GOLD IS THE SAFE HAVEN.
The ultimate safe-haven asset has shot up almost 30% over the last 12 months and recently crossed $1,800 an ounce (“/oz”) for the first time since 2011.
This already puts the precious metal among this year’s top performers.
Still, many analysts expect the bull run to continue well into the future – some even see the precious metal passing through $5,000/oz!
Institutional investors are now on the hunt for the highest-quality gold developers likely to prosper the most in these conditions.
After all, if history has taught us anything, it’s that we are likely approaching an intense phase of gold market M&A activity, as cashed-up gold miners look for ways to boost their reserves.
Against this backdrop, one stock that has just captured incredible institutional backing is Euro Sun Mining (TSX:ESM | OTCQB:CPNFF).
This Canadian gold developer has attracted more than $20 million of smart money in the last three months alone to accelerate advancement of its 100%-owned Rovina Valley gold and copper project in Romania.
With few milestones remaining before this 10-million-ounce monster can enter the construction phase, a re-rate of Euro Sun’s current C$53.2 million market cap could very well be on the cards.
EURO SUN – WINNING WORLD-CLASS SUPPORT
Back in May, Euro Sun announced the launch of a C$12 million bought deal public offering underwritten by mining legend Sprott Capital Partners.
For those who don’t know, a “bought deal” is a securities offering where the underwriter commits to buying the value of the entire offering from its client.
In other words – it ensured that Euro Sun would raise its intended amount in full and represented a strong vote of confidence from Sprott.
Sprott’s instincts were vindicated twice over when Euro Sun quickly upsized the placement to C$20 million in response to market demand before eventually raising a total of C$22.3 million.
Among those who took part was long-term investor Ruffer LLP – among the UK’s biggest investment companies, with some $19 billion of client assets under management.
Having doubled down on its support for Euro Sun, Ruffer today sits as the company’s largest investor with a 9% stake.
Joining Ruffer in the raise was world-leading asset manager Franklin Templeton, which took a new 8% position in Euro Sun through its $331 million Franklin Gold fund.
Meanwhile, ASA Gold and Precious Metals – one of the world’s oldest metals and mining-focused investment management firms – also entered the fray, taking a 7% position.
With Euro Sun continuing to enjoy support from the likes of BNP Paribas’ Ixios Gold fund (2%) and Hong Kong’s APAC Resources (2%) the institutional presence across its shareholder base is truly remarkable.
After all, these are long-term investors – not only is there an opportunity for them to add to their stakes, but also their involvement and interest places Euro Sun on the radar of yet more professional investors.
Euro Sun is not just winning institutional support either – it’s courting some of the industry’s top management figures.
In June, it added Peter Vukanavich and Paul Perrow to its board of directors.
Over a 30-year career, Vukanavich sat as president and chief executive of both Genworth Financial Canada/GE Capital Mortgage Insurance Canada and CFF Bank (now Home Bank).
Perrow, meanwhile, was senior vice president, director of sales and marketing with CI Investments and currently sits on the board of CI Financial – one of Canada’s largest investment management firm by assets under management.
ROVINA VALLEY – THE ROMANIAN GOLD PROJECT CAUSING A STIR
So, what is it about Euro Sun is causing such a stir among these gold mining and financial powerhouses?
For starters, with 10.11 million equivalent ounces of gold in the highly prized Measured and Indicated categories, Rovina Valley sits as the second-largest commercial gold resource in Europe.
And that’s not even counting the upside potential at the neighbouring Stanija prospecting permit, where sampling has returned grades of up to 25.9 grams per tonne gold and 0.34% copper.
As if this strong grounding in one of the world’s most stable and supportive mining jurisdictions was not enough, Euro Sun also leads the bulk of its peers when it comes to bringing its project into production:
Existing infrastructure and labour are already in place thanks to the nearby presence of the historic Barza mine.
In November 2018, Euro Sun became the first-ever non-state-owned firm in Romania to be awarded a mining licence thanks to its deep-set rooting in sustainable environmental, social, and governmental principles.
The firm has devised a two-phase to Rovina Valley’s development to maximize its net present value and internal rate of return.
Phase I will see the firm bring two pits called Rovina and Colnic into production as open-pits. An updated Preliminary Economic Assessment (“PEA”) in 2019 put Colnic’s output at 139,000 ounces of gold equivalent annually for 12 years at an average all-in sustaining cost of $752 an ounce.
Following this, Euro Sun will bring a third deposit called Ciresata into production as an underground deposit during Phase 2.
Taking all this into account, Eurosun is highly leveraged against gold prices.
When its PEA for Colnic was completed using a gold price of $1,325/oz, the project’s pre-tax Net Present Value (“NPV5”) came in at $228.1 million.
If we use today’s spot gold price, which has risen by 35% to roughly $1,808/oz, then this same NPV5 increases by 280% to $634 million!
THE ROAD TO A RE-RATE
Despite the increasing world-class interest being generated by Rovina Valley’s huge promise, an enormously persuasive argument for Euro Sun’s undervaluation exists elsewhere.
With a market cap of C$53.2 million, it is presently valued at just C$5.30 an ounce – far below the $20/ounce usually commanded by projects of such size and advanced status.
After its recent recapitalization through May’s placing, Euro Sun is now in a better position than ever to close this gap – and this could be just around the corner.
The firm is confident this money will see through the completion of all of the work needed to deliver a bankable feasibility study and win Land and Project Urbanization Certificates for Rovina Valley before end-2020.
Why is this so critical?
Because Rovina Valley will be construction-ready at this point, and Euro Sun’s focus will shift onto winning debt financing and construction permits.
With the support of financiers and the Romanian government on its side, Euro Sun’s long-term future at Rovina Valley is looking very bright.
As it pushes through these critical near-term project milestones against such a hot gold market backdrop, the inevitable re-rate can only be prolonged for so long.
This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Euro Sun Mining Inc to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of one hundred and twelve thousand USD to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.
Changes in Share Trading and Price
Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.
No Offer to Sell or Buy Securities
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.
Information
Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.
This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy.
No Financial Advice
The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.
Forward Looking Statements
This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.
Indemnification/Release of Liability
By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.
Terms of Use and Disclaimer
By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here https://www.valuethemarkets.com/terms-conditions/ and acknowledge that you have reviewed the Disclaimer found here: https://www.valuethemarkets.com/disclaimer/ . If you do not agree to the Terms of Use, please contact ValueTheMarkets.com to discontinue receiving future communications.Intellectual Property
All trademarks used in this communication are the property of their respective trademark holders. Other than Valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than Valuethemarkets.com.
Ben Turney
This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.
Ben Turney does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. Ben Turney has been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of ValueTheMarkets.com, has been paid for the production this piece by the company or companies mentioned above.
Euro Sun
Euro Sun Mining
gold
Gold Stock
OTCQB
OTCQB:CPNFF
TSX
TSX:ESM
Patricia Miller
Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.
This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.
Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.
Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.
The ultimate safe-haven asset has shot up almost 30% over the last 12 months and recently crossed $1,800 an ounce (“/oz”) for the first time since 2011.
This already puts the precious metal among this year’s top performers.
Still, many analysts expect the bull run to continue well into the future – some even see the precious metal passing through $5,000/oz!
Institutional investors are now on the hunt for the highest-quality gold developers likely to prosper the most in these conditions.
After all, if history has taught us anything, it’s that we are likely approaching an intense phase of gold market M&A activity, as cashed-up gold miners look for ways to boost their reserves.
Against this backdrop, one stock that has just captured incredible institutional backing is Euro Sun Mining (TSX:ESM | OTCQB:CPNFF).
This Canadian gold developer has attracted more than $20 million of smart money in the last three months alone to accelerate advancement of its 100%-owned Rovina Valley gold and copper project in Romania.
With few milestones remaining before this 10-million-ounce monster can enter the construction phase, a re-rate of Euro Sun’s current C$53.2 million market cap could very well be on the cards.
EURO SUN – WINNING WORLD-CLASS SUPPORT
Back in May, Euro Sun announced the launch of a C$12 million bought deal public offering underwritten by mining legend Sprott Capital Partners.
For those who don’t know, a “bought deal” is a securities offering where the underwriter commits to buying the value of the entire offering from its client.
In other words – it ensured that Euro Sun would raise its intended amount in full and represented a strong vote of confidence from Sprott.
Sprott’s instincts were vindicated twice over when Euro Sun quickly upsized the placement to C$20 million in response to market demand before eventually raising a total of C$22.3 million.
Among those who took part was long-term investor Ruffer LLP – among the UK’s biggest investment companies, with some $19 billion of client assets under management.
Having doubled down on its support for Euro Sun, Ruffer today sits as the company’s largest investor with a 9% stake.
Joining Ruffer in the raise was world-leading asset manager Franklin Templeton, which took a new 8% position in Euro Sun through its $331 million Franklin Gold fund.
Meanwhile, ASA Gold and Precious Metals – one of the world’s oldest metals and mining-focused investment management firms – also entered the fray, taking a 7% position.
With Euro Sun continuing to enjoy support from the likes of BNP Paribas’ Ixios Gold fund (2%) and Hong Kong’s APAC Resources (2%) the institutional presence across its shareholder base is truly remarkable.
After all, these are long-term investors – not only is there an opportunity for them to add to their stakes, but also their involvement and interest places Euro Sun on the radar of yet more professional investors.
Euro Sun is not just winning institutional support either – it’s courting some of the industry’s top management figures.
In June, it added Peter Vukanavich and Paul Perrow to its board of directors.
Over a 30-year career, Vukanavich sat as president and chief executive of both Genworth Financial Canada/GE Capital Mortgage Insurance Canada and CFF Bank (now Home Bank).
Perrow, meanwhile, was senior vice president, director of sales and marketing with CI Investments and currently sits on the board of CI Financial – one of Canada’s largest investment management firm by assets under management.
ROVINA VALLEY – THE ROMANIAN GOLD PROJECT CAUSING A STIR
So, what is it about Euro Sun is causing such a stir among these gold mining and financial powerhouses?
For starters, with 10.11 million equivalent ounces of gold in the highly prized Measured and Indicated categories, Rovina Valley sits as the second-largest commercial gold resource in Europe.
And that’s not even counting the upside potential at the neighbouring Stanija prospecting permit, where sampling has returned grades of up to 25.9 grams per tonne gold and 0.34% copper.
As if this strong grounding in one of the world’s most stable and supportive mining jurisdictions was not enough, Euro Sun also leads the bulk of its peers when it comes to bringing its project into production:
Existing infrastructure and labour are already in place thanks to the nearby presence of the historic Barza mine.
In November 2018, Euro Sun became the first-ever non-state-owned firm in Romania to be awarded a mining licence thanks to its deep-set rooting in sustainable environmental, social, and governmental principles.
The firm has devised a two-phase to Rovina Valley’s development to maximize its net present value and internal rate of return.
Phase I will see the firm bring two pits called Rovina and Colnic into production as open-pits. An updated Preliminary Economic Assessment (“PEA”) in 2019 put Colnic’s output at 139,000 ounces of gold equivalent annually for 12 years at an average all-in sustaining cost of $752 an ounce.
Following this, Euro Sun will bring a third deposit called Ciresata into production as an underground deposit during Phase 2.
Taking all this into account, Eurosun is highly leveraged against gold prices.
When its PEA for Colnic was completed using a gold price of $1,325/oz, the project’s pre-tax Net Present Value (“NPV5”) came in at $228.1 million.
If we use today’s spot gold price, which has risen by 35% to roughly $1,808/oz, then this same NPV5 increases by 280% to $634 million!
THE ROAD TO A RE-RATE
Despite the increasing world-class interest being generated by Rovina Valley’s huge promise, an enormously persuasive argument for Euro Sun’s undervaluation exists elsewhere.
With a market cap of C$53.2 million, it is presently valued at just C$5.30 an ounce – far below the $20/ounce usually commanded by projects of such size and advanced status.
After its recent recapitalization through May’s placing, Euro Sun is now in a better position than ever to close this gap – and this could be just around the corner.
The firm is confident this money will see through the completion of all of the work needed to deliver a bankable feasibility study and win Land and Project Urbanization Certificates for Rovina Valley before end-2020.
Why is this so critical?
Because Rovina Valley will be construction-ready at this point, and Euro Sun’s focus will shift onto winning debt financing and construction permits.
With the support of financiers and the Romanian government on its side, Euro Sun’s long-term future at Rovina Valley is looking very bright.
As it pushes through these critical near-term project milestones against such a hot gold market backdrop, the inevitable re-rate can only be prolonged for so long.
This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the “Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Euro Sun Mining Inc to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of one hundred and twelve thousand USD to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher’s ability to provide unbiased information or opinion.
Changes in Share Trading and Price
Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.
No Offer to Sell or Buy Securities
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.
Information
Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position.
This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy.
No Financial Advice
The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual’s financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.
Forward Looking Statements
This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company’s actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company’s operations; the size and growth of the market for the company’s products and services; the company’s ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company’s business.
Indemnification/Release of Liability
By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.
Terms of Use and Disclaimer
By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here https://www.valuethemarkets.com/terms-conditions/ and acknowledge that you have reviewed the Disclaimer found here: https://www.valuethemarkets.com/disclaimer/ . If you do not agree to the Terms of Use, please contact ValueTheMarkets.com to discontinue receiving future communications.Intellectual Property
All trademarks used in this communication are the property of their respective trademark holders. Other than Valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than Valuethemarkets.com.
Ben Turney
This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.
Ben Turney does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. Ben Turney has been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of ValueTheMarkets.com, has been paid for the production this piece by the company or companies mentioned above.
Euro Sun
Euro Sun Mining
gold
Gold Stock
OTCQB
OTCQB:CPNFF
TSX
TSX:ESM
Patricia Miller
Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.
This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.
Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.
Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.
1
Euro Sun Mining Inc (CPNFF) Stock Research Links
Robert
