EMO: Its coming

It has been a long wait but it is time to get excited. EMO is about to come out w/ its maiden 43-101 report. Get ready cause it will be a game changer. The IBW project has been written off by many as inferior to the AZN legal case, but IBW is $1B+ worth asset.

Remember EMO still hasn’t drilled at El Cura. El Cura is a very high grade copper deposit. The El Cura deposit won’t be included in the initial 43-101, so the 43-101 only will get better as we update it in the future.

Gower expects to have the initial report within 30 days. Meanwhile they are still operating 15 drills. So the number of hole to be added to the 43-101 is a substantial amount.

3 responses to “EMO: Its coming”

    • Hi,

      Regarding EMO, I think the MRE was not as good as I expected. I expected the resource size to be 20MT or higher. Although I don’t think it mean the resource is not good or that it is not economically going to be a mine. I think it just means the company needs to do more work and then get an updated MRE. The drilling of El Cura will be big and additional work done by mgmt will improve the resource size. I still think the IBW assets will get bought out, although we might have to wait till 2024 / 2025. In the meanwhile we have El Cura, NT, updated MRE / NPV calc, and AZN to come. So the stock might be stuck at these prices but the value of the assets is still much more.

      Regarding OCO, I think you have a good MRE put out. There will be some updates to it and we really will get the party started once the NPV is out in early Fall. I think OCO will draw lot of interest from strategic partners. The company is worth a lot more and we will likely see re-rate happening after the NPV is out. Also we should see more PR and talk/presentations from the mgmt in late 2023.

      Personally, I thought about selling out of EMO after the poor MRE. Although I think the asset valuation is there and mgmt is good. So it is better option to hold on to it till later in 2023. As for stock declines, remember the stock prices is different from company valuation in the short-term but in the long term they will converge. So if you can deal with the short term pains then I think there is good long term gains to be had with EMO and OCO.

  1. Hi Paras,
    I read Emerita News release
    I assume investors were disappointed by 43-101 results
    (I’m not sure what was the expectation)

    I still don’t understand why the stock got ~25% decrease
    I don’t see how the thesis changed from the latest results
    I would like to hear your opinion

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