Since we sold most of our shares in September 2012 at C$1.50, Euromax Resources’ (EOX.V) share price evolved dramatically and is currently trading around C$0.10 for a market capitalization of roughly C$8.5M and an enterprise value of C$5M (our estimate). This is very cheap for a company with several promising projects in Europe’s Balkan region of which the Ilovitza copper-gold project in Macedonia is the most important project.

The PEA on the Ilovitza project showed the best way to move forward was a 12Mtpa scenario which would cost the company $474M in initial capex and would result in a pre-tax NPV5% of $352M. However, as the resource estimate at Ilovitza has increased since the PEA, we expect the Pre-Feasibility Study to shows a longer mine life and thus a higher net present value. This PFS is expected any week now, and we’re looking forward to see the results. We have recently picked up some more shares at C$0.10 as we feel Euromax is currently extremely undervalued.

Disclosure: The author holds a long position in Euromax Resources. Please see our disclaimer for current positions.

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