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Good find.
Yes, fully financed.
Hurly
Unfortunately alot of people only understand the share price and fail to see the bigger long term picture. Yes seeing the SP at 5p every day and the neg heads spending all hours of the day slating the company get very tedious but they can't keep a good company down for ever
Remember, Rosgeo is fully financed -
"Completion of US$15m financing for Rosgeo JV
24 September 2021"
And they took only what they needed, they were offered more at the time -
"· H.C. Wainwright & Co. acted as the exclusive placement agent in the United States for this financing
· The Directors have reduced the financing size to approximately $15m from the higher amount offered to Eurasia
· The cash balance of Eurasia now is about $35m with no debt
· The financial position of the Company is sufficient to accomplish its commitments in relation to Rosgeo JV, where a JORC resource by Wardell Armstrong is to be announced shortly"
Perhaps their choice of using 'shortly' was a bit of a slip, but, everything else is running as per what they have announced tbh.
I still very much believe that it will be Norilsk and the Chinese running Monchegorsk when it's all fully online. Sinosteel EPCF and Citic Merchant engagement letter points very much to the Chinese arriving there at some stage. It's on Norilsk's doorstep and they've operated the area previously, so, they will be involved there also no doubt!
GLA
Rosgeo assets were potentially going in a ROFR agreement imo, just the conflict has changed the strategic environment somewhat and Eurasia are potentially now looking to exit Monchegorsk in one move.
The timing of the Rosgeo JV and also the stated arrival timing of the DFS could very well point to a full Monchegorsk exit for Eurasia at this point -
"Binding Agreement Signed with Rosgeo
Fri, 26th Mar 2021 17:00"
100% ownership can arrive after JORC, if selling you gain maximum value at the 100% stage -
"The Rosgeo Agreement provides that Eurasia acquires 75% equity stakes in each of the Additional Assets and Rosgeo will retain 25% equity stakes in the Additional Assets (being those companies holding relevant licenses for palladium, platinum, copper, nickel and cobalt projects outlined above). Eurasia also has a call option to acquire 25% from Rosgeo after completion of the reserves audit under the JORC Code. Any engagement with Rosgeo as a contractor in relation to the Additional Assets will be on an arm's length basis."
By November the winter at Monchegorsk will be in full swing, it minimises what they can do there from then until March, March being important because it's the Rosgeo JV deadline -
"Eurasia has 24 months in which to decide whether to select some or all of the assets to develop."
For Eurasia to gain the gov approval for sales etc, it's simply a case of selling to a BRIC's member, an entity that the Russian gov sees as friendly. The same goes for the Mondi exit tbh!
GLA
Even if you just took the very simple approach of attaching a $1bn valuation to each of the main assets, Monchetundra, NKT, NYUD, Sopcha, Poaz........that's $5bn. It's why it's very easy to wait for myself, we're halfway through August now, so, November isn't even that far away.
However, i think sale details will land prior with some form of stipulation that the buying price will be agreed so long as the DFS states X,Y,Z of whatever Monchegorsk assets they're going to take. Simply put, the buyer is going to get exactly what they want, hence why things are taking time.
Norilsk, if it's them, they will not want to have to worry about things like JORC, DFS etc as they're currently changing their Monchegorsk facility on a very large scale, so, they would want any assets in a 'ready to go' format, that's what the JORC and DFS achieves. Coincidentally, it also achieves maximum value for Eurasia in any asset sale environment, both sides get what they want in the end!
GLA
Ha
Just think if this comes in at Rowka's £3.50 you could buy them yourself
Cheers Les. I also wish someone would buy Man Utd…..
Hi PP
This is the Mondi website media link
https://www.mondigroup.com/media/15799/announcement-proposed-disposal-of-mondi-syktyvkar.pdf
This is from the report it might be what you are looking for.....
The proposed Disposal follows Mondi’s announcement on 4 May 2022 that, having assessed
all options for the Group’s interests in Russia, it had decided to divest its Russian assets.
Accordingly, Mondi launched a competitive auction process to find a suitable new owner for
Syktyvkar.
But of course they do not need licences, JORC's DFS and still need approval so even this could go on for a year.
Have a great day in the sunshine thunderstorms are on the way
ATB
Les
Just focus on the knowns, Mondi is selling at full value, even just selling one fraction of the assets Eurasia holds at Monchegorsk would net a tidy sum -
"Tier-1 scale JORC MRE at NKT ex-operating Ni mine"
"· The net present value ("NPV") using an 8.33% discount rate for the underground part of the NKT project is $1.2bn under the WAI price forecast and $1.7bn under spot prices. Work on the open pit part is in progress and the NPV of that part will be announced separately"
It's what Wardell are here for, to help get us all maximum sale value from the assets, the question is, will it be the former operator who buys or someone else? -
"JORC Mineral Resource Estimate ("MRE") by Wardell Armstrong International ("WAI") at Nittis-Kumuzhya-Travyanaya ("NKT") nickel dominant nickel-copper-PGM mine formerly operated by Norilsk Nickel"
Multiply the above one fraction by whatever factor you like, because, well, we know Wardell are doing the entire district as we've been told via the official communications route -
"· Definitive Feasibility study on schedule for submission in 2022.
· Wardell Armstrong International engaged for various comprehensive studies on Eurasia and its projects (also the ones included in the agreement with Rosgeo), i.e. JORC standard MRE reporting and NPV analyses."
Easy . . . . .
GLA
I wonder how long this sale process has taken?
Oh stop being so dramatic Franny1968, i've been here since 2016. People simply get too emotionally attached to the SP and panic whenever it moves around.
As per RNS, the official line of communication from the BOD to the market and shareholders -
"· The Board is closely monitoring the evolving sanctions and re-iterates that no individual or entity identified in the sanctions is associated with the Company in any way. Nor do the sanctions prevent the Company from executing on its M&A strategy as announced"
They've even told us all that a complete DFS is coming in November, it's even easier when you know that billions of dollars worth of resources are going to have official JORC's and DFS done on them all. All at a time where assets in Russia are still being sold at full value.
GLA
See, assets can still be sold at full value and after a sale this is what happens -
"Mondi said the net proceeds of the disposal and the RUB 16bn dividend would be distributed to shareholders “as soon as reasonably practicable” following receipt."
Just sit back and let the BOD get done what they need to get done, a very easy waiting game imho
GLA
Yes very encouraging. It will be interesting to follow that through to completion.
Very encouraging news. This will be sold now in my mind.
Keep this in mind when the naysayers are messing with your noggin.
Explore the evidence, positive and negative and not opinion.
Then make your decisions.
GLA
Morning all.
Agreed, interesting!
https://m.uk.investing.com/news/stock-market-news/packaging-firm-mondi-to-sell-russia-business-for-156-billion-2719899
ATB LB
Very interesting and potentially excellent news. Deal is subject to approval from Russian government and shareholders. We should watch this closely.
Very interesting. C’mon Eurasia!
So it can be done!