ECR Minerals has been highly successful in identifying alluvial gold projects in Australia. The most advanced at Raglan in southern Queensland was acquired in December 2026 on favourable terms for a permitted turnkey (ready to use) operation. Raglan is now close to start-up following the likely conclusion of an offtake agreement in the coming weeks. A second project, Blue Mountain, relatively close to Raglan is at an earlier stage but may offer greater output potential. Initial reconnaissance work on the Lolworth project in northern Queensland also points to the potential for alluvial gold. Based on our model using ECR’s data for key parameters, Raglan should be comfortably profitable at anything like current gold prices of >US$5,000/oz. The payback period is little more than a year. At Blue Mountain appraisal work in 2025 revealed excellent results in terms of continuity of mineralisation, grades and observable gold. We believe production start-up here is a very real possibility by mid-2027. Reflecting potentially positive developments on the production front near to medium term and the bullish gold backdrop we have raised our absolute valuation by over 20% from £11.3m to £13.8m.

Absolute valuation increased by over 20% to £13.8m while per share estimate maintained at 0.42p: Our new ECR valuation estimate is £13.76m or 0.42p/share using 3.29bn share outstanding. The former is 21% above the initiation estimate while the per share amount is in-line with that given previously. The per share calculation has been depressed by two key factors. These are a 23% increase in the shares outstanding since the initiation and a downward adjustment in the valuation for the Raglan capital equipment from US$5m to US$2.5m. The latter reflects a reappraisal following ECR’s comments on the replacement value of the Raglan equipment. Compared with the ECR market capitalisation in late February 2026 of £8.2m, our absolute valuation reflects a premium of 68%.

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