RE: Think I'm going to buy a house to celebrate6 Feb 2020 15:48
this is post of the day earlier and great info:
This Company, Eurasia Mining, started life approximately 24 years ago on the AIM market, this was a new market platform set up with the intention of empowering new startup companies with very small M/C and to enable them to get good access to funding through various means, this market was somewhat abused by dubious companies and led to the platform to become known as the " Traders Paradise " where no serious investor would invest any large amount and certainly not for any length of time, it became known as the Casino for gambling, rather than long term investing, the mentality to Buy on rumor and sell on news, good or bad was the norm, most companies did not last long, and if they did, most shareholders were massively diluted by cash raises and trapped underwater.
EUA believed in its self, and tried its hardest to be the exception to the rule, it was a long struggle to gain all the relevant permits and mining rites, and the directors and senior staff believed in the company so much that when the cash position was so low they might have folded they accepted to take shares at par in lew of pay, and have continued to purchase more shares along the way, one to the tune of £50,000 last June.
The Company has now turned the corner and proved it has vast resources within its acreage, and surrounding flanks, is in the enviable position of being 100% fully funded, is growing organically and self-funding, has cut out the subcontractor at one mine and now runs as an owner-operator gaining a 75% margin since last September. The value of the PGM's mined has recently gone through the roof and is continuing to do so, palladium going for approx $1900 per Troy oz.
One of the company's mines has circa 2M oz of PGM's, more in the to be added flanks and with only the current low mining output, the company anticipates a 16-year life of mine producing 125,000 oz’s palladium equivalent per annum, Assuming a 20% discount (for the smelter) and a long-term palladium price of $1,900 oz.
125,000 ounces ($1,900/oz 80%) = $190 million revenue per annum.
This minable output is due to be increased and ramped up in 2020, the company if it does nothing and just carry on just prints money going forward.
The company finding its self in this enviable position has engaged two world-class banks to monetize this position.
Either company sale or assets sale, we are currently way undervalued.
Why is this? We are on AIM, where the share price merely reflects sentiment rather than intrinsic value, that's all, and indicates to me with the facts laid out that the market does not yet have a grasp on reality with what the true value should be for this company.
The board and senior management are perfectly aligned with shareholders and want the best price going for this in a company sale. This stock could be the bargain of the decade, and with flanks approval just around the corner, who knows what this could go for in a full compa
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