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Current climate and markets, a 50p offer would be most welcome
New valuation, 48p to £1.40
Page 2 of this report, probably quite old now but the numbers can still be crunched:
https://drive.google.com/file/d/0B_CYJAkvWceTaU9wVWF4dkJUczA/view
Monchetundra (Eurasia) 30tonnes (236m with flanks) C1+C2
Kevitsa (Boliden) 146tonnes (proven, with mine) Acquired 2016 for $712m. in 2016 the average price of PT was $1300 and PD $700
Have a look. I am not going to set out my working here but on a like for like basis, not accounting for the fact that kevitsa was already a mine when purchased with proven reserves, I get an equivalent valve for MT at (todays PD and PT prices) of... $8.23Billion. - $400million for sinosteel contract costs and further costs to increase production, plus apply a 20% discount for C1-C2 reserves, plus another 20% discount for the percentage not owned by Eurasia = £4B or £1.40 share price.
I can't pretend to understand how Russian mineral reserves are calculated but does this bit suggest a C2 classification could be expected to be about 40% accurate? You can guess what I'm thinking, but don't flame me!!
http://www.crirsco.com/conversion_guidelines_2010_9.pdf
In the Russian classification system, alongside the categorisation of resources, and as an additional measure of their degree of exploration, a quantitative and probabilistic estimation of accuracy and precision of definition of the main estimation parameters must be carried out. The Russian system defines this in terms of deviations of estimated explored resources from the 'true' values in a sample estimation block, in which the tonnage of mineral is commensurate with annual production capacity of the mining operation. The required precision is set at levels of <15%, <35%, <40%, and <60% respectively for categories A, B, C1, and C2 “guaranteeing” the accuracy of the overall estimation of resources for a notional 15-years mine life, in a fully explored deposit at a level of <15%.
Looking forward to 5-10% resource valve in the sale!
5% of $33B = 48p
10% = 96p
*30k ton Nickel = $12247 per ton x 30000kg = $367M or **$2.895B** - made a mistake here.
So with the flanks, the "metal credits" are worth 10% of the resource valve.
10% valve of the metal credits is worth $400M, or £324M, 1.62 x current Market cap or 11.6p.
Wait, no, I am sticking with my first answer..
Someone wake me up when we are rich please.
Or have I got this totally wrong, maybe the tone figures are unprocessed... so at 0.1% grade it is actually 0.024%
Oops
Hi Rowka
Pd (Eq) figure of 1.9moz in the C1 and C2 catagory. This is for Platinum, palladium and gold if i understand correctly (2PGM+Au), - not sure what the 2 means or how much is in the C2 catagory, haven't the time to go through every RNS.
From the website
"Global, state approved Reserves and Resources within the Monchetundra Project comprise Russian standard C1 and C2 categories of 59 tonnes (1.9 million ounces) palladium equivalent (palladium, platinum and gold) with major additional base metal credits"
https://www.eurasiamining.co.uk/operations/monchetundra
So lets see the valve of the other metal credits..
(this Pd eq valve will have changed as the relative cost of the gold and platinum change)
1.9moz Pd eq at todays Pd price = 63$ per gram x 59000000g = $3.71B or £29B including flanks.
28k ton copper = $5345 per ton x 28000kg = $150M or $1.184B
30k ton Nickel = $12247 per ton x 30000kg = $367M or $5.794B
So with the flanks, the "metal credits" are worth 24% of the resource valve. Decent hedge that.
10% valve of the metal credits is worth $697M, or £565M, 2.925 x current Market cap or 20p.
So if you haven't already done so, maybe add 24% on to the figure you have in mind.
:)
That's a good way to look at it peter, there's a clear reason why he's still here!
Everyone had the same opportunity to sell prior to any suspension, and at a huge profit if he has been in as long as he's been posting on this board.
GLA
aandi also note that TDT didn’t sell all his shares when the price went up to 7.8p as he saw more value in this stock.
The guy who put you off buying at 2p still held onto his at 7.8!...
I know what you mean. Was the company called absolute precision?
Sorry wrong way round, inducted worth more than inferred
I wonder if the photo from twitter of the geo mapping tool has something to do with upgrading the resource at MT to indicated status up from inferred? (can't remember the correct terminology C2/C3 or whatever of the Russian system) An inferred resource is worth more in a sale than indicated, and likely adds value to the surrounding area as it confirms estimates were accurate.