Far East Capital Newsletter
Emerald Resources is shaping up as a real gem
20 Mar 2021

In This Issue

Emerald Resources is shaping up as a real gem

After an exceptionally good year in 2020, our stock market seems to be settling back to what you would call a “normal” mose. Money continues to move around but the emphasis has been on profit taking and protecting those profits. Equity issues are being supported but without the subsequent on-market buying. The various themes that were pursued previously don’t seem to carry as much weight so the trends are less pronounced. Gold price sentiment is still anaemic but there has recently been better optimism in some situations, with some downtrends being breached. Maybe we are at a turning point. Generally, it is very much a stock pickers market, requiring more analysis and thought.

The gold sector has been in decline, along with the gold price, since August last year. Yet not all gold stocks have been trending down. A notable exception has been Emerald Resources (EMR), the company developing the 100%-owned Okvau Gold Project in Cambodia. Why is that?

Emerald is an emerging gold producer about to commission its first gold mine, being a 2 Mtpa, 110,000 oz p.a. mine. There has been strong institutional buying of the shares as knowledgeable fund managers have been buying in anticipation of success, as opposed to just following sector money flows. They are backing the management. 

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