Euro Sun Mining is well on its way to reaching the construction stage at Romania’s next major gold and copper mine.
Based in this up-and-coming mining centre’s prolific “Golden Quadrilateral” production hub, the developer’s Rovina Valley project hosts a 10-million-ounce gold equivalent resource – Europe’s second-largest!
But it’s likely not just Rovina Valley’s quality that has won over the smart money – the company has also de-risked this opportunity and taken it forward at speed.
Euro Sun’s (TSX:ESM | OTCQB:CPNFF | OL11:GR) deep-rooted focus on Environmental, Social, and Governmental principles saw it become the first non-state-backed firm to win a mining license from the Romanian government in 2018.
This 20-year, renewable permit allowed the company to pushed forward rapidly, delivering a preliminary economic study for Colnic – one of Rovina Valley’s two large-scale open-pittable deposit in 2019.
This alone delivered a pre-tax net present value of US$228.1 million at a gold price of US$1,325 an ounce and US$3.10 a pound copper. Fast forward to today, when gold sits closer to $2,000 an ounce, and this figure has risen by 300% to upwards of US$700 million.
“ROVINA VALLEY HAS ABOUT SEVEN MILLION OUNCES OF GOLD AND ABOUT A BILLION AND A HALF POUNDS OF COPPER. EVERY 10 CENTS UP ON COPPER IS ANOTHER $20 MILLION OF NPV. EVERY $10 OF GOLD IS ANOTHER $30 OF NPV ON THE PROJECT AS WELL. SO HIGHLY LEVERED TO TWO METALS THAT ARE EXPECTED TO ENJOY STRONG MARKETS FOR THE NEXT SEVERAL YEARS.”
These figures are all-the-more impressive when Euro Sun’s (TSX:ESM | OTCQB:CPNFF | OL11:GR) market cap is taken into account. This currently values each ounce at Rovina Valley at around US$10 compared to a peer average of around US$50 ounce for similar projects!
With a recent, upsized C$22.3 million fundraise providing Euro Sun (TSX:ESM | OTCQB:CPNFF | OL11:GR) with the financial firepower to pursue the few remaining milestones ahead of “shovel-ready” status, ValueTheMarkets.com’s Ben Turney caught up with Scott Moore in our latest shareholder webinar.
DOWNLOAD OUR SPECIAL REPORT – For a deep dive into why institutional investors are flocking to Euro Sun Mining and why this stock could soar
The chief executive begins with a presentation about the company and Rovina Valley. This is followed by an extensive Q&A session that delves much deeper into Euro Sun’s (TSX:ESM | OTCQB:CPNFF | OL11:GR) strong position and long-term potential, covering:
- Euro Sun’s strong on-the-ground presence
- Romania’s top-quality infrastructure and economic growth
- The three large deposits driving massive revenue potential at Rovina Valley
- How Euro Sun is keeping CAPEX and production costs to a minimum
- The ESG focus and community engagement that has won strong support from the Romanian government
- Vital upcoming project milestones on the way to mine construction
- Why Rovina Valley represents an ideal take-out target
- Why Euro Sun’s current valuation could prime it for a multiple re-rate
DOWNLOAD AND READ OUR EXCLUSIVE REPORT – For an in-depth look into why the Lassonde curve is pointing Euro Sun Mining in the direction of a massive re-rate
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