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Lesego Platinum due diligence and CEO site visits of both Monchetundra and West Kytlim
Mr. Churakov has recently helped to arrange detailed due diligence and multi-day site visits by James Nieuwenhuys, CEO and Director of Lesego Platinum as part of the Lesego Platinum's evaluation of both Monchetundra and West Kytlim projects. Over the past few months Lesego Platinum performed due diligence of Eurasia's assets accompanied by several days of visits of Monchetundra mine and Eurasia's office in Ekaterinburg to study the West Kytlim mine.
Over the course of the site visit, Lesego Platinum studied and evaluated infrastructure availability and logistics access, drill core samples, results of laboratory test works along with other information and raw data, which form the ground for assessment of both Monchetundra and West Kytlim projects to consider, amongst other options, potential partial acquisition of Eurasia's subsidiaries and joint venture opportunities at the sites. Despite the synergies and the motivations of Lesego Platinum, there can be no guarantee that any transaction will occur. Further updates will be provided in due course including the potential of James Nieuwenhuys joining Eurasia's board if these matters progress. This appointment is subject to customary approvals, amongst other things, due diligence on James Nieuwenhuys, contracts and Nomad checks. Further updates will also be provided on this if it progresses.
Lesego Platinum owns, what the Directors' rate as a world class PGM assets located some 300 km North-East of Johannesburg, at the northern end of the Eastern limb of the platinum rich Bushveld Complex. James Nieuwenhuys, its CEO and Director, has significant experience in Russia including 5 years as Chief Operating Officer for Polyus Gold, the largest gold producer in Russia and held Managing Director positions in two of the most active EPC organizations, being Bateman Projects and SNC-Lavalin.
https://polaris.brighterir.com/public/eurasia_mining_plc/news/rns/story/xz2myox
Production at the West Kytlym field has been underway since 2016. According to the presentation of the company, which Kommersant got acquainted with, in 2018, 165 kg of platinum were mined with a projected production volume of up to 1 ton of metal per year. Monchetundra reserves are estimated at 60 tons of platinum and palladium. Eurasia Mining has signed an EPC contract for the development and launch of a 4-ton-per-year field with China's Sinosteel, which will provide project financing in the amount of $ 150 million. Upon reaching the projected production level of 4 tons per year, revenue will be $ 160 million, EBITDA will exceed $ 70 million. .
The interest of the South African company in Russia can be explained by the relatively low capex and cost of mining platinum group metals, as well as the ability to conduct open pit mining at these deposits and the availability of infrastructure. So, on Monchetundra, the power line is brought to the boundary of the facility, the federal highway and the branch of Russian Railways are adjacent to the field. In South Africa, where 70% of global platinum production is concentrated, readily available reserves are depleted, and the profitability of most mines remains only a consequence of the weakness of the local currency.
At the same time, the platinum market is surplus. According to a recent review by Norilsk Nickel and ICBC Standard Bank, demand growth is lagging behind supply due to weak consumption in the auto industry and jewelry sector in China amid growing consumption in other industries, mainly in electronics and chemistry. Next year, experts maintain a forecast of a slight surplus.
According to Irina Alizarovskaya from Raiffeisenbank, the price of platinum has grown this year due to investment demand, and not fundamental. “There is no reason to expect an increase in platinum prices, since there is no transition from palladium to platinum in automotive catalysts due to technical features,” the expert said. According to her, the cost of licenses at the Monchetundra and Western Kytlym deposits can be up to $ 5-6 million. However, the total capital costs for the construction of an enrichment plant and the development of the field at Monchetundra are $ 176 million.
https://www.kommersant.ru/doc/4094972
Newspaper "Kommersant" ?168 from09/17/2019page 9
Junior Eurasia Mining Plc, which owns assets in Russia, reported that South African Lesego Platinum carried out due diligence of its two platinum deposits on the Kola Peninsula and the Urals. South African investors can buy a stake in junior subsidiaries or create a joint venture, but it’s too early to talk about any decisions. According to experts, licenses for these assets can cost $ 5–6 million, and about $ 200 million are needed for their development, with a surplus in the platinum market.
Over the past few months, the Sino-South African Lesego Platinum has carried out due diligence of the Monchetundra platinum deposits on the Kola Peninsula and Western Kytlym in the Urals, owned by British Eurasia Mining, the latter said. A Lesego delegation led by CEO James Newvenhuis assessed infrastructure accessibility, logistics, sample samples, and laboratory test results. Lesego may consider a partial acquisition of Eurasia Mining's Terek Mining Company and Kosvinsk Stone, or the possibility of creating a joint venture. The message emphasizes that there is no guarantee that the transaction will take place.
Lesego Platinum is developing a platinum deposit of the same name 300 km from Johannesburg. Junior Eurasia Mining (21.79% with directors, 12.48% with Queeld Ventures Limited, whose beneficiary was previously called a certain L. Ananyeva) is engaged in mineral exploration. Financing comes both from own funds and from established joint ventures.
Wow everyone is ****1ng their pants about this interview. I remember someone on this BB calling EUA after the SP tanked last time and they said they thought it was a coordinated attack from multiple institutions to drive it down! Be careful of that happening again, don’t panic and hold! It can only be positive news...why would he do it otherwise?
Been so busy with things but every time i looked at the share price it rose, 4p was another milestone for me, worried about this interview though because of last time. Good week on the market with all my babies rising and I3e finally joining in the party of late
i think a billion is a bit on the light side, at 13moz nearly all palladium, do the maths
Yes thats why nobody is talking about it....
Is the interview out yet?
I hope the Editors can speak and understand Russian...or Ruslish.
This is the same conversation that we all had last time. It will arrive when it arrives and wont contain anything other than what is already known but will provide more airplay for a company going places.
The Editors of the interview must be on double pay having to edit the content. How does one hold back news that we are worth close to 1 billion with MT?
Surely if the interview is complete and being edited then it’s in the public domain so nothing price sensitive otherwise we would have had an rns by now..
" They are in the process of editing the video, and will publish a written/audio podcast shortly".
After the release I suspect we may see a shake, followed by another high later on this afternoon. The podcast will not say anything new, but the next RNS certainly will.
infact, that's a bloody good idea
they could release it after hours today then an RNS 7.00am Monday
They’d have to release a RNS saying that first, or it would be smacky bottom time
Could be a brief release to state negotiations are formally underway.
That would catch a few people with their pants round their ankles, booties slapped on way out, thank you sir.