The news flow surrounding the Australia focused gold junior ECR Minerals has been clearly positive of late. Most significantly perhaps has been the recent announcement that the production start-up at the underground Maddens Flat Mine, in northern Queensland is scheduled for November 2026. Significantly, the Maddens mill is now operational. Another interesting development at Maddens of late has been the discovery of a new gold-bearing quartz vein which conceivably points to a larger mineralised system than originally contemplated. At the Brothers Mining Licence within the broader Maddens project area, prospecting activity has revealed the presence of coarse gold nuggets. This confirms the alluvial potential of the project and possibly suggests a nearby hard rock source. We believe Brothers alluvial production could commence during 2027. Despite the positive backdrop, ECR has continued to drift down to a multi-year low. A timely start-up at Maddens could set the scene for a rebound in the stock.
Our new ECR corporate valuation is £19.27m or 0.48p/share based on 4,107,918,966 shares outstanding. The absolute valuation is in line with that shown in the July 2026 update. The per share valuation, however, is down on the 0.55p given previously reflecting the 16% increase in shares outstanding to 4,107,918,966. On a fully diluted basis assuming ~4.89 bn shares the valuation would be ~0.39p/share. This, however, still reflects a sizeable premium to the late October 2026 share price of 0.14p/share.
Full note here
