ECR Minerals recent A$10.6m (£5.6m) acquisition of Paleogold Ltd has radically enhanced its near-term gold development and exploration potential in Australia. Interests have been acquired in three projects in Queensland, South Australia and Western Australia.

By early-2027 we would expect the Raglan and Blue Mountain alluvial projects in Queensland to be fully on stream. ECR gold production should be meaningful by early 2027.

A slower than expected production start-up at Raglan and Blue Mountain have burdened the stock of late. In the coming months we would expect the news flow on this front to turn positive with favourable implications for the stock.

Our new ECR corporate valuation is £19.25m or 0.55p/share based on 3,543,751,795 shares outstanding. This compares with £13.76m and 0.42p/share in our February 2026 Update report based on 3,290,888,016 shares outstanding. The variance reflects the impact of the Paleogold acquisition and our view on the valuation basis for the new projects.

On a fully diluted basis assuming ~4.29 bn shares the valuation would be ~45p/share. This however still reflects a sizeable premium to the mid-June share price of 23p/share.