EMG - Emergent Resources - Aussie Stock Forums

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  1. #1

    Post EMG - Emergent Resources

    Emergent Resources Limited (EMG) is an iron ore, gold, uranium and base metals exploration company with the projects located in Western Australia. Before ASX listing the Company has negotiated a JV to earn up to 80% equity from De Grey Mining Ltd in the Beyondie project and an option to acquire base metal, gold and uranium granted exploration licences and applications from Pandell Pty Ltd and Oakover Gold Ltd.


  2. #2

    Default Re: EMG - Emergent Resources

    Here is some information on this company which i have been looking in to

    Shares on Issue: 48,208,508
    Options on Issue: 22,780,259 (20c strike price expire 30 Sep 2010)

    Market Cap: $21million

    Main Project:
    Beyondie Iron Project
    Exploration Target of 3.7-4.2billon tonnes at 27-28.5%Fe (Current JORC reserve of 561MT at 27.5%Fe)
    70-120MT DSO Iron including a portion of 25-45MT at 55-60%Fe.

    Emergent are expecting significant upside on these targets in both grade and tonnage.

    The project is located adjacent to the Great Northern Highway and Goldfields Gas Pipeline in the northern part of WA’s mid-west iron ore precinct. Potential shared rail and port infrastructure developments for the project are in progress.

    A 60 hole, 4000m drilling program is planned over 5.2km of strike with a follow up 10,000m over an extended strike of 12.6km.

    A JV with Chinese company China Metallurgical Investment Group (CMIC) worth $200million is near finalisation.

    Share Price chart attached. 12 month high $1.06 around the time the CMIC JV and initial magnetite exploration target was announced, 12 month low $0.325. There should be good upside to the current market cap if they confirm their DSO exploration target, although they state they are confident of exceeding the target.

  3. #3

    Default Re: EMG - Emergent Resources

    This stock is plumbing new lows due to the CMIC JV being cancelled and the options expiry. The options, EMGO, have ceased trading and will expire in a week on 30th Sept.

    It's not entirely clear that the issue will be underwriten since "non-completion under the CMIC Agreement" was a termination event in the underwriting agreement. IMHO, Casimir, the underwriter probably have a way out that they will not exercise since they get fees, options and more shares at 20c. But if the SP does get below 20c, perhaps they would consider pulling the plug. I know of one case where Paterson did that.

    BTW: was looking at their cash position. Here's a rough estimate for end of quarter (Sept 10) in $k
    $879 Start of quarter
    -$1,050 Operating costs for the qtr
    $1,000 Options exercised so far
    $1,000 5M shares for Casimir at 20c.
    $3,544 Options to be exercised by Sept 30

    Number of shares after 100% option exercise.
    (Shares and options in escrow were ignored in the previous post.)
    85M (85,088,767)

    So at current price (28c) mkt cap will be $24M. At 20c, mkt cap $17M

    So plenty of upside, just compare the current price to the graph but note that there are more shares outstanding now and the project seems further from comercialisation now.
    Last edited by PinchOfSalt; 24th-September-2010 at 11:08 AM. Reason: spelling and clarity.

  4. #4
    Make the drill work for YOU springhill's Avatar
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    Default Re: EMG - Emergent Resources

    MC - $4m
    SP - 2c
    Shares - 207m
    Options - NQ
    Cash - $3.5m

    An OK spec in regards to MC:Cash position, haven't looked at their projects that closely as there are not alot of plans for exploration this quarter, but Beyondie can get thrown in the trash I wouldn't wipe my backside with a magnetite project at the moment. With only an $80k spend on exploration I can't see where SP appreciation will come from this quarter.

    Extension and Extension North Gold Project:
    Extension to the Plutonic Well Greenstone Belt with previous drilling for Au
    Beyondie Iron Project: (80% EMG, 20% DEG)
    Established 561 Mt inferred magnetite resource with multiple potential iron products.
    Glengarry Gold & Base Metal Project:
    Comprising 2500 square kilometres of highly prospective ground for Cu, Pb, Zn, precious metals and uranium.
    Marble Bar Copper, Gold Project:
    Potential for gold and VMS deposits.
    Paterson Uranium, Copper, Gold Project:
    Potential for Kintyre, Maroochydore and Nifty style deposits.

    • Due to the adverse conditions of the financial and capital markets, the Initial Public Offering (IPO) for Austrasia was withdrawn during the quarter. The Company is currently assessing the best way forward to advance Emergent’s base and precious metal tenements that were due to be transferred across to Austrasia as part of the IPO process.
    • At the end of the Quarter the Company announced a number of changes to the roles of the Emergent Board and management team. Mr Nathan Lude stepped down from the role of Managing Director to become a Non-Executive Director for the Company. The management of the Company will be the joint responsibility of the Board
    • During the Quarter the Company reviewed a number of new projects located both locally and abroad for the company. The company is focused on reshaping it’s project portfolio to one with the potential to more effectively deliver near term value for shareholders.
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