Allenby boosts its overall valuation of ECR Minerals, and could go even higher, as first gold production nears

Broker Allenby has boosted its valuation of ECR Minerals (ECR ), which is about to move into production at its Raglan gold project in Queensland. 

ECR has other assets in its portfolio too, including an additional potential producer at Blue Mountain, and exploration upside at Creswick, Lolworth and elsewhere. 

But for the time being Raglan is the main event 

“In our initiation report of November 2025, we valued ECR at £11.33 million or 0.42p share,” said Allenby. 

ECR’s current share price stands at around 0.27p.

Since then, new factors have come into play, although the 0.42p per share valuation remains in place. 

“We have raised the valuation coefficient from US$30/oz gold to US$60/oz gold to reflect a sizeable increase in the gold price from c. US$4,000 per ounce to more than US$5,000 per ounce and advances in project development. All other US dollar valuation estimates except for the Lolworth project remain the same as in the initiation report. In the case of Lolworth, we have raised the valuation significantly from US$0.6m to US$3.0m reflecting the positive results relating to the licence’s maiden drilling programme.”

All of which means Allenby’s absolute valuation for ECR has increased by over 20% to £13.8 million, although the per share estimate has been maintained at 0.42p.

“The per share calculation has been depressed by two key factors,” said Allenby. 

“These are a 23% increase in the shares outstanding since the initiation and a downward adjustment in the valuation for the Raglan capital equipment from US$5 million to US$2.5million. The latter reflects a reappraisal following ECR’s comments on the replacement value of the Raglan equipment.”

That being said, Allenby does see room for upward revision.

“In the event of a rapid production start-up at Raglan and visibility on a start-up at Blue Mountain we see scope for a significant valuation upgrade in the coming months. Further positive exploration results at the highly prospective Lolworth tenement could also provide added valuation impetus.” 

View from Vox

ECR has been powering ahead with development work at Raglan against the backdrop of as favourable a gold price environment as you could hope for. It’s hardly surprising that brokers are catching up to this new reality and boosting valuations accordingly. Yes, ECR has had to issue new shares to keep the show on the road while it gets into production. But it’s almost there now, and dilution is likely to be much less frequent and much more considered in the years ahead. What a time to be alive.