Emmerson Resources Limited · ASX:ERM
Emmerson Resources — AIA Conference (March 2022)
29 slides from Emmerson Resources's conference presentation, Mar 29, 2022
Slide 1: Punting is not investing – the inside scoop on gold microcaps
Punting is not investing – the inside scoop on gold microcaps Rob Bills – Managing Director and Chief Executive Officer The seven habits of successful investing in gold microcaps and how to avoid some of the pitfalls!
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Emmerson Resources Limited ACN 117 086 745 (ASX: ERM) (the “Company”) and is being provided to a limited number of investors for the sole purpose of providing preliminary background information to enable recipients to review the
Slide 3: Issues Investors Need to solve for
Issues Investors Need to solve for: • www.prerequisite.com.au/research • The next 25 years are not going to be like the last 50 years. • Global over-indebtedness issues & Governments promising more than they can deliver • Extreme monetary, fiscal & regulatory policy directions • Zero/negative intere
Slide 4: Habit 1: The case for gold…
Habit 1: The case for gold… Similar investment proposition to buying a house yet…? Gold price over time... Gold as an insurance against world volatility... weak stock markets, war, interest rate rises… Buy gold when… Geopolitical Risk is high - wars Easy $$$ from central banks AAA rated bonds are lo
Slide 5: What does history say...
| What does history say... amr rson Nominal Gold Price versus War ) 4 8 r=) Iran's invasion of Kuwait a“ o- 8 So Iran-iraq War $1,000 tran-iraq Beginning of Iran Revoluti Ceasefire Iraq war $800 z 2 ra) Q 2 2 2 a 4 2 ° 9/11 Attacks Oct-75 Oct-79 Oct-83 Oct-87 Oct-91 Oct-95 Oct-99 Oct-03 Oct-07 Oct-1
Slide 6: Default Waves
Default Waves Percentage of countries in external default or restructuring, 1800-2015 60 30 20 10 ° Dashed line includes countries with significant and chronic ??? Government ony debt’ cycle arrears to their official creditors ess A 4 Ny my | ! y 0 4 ! ! J ! Fewer Governments in the proria defaultin
Slide 7: Habit 2: Know your risk appetite?
Habit 2: Know your risk appetite? The case for gold micro caps… and where they sit in your portfolio? Jan 2016 - Present 3.0x ASX Small Res 2.7x ASX100 Resources 1.5x All Ordinaries 7 Source: Lion Selection Group
Slide 8: Habit 3: Time in the market or timing of the market
Habit 3: Time in the market or timing of the market – not so important with gold … but microcaps need access to capital Biggest declines Gold Price Gold behaves differently in the S&P Response Sep 21, 1976 – Mar 6, 1978 -19.4% 53.8% Nov 28, 1980 – Aug 12, 1982 -27.1% -46.0% Aug 25, 1987 – Dec 4, 198
Slide 9: There are many gold companies…….the portfolio effect
There are many gold companies…….the portfolio effect but still need to be able to pick more winners than losers! Gold companies up 39% of the ASX resource market The number of companies with its flagship project in gold has 25% over the past four years 9
Slide 10: We are talking about investing in the companies that find the gold
We are talking about investing in the companies that find the gold Gold from the Edna Beryl Mine – Grade is King +30g/t gold
Slide 11: Habit 4: Do your research… picking the winners
Habit 4: Do your research… picking the winners First understand the macro – Determine risk/reward and entry Credible JV partners environment for gold… gold behaves strategy? Sound stakeholder relations differently and is seen as a “safe Major versus Micro Caps (high alpha haven” Track record of resp
Slide 12: Habit 5: Which microcaps will return +10x?
Habit 5: Which microcaps will return +10x? and where in the value cycle Discovery = the sweet spot 12
Slide 13: Picking the winners – a more granular view
Picking the winners – a more granular view Institutions CORPORATE SNAPSHOT 26% TCMG ASX code ERM 55% Evolution Mining Shares on issue 498.24 million 3% 10% Territory Resources 3% Options: 2% Directors & Mgmt Exercise price $0.14 15,500,000 Other Investors Exercise price $0.16 58,000,000 ASX of Dec 2
Slide 14: Habit 6: Watch the ASX for lead indicators…
Habit 6: Watch the ASX for lead indicators… 14
Slide 15: A 267% increase in share price …..is there more to come?
A 267% increase in share price …..is there more to come? 15
Slide 16: Habit 7: What is the DNA of the company?
Habit 7: What is the DNA of the company? ….better that a seasoned Geo leads the charge Mr. Andrew McIlwain Mr. Robert Bills Dr. Allan Trench Alan Tate B.Eng (Mining) B.Sc, M.Sc, FSEG, FAIG B.Sc (Hons), Ph.D, M.Sc, MBA B.Com, FCA, FAICD Non-Executive Chairman Managing Director and Chief Non-Executive
Slide 17: What dictates success in exploration
What dictates success in exploration: The top two tenets of Exploration….can you predict the next discovery… and then find it (= Detection) Discovery is the biggest value driver in the resource business An example of where Prediction + Detection ≠ Discovery 17
Slide 18: Luck is not a strategy…..systematic science based exploration
Luck is not a strategy…..the logic for systematic science based exploration A weighted aggregation process Risk & Cost Geological Potential
Slide 19: Large land holdings in prospective areas….and in stable jurisdictions
Large land holdings in prospective areas….and in stable jurisdictions Emmerson been in Tennant Creek since 2007 Map of exploration licences and application in the Barkly Tableland in March 2021, showing the distribution of tenure of 19 selected exploration companied. Most highlighted licenses were a
Slide 20: Tennant Creek – historical gold and copper producer
Tennant Creek – historical gold and copper producer Undervalued and underexplored One of the few underexplored high grade gold provinces Bi left in Australia Edna Beryl 91,500 t Cu North Star Only 8% of drill holes 2% 1.33 moz Au 8 g/t 11 g/t Au reached a depth Ag Warrego Orlando 1.2 g/t greater tha
Slide 21: Discovery history
Discovery history New detection techniques = discoveries • New detection techniques = discoveries Trend of diminishing returns Edna Beryl Mauretania Hermitage 21
Slide 22: Deployment of new technology and techniques to make new discoveries
Deployment of new technology and techniques to make new discoveries Fixed-wing aeromagnetics was effective back in the day but finds only the most obvious magnetite hosted deposits Edna Beryl Northern Star Gecko Warrego Orlando New Discoveries blind or at best display subtle magnetic White Devil sig
Slide 23: New detection technologies - 10,000-line km high resolution drone magnetic survey
New detection technologies - 10,000-line km high resolution drone magnetic survey 70% complete… aimed at generating a new family of hematite (+/- magnetite) hosted deposits Proof of concept….drone magnetic anomaly at Mauretania Mauretania….now you see it!....gold Gold associated associated with hema
Slide 24: Need a pathway to unlock the full value of the company..
Need a pathway to unlock the full value of the company.. Unlocking stranded assets……. • Our JV partners TCMG… privately listed and funded through a number of international private equity firms • TCMG have secured a CIL processing plant… with the objective of unlocking stranded assets in Tennant Cree
Slide 25: Valuations overtime based on tangible assets
Valuations overtime based on tangible assets Highlights: • Mineral Resource Estimate (MRE) for the Chariot gold deposit at Tennant Creek increased total ounces by 40% to: 556,200t @ 7.8g/t Au for 138,800oz Au • New resource estimate supports a conceptual high grade 17.7g/t Au open pit and 6.3 g/t Au
Slide 26: What happens if the markets are closed to capital raising?
What happens if the markets are closed to capital raising?…. mitigating the risks through gold royalties 14 NSR Royalties of Producing Mines & Mines in Development (Gold and/or base metals) 12 10 Chariot resource just released NSR Royalty % 8 Mauretania this month 6 Others to come… 4 2 0 1 41 81 121
Slide 27: There is case for selective gold micro caps in your portfolio
There is case for selective gold micro caps in your portfolio….but Know how to pick the Monitor progress and winners….you do not capital requirements have to be a geologist! Add some sizzle to your Look for complimentary investment portfolio commodity mixes: • Small investments to Copper, Lithium, A
Slide 28: Contact
Contact Rob Bills Managing Director & Chief Executive Officer Emmerson Resources Limited +61 8 9381 7838 rbills@emmersonresources.com.au www.emmersonresources.com.au ASX: ERM 28
Slide 29: Competent person statement
Competent person statement The information in this report is based on information compiled by Dr Ana Liza Cuison, MAIG, MSEG. Dr Cuison is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and types of deposits under