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Empire Metals (EEE) Shares Fell 50% From Their April High. What’s Next?

Simon Mugo trader
Updated 20 Jun 2022

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Key points:

  • The Empire Metals share price has fallen 49.6% from its April high.
  • The miner today began exploration activities at its Pitfield project.
  • The company’s long-term prospects look promising.

The Empire Metals Ltd (LON: EEE) share price has fallen 49.6% from the highs printed in April 2022 following the acquisition of the Pitfield Copper-Gold project in Australia, which was completed on 13 April 2022.

Also read: The Five Best Gold and Gold Mining Stocks To Buy Now.

The company acquired three highly prospective copper-gold projects in Australia on 6 April 2022 from Century Minerals Pty Limited. The first project was the Pitfield copper-Gold project, followed by the Stavely copper-gold project and the Walton copper-gold project.

Earlier today, Empire Metals announced that it had commenced exploration activities within the Pitfield copper-gold project. The mining company has hired two highly experienced airborne geophysical survey companies that will complete separate airborne electromagnetic surveys across the Pitfield tenement area.

The company also revealed that the Pitfield tenement consisted of Neoproterozoic rocks globally known to host mineralisation zones with significant copper and gold deposits. In addition, the region is close to historic copper mines such as the Baxters copper mine at Arrino.

Empire Metals also plans to conduct a more detailed magnetic survey of the areas that will show enhanced magnetic response to gather structural/stratigraphic details and the proper context of geochemical exploration data.

The mining company is well-capitalised to conduct the planned exploration activities as it raised £1.7 million before expenses via an oversubscribed share placement on 28 April 2022, near its peak prices. The company said it would use the monies raised to fund the drilling campaigns at Eclipse and Gindalbie scheduled for Q3 and Q4.

Empire Metals’ projects are pretty promising, but none of them is at the commercial production stages, which is where the company starts generating revenues from the sales of the minerals produced at its mines. However, its exploration projects are progressing well.

Those interested in buying EEE shares and holding them for a while may find its current prices attractive. However, the shares could fall further, or investors will be diluted via a capital raise.

*This is not investment advice. Always do your due diligence before making investment decisions.

Empire Metals share price.

Empire Metals share price 20-06-2022
Source: IG

The Empire Metals share price has fallen 49.6% from its April high of 2.52p to its current price of 1.27p.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading