Eloro put out an exciting press release last week which, as Bob Moriarty puts it, “that clearly no one understood. The stock dropped by 10% over the next few days and is down about 30% from its all time high in February.”
Bob runs some numbers on Eloro’s drill reports in a solid article published at 321Gold.com. Bob looks at grade and intercepts and mineralization and you should go over to 321 to read his analysis. But here is his takeaway,
“I happen to believe the company will end up with 1-2 billion tonnes of $100+ rock. Being far more professional, the company will never say that even if they do think it. By the end of the year when they come out with an initial 43-101 resource, the majors will be lined up with checks in their hands wanting to partner with Eloro.” 321gold.com
In many ways, this is the core communications problem Eloro faces. Tom Larsen and his geos are much too professional to put that sort of speculation in print. After all, it implies that the value of the Iska Iska deposit is between 100 and 200 billion dollars.
Now, even with the Moriarty bounce today, Eloro has a market cap of a little less than 260 million dollars.
I interviewed Eloro CEO Tom Larsen back in January of 2020. Eloro was just getting started at Iska Iska and Tom allowed as how, “We’re looking to find 100 million plus tons.”
My own sense is that the market is still thinking in the hundreds of millions of tons of mineralized material, Moriarty thinks there are billions of tons.
I have a small position (too small) in Eloro purchased at a price somewhat higher than the shares currently trade at; I am not selling a single share and am a little annoyed at Moriarty as his excellent article hit just as I was about to pull the trigger and average down.
Once the market grasps the size and richness of Iska Iska this will be an easy $10 stock and it could go much higher.