Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Here are 5 from 2017 ranging from 382% to 1,066%......................
https://www.bvresources.com/blogs/bvwire-news/2018/07/31/how-high-were-m-a-premiums-last-year-see-the-five-highest-premiums-offered
Calamari: We are not talking about one company here. We are talking about and entire industry being mispriced by the market by a factor of at least 25. If EUA sells, then it means that every analyst, every trader, every bank, every brokerage, every single market participant in the world is wrong about the PGM industry on a scale unprecedented in history. Except of course for AIM tiddler EUA and its merry band of punters. They have somehow spotted the greatest single financial revaluation in human history.
As I said in the other thread, I actually hope it happens, as an EUA sale would imply a valuation for THS (which I hold) of about £10bn, or a 30 bagger for me!
Calamari.. "Many companies have been taken over at 5 or more"
This is an extreme exception, back up your statement with a few non pharmaceutical examples pls... otherwise I call FAKE NEWS.
MadStork
Perhaps this may help explain and I am honestly not trying to be patronising but I feel gives a good example - imagine the art world, imagine all the Picassos paintings in the world. Well, we know they are worth a lot, we don't know exactly what each one is worth, we may know what it sold for when it last became available, but that really is our only idea to try and value them.
Then one day a 12 inch by 12 inch Picasso comes up at Sothebys, never before been for sale, found in an old lady's attic, it sells to a Chinese collector for £200m.
What does that now mean for every Picasso in the world, well it probably means that they have gone up in value, if I had one which was 24 inches by 24 inches would it necessarily be worth 4 times as much.........who knows, I would only ever know at the point I came to sell it, I would only be guessing before that, still only have previous sales to judge on.
Point is, we never know the value of anything until it is sold and we see what someone is prepared to pay for it, many businesses never come up for sale and therefore we never truly understand their value.
Maybe SSW is worth significantly more than MCap suggests, I actually suspect it is, maybe in time it will return that value to shareholders in various ways, maybe it will never come up for sale in our life time and we will never know.......
If only the market valued every listed company as if it were in a FSP and about to be sold in the next few weeks eh? Then you'd have a better comparator
MadStork - surely you are not so naive to believe that companies are actually worth whatever their MCap says it is.....?
I would doubt any company ever has been sold for it's MCap. Some companies get sold at hefty premiums, it happens all the time, others collapse never to be heard of again due to a myriad of reasons, but one thing is absolutely and definitely true - the MCap of a company is a rather arbitrary figure and rarely, if ever, represents what a business is actually worth.
I imagine this is especially true when you are operating in a PGM world with a very limited supply and also happen to operating at a time of world record demand..........
A sale of EUA's 2moz measured and indicated resource, plus 15m inferred (being wildly generous here - it would *not* count as inferred under JORC) for £700m - £3bn would imply a market cap for SSW alone (400m+ measured and indicated, plus another 500m or so inferred) of about **$1 trillion**, leaving aside the fact that SSW has massive *reserves*, production and cashflow on top. So actually probably more like **$500b - $2tn**. A nice 100+ bagger for SSW holders, making it the most valuable company in the world. Vodkas all round!
What I mean by that is a valuation of EUA at £700m to £3bn *instantly* means every other miner is wildly, wildly mispriced. That is not the same thing as a gradual appreciation of an asset over time. This would be instant, massive, completely unprecedented in history and, I would suggest, completely absurd.
I
Get into your green coffin TMS, you silly little man
What planet are you on?! Go take your meds and come back when you make some sense
If EUA achieves a result which values the company at anything close to the current mcap, it would imply that there has been a misallocation of capital unprecedented in world history. The "next EUA" will be every single PGM miner on the planet, as they should, given an EUA sale price of £700m -£3bn, be undervalued by a factor of 25-100. Bags for everyone! Any by 'everyone' I mean the entire PGM industry, as the 3 top miners alone would be worth more than the entire capitalisation of the London Stock Exchange.
VLS..... planning permission granted, FEED completed, awaiting government policy on funding of sustainable aviation fuels any time soon, with COP 27 taking place here in November, the pressure is increasing daily to commit
The EUA story isn’t complete yet so why start looking for another investment? there’s still potential for good gains here.
Without going into share price predictions, it all depends on what price you got into EUA and your perception ie 10 bagger, 100 bagger or for some potentially maybe even 1000 bagger.
If you’re looking at 10 fold returns, there’s a hell of a lot with potential on the market. 100+ fold returns, you need to look at some riskier investments that are still in infancy and likely to have numerous projects, ones like GWMO, SRES, ARK or THR. The obvious risk however, is that none are currently producing. This increases the chance of dilution, which in ultimately lowers your potential return.
If you’re looking at resource size, the only one on the market I’m aware of in comparison, that the mcap is still rock bottom, is KAV. It’s openly said many times it believes it’s KSZ project has similarities to Norilisk. However, there’s a reason for the low mcap and that’s because it’s still early days and there’s still a big risk. Until it digs later this year / early next year, the risk is very high. On the other hand, if you’re one to wait until something is “de-risked”, it’s very unlikely you’ll get in early enough to see the biggest returns.
The only thing I would say is that if you’re looking for a 100 fold return, you need to be looking at holding on to something for a minimum of 3 years, likely much longer.
Mooching, you mis-understood. Zoe may be the next fevertree. There’s a possibility it will be even bigger than eua. That’s why I qualified it with the “do a background on it”. Good bod, just like eua. Global product, just like eua. I’m only trying to help people out that missed this one. As always if you think it’s rubbish don’t look. I’m not advising people to buy as I may be absolutely wrong. It’s just my opinion.
When people ask "what's the next EUA", they are not asking for your success stories or which shares have already bagged multiple times, they want to know what's the next EUA that's still at the 0.7p stage.
Have a look at zoe. I went in at 5p and have never looked back. Do a background on it. Potential is excellent. Also itm. Volatile. Like finding money in the streets.:-)
You'll never find another EUA, it's the very last PGM district in the world for sale. That's why the green box brigade are so desperate, they want as many shares as they can get a hold of before this monster concludes.
Don't get me wrong, there are other decent mining companies out there on AIM, but, none are anywhere near Eurasia's asset potential and timed so perfect for this incoming green energy revolution.
Feet up and relaxed, sipping on some nice chilled cherry kola!
GLA
HE1 and ZIOC. Been in HE1 since before the RTO and they have 4 bagged. ZIOC is a lottery but $75bn in Iron Ore will find value eventually, current mcap £25m.
I’m watching mgc pharmaceuticals at the moment as I think they’ll do well in the future and they’re relatively cheap at the moment. Long term things like kod and prem but I’m thinking years away for big returns. Also quite like ufo.
I had some KOD but came out of it, yes has potential and will make some gains but as said dillution and no trust in the board or government makes it a long term gamble. Doubt anything will match EUA for a time. I dropped onto a gold miner in its early find years .. fingers crossed
Sorry for catching up question. Who’s the new or next EUA pls. ?
12 million for me and adding. That licence will multi bag the stock. Lovely..
There is one similarity with EUA
They are all bickering on that board also.
Nothing will match EUA. As for Kodal Minerals it has taken a spurt, however they have Riverfort Capital on board and that means one thing ... dilution IMHO...