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Thanks for the responses and GLA
Nn will no doubt get this. It would not surprise me one bit if they give us 3 bill for a 40% split. 100 bill in the ground a special divi to the shareholders. Funds coming in from wk other mining assets to expand into like volch and not to mention the tailings project. Which ever way this ends shareholders will be rewarded and shorters if their still mad enough to short will keep jub capital for company. Gla ignore the noise
Hi Jambo813,
If it was one buyer and EUA were putting themselves on the market then yes.
EUA have no debt, money in the bank, good income from WK that is set to increase markedly and they can develop MT themselves.
Having a number of buyers approach EUA means to gain the enormous potential of profits they can make from MT and to a lesser degree WK means they can't make a low ball offer. They have to look at what is possible here to make a winning bid so they have to price in some of the as yet unproven potential of what is in the ground and EUA are working away to show the potential with AP and with past drilling at both WK and MT the results of which we don't know but the buyers will as well as the data from all past drilling campaigns etc.
Jambo813
There enters AP to more accurately prove up what is there. EUA know what's there so do the prospective buyers.
Very shortly we will know too
MrYfronts.
So if I understand you correctly although the figures of minerals in the ground are the proven minimum that is there, they do exceed the minimum that is required to permit mining.
Any work to establish a more accurate figure which logically must therefore be higher has not been undertaken by EUA.
Applying same logic any buyer will price their bid around the estimates to date with the hope they fall well below the actual in the ground.
By my understanding of the situation and I'm not a miner, the DFS is the report that provides the information relating the upgrade of resources within the mine. The DFS will therefore be critical to agreeing the final sale price of EUA should a sale be finalised. I'm assuming that no one outside of the sale process or the Russian authorities knows what's in the latest DFS do they?
What a toly muncher. Ne pas change
Thank you montyboz,
Best explanation I have read of the differences and yet similarities between all the systems of reporting.
A DFS underpins everything in your mind, in the way you see things.
You are not a miner, you do not work in mining, you are not qualified to say how a miner would value mining assets.
Great post thanks.
Sorry but there is a complete load of rubbish being put up by a a man who does not understand mining.
EUA have mining licenses for WK and MT awarded to them by the Russian authorities as EUA have shown them that the mines are economically feasible, were they not then the mining licenses would not have been given.
As we mine in Russia we work to the standards Russia dictates to allow us to mine there. Russian standard not JORC.
As we are listed in the UK we have JORC reserves booked at MT because JORC is the standard the UK and most of the world works to.
JORC is not superior to Russian standard, it is simply different.
There are numerous levels of the JORC system of booking reserves and resources just as there are in the Russian system.
The Russian system normally requires you to book reserves and resources to a set level before you can mine them, that is by no means the highest level.
To book them to higher levels requires drilling campaigns that cost money. If you don't need to book them to the higher levels than why spend money on it.
What the Russian authorities have said regarding WK is that they don't require us to prove all the areas to be mined at WK to even the minimum required normal standard saving EUA a lot of money.
What they have seen is that EUA are showing that each area at WK holds more PGM's than has been cleared to mine by the authorities. They want to gain from all the taxes from profits and wages so why leave valuable commodities in the ground.
Expect the same to happen at MT. There will be more in situ than is shown from the reserves and resources booked so far.
The original mine at MT has been costed.
We now have the flanks added and far more resources in situ.
We are going to need a bigger mine. Costings for the original area are no longer relevant.
The companies looking to buy our assets are mining companies. Their job is mining, costing mines, looking at how much may actually be in the ground against how much has been booked to date.
The MT mining license is a single mining license covering the 2 open pittable mining areas of WN and L.
The awarding of the flanks license joins those 2 areas together and extends them to the North.
We have one continuous area of mineable resource, a lot within the original mining license area.
All the flanks areas are continuations of what has been proven to be in the ground. They are all updip and/or onstrike continuations of the WN and L mining areas. The companies looking at buying us know what that means no matter how much has been proven to Russian or JORC standards. The Russian authorities know what this means. Extending the mining license to cover all the flanks is easy because it is all continuous.
2.3Moz of the flanks is described by EUA as adding considerably to the reserves at MT.
JORC and DFS is not the bee all and end all of what we will be offered.
JORC does not value a mine.