Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Transcript from the interview - it's pretty explicit (even if he is wrong!)
14:30 We are reviewing the options for paying dividends
14:49 We have a big pile of cash which makes sense to give back to the shareholders, like me, who have been patient
15:11 $50 million we don’t need
15:20 That’s why we are considering options to pay dividend
We don't need the cash - so we can pay it as dividend
You have yet to show where he mentions that the $50mill from Sinosteel would EVER be used to give to the shareholders. Dmitry did not say that, and if you take a few minutes to listen to the video and time you posted - you will find this as well.
dmitry said explicitly, "we don't NEED the contract, we don't NEED the cash".
I started with nearly 5 million at around 0.5p then doubled my holding as soon as it started to rise a few weeks ago.
In the interview https://www.youtube.com/watch?v=d_YMY6yiMDE&t=1575s
Listen from 14:42 - he talks about the dividend
Krayl have you got your version of the transcription? Ps did you start with 10m million shares at 0.5p? Just wondering how you got to 9 million shares at 0.65p by doubling your holding?
krayl, listen here should clear up any sino quires apart from the divi part as its ongoing from this interview still
https://audioboom.com/posts/5155046-miningmaven-podcast-no-52-with-christian-schaffalitzky-md-of-eurasia-mining-eua
Did you transcribe it? Because I transcribed the whole thing and I assure you - he did NOT say that.
So interesting to see how you came to that conclusion.
Brotherjoey. Thanks for the summary. I would like to pick you up on one point...
"When it comes to the payment of a dividend, rumours by both anonymous and/or agenda driven inadequate writers suggested ‘$50 million from a Chinese company, Sinosteel..will be paid in the form of a dividend to Eurasia shareholders’.
Of course, it is publicly known that this was never the case, and the remainder of the loan is to be used for advanced engineering and pit development work."
At the time I spent some time transcribing Dimitri's interview and that is exactly what he said - although I think he was wrong to say it.
PART 1: Often pump and dumps only last a matter of a few days or even hours, but when it is something more, something magical and something special then it’s not just small private investors who get involved, and they can go on for a long period of time, and that certainly appears to have been the case with Eurasia Mining (EUA).
This does of course give opportunities to trade the rise, as long as you manage to get out before the drop comes, but ultimately the fundamentals play out and if something looks to not have risen by it’s fair and justified value, then it’s almost inevitable that they orbit to space at some point, and those who got to believe in the story and the crazy low share price are the ones who tend to come out on top.
Some will be quick to point out unwarranted criticism of this company as one to “avoid” at the end of last month at a share price of 1.9p, it went on to more than double. That sort of written propaganda is easy to predict when dealing with such a successful company as Eurasia. And those who didn’t heed the inadequate perception of the companies’ value will have seen their investments continue to rise.
In the case of Eurasia it appears that there has been far more going on than just a group of PIs believing in it, as the company itself had released game changing RNSs and Twitter, and there were also a number of interviews – some of which, raised much interest in the company.
The sudden rise in share price from around the 0.5p level naturally saw numerous warrants being exercised, for a small profit compared to their overall value, as well as non-executive director Dmitry Suschov first transferring 25.472% of his company – Deloan Investments which holds an 11.07% interest in the Eurasia shares – to Alexei Churakov for a nominal amount as an incentive in his new role as a strategic advisor to the board of Eurasia.
Subsequently a further 10.42% of Deloan was transferred to Alexander Sushchev, also as an incentive for his new role as another strategic advisor to the Board, and also for a nominal amount.
Working out exactly what is going on with all of that is not difficult – as there was no need for the company to use extra cash, dilution and meant that their fees were directly related to the success of the company and subsequently the shareholders. Thus, the recent addition of the strategic titans is an invaluable positive to shareholders.
That alone is enough to remove any suspicions. Furthermore, claims were being made in interviews, especially with regard to a potential dividend payment that has sparked even more interest for shareholders.
A bigger rise was triggered by an RNS on October 24 when two large investment banks – CITIC in China and VTB Capital in Russia – were looking at strategic options for its assets, including the possible disposal of its assets, and with particular focus on its Monchetundra palladium asset, which is yet to reach the production stage.
[PART 2..] The RNS was quick to point out that a couple of other recent palladium mining deals, including $2 billion for Sibanye and CAD$1 billion for NAP, which was recently acquired by Impala Platinum, and that the Monchetundra Kola Peninsula asset had a total resource of 15 million ounces of PGMs, mostly made up of palladium. What it didn’t seem to point out though was that both of these are more expensive in terms of operating cost than Monchetundra. (Monchetundra being open pit and easy to mine, so that work may commence very rapidly and provide a large profit margin for many years.)
This was, strangely, met with negativity by a group of people on bulletin boards and Twitter, spouting all sorts of negative predictions, some of which were more focused on an accent of a fluent English speaker, instead of taking a short minute to calculate the value of the company [Billions]. What was clearly mentioned within the original RNS was that neither bank had actually signed an engagement letter. The Banks had approached EUA and agreed to operate on a success fee basis, therefore there has as such been no requirement to do so.
At the start of this week a further RNS dropped clarifying that no engagement letters had yet been signed. Although originally clear, conveniently, numerous anonymous people appeared to have harassed EUA into re-clarification at the same time as a suspected manufactured drop in share price.
The next day a further RNS was issued; Anthony Nieuwenhuys, the CEO of Lesego Platinum – which had previously visited the Monchetundra asset and the data – had been appointed as a non-executive director of Eurasia. Mr Nieuwenhuys has also held senior positions at a number of other key EPC organisations, so the appointment of Mr. Nieuwenhuys was a great addition to the board. Further compounding the belief that shareholders have in this company.
The same RNS also stated though that the company had no intention of entering into any agreement with Lesego. The same RNS suggested although there was no intention to enter into any arrangement with Lesego, both companies continue to keep this under review.
There was some recent speculation by the aforementioned group of co-ordinated attackers on news on its producing West Kytlim asset. Despite the 66kg of platinum production EUA that had been approved by the authorities for production in 2019, EUA managed to reach the target. Furthermore, they have removed the need for contractors – enjoying 100% of the margin (a three-fold increase). Money used from cash flow has wisely been spent on necessary equipment.
It seems does not seem strange that Mr Suschov had mentioned a ‘maximum’ production of 200oz per day one of his interviews. Quite a significant rate, and to be sustainable with this kind of rate, the strategic advisor mentioned Eurasia are now undertaking quite a significant exercise.
[PART 3..] On that basis, along with contractors not being sustainable, it would be folly to question whether the company was ‘even producing platinum at all from West Kytlim’. It certainly wouldn’t be 200oz per day, as that was never mentioned. But shareholders will enjoy such bountiful returns in the future, thanks to Eurasia’s progress at West Kytlim.
In terms of Monchetundra, the figures for the resources might sound good on paper but it is even better with the addition of the flank areas and possible expansion with projects in the 8-10 km vicinity. With numerous drilling and multiple due diligence carried out in the Kola peninsula by various companies such as Anglo American, Norilsk Nickel, Barrick and other big players – extensive exploration has been carried out in the area.
That certainly suggests that there has been an extensive drilling campaign done by a number of Eurasia’s colleagues, like Norilsk Nickel, who have been drilling one of these areas. Norilsk Nickel is the world’s largest Palladium producers in the world. They also have a nearby refinery to Monchetundra, as well as having their own vast deposit of Palladium.
When it comes to the payment of a dividend, rumours by both anonymous and/or agenda driven inadequate writers suggested ‘$50 million from a Chinese company, Sinosteel..will be paid in the form of a dividend to Eurasia shareholders’.
Of course, it is publicly known that this was never the case, and the remainder of the loan is to be used for advanced engineering and pit development work.
However, although Eurasia has signed all the final binding documentation, which allows them to receive the first payment, they are in no rush for a number of reasons. An obvious one would be potential interference with strategic options in potential asset sales in on going negotiations.
An RNS from back in 2016 mentions that Eurasia was in ‘advanced discussions with third parties for the sale or joint venture of the project’ but given the rise in Palladium prices, the profits received are unparalleled to levels of that years ago.
All of this suggests that Monchetundra is not only as good as it appears on paper – but better. Even if considering much lower than todays palladium prices (circ. $1800), shareholders can expect this to be very profitable.
In terms of palladium itself, the prices seen today are more than a temporary bubble. With environmental pollution and need for reduction in carbon emissions, palladium is forecasted to exceed $2000 by 2020, and more than double by $2025. A sustainable and viable alternative has yet to be found, and would likely take many years to implement. “This is not a bubble”, suggests analyst René Hochreiter (billed as the Mick Jagger of PGMs), “but early in a new bull market”.
[Part 4] Demand in Europe for diesel vehicles has fallen, while demand for petrol has increased. This has been duly reflected in platinum and palladium prices: the former has sunk and the latter has soared. Even should palladium be substituted for Platinum, shareholders will be pleased to have West Kytlim and its bright future prospects to enjoy.
With a current market cap that is still attractive for institutional investors and private investors alike – Eurasia has been touted to be worth north of several billions of dollars, given the assets in the ground (for Monchetundra alone).
Although a recorded a loss of around £1.5 million for the year was reported, the reasons have clearly been given (as above) and works at Monchetundra and West Kytlim, Eurasia are poised for success in the immediate and long term future.
To existing and potential future shareholders alike, there are minimal risks and potential bountiful returns to be made with their investments, despite games being played by questionable ‘gangs’ online (both public and anonymous).
In light of the recent updates, it can be seen how Eurasia reached an approximate 1000% rise near the end of November, and continues to be a success for shareholders and the board of directors. The tireless efforts of all members of the company over the years have clearly paid off, making the team, the board and subsequently the shareholders happy – and this is just the beginning.