Next Investors logo grey

Empire Resources seeks to recover $830k


Published 04-APR-2018 12:00 P.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Empire Resources Limited (ASX:ERL) has commenced dispute resolution proceedings to recover over $830,000 owed to it via the Penny’s Find JV.

Using the Dispute Resolution provisions of the Toll Treatment Agreement between ERL and JV partner Eastern Goldfields Milling Services (a subsidiary of Maximus Resources), the company has presented the following claim:

1. Failure to pay Final Gold in Circuit (GIC)

- EGMS has failed to pay ERL 384.748 ounces of gold from the final GIC conducted at the Burbanks facility upon completion of the milling campaign in December 2017

2. Gold Ounces Discrepancy

- After a thorough review of the records maintained by EGMS, ERL believes it failed to account for 315 ounces of gold contained in ore that was delivered to the Burbanks facility.

- The value of that gold at $1,740 per pounce is $548,100

3. Calculation errors during Belt Calibration Adjustments

- ERL believes that the Belt Calibration Adjustments applied to the amount of ore as measured by the weightometer has been incorrectly applied by EGMS, which has resulted in an overcharge for toll mining fees of $55,009.35

- ERL has since confirmed its position with the firm that carried out the belt calibration

The company ended its claim by stating that the final amount claimed from EGMS will be subject to any adjustments in the gold or silver price, legal costs and other adjustments.

However, as with any legal proceeding, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.

Maximus responds to claim

Maximus Resources (ASX:MXR) has responded to ERL’s claim:

The Board of Maximus wish to inform shareholders that in accordance with the terms of the toll mining agreement with Empire, a dispute resolution process is underway with the objective of achieving a settlement by negotiation or arbitration.

MXR will provide further updates as developments arise from the dispute.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.