EURO SUN MINING – The Gold Stock Of The Decade

Investors Could Make 20x Their Money

I Will Show You the Simple Math

Euro Sun Mining (ESM:TSX, CPNFF:OTC) could be the Gold Stock of the Decade.  This company has EVERYTHING I want to see.

Here are the boxes that Euro Sun Mining ticks for me:

  1. SIZE–10 million ounces of gold equivalent, the second largest undeveloped deposit in Europe, permitted for production in an area where large scale mining has been done for over 100 years.
  2. Only 89 million shares out and cashed up with a recent financing
  3. Management bought this financing (and their average cost is still close to $1/share–higher than today’s price!–NO cheap stock on this company!)
  4. CEO Scott Moore and his team have an incredible track record in adding value for their shareholders–their last four projects are now in production
  5. DIRT cheap valuation vs. peers
  6. A “Popcorn” market for gold stocks–they’re popping all over right now.
  7. The most important time in history to have exposure to gold with Central Bankers destroying currencies, as evidenced by $17 trillion of global Government bonds with negative yields…….TERRIFYING!

This company has leverage both in the ground and in the share structure, plus a management team that can–and has–delivered the goods.

Here is the simple math that says investors have a great chance of making 20x their money–-and that’s just my base case!

That is why for me, this is The Gold Stock of the Decade.


At the current share price, Euro Sun is a gift.  The company is being valued at just $2.50 per ounce of gold equivalent (some copper) in the ground. Meanwhile, over the past two years similar assets have been acquired on average for $95 per ounce — which is nearly 40X more

To be clear, $95 per ounce is the average not the high.

Even if Euro Sun traded at 60 cents (twice the current share price) it would still leave a potential 22-bagger on the table for every investor today; 2,200%!!  This is not my opinion, it’s from the hard transaction numbers in the table below:

At these share prices Euro Sun Mining has lottery ticket upside, with the odds of success backed by a 10 million ounce world class gold deposit.

Even undeveloped, this asset is worth multiples of the current share price.


How does a company with an asset this big get valued this small?

Simple, investors abandoned the resource sector a decade ago. Nobody has been watching what these companies have actually been doing for years.

What they have missed is that Euro Sun Mining now owns 100% percent of the 10 million ounce Rovina Valley Project in west-central Romania — a developed and secure nation that is a member of the EU and NATO.  And it is PERMITTED for production.

This is a perfect place to operate a gold mine.

This is an established and prolific mining region with THREE large gold mines located within 40 kilometers (25 miles) of each other.  There’s over 40 million ounces of gold in this Tethyan Gold Belt–this is like Nevada, or Red Lake Ontario, or Johannesburg South Africa.  The only difference is that nobody knows about it.

Rovina is officially #14 in the world for gold deposits.  Though I don’t want to be a bad guy, I will say, that 7 or 8 of those ahead of Rovina will almost certainly never see production.  The last four assets that Euro Sun CEO Scott Moore has owned are all in production. Scott delivers for shareholders!

The local labor force is skilled and hungry to work and there is excellent road and rail infrastructure already in place.   The mining permit arrived last November, when the Market was collapsing and nobody was paying attention.  That was news that shouldn’t have slipped through the cracks but did.

Another unappreciated advantage….the cost of power in Romania is DIRT cheap at just $0.07 per kilowatt hour. 

The geology here is simple and everything lines up for this to be a very large, very low-cost project.  It’s got huge size, low cost and one of the best teams–It’s the Gold Stock of the Decade.

The independent, third-party engineers who completed Euro Sun’s February 2019 Preliminary Economic Assessment (PEA) of Rovina Valley peg the projects operating costs at just $752 per ounce.

That puts Rovina Valley’s operating costs in the lowest 25 percent of the industry.

With gold prices at $1,300 per ounce a $752 ounce operating cost makes for some fat margins.

And their capex is DIRT cheap for a mine this size–just over $300 million plus a contingency.

My only concern? Euro Sun shareholders (like me) get robbed of this project with a near-term takeover by a larger player for just a triple or quadruple on my money. 

The bigger operators are smart, they know that they can take advantage of how cheap shares of gold producers are today. Shareholders deserve MUCH more for finding a gem like this.


Developing this mine will be so simple–nobody has to move, there’s no using cyanide and no wet tailings. (Dry stack tailings are rapidly becoming the new standard for mining, and CEO Scott Moore’s team is embracing that.)

Put all of this together and it means that Rovina has:

  1. low capital costs,
  2. low operating costs,
  3. skilled local labor,
  5. full social license

The combination of low operating cost and low cost of development make for a powerful economic combination……..and a no-brainer takeout target for every larger operator in the industry.

I knew all of this when I bought my stock. What I didn’t know, and wasn’t counting on was the news that came out November 4th…..

“Euro Sun Discovers Four New Gold-Copper Porphyries Adjacent to Its Rovina Valley Project”

This was an important announcement for three reasons.

First, is the steady stream of positive news this additional discovery will provide.  Rovina is going to be a huge cash generator, but until it hits production it is still in development mode.  Development mode means no news, and no news means no attention for the stock.

These new porphyries now provide news flow that will get the market looking at Euro Sun — which is exactly what we want for when Rovina hits center stage.

Second, this additional discovery makes Euro Sun even more attractive to the base metal majors as a takeover candidate (porphyry = copper & gold).  Eventually I want to see this company taken out at a BIG PREMIUM……I just don’t want it to happen before Rovina gets cranking out cash, which will drive that takeover price much higher.

This discovery means the already big prize here has grown, and that makes Euro Sun a more tasty looking meal for the bigger players.

Third, these new porphyries provide Euro Sun’s management with a powerful financing option.  Just one of these could be sold to provide a non-dilutive source of capital to finish off Rovina.  This is wonderful flexibility that I was not expecting.

With the company valued at $2.50 per ounce, dilution is not what I’m looking for!

While it is early days, that announcement tells us that there is likely upside coming to the already massive 10 million ounce resource figure.  Given the size of everything in this region…..that upside could become pretty interesting, very quickly.

This stock didn’t need more upside potential — but it just got it!


Now, I would buy the stock just for all that, but when I tell you what CEO Scott Moore has done in the very recent past, you will understand why this is my Gold Stock of the Decade.

I think investors can make 20X their money or more—I already showed you the math.

Junior mining is about management, management, management.  CEO Scott Moore has shown the Market and shareholders time and again he is one of the best financial minds in the mining game, worldwide, regardless of commodity.

Moore specializes in brownfield development, not greenfield, which is discovering a brand new deposit and turning it into a mine 10 years later.

He and his team buy an already discovered but unloved asset that a lesser team hasn’t gotten off the ground, and do all the tough work, i.e. a new mine plan, permitting, financing, etc.  Anything in-the-ground or above-the-ground, Moore’s team has shown they add HUGE value in a short amount of time. 

Here is a quick list of some of his recent GOLD successes:


If Moore had just a 1 million ounce property in Tim-buck-too, I would still back this man.  He delivers.  But here he has TEN MILLION OUNCES of gold equivalent, in a European country.  And ongoing exploration suggesting serious upside.

You see all that money Scott has made his shareholders in the last decade?  He never had an asset this big.  Think what he and his team can do with this. 

You don’t have to think–I’ll tell you.  I think they can make investors 20-40x their money from here—just by getting bought out at an average valuation.

When you meet him, he is not flashy.  He is an MBA, but he is a down-to-earth, matter-of-fact, roll-up-your-sleeves and park-the-ego-at-the-door kind of guy.

The 10 million ounce Rovina deposit is one of the most sought after gold assets in the world.  Moore bid FOUR separate times for this deposit before convincing the seller to part with it.  He bought the asset at the bottom of the gold market — he would not be able to do that deal today.



I think investors have a chance to make more than 20x their money on Euro Sun–and I think it could happen in a short period of time, given the gold market I’m seeing lately.  Against comparable transaction data points it is easy to make the case that this stock should already be $4; in fact every metric says it could be double digits and still not fully valued.

I could tell you more about how profitable Rovina will be.  I could get into more detail of Moore’s previous wins.  But I think I have painted the right picture here.  The valuation on gold developers like Euro Sun are currently crazy cheap, and Euro Sun has a team and clearly defined plan to get it into production quickly. That is why I believe the potential for short term value creation here is incredible!  This is the right stock at the right time.

From a finance perspective, it’s a tight stock and management’s cost on their stock is actually above this price level.  No cheap stock, and Euro Sun just cashed up.

Gold stocks are very perky right now. 

The Market is has lost faith in Central Bankers and is starting to finally look for these companies.  When Euro Sun gets discovered, I think it will move BIG and move FAST.  I wanted to get positioned (count me long and a bit biased) before the Market gets wind of it.  And you, dear reader, are now beating the market to hearing about this story.  Many other groups of people will after today. 

DISCLAIMER: Management has reviewed and sponsored this article. The information in this newsletter does not constitute an offer to sell or a solicitation of an offer to buy any securities of a corporation or entity, including U.S. Traded Securities or U.S. Quoted Securities, in the United States or to U.S. Persons.  Securities may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom.  Any public offering of securities in the United States may only be made by means of a prospectus containing detailed information about the corporation or entity and its management as well as financial statements. No securities regulatory authority in the United States has either approved or disapproved of the contents of any newsletter.

Keith Schaefer is not registered with the United States Securities and Exchange Commission (the “SEC”): as a “broker-dealer” under the Exchange Act, as an “investment adviser” under the Investment Advisers Act of 1940, or in any other capacity.  He is also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity.

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