Q: With perceived strength continuing in gold. I do hold the more conservative large cap. I’ve come across and exploration one.
Would you please give me some insight on this company.
EMNT.
Thank you very much.
Would you please give me some insight on this company.
EMNT.
Thank you very much.
5i Research Answer:
EMNT is tiny at $29M market cap, so not one we know too well. It has little cash, no revenue, losses and negative cash flow. It is going to need more capital. Insiders own 11% and Kinross Gold owns 10%. It has OK management and three very early stage projects in Nevada. All three projects have potential, but it is just very very early days here. The stock is up. 40% in a year but down 6% YTD. We can't endorse it due to its high risk, but do not see anything 'wrong' here overall and for a microcap it does have potential if the sector continues to perform well. But we would not buy this yet.