Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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BricksSA, Cheers you have just jogged my bad memory. From a podcast probably sept/oct time 2018. I am going to have a look for that now as you say can't post pictures here. Think it might be a good time to set up a facebook page for EUZ so we can share stuff of value. Cheers Bricks
@Nige...The NPV will automatically increase when the resource is taken from inferred to indicated as the risk is radically reduced for any buyer....The question is by how much.....I have a presentation done by Justin Waite but unfortunately cant post pictures here...however the Vertical axis is Increasing Value and the horizontal axis is the phases of Exploration, Scoping/Study , Pre-feasility Study, Feasability study, Construction and Operation…. One can see one of the biggest value growths is when the resources move from inferred to indicated...so my belief is the NPV should at least double.
BricksSA well done at 1%, I am not far behind you and a good long holiday to come soon I think.
Interesting take BricksSA & Oiltap, LR previously spoke about selling the asset at a discounted rate, the burning question, "What percentage discount?". Open to offers was also branded around. I think that for now we should not carried away with any with an increase in NPV, although I stongly believe it will be. Let's stay with the £89M for now and discount it at 20% which equates to c£70m or c17 x current SP. The next question to try and answer is "How quick could a deal get pushed through and would our large investors DB & BHC back it?". My thoughts on that are that maybe a deal as already been agreed in principal and subject to the licenses being approved, then will be announced to the market.
17 times the current SP as we stand so then factor in any upgrades to the JORC!!!!
Intersting times ahead, personally I would snatch there hand off at an offer of 0.5p, but would like to hear other investors opinions. This is open for discussion. Oiltap I know you are good at crunching the numbers so would welcome some input.
Regards
Everything points to things being put in place "in a hurry"......The next AGM is scheduled for the 5th November so I suspect before then......To answer your question..."How much will the shares be worth " ? My belief is the sale of Toral will make the SP irrelevant as one will get a "special dividend" based on the selling price of Toral which I have already estimated. This IMO is the slingshot LR refers to and his statements already placed on record as regards the SP on EUZ.... This is my opinion only and I am a private Investor that owns 1% of EUZ.
Personally I don't think EUZ would continue after a sale of Toral. We relinquished the other Spanish Licence so it looks like everything is packaged up and pointing to a complete company sale. LR and MC have numerous other business interests so I just don't see the motivation for retaining the EUZ entity. I think we're looking at another month before the resource estimates get fully updated and then things could move fast.
How long do you think ,and how much will the shares be worth
Imminent sale IMO as well Oiltap…..Here is my logic.
The seemingly hasty plan to move the license from exploration to exploitation phase….(Validity was 30 days) This is a pre requisite for any sale in the mining industry. Once this is attained deal will be finalized IMO.
Current NPV $110. (based on inferred) They are expediting taking the resource from inferred to indicated thereby decreasing risk for any buyer and in addition will more than likely be increasing the JORC resource estimates from current 16M ton to at least 19M (which it was before they realized their land ownership error. I think this was most probably only picked up as someone interested in buying was doing a due diligence)...possibly greater…..If its being compared with CAMA more like 24M tons. This will at least double the NPV which will be about $220m. A sale of at this price would mean a special dividend payout of approximately 0.016 $ or 0.013 GBP…..or slightly less to keep “exploration” activities going with EUZ. This way we keep our shares in EUZ and receive a special dividend paid.
Expect news very soon on the licensing…and the sale of Toral….IMO
Are there any recent precedents regarding granting/refusal of exploitation licences in that region of Spain, to gauge the likelihood that Toral might be sanctioned after due process? So many times in so many countries, including EU ones, have I been affected by political and/or grassroots opposition to otherwise economically viable mining projects, that such a question over this project is not insignificant and a dampener on its current valuation.
Been contemplating putting all my money into EUZ probably won’t though and my question is as follows. Is there any significant chance of the share price not tripling to the TP note valuation of 0.095 by the end of the year and if so why?
Thanks again
Great thanks for all the info. Schoolboy error I admit with the currency but the rest was clear. Market is a bit tight with the valuation re in ground to co valuation it seems.
Oh well I'm in for the longest term so lets see.
For starters the 2.58b is a US dollar value......you need to change that to GBP.
The market will not value small exploration companies at what they infer is in the ground........the so called "in ground value".........instead they will most likely place a value of 1 to 3% of that......hence the sp knockdown..... and even that only when everthing starts to line up and the company is moving in the right direction. We are a long way from 1% ....0.176pence.......due to some bad decisions lately but now seem to be back on track........hopefully :)
Hi TicoR. Thanks for the info and hard sums. Please could you explain what you mean by knock down to the share price?
2.58b divided by 12b = 21.5p right? Then what?
Thanks for your help
Those figures are eye watering. Who is going to buy it...? Surely we won’t be taking this to production? (Despite handy silver trailing income). Help me out here!!!
have nothing to do I would revisit the inferred numbers........
640K Tonnes Zinc ($2255 per T)
510K Tonnes Lead (£2038 per T)
26 Tonnes (13m oz) Silver ($18 per oz)
Estimated in ground value $2.69 b
Estimted total CAPEX $110 m (assuming includes $25 per T processing cost and $35 per T mining cost)
Resultant estimated in ground value $2.58 b
12 billion shares in issue.
factor in 95% knock down to sp = 0.88 pence.
96% kd = 0.70 pence
97% kd = 0.53 pence
98% kd = 0.35 pence
Taken from RA1s previous post.
"Remember, the key to reaping meaningful gains here is to go LONG; the stock is profoundly mispriced."
My take on TSP's posts is "I have missed this great opportunity so I am going to stick around now I have invested this weekends beer money here, so next weekend I can go out twice instead of once".
His buy was a last minute decision at 16:28 Friday with a staggering £100.00
You've got a good memory, Year1970, if only selecting two dogs I held. Hope you were in eco also. ATB.
If my memory is still working properly (well I am still under 50 and working at the moment) then I guess you used to invest in VAL years ago and and as recently as XTR...I jumped in here about 3 weeks ago. All the best.
SP progress this week in anticipation of and aligned to that great RNS. Hoping that another good RNS drops early next week to keep that momentum going towards 0.04s and beyond.
BTW.....I see TSP post removed again...:)
Just added some more.
EUZ can forward sell the silver. Doesn't that bloke read anything.
the word "long" is mentioned a certain individual crawls out from under his rock to give us all his words of wisdom.......I wonder why ?
Desperate attempts to get in cheap. No one knows what's coming placing, take over, joint venture, bod buying, II buying etc etc dyor Place your bets gla
I'm one of them, and they are staying with me for a long time yet.
GLA
Just read and re-read RA1 posts and you'll certainly stay long! GLA.