RE: is this it ???17 Jun 2019 22:05
Well I don't propose to crawl over every word of that but the opening paragraphs seem to outline the gist well enough.
1/ They appear to be targetting "lignite" (presumably this is about coal mines then??) quarries - whether that's exclusively or not I don't know but I imagine lithium mining in Czech is new
2/ The two main areas of focus appear to be A/ a company having escrowed reserves of cash to cover any necessary clean-up in case they go bankrupt etc and B/ the government being able to throttle their level of remuneration from the company if the commodity they're mining balloons in market price - clearly, that's possibly relevant to lithium in the future
So, not much there with specific interest - at this stage - to EMH.
I've done a bit of mooching about though re the mining permit issue and it's really quite interesting.
There are some government types who think the state itself should do the mining (what year is it ffs???!!!) - including some commies of course lol
The reality is though that EMH have priority rights to any mining permit given as part of the original go-ahead for exploration. Moreover, Australia and Czech have an investment treaty giving EMH legal recourse to pursue compensation from the Czech govt if they renage on that original deal/understanding.
The Czechs also know that they could blow this completely if they cause huge delays or (IMO) try to do it themselves which I would assume will lead to the usual "public sector" level of efficiency, i.e. multiples of private sector cost and multiples of private sector delivery timescales and, moreover, they know they face competition from Rio in Serbia and across the border in Germany for lithium so they know they have to pull their fingers out.
Clearly though, EMH have carried on regardless with the drill campaign resulting in today's 2x PFS NPV.
I also note that EMH were alleged to have received an offer for the project from a Czech-backed private company in January ahead of today's big PFS upgrade which is obviously interesting because that could conceivably result in a shorter-term positive result here than you may otherwise think if those guys put in a lucrative enough bid for EMH to think it's worth taking the short-end money for their efforts so far.
All in all, there's obviously risk here but you'll have to weigh up the merits of the proposition yourself - FWIW, I'm pretty clear this is trading at barely half the price it "should be" right now based on those PFS numbers ...
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