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"More the fact that the 2020 raise could only cover the notorious 'certain key components' of a PFS making another raise a virtual inevitability"
....and since then we have had another raise which will not fund the PFS either so another raise is inevitable.
I believer work on Toral is being stalled to give themselves time to go from a one trick pony to a business with spread assets however this is being done at the expense of Toral and without any planning for the required funding except cut backs that will effect Torals progression/PFS. i think its smoke and mirrors here again and the truth about Torals future, future funding, future acquisitions and the whole game plan is being deliberately made vague.
i still believe this is about trying to make a future for EUZ and The BOD rather than wrapping up the toral project for the benefit of shareholders.. If so then the future is open ended and any value could take years to materialise
I think it will Chrisp if I look at the incentive options expiring Dec 2023….imo as far as Toral goes value will only be shown next year….but as far as EUZ goes and the acquisition of possibly quarries it’s etc….value should be shown this year but we will need another fund raise…..that’s my take.
a) Tranche 1: vests on the delineation, by an independent third party, of greater than a 4.5Mt Indicated Resource estimate at the Toral Project, reported in accordance with JORC (2012), exercisable at a price of 8.89 pence per share and expiring on or before 18 December 2023;
b) Tranche 2: vests on the delivery of a positive Pre-feasibility Study at the Toral Project with an independent recommendation for the Company to continue advancing the project, exercisable at a price of 8.89 pence per share and expiring on or before 18 December 2023; and
c) Tranche 3: vests on the submission of an application for a Mining Licence at the Toral Project, exercisable at a price of 8.89 pence per share and expiring on or before 18 December 2023.
Bricks I absolutely understand where you are coming from and the SP could go lower. However, valuing a exploration mine is extremely difficult and it is more about sentiment than anything else in the early days and sentiment with EUZ could not be much lower today. Last year I really thought that EUZ was worth between £40 million and zero. Now due to the placing and the de-risking I think it worth between £20 million and £4, million. So I don't think it will 10 bag but I also think it is worth more than it's current SP.
CHRI5P I'm not so sure that it was bad communication but I hear your opinion, more the fact that the 2020 raise could only cover the notorious 'certain key components' of a PFS making another raise a virtual inevitability unless a deal could be done or another grant obtained. You mentioned a bigger explorer coming in and I often wonder if we haven't heard the last of Lundin here. I know MC once dismissed them saying Toral is too small (genius comment) for them but why were they looking at it in the first place? With their resources the chance to return to a highly de-risked project with a modest 12year LOM would seem an excellent prospect given that a handful of deep drills could not only radically extend the LOM but also prove up the copper which is detected throughout the currently modelled system but believed to be commercial below the 1,000 metre cut off.
The update was very good and the copper angle, the high Zinc price and the location to me seems to be very positive. I have taken the view over the last 3 months to keep buying below the consolidation price. Yes we need a partner but I think we will get one and the SP will rise due to it. I also think DBA and other bodies invested based on the resources update.
September 7th resources update:
Commenting today, Laurence Read, CEO of Europa Metals said:
"The results from this latest round of drilling in terms of grades and widths of lead, zinc and silver are in our view exceptional and exceed our initial expectations for the upper zone of the Toral project, an area that we have always viewed as being the 'path' towards the lower, high-grade production zones.
"The 2021 drilling campaign has been excellent and I would like to thank our team on the ground for their hard work in consistently delivering within the highly challenging environment of COVID-19.
"The Company has decided to conclude drilling and is assessing the potentially positive impact these intersections could have on the existing resource model and the potential future economics for the Toral project. Even with a high-grade project with a robust EBITDA margin at the three-year trailing metals prices in the last independent economic study, we believe that further enhancements can be achieved from optimising the mining route and further determining processing systems such as ore sorting, or separate ore sorting processes for different ore types.
"We are also considering the recent copper results of nearly one per cent. and potential options for technical partnering to assess what is happening within the system regarding this metal. Whilst Toral is to date primarily a lead, zinc and silver project, the presence of copper in the system encourages our belief that potential sources may be present below the current 1,000 metre cut off.
"Such work continues to de-risk the Toral project as a viable low cost, high margin future production source with the potential to significantly expand both the current mine life and the metals concentrate profile."
Commenting today, Myles Campion, Executive Chairman of Europa Metals said:
"This year's drilling campaign into the upper siliceous zone of Toral has indeed exceeded expectations. We have obtained a significant amount of bulk sample material from this zone, through the utilisation of PQ size drilling, that will enable us to complete an ore sorting and metallurgical testwork programme in conjunction with WAI.
"Throughout the campaign the Europa Metals team has, in house, been updating our resource model as further information has become available. This will enable us to move quickly to commission an independent update to the existing resource estimate. We look forward to releasing such update to the market in due course."
My view is that the BOD wrongly assumed the good work last year would be enough to keep the SP up and above 10p to get the placing required at a better price. Unfortunately, like everyone one on this board they gave poor communication and not enough updates to keep shareholders old and new inspired.
Yes Bricks I agree and that it is internationally accepted in general apart from Russia. This backs up what I was saying and a BFS is required for institutions to fund the development costs of the mine and production. However, what tends to happen is the the smaller explorer finds a bigger one to get to the final fund raising and quite often at a premium to the SP but not the true value of the exploration so both parties do well.
Morning Bricks - just noticed that Zinc has crossed an interesting milestone - the spot price has now doubled since March 2020. Now officially a 'critical metal' in the EU and US I find it increasingly implausible that we can't get a partner onboard on favourable terms. We've long talked about a possible 'invisible hand' guiding our operations and now we know that there has been a specific request for the upcoming geotechnical drilling I think it's time for LR & MC to play hardball and say enough is enough, put your money where your mouth is in other words.
Sorry guys i misread the text and i agree exploitation would imply mining licence. Its no great surprise as a PFS is a std requisite in the evolution of building a working mine IMHO.
I wont even go down the road of NI avoidance in taking wages as share at a time when NI is about to go up :-)
The exploitation permit is the mining permit Highside…:-)….I think you read exploration instead of exploitation:-)
Very good.. ;)
'Exploitation'.
I wonder if something has been lost in translation Bricks because surely you cant present a PFS before you have an exploration licence ? i wonder if the exploration licence is the Mining licence ?
Chrisp…I did some research over the weekend and came across this…..imo….it seems like as per Spanish law a feasibility study is required prior to any exploitation license being granted.
The following are necessary before obtaining an exploitation concession:
* Application. For exploitation concessions derived from research permits, the application includes:?
* the designation of the land in question, which, in all cases, must be included in the land granted for the investigation permit;??
* a detailed report of the geological nature of the deposit, investigations carried out and results obtained; and ??
* a feasibility study and a project for the use of the resources, including a report on the exploitation system, an outline of the infrastructure, a work programme, a budget for investments to be made and an economic study of its profitability, and sources of financing, with the guarantees offered on its viability. ??Source : https://uk.practicallaw.thomsonreuters.com/w-010-6661?transitionType=Default&contextData=(sc.Default)
I dont think many seasoned investors were too bothered to see him go last time :-)
If anyone is invested in ARCM, you may see that there is a different view on Bird out there and, even more eye-opening, the suggested reasons for his suddenly stepping down from Jubilee...
Sorry but with savings being explored and remuneration being tweaked i cant see another guy like Bird coming back to the trough when we cant really afford the ones we have.
Bricks, quoting from the article you found, Colin Bird said:
"He added that he will also step down in six months with his focus in future to be companies at an earlier stage of development."
Hope one of them is us as I think we need someone like that back on board.
I hope you are right , maybe the cost cutting is because they have a target so incentive..
And thinking logically…whatever asset we acquire will have to be revenue generating from day 1…..not trying to get everyone’s hopes up but for me a JV with Jubille or a newco with them will be revenue generating from day 1. GLA.
It’s the guys in Spain I think it refers to. They have a big team on the ground in Spain Highside.
You may be right Bricks but this doesnt really for fill the brief which i thought was to expand on the experience gained by the assembled team with Toral ?
And doesn’t this sound familiar ?
Jubilee said it believes its process to treat ore from multiple sources through a single, centralised processing unit while at the same time cleaning up historical environmental mine tailings liabilities can be applied globally to create more value and improve the environment.
Crisp
I think ewe have already established you know little about EUZ, this is not GGP or EUA. You do need a PFS in most cases and thats why they appointed WA as PFS managers in June last year. There is only x amount of money and since the last raise the strategic direction has changed and i suspect a new project has taken priority over the old project, probably because of new outside influence from Aus. I believe that Toral has pretty much gone as far as it can on the money they have bar tidying it up around the edges but its not a full time project for the team they has assembled so they are looking to diverse under the flag of realising "more ?" value to shareholders.
The only fact we have is we dont know what they are playing at and the updates are pretty spectacular at not really updating.
Are they going to buy up old quarries and fill them with ****, Are they going to go back into SA and look at Iron ore :-) Will LR open a coal mine in Yorkshire. I'm not sure i really care anymore :-(
Listening to LR again….It doesn’t sound like the value event is in Toral Chrisp…To me it sounds like the acquisition and the quarries play a big part in this acquisition imo. The only people I know of that have the technology to reprocess old mining tailings are Jubilee. Based on their new strategy which is previously they are to set up a separate international division to roll out its metals processing IP on a global scale.
My take on this is that we could be part of this new separate international division.
CB left EUZ rather quickly and no reason why was forthcoming from our BOD. They have a plan I am sure….and they are busy getting their ducks in a row.
Based on how they are accruing shares in lieu of salary I don’t see anything happening until July.
This is my opinion anyways but have a nice day and GL.