Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I think they are waiting for the licence transfer to happen, which is out of their control. BOD probably as frustrated as us that this is taking time.
I'm hopeful that the jorc announcement will also include asset sale details, otherwise we'll have the usual naysayers accusing the company of kicking it further down the road.
My view hasn't changed; I believe the 'significant' dividend will come from the value of MT+Flanks, plus a buy-out fee for the JV ownership. (50p-75p would be my guess)
I don't think a third party will pay 100% upfront in full for the JV assets. I think EUA2.0 will operate the JV between NN on the ground and a 3rd party who will finance and purchase the metals over the next 10 years. EUA2.0 will receive a fee for services and probably volume based pay outs. This will be also reflected in the share price (50p-£2? anyone's guess)
Transfer of licenses should start the whole deal process off..... shortly
Wow - some very touchy folk on this morning.
Wasn't a deramp, quite the opposite, I've said it is a good time to top up. The view goes some way to explain the sp movement at the moment. Fundamentals looking very positive, but we're stuck like glue at 25.5p.
One thing I can't agree with is that if we get to 35p/40p and the ii's exercise their options at 26p before any deal is announced, the sp would definitely drop significantly. You're in dreamland if you think otherwise. Do I think this will happen NO, but it could and no-one could stop it.
What happened last time we were at 35p?
There are now a number of warrant options at 26p from both the first and second placing.
We all assume that the warrant holders will be in this to the end, and only exercise their options if/when a deal is done. But the BOD can't control their actions, so if the sp did climb to 35-40p on a JORC read out, then the iis with the warrants could cash in. This would be a really bad signal for the deal and probably see a collapse to the 15p range again.
This will make other iis nervous in investing above that value, so IMO we're stuck at 25/26p until a deal is RNS'd, regardless of JORC results.
Positive to this is that there is opportunity to top up.
" in April engaged Wardell Armstrong International for several comprehensive tasks including JORC resource audits"
Obviously making a point that WA are around to do other tasks not just the JORC audits. Any idea what other work they could be doing?
IMO if the BOD were happy to sell for anything under 30p/40p they would have sold it last year during the FSP.
If they were looking for 50p they could probably have sold to the interested party.
The only reason to entertain other parties is for a higher sale price.
If you trust the BOD then this is a positive step.
I hope that the mention of "announcing" the JORC report is hinting that it would be part of a bigger announcement on asset sales.
Because I actually don't think the sp would move up that much if the Nyud JORC is announced on its own.
It's as good as certain to arrive shortly but we're still on 25p.
The wider market wants to see how it is going to be monetised by EUA.
(I personally think that this is crazy and the value should be being baked into the sp with all these positive steps)
The RNS mentions JORC at the JV, but I've been searching through the previous RNSs for details on the Flanks. I'm sure that WA were also working on Flanks data.
Could we see a Flanks JORC announced at the same time as the Rosgeo Jv JORC?
Wow I'd switched off for the evening!
The late late show!
I knew there would be an RNS with the placing confirmation, but that extra paragraph is a real bonus.
JORC update on JV cannot be ignored. This SHOULD rerate to an ATH. Who is going to risk being out of this now?
Few drinks Friday night!
It is staggering looking back to the 26th March RNS Rosgeo JV announcement that it had no impact on the share price. We were at 28p on 26th March, and currently 24p. The disconnect to fundamentals and positive steps the company has taken in that time is baffling.
Not only did it significantly increase the long term resources available to the company, but it gave a lot of credibility to the company being an agreement backed by the Russian Government.
"The Directors are delighted to sign this agreement with Rosgeo, which by expanding Eurasia's open pit assets both in palladium, platinum and in battery metals by a total of 104.6 Moz Platinum equivalent resources, unlocks a number of additional opportunities for the Company and its shareholders."
These large movements up and down recently have usually been in advance of an RNS.
With so many professional firms working with the company at the moment it will be difficult to keep everything watertight.
I'm hoping we'll get the license transfer RNS in the morning.
Editing went wrong on that:
This part caught my eye from the placing RNS:"the Directors are confident that the Private Placement will further strengthen Eurasia's negotiating position."
I think this is the first time we've heard about negotiations since the FSP ended.
What is everyone's thoughts on;
- Who are we negotiating with?
- What are we negotiating over?
I had thought previous to reading this that the deal to sell MT + some of the JV assets was agreed and we were just getting the necessary audits in line. However, reading this it has made me wonder where we're up to.
Are we negotiating with Rosgeo to transfer the licenses, and extra $ shows we are committed?
Are we still negotiating which assets will be part of the sale and if we can transfer more JV assets we might be able to include those?
Are we showing a potential buyer that we could go it alone and mine it ourselves without the proceeds from MT? (I hope not this scenario)
This part caught my eye from the placing RNS:"the Directors are confident that the Private Placement will further strengthen Eurasia's negotiating position."I think this is the first time we've heard about negotiations since the FSP ended.What is everyone's thoughts on;- Who are we negotiating with?- What are we negotiating over?I had thought previous to reading this that the deal to sell MT + some of the JV assets was agreed and we were just getting the necessary audits in line. However, reading this it has made me wonder where we're up to.Are we negotiating with Rosgeo to transfer the licenses, and extra $ shows we are committed?Are we still negotiating which assets will be part of the sale and if we can transfer more JV assets we might be able to include those?Are we showing a potential buyer that we could go it alone and mine it ourselves without the proceeds from MT? (I hope not this scenario)
Christian says the placing cash is for JV"acquisitions".
From the 15th June RNS:
"Euraisa, through YGK, will also have a RIGHT TO ACQUIRE Rosego's 25% shareholding in Monchegorskoe LLC upon the completion of a JORC Code compliant competent persons report on Nyud."
JORC must be very close for Nyud + others. Huge news and should give a massive re-rate to the sp.
My understanding of the JV is that EUA has 75% ownership, and can apply for transfer of the individual licenses (at 75% ownership).
Once the license is transferred, then EUA has the option
- to buy out the other 25% ownership. This would need funding.
- to develop the asset i.e. start the earn-out phase during which the assets are purchased for an auction price. This would need funding, especially if the price is higher due to higher resources readouts.
To me this funds raise is a signal that the license transfer is close, and that the auction price is going to be higher than first expected, so more resources.
So overall i'm expecting the Nyud transfer + 25% buyout in the next week.