ECR Minerals PLC (AIM:ECR) has said its A$75 million in accumulated tax losses could be worth more to the company if used to offset future earnings than sold externally, following encouraging progress at its Blue Mountain gold project in Queensland.
Chairman Nick Tulloch said the potential transition to production at Blue Mountain gives the company a clear revenue path for the first time.
If operations scale up as expected, the ability to apply tax losses internally may outweigh any proceeds from selling them.
While ECR continues to engage with potential buyers, the emergence of Blue Mountain has shifted the company’s strategic priorities.
The alluvial gold project has returned a recovery rate of 91.7% in early testing and is undergoing bulk sampling and prototype wash plant trials to confirm financial modelling.
Preliminary estimates suggest the project could generate monthly revenues exceeding A$470,000 at historic prices, figures that would now be higher given the 20% rise in gold since February.
ECR ended March with net assets of £5.5 million, up from £5.2 million a year earlier. It is fully funded for its 2025 work programme, having raised £950,000 in December and reduced costs by scaling back consultants and closing its London office.
It also recorded a reduced loss of £400,729 for the six months to March, down from £451,412, aided by the sale of property in Victoria.
Beyond Blue Mountain, ECR has mobilised a rig for its inaugural drilling campaign at the Lolworth project in Queensland, targeting gold and rare earth prospects.
Drilling is expected to begin in July with a 1,500-metre programme. In Victoria, follow-up work at Bailieston confirmed structural continuity in gold and antimony zones, while high-grade results at Tambo extended mineralisation below historic workings.
The group has also launched ECR Digital, a new subsidiary to explore potential digital asset treasury strategies, though this remains at an early stage.
Tulloch described the months ahead as “pivotal” as ECR aims to convert exploration momentum into revenue and long-term value.