Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
From where we was last month, this is undervalued by a mile
https://www.kitco.com/news/2020-04-23/Can-palladium-see-temporary-surplus-this-year-Norilsk-Nickel-makes-its-projection.html
Coronavirus has really impacted palladium prices in the last month as global shutdowns tanked auto demand and, at the same time, put some pressure on supply. Palladium went from an all-time high of $2,700 seen at the end of February to nearly $1,400 by mid-March.
Supply concerns have been one of the main drivers behind palladium's stellar performance this past year. The majority of palladium's demand comes from the auto sector as the metal is used in catalytic converters that reduce emissions in gasoline engines.
Even now, majority of analysts are projecting a supply deficit this year, according to Rhona O’Connell, INTL FCStone’s head of market analysis for EMEA and Asia regions.
But big news this week was Norilsk Nickel, the world’s largest refined nickel and palladium producer, contradicting the majority of analysts, and projecting a small surplus for this year.
“While the majority of market analyses have been pointing to persistent structural deficits in the palladium market, ourselves included, Norilsk caught the attention yesterday when forecasting a small surplus this year, albeit of only ~0.1M ounces,” O’Connell said Thursday.
This is projected to be a temporary surplus as Norilsk expects deficits to resume once the world reopens after the coronavirus outbreak.
“The company's outlook for light vehicle sales, predicated on numbers from LMC Automotive, a major consultant in the sector, involves a net overall fall this year of 21% with a 15% gain in 2021—which would still leave sales 9% below 2019 levels; our interpretation of this is that it would put palladium offtake at perhaps 7% below 2019 levels given increased loadings as regulations tighten,” O’Connell said.
Norilsk Nickel’s projections were made public during its latest investor presentation.
Norilsk’s production guidance remained at the same levels as before the virus — “2.65-2.78 million ounces of palladium, 611675 Koz platinum, 225-235,000t of nickel and 475,505,000t copper.”
When it comes to the COVID-19 crisis, the company said it put aside $140 million towards medical supplies and infrastructure. “Norilsk notes that so far there has been no impact on operations, sales or procurement with the exception of minor cancellations of nickel and palladium deliveries; supplies and logistics are not disrupted as almost 90% of materials and supplies are sourced locally,” O’Connell added.
In light of Norilsk’s estimates and plunging auto demand in Europe, O’Connell has updated her own forecast and now projects only a small deficit for this year.
“We have revised our palladium numbers and are now looking for the market to be in a small deficit of perhaps one week’s demand, increasing again to roughly three weeks’ demand next year. It is important to bear in mind that new car purchases often involve the change-out of a previou
Enjoying reading some of the posts this morning - great work all.
@Banjo2 regarding the NOMAD, I don't see a problem yet. It may become a small problem if we do not have one by 29th May but that is a long while away. WH Ireland are leaving and EUA will be getting a new NOMAD, all of whom are working together.
IMO this change is for the better. (Just my own opinion but I always thought the interview that we didn't get was pulled by the NOMAD - perhaps we could have worked better with another one. Pure speculation, but I'm quite happy for a NOMAD change).
The board believe the appointment will be before the deadlines so theres absolutely no concern. And this BoD are perhaps the best on AIM, which is why my faith and money is put in their company.
(PART 2)
[7. WEST KYTLIM]
- Machinery and equipment (trucks, bulldozers, etc.) help for aggressive expansion, however EUA are now working on a Feasibility Study for the entire mining licence area at WK. (Reminder: WK when producing 2 tonnes/year should be worth over $1bn+)
- Drilling over several seasons of mining has strengthened geological knowledge to allow the mining licence resource to “mineable” categories with a SINGLE PFS study – without further drilling!
- Aimed to accelerate the development of multiple sites in parallel, the WK mine will now enjoy significantly increase production volumes.
- TIPIL licence has achieved approval from all federal agencies; only the formal issue of the appropriate licence is left. Yet another surprise to come from this potential resource of palladium, platinum, rhodium, iridium and gold.
[8. RUSSIAN CURRENCY]
- This is very important, as EUA was already lowest on the global cost curve. As the company has devalued to USD by 30%, the operational costs in USD are much lower.
This would mitigate any temporary reduction in Pd spot prices – which are still healthy and expected to soar past the former highs of this year.
SUMMARY:
[+] Flanks application imminent
[+] Developing supply crunch from stalled production by the major PGM producers
[+] Recovery of PGM demand from China underway in March 2020
[+] Increased investor demand from mining events
[+] Unaffected by COVID-19 on site
[+] No debt, lots of cash
[+] Further Board expansion
[+] WK licence expansion, PFS, increased output
[+] Russian currency to USD favourable conditions
[+] Well positioned for STRATEGIC OPTIONS for our assets
Still very much looking like a Win/Win scenario for us here. Looking forward to seeing what EUA will pull out next, and what will happen when we open.. assuming we don't sell our assets for 78p+ ;)
Firstly, it always brings a smile when EUA mention their Monchetundra, open pit mine, is located 3km away from Severonickel - one of NORILSK NICKEL’s largest base metals & PGM processing facilities! Secondly, hats off to the recent impressive posters (RNSman, PP, GMF etc)
[1. CITIC]
Now EUA have clarified that its conversations with the merchant banking arm of the CITIC Group Corporate Limited – IMO Clues here in what CITIC merchant do; “provides M&A advisory, corporate finance, asset management, principal investment and fund management services”.
[2. DEMAND]
Assuming we don’t open/resume trading after a 7am RNS having sold one or more of our increasingly precious assets, discussions with institutional investors and private investors from the major global mining conferences of INDABA & PDAC will have garnered much more attention to Eurasia Mining’s vast Platinum Group Metal reserves on both mining sites.
Thus it would not come as a shock to see large volumes of buys from the above (as well as money from private investors other successful investments – thanks NCYT) pour into EUA upon open. MCAP is extremely low compared to asset value and should not be long before a sharp rerate upward.
[3. SOUTH AFRICA]
Temporary closure of the PGM mining industry in S.Africa (~70-80% of global Pt & 40-50% of Palladium supply) recently has further increased EUA’s attractiveness.
Limited access to Credit, South Africa into 'junk' territory, & continued volatility in PGM prices (particularly Pt) favour EUA’s MT and WK Open-Pit, low cost mining.
[4. COVID-19]
As we are now looking more stable than ever, also important to note the COVID update: operations are not affected & most importantly, our team can work uninterrupted and SAFELY with the correct gear & appropriate protection.
[5. CASH & LIQUIDITY]
(i) EUA has no debt
(ii) Maintains an unused credit line
(iii) £0.6m Cash position is after the expenditure on WK capital (new wash plant, mining equipment and ancillary items in 2019/20)
(iv) Capital expenditure is targeted at EXPANDING production
(v) Increasing the VALUE of the asset at West Kytlim.
(vi) Company's cash reserves, unused Credit line, revenue from the operations, expanded by the above-mentioned investments, all strengthen the position of the Company in its ongoing strategic discussions
It makes perfect sense ‘beefing up’ West Kylim. Be it asset sale or aggressive mining to increase production this year, the direction is looking
[6. BOARD update]
EUA have already strengthened the board & advisors; Alexei Churakov joined the senior management; Alexander Sushchev as a Strategic Advisor; and James Nieuwenhuys as a non-executive Director.
A new proposed board change to be announced shortly is a welcome surprise to investors. EUA already have a team of titans with skin in the game working remarkably on all levels – looks like the dream team is getting another upgrade.
no it was a tweet at 1:40 and suckered in a lot of people
really? because can buy whatever but cant sell a bean
Quite a few previous posts from users who believed the fraudster and racist Tom Winnifrith & his sidekick Gary N seem to have been removed.
Winnifrith must have gone on a "report"ing spree with his TDT, lamtree and other accounts.
And looks like shorting EUA has made him resort to one of his newer 12 post accounts, where he previously tried to pat himself on the back:
"His bear run worked then with TW and co, they got a lower price than everyone else, so he's happy to hold and is singing the companies praises.......but thats only cos he orchestrated the Bear run........Just checking my VPN is connected so no-one can trace me...." DIFTK, 5th Dec, SP: 2.575
Now trying to call a LTH "TDT". Lol. Leave it out, Tom.
Some important information:
https://en.wikipedia.org/wiki/Tom_Winnifrith
Controversy:
Winnifrith was expelled from the Liberal Democrat Party by Paddy Ashdown in 1993 for "pandering to RACISM". He was subject to an investigation by Metropolitan Police Service at the request of the Attorney General at the time, Sir Nicholas Lyell, and then Shadow Cabinet Minister Jack Straw.[8] As a racist, Winnifrith has been known to use the N-word on his personal blog.[9][10]
In September 2017, Winnifrith authored an article which claimed that the FCA would not be shutting down Beaufort Securities.[11] In March 2018, Beaufort Securities was SHUT DOWN, declared INSOLVENT, and CHARGED WITH FRAUD following a joint FCA, FBI, SEC and DOJ investigation
https://en.wikipedia.org/wiki/Tom_Winnifrith
Personally, I'd rather have nothing in the bank and maintain my integrity - Rather than shorting from off shore accounts, bringing my wife's name down with my own, and having such a lack of credibility that I'm seen as a laughing stock by the few people who have heard my name.
However, coming back to Eurasia and their exciting times ahead, it's evident that the flanks are just around the corner. As well as our potential disposal of MT and/or WK. One would wonder why people haven't closed their shorts yet, since this is only going one way.
Some useful links written by REAL journalists - not thugs who pretend to be 'journalists'.
The World’s Most Precious Metal Leaves Everything Else in the Dust;
https://www.bnnbloomberg.ca/the-world-s-most-precious-metal-leaves-everything-else-in-the-dust-1.1372753
Why Palladium is suddenly a more valuable metal;
https://www.washingtonpost.com/gdpr-consent/?destination=%2fbusiness%2fenergy%2fwhy-palladium-is-suddenly-a-more-valuable-metal-quicktake%2f2020%2f01%2f20%2ff7431302-3bab-11ea-afe2-090eb37b60b1_story.html%3f
More precious than gold: Why the metal palladium is soaring;
https://www.bbc.co.uk/news/business-51171391
https://www.youtube.com/watch?v=eT5YnnpsruQ&t=871s - Is a great video on this
"Suggest nobody hold their breath thinking #Palladium 'bubble' about to collapse.
Rather, if you hear or read someone describe this as a #bubble you can pretty much ignore or discount virtually anything they may have to say in the financial future"
https://twitter.com/TrivChannel/status/1219546679189430272?s=20
The controversial and widely despised liar "Tom Winnifrith" has been busy this morning. Logging into his "TrickyDickyTwo" account, his "lamtree" account. I'm not quite sure what smells worse, his desperation or his burning shorts.
This was a great post from the poster Driver, over at ADVFN forum;
“This post is from my EUA W/app group of LTH’s showing the figures valuation of $2b in the early article is only for 2m Oz’s without the flanks.
Alexei Chakarov, Strategic advisor for EUA has given an interview to a local publicist.
hTTps://www.kommersant.ru/doc/4221391
- News media is very much used as part of negotiations in this part of the world. So it sounds like Alexei Chukarov is drawing the line in the sand. Also note that the 2bn+ (which needs to be corrected from the 1bn+ in the published article, workings shown below) is for the 1.9moz (60 tonne) 130k per annum (4 tonne) production only. The flanks aren't even factored in yet!
- The calculations are as follows. But please note, operation costs will increase with inflation over time.
- Our total resource is 1,900,000 x Pd spot price used ($2300) = $4,370,000,000
(over the 14.6 years)
- Our total costs are 1,900,000 x $325 = $617,500,000
- Our gross profit is $4,370,000,000 - $617,500,000 = $3,752,500,000
- EBITDA = $3,752,500,000 / 14.6 year = $257,020,547 ($250,000,000 like in the article)
- Multiply the $257,020,547 by 8.6 to give you..... $2bn +
- The 8.6 multiplication factor is used to find market value and is taken from averages of other deals in the past, over certain sectors. Source below.
hTTps://www.bvresources.com/blogs/bvwire-news/2019/01/03/ebitda-multiples-by-industry-new-statistics-on-private-company-selling-prices
- Please note this is purely an average across the Oil/Gas/Mining sector. It could be much lower, or higher. This is where negotiations will be taking place. To agree the terms of Pd price used and the EBITDA multiplier.
- Also note the higher the Pd price. This goes directly on to their bottom line so it all increases exponentially.
driver101
The following was posted from a well respected Russian investor who closely follows Eurasia Mining, and has over 78k followers on telegram:
“The rally continues in the palladium market. So, if for the whole of 2019, the cost of palladium increased by 40%, then since the beginning of 2020, prices have added another 20%. It seems that I sold the shares of Norilsk Nickel early; there is a feeling to add more.
At the same time, fortunately, the light on the Norilsk Nickel did not converge. Recently, he has repeatedly written about Eurasia Mining (EUA LN), a palladium producer that develops deposits in the Kola Peninsula and the Urals. I keep the paper in one of the BidKogan service portfolios; the position profit is approximately 31%. The company's shares are a direct investment in palladium and rhodium, the price of which has also increased (over the year from $ 3,000 to $ 8,500 per ounce).
As already noted, the demand for palladium is growing due to an increase in the demand for the automotive industry for the production of catalysts used in gasoline engines. Dieselgate (those who still do not know, they are welcome to Google) in some way turned the picture of demand: platinum used in diesel ICEs has faded into the background, and now everyone needs palladium, the supply of which is very limited in the world. According to the forecasts of Norilsk Nickel, the world's largest producer of platinoids, the palladium deficit may last until 2025.
This is the main reason for the rise of Eurasia Mining quotes, which in 2019 increased several times. The fields owned by the company are very promising, especially given the beginning of the development of the flanks. The company's quarterly report, citing Rosgeology, indicated that the estimated resources (Inferred category according to JORC international classification) of deposit flanks on the Kola Peninsula is about 15 million ounces of palladium.
I note that against the backdrop of explosive growth, the leading media began to pay attention to a company hitherto not very well known. We already wrote about this at the very beginning of January: the material was published in the magazine "Company".
And then Kommersant published an article on palladium deficiency with a mention of Eurasia Mining.
As for the shares of the company, I believe that the growth of quotations may continue. In addition to increasing demand and, accordingly, palladium prices, there is another trigger for the company - possible interest and subsequent takeover by a large strategic investor. I carefully monitor the situation."
@bitkogan
Very promising to know leading media and press in Russia, along with several other well respected business tycoons have an eager interest in Eurasia.
https://t.me/bitkogan/5644
(telegram BitKogan link)
That's very true, Mac.
The giants in the industry need to secure their source of future Palladium reserves - if they don't, they run the risk of somebody else controlling the monopoly or worse - a technological change which would cost them A LOT of money (over $10bn) over the years. Why lose $10bn... when you can make $90bn from 40MoZ?
Pressure is on now. Buyers should be looking to finalise and secure their bids.
Palladium ASK: $2555
Rhodium ASK: $8750
Platinum ASK: $1023
EUA Close: 3.92p
https://www.bnnbloomberg.ca/palladium-tops-us-2-500-an-ounce-in-biggest-one-day-surge-since-2008-1.1375667#_gus&_gucid=&_gup=twitter&_gsc=MI1ZbCI/palladium-tops-us-2-500-an-ounce-in-biggest-one-day-surge-since-2008~1.1375667&_gus&_gucid=&_gup=twitter&_gsc=MEXSHcH
A VERY good week for shareholders.
What a Friday! This is looking fantastic for Eurasia Mining shareholders
I think flanks or something brewing in the background. 3-4 months since negotiations started (that we know of).
A major player in an article today wrote:
“As for the shares of the company, I believe that the growth of quotations may continue. In addition to increasing demand and, consequently, palladium prices, there is another trigger for the company - possible interest and subsequent takeover by a large strategic investor. I carefully monitor the situation.”
PS. Palladium live price at time of writing this: $2471
($29 bucks away from the glorious $2500)
Eurasiamining are exploring options for assets could make this the biggest sale in palladium's history due to favourable price environment for PGM.nOnce the respective licence arrives - EUA's assets in the KOLA region with 40M Oz potential = major game changer
https://twitter.com/GMF782/status/1218133678787686400?s=20
"Further thoughts on #EUA and what the increase in approved resources to 15Moz at MT could mean when formally approved... if they can improve the production plan >4 tons, EBITDA will increase beyond $250m. Eye watering numbers, who could afford to build a bigger mine?"
@GMF78 research
https://twitter.com/TrivChannel/status/1218136035382702080?s=20
The Kommersant interview, which is essentially Russia's equivalent of the "Financial Times" recognise Eurasia Mining's value and its potential worth. Eye watering indeed! Can see a massive figure for an asset sale - it will be interesting who the highest bidder was, and by how much.
Nickel_disruptors can jog on.
Meanwhile, on the PGM front:
1. Palladium $2268
2. Platinum: $1023
3. Rhodium: $7900
Looking exceptionally strong! Both mines should be looking extremely attractive right now
Excellent post, as usual Ian!
Hope you are recovering well. Also I nicked a portion of your post to use on twitter, hope that's O.K. It was just too good of a summary.
https://twitter.com/TrivChannel/status/1217382282228633605?s=20
Excellent post from brother Ian on LSE RE: EUA fundamentals @EurasiaMining
Great summary on the importance of #PGM prices & the most #precious & valuable metals Palladium & Rhodium - found in both of Eurasia's OpenPit mines
PLATINUM: Breached $1000 now
PALLADIUM: Breached $2200 now
RHODIUM: Breached past $8000 before and looking to attack again.
What a time to be alive. #EUA
With regards to Monchetundra Project:
- two predominately palladium open pit deposits
- located 3km away from Severonickel
- Severonickel is one of the largest NORILSK Nickel's base metals AND PGM processing facility
- near the town of Monchegorsk on the Kola Peninsula.
- The Russian Ministry of Defence (MoD) HAS APPROVED the Monchetundra Flanks application!
- Now awaiting final approval from SevZapNedra [the regional licensing body]
- The approval from the Russian Ministry of Defence is an IMPORTANT STEP in obtaining the Flanks licence.
- Eurasia is happy to confirm the Flanks application process is progressing as planned.
- EUA expect to receive the respective licence in due course. (Further updates will be provided)
The ever anticipated note from chairman: Christian Schaffalitzky:
- “The Directors are pleased that all our applications including the Monchetundra Flanks are progressing well and on schedule.
- We look forward to the formal license issue (which is in line with our strategy to become one of the largest alluvial PGM operations globally
- We believe we are now established as an important player in the PGM space in both the Urals and Kola regions
- look forward to scaling up operations at West Kytlim perhaps the lowest cost PGM operation that is potentially sustainable over several decades.
- Our:
1. Cash cushion
2. Our zero debt
3. Progress on the Monchetundra Flanks and
4. Favourable price environment for PGM (particularly for palladium and rhodium)
are helping us in our ongoing talks and discussions, and we believe this strengthens our negotiating position as we continue to explore options for our assets.”
https://www.lse.co.uk/rns/EUA/monchetundra-flanks-update-8jkxpe7uaxllj65.html
Eurasia Mining's flanks application progressing very well towards officially obtaining the Flanks licence [approved by Russian MoD]. Hurling our 1.9moz ownership towards a whopping 15moz of the most valuable metal on Earth - Palladium, which has breached $2100/oz and is set to soar past $2500 within the first half of 2020.
#EUA is established as the dominant player in Kola PGM with production license to 2038 & its exclusive right for the flanks under applicable laws; Receipt of approval for the flanks will allow Monchetundra (@EurasiaMining) to be a new global centre for PGM on the Kola Peninsula
https://twitter.com/TrivChannel/status/1216823381594726406?s=20
Not to mention Rhodium "The world’s most precious metal leaves everything else in the dust"
- Bloomberg Article https://www.bloomberg.com/news/articles/2020-01-13/most-precious-metal-rhodium-leaves-everything-else-in-the-dust
“The main driver by the beginning of January was physical demand from Asia, which might be also automotive related,” said Andreas Daniel, a trader at refiner Heraeus Holding GmbH. “Buying triggered more buying and in an unregulated market the effect was massive, with a price move which is only seen maybe every 10 years.”
Demand cooled late last week, according to Daniel. Prices hit $8 200 on Wednesday, before retreating in the following two days.
"Rhodium could top the record $10 100 set in 2008, according to Afshin Nabavi, head of trading at refiner MKS PAMP in Switzerland. Still, those lofty prices a decade ago prompted autocatalyst makers to switch to platinum and palladium, which are also used for cleaning emissions.
Small market
It’s much harder to invest in rhodium than in other precious metals. It isn’t traded on exchanges, the market for bars or coins is tiny compared with gold or silver and most deals are between suppliers and industrial users. Global production is equal to little more than a 10th of platinum or palladium output.
South Africa’s dominance also means production risks hang over the market. Power shortages last year temporarily interrupted some mining operations and there have been long mine strikes in previous years by workers wanting higher pay."
Just a reminder from Christian Schaffalitzky, Chairman at Eurasia from RNS on 4th December:
"-West Kytlim Flanks applications are progressing well and on schedule.
- And we look forward to the formal license issue, which is in line with our strategy to expand the production volumes at West Kytlim, to further increase our presence in the West Kytlim area and;
- aim to grow the mine to strengthen our position as the largest alluvial operation globally
- We believe we are now established as a dominant player in the PGM space in the region and look forward to scaling up our operation providing a low cost PGM solution that is sustainable over potentially several decades."
https://www.lse.co.uk/rns/EUA/west-kytlim-and-sinosteel-update-ccz1c1pv4sv896l.html