Logique]

Annoyed as a holder by the price action, plenty of July profit taking there. Stop Loss cascading perhaps also. Been caught in that trap before with stocks that turned around and ran back up. With a longer view I don't see it as the end of the world, prepared to be patient. Trouble is, not every holder entered with the longer view in mind.

Check the 6 month % performance against BMN in the chart under.

 

[Sean K]

Technically, there should be VERY GOOD support between 50 and 60 cents here, if it reaches it tomorrow, or later. However, since breaking down though what should have been good support around 77-80c TA is now less reliable. The upper trend support line may change direction now, unless it can spike back up.

Fundamentals no change of course, but sentiment has for whatever reason. Market is factoring in something here. It does generally over and undershoot though. So have to see if this is an undershoot and a buying opp for those who believe in the fundamentals, but it ´s not an opprtunity chart wise unless you like catching falling knives. As I alluded too previously, if the fundies are right, we could see 1.10 again in the future, but there looks to be a lot required to break back up right now. Of course, some drilling results with ppm ´s above 300 might do it, but that doesn ´t look immediately likely to me with this negative price action.

 

[chris1983]

I think with every stock though you must have a plan. I have always stuck to the plan of selling enough stock to free carry the rest no matter how much I like the stock. I usually aim for a 100% increase so I can sell half to free carry the rest. I have carried out this strategy with all my holdings. AOE/BMN/ERN/ECH to name a few. It keeps you safe and makes it very hard for you to lose. You can then decide later if you want to sell your free carried holdings if you are starting to sway away with how the company is being run..or if you change your views in regards to the fundamentals of the company. This is my method. I can now comfortably carry my holdings in all four of those companies as I do believe in their longterm prospects and I would like to see how they develop their projects and what exploration each of them will put put forward. Erongo still have a heap of work to do..they havn't even touched on 3 of their tenements yet...so the short term pain may hurt but they aren't going to roll over and die.

I guess your strategy may change with companies that have more solid fundamentals..but I usually try to stick to the system. It has helped me a number of times to keep my fund growing at a steady rate. When you sell your stock to free carry you just have to be able to pick the next winner..thats the challenge.

 

[timelord]

I think with every stock though you must have a plan. I have always stuck to the plan of selling enough stock to free carry the rest no matter how much I like the stock. I usually aim for a 100% increase so I can sell half to free carry the rest. I have carried out this strategy with all my holdings. AOE/BMN/ERN/ECH to name a few. It keeps you safe and makes it very hard for you to lose. You can then decide later if you want to sell your free carried holdings if you are starting to sway away with how the company is being run..or if you change your views in regards to the fundamentals of the company. This is my method. I can now comfortably carry my holdings in all four of those companies as I do believe in their longterm prospects and I would like to see how they develop their projects and what exploration each of them will put put forward. Erongo still have a heap of work to do..they havn't even touched on 3 of their tenements yet...so the short term pain may hurt but they aren't going to roll over and die.

I guess your strategy may change with companies that have more solid fundamentals..but I usually try to stick to the system. It has helped me a number of times to keep my fund growing at a steady rate. When you sell your stock to free carry you just have to be able to pick the next winner..thats the challenge.

That is the key to a successful trading plan and one that as a newbie I struggle with. It is the emotion and fear that can take over at this time. Appreciate your thoughts and as always we do make our own decisions. Would love the thrill of free carry one day to take some of the worry/stress out of this. I seem to have come in at a higher level this year and seems to consolidate just below my average sp.

 

[boy_888]

bought the oppies at 40c today. don't know what to think maybe its true value maybe its a dog... time will tell...

 

[chris1983]

bought the oppies at 40c today. don't know what to think maybe its true value maybe its a dog... time will tell...

Hope it pays off for you boy. ERN are back a long way. I didn't think we would see these prices again. With the downturn in the uranium market..a lot of stocks have really got hit hard. Uranium spot price dropped a dollar for the first time in 40 months I think it was..I think some investors believe that is the end of the world. There could be some other factor affecting the Erongo sp though? Maybe some uninspiring drilling results on the way? I'm not sure. Thats the only thing I can think of atm.

Other than that they have extensive land coverage in Namibia with 4 granted epls and other granted mineral sands epls. EPL's arent being granted any longer in Namibia for uranium exploration so I think its a big added bonus to the companies that allready have licenses over there. They have only touched on one of their licenses. I'm holding long on the rest of my holdings. I really do believe they can do something.

 

[boy_888]

Hope it pays off for you boy. ERN are back a long way. I didn't think we would see these prices again. With the downturn in the uranium market..a lot of stocks have really got hit hard. Uranium spot price dropped a dollar for the first time in 40 months I think it was..I think some investors believe that is the end of the world. There could be some other factor affecting the Erongo sp though? Maybe some uninspiring drilling results on the way? I'm not sure. Thats the only thing I can think of atm.

Other than that they have extensive land coverage in Namibia with 4 granted epls and other granted mineral sands epls. EPL's arent being granted any longer in Namibia for uranium exploration so I think its a big added bonus to the companies that allready have licenses over there. They have only touched on one of their licenses. I'm holding long on the rest of my holdings. I really do believe they can do something.

I believe the same chris1983 im not worried keep given me the oppies. I'm not worried is anyone willen to sell them to me at 30c. Please be my guest, the update is around the corner?

 

[Sean K]

I'm not worried is anyone willen to sell them to me at 30c. Please be my guest, the update is around the corner?

This overoptimism is recipe for disaster, IMO, and seems to be a common theme in the uranium threads. Nothing is a certainty boy888. It was not long ago that people in these threads were saying uranium would never go down. LOL. FWIW, please re-evaluate all stocks you have constantly, if not daily, to decide if they should stay in your portfolio. Holding on to anything on an initial assessment can lead to long term pain.

This comment is not specifically related to ERN, but to anything. All the best.

 

[boy_888]

This overoptimism is recipe for disaster, IMO, and seems to be a common theme in the uranium threads. Nothing is a certainty boy888. It was not long ago that people in these threads were saying uranium would never go down. LOL. FWIW, please re-evaluate all stocks you have constantly, if not daily, to decide if they should stay in your portfolio. Holding on to anything on an initial assessment can lead to long term pain.

This comment is not specifically related to ERN, but to anything. All the best.

its market cap is peanuts i continue to buy... end of story! at 60 odd cets a share its dis****ling cheap....

 

[Sean K]

its market cap is peanuts i continue to buy... end of story! at 60 odd cets a share its dis****ling cheap....

No need to get aggressive Boy, I was providing some friendly counter arguments for discussion. You can tell us all that you have everything under control, or you can take the offensive.

Since you have gone on the offensive, 60 cents based on what? Some prospective EPLs and a few drill holes with half that contained potentially economical uranium, and half with practically sand? Are you doing a peer comparison with something that has exactly the same mineralisation, tonnage, grades, location, management, and has no other projects but similar to this.

I'm not sure if you have provided a more detailed valuation before on this thread Boy, but please tell us all why 60 cents is 'cheap' for ERN. This is a simple question which you have surely analysed before because you are so sure of it. If I have missed it, I appologise, so please refer me to the post and ASF will be happy.

Cheers.

 

[SGB]

We'll certainly see if the 200 MA has any strength at .60. Terribly oversold and could see a jack knife from short sellers if it does hit .50.

Its getting rather exciteing.
SGB

 

[SGB]

We'll certainly see if the 200 MA has any strength at .60. Terribly oversold and could see a jack knife from short sellers if it does hit .50.

Its getting rather exciteing.
SGB

Hold onto your pants guys. This is what trading is all about.
One minute your up the next your down

 

[Go Nuke]

Hope it pays off for you boy. ERN are back a long way. I didn't think we would see these prices again. With the downturn in the uranium market..a lot of stocks have really got hit hard. Uranium spot price dropped a dollar for the first time in 40 months I think it was..I think some investors believe that is the end of the world. There could be some other factor affecting the Erongo sp though? Maybe some uninspiring drilling results on the way? I'm not sure. Thats the only thing I can think of atm.

Other than that they have extensive land coverage in Namibia with 4 granted epls and other granted mineral sands epls. EPL's arent being granted any longer in Namibia for uranium exploration so I think its a big added bonus to the companies that allready have licenses over there. They have only touched on one of their licenses. I'm holding long on the rest of my holdings. I really do believe they can do something.

Well ive only been trading for 6 months now in the likes of BMN,ERN etc etc.
I'd love the ability to free carry, but as i said...after 6 months, most of my stocks are right back where they started. Including ERN seen as it hit a low of 55c for the day (so far)
Ive not had the oppertunity to freecarry anything yet!
Its all pretty depressing really. But Im not into panicing and selling. Im going to hold as I feel more of a long term person

 

[doctorj]

Im going to hold as I feel more of a long term person

How long did you intend to hold them when you first bought them? Was it a trade that turned into investment? What profit is "enough" for you consider exiting?

 

[chris1983]

When it drops down into a SP range that puts it Market cap well below its peers? Thats oversold to me? Pretty simple right. How much further can they drop from here? Back into the mid 50's? Back to the 40's where I purchased my first bundle? If they did I would be buying more. At 55 cents the fully diluted cap would be 42 million. so anywhere from 55-60 is amazing value to me. I dont know if it will get back to these levels though..might do.

Well it went back down to these levels guys..let see if the 55-60 sp level was right as bargain buying. Will be interesting to see how this all pans out.

 

[SGB]

Well it went back down to these levels guys..let see if the 55-60 sp level was right as bargain buying. Will be interesting to see how this all pans out.

Big support ATM

(2) 1,804 0.610
(1) 10,000 0.605
(5) 122,264 0.600
(2) 121,616 0.590
(2) 126,969 0.585

 

[boy_888]

Big support ATM

(2) 1,804 0.610
(1) 10,000 0.605
(5) 122,264 0.600
(2) 121,616 0.590
(2) 126,969 0.585

the support is there, however i've been cautioned by the adminstaters for encouraging u guys to sell your options and shares at a lower price..... so i'm gotta be quiet for now.... goodluck to the longs don't panic!

 

[sydneysider]

If you were trading this off the chart you might have sold yesterday, or today, depending on when you got in. 200d ma might provide some support, but there looks to be more between 50 and 60. The tech indicators there don't get any more bearish unfortunately. The fundamentalists pumping this when it was at $1.10 and all the way back down would be still holding of course. It might get back up there one day, if their analysis was correct.

I suspect that something has gotten "unglued". Originally we were expecting more results in mid July which has been pushed back to mid August. Only about 1,000 meters of drilling completed to date due to drilling in granite (which is very hard). The first six holes were reported as drilled in early June so we have only advanced about 600 meters since then? This does seem awfully slow and may have precipitated the exit of short term holders. Add in the fact that the U's have been clobbered and now we have a busted technical picture. I suppose we will have a half hearted rally at this point and then trend sideways until the drilling issue is resolved. More (significant) results may be several months away.

I have switched into MKY as the technicals are indicating potential for a decent breakout.