PART 1: Often pump and dumps only last a matter of a few days or even hours, but when it is something more, something magical and something special then it’s not just small private investors who get involved, and they can go on for a long period of time, and that certainly appears to have been the case with Eurasia Mining (EUA).
This does of course give opportunities to trade the rise, as long as you manage to get out before the drop comes, but ultimately the fundamentals play out and if something looks to not have risen by it’s fair and justified value, then it’s almost inevitable that they orbit to space at some point, and those who got to believe in the story and the crazy low share price are the ones who tend to come out on top.
Some will be quick to point out unwarranted criticism of this company as one to “avoid” at the end of last month at a share price of 1.9p, it went on to more than double. That sort of written propaganda is easy to predict when dealing with such a successful company as Eurasia. And those who didn’t heed the inadequate perception of the companies’ value will have seen their investments continue to rise.
In the case of Eurasia it appears that there has been far more going on than just a group of PIs believing in it, as the company itself had released game changing RNSs and Twitter, and there were also a number of interviews – some of which, raised much interest in the company.
The sudden rise in share price from around the 0.5p level naturally saw numerous warrants being exercised, for a small profit compared to their overall value, as well as non-executive director Dmitry Suschov first transferring 25.472% of his company – Deloan Investments which holds an 11.07% interest in the Eurasia shares – to Alexei Churakov for a nominal amount as an incentive in his new role as a strategic advisor to the board of Eurasia.
Subsequently a further 10.42% of Deloan was transferred to Alexander Sushchev, also as an incentive for his new role as another strategic advisor to the Board, and also for a nominal amount.
Working out exactly what is going on with all of that is not difficult – as there was no need for the company to use extra cash, dilution and meant that their fees were directly related to the success of the company and subsequently the shareholders. Thus, the recent addition of the strategic titans is an invaluable positive to shareholders.
That alone is enough to remove any suspicions. Furthermore, claims were being made in interviews, especially with regard to a potential dividend payment that has sparked even more interest for shareholders.
A bigger rise was triggered by an RNS on October 24 when two large investment banks – CITIC in China and VTB Capital in Russia – were looking at strategic options for its assets, including the possible disposal of its assets, and with particular focus on its Monchetundra palladium asset, which is yet to reach the production stage.
[PART 2..] The RNS was quick to point out that a couple of other recent palladium mining deals, including $2 billion for Sibanye and CAD$1 billion for NAP, which was recently acquired by Impala Platinum, and that the Monchetundra Kola Peninsula asset had a total resource of 15 million ounces of PGMs, mostly made up of palladium. What it didn’t seem to point out though was that both of these are more expensive in terms of operating cost than Monchetundra. (Monchetundra being open pit and easy to mine, so that work may commence very rapidly and provide a large profit margin for many years.)
This was, strangely, met with negativity by a group of people on bulletin boards and Twitter, spouting all sorts of negative predictions, some of which were more focused on an accent of a fluent English speaker, instead of taking a short minute to calculate the value of the company [Billions]. What was clearly mentioned within the original RNS was that neither bank had actually signed an engagement letter. The Banks had approached EUA and agreed to operate on a success fee basis, therefore there has as such been no requirement to do so.
At the start of this week a further RNS dropped clarifying that no engagement letters had yet been signed. Although originally clear, conveniently, numerous anonymous people appeared to have harassed EUA into re-clarification at the same time as a suspected manufactured drop in share price.
The next day a further RNS was issued; Anthony Nieuwenhuys, the CEO of Lesego Platinum – which had previously visited the Monchetundra asset and the data – had been appointed as a non-executive director of Eurasia. Mr Nieuwenhuys has also held senior positions at a number of other key EPC organisations, so the appointment of Mr. Nieuwenhuys was a great addition to the board. Further compounding the belief that shareholders have in this company.
The same RNS also stated though that the company had no intention of entering into any agreement with Lesego. The same RNS suggested although there was no intention to enter into any arrangement with Lesego, both companies continue to keep this under review.
There was some recent speculation by the aforementioned group of co-ordinated attackers on news on its producing West Kytlim asset. Despite the 66kg of platinum production EUA that had been approved by the authorities for production in 2019, EUA managed to reach the target. Furthermore, they have removed the need for contractors – enjoying 100% of the margin (a three-fold increase). Money used from cash flow has wisely been spent on necessary equipment.
It seems does not seem strange that Mr Suschov had mentioned a ‘maximum’ production of 200oz per day one of his interviews. Quite a significant rate, and to be sustainable with this kind of rate, the strategic advisor mentioned Eurasia are now undertaking quite a significant exercise.
[PART 3..] On that basis, along with contractors not being sustainable, it would be folly to question whether the company was ‘even producing platinum at all from West Kytlim’. It certainly wouldn’t be 200oz per day, as that was never mentioned. But shareholders will enjoy such bountiful returns in the future, thanks to Eurasia’s progress at West Kytlim.
In terms of Monchetundra, the figures for the resources might sound good on paper but it is even better with the addition of the flank areas and possible expansion with projects in the 8-10 km vicinity. With numerous drilling and multiple due diligence carried out in the Kola peninsula by various companies such as Anglo American, Norilsk Nickel, Barrick and other big players – extensive exploration has been carried out in the area.
That certainly suggests that there has been an extensive drilling campaign done by a number of Eurasia’s colleagues, like Norilsk Nickel, who have been drilling one of these areas. Norilsk Nickel is the world’s largest Palladium producers in the world. They also have a nearby refinery to Monchetundra, as well as having their own vast deposit of Palladium.
When it comes to the payment of a dividend, rumours by both anonymous and/or agenda driven inadequate writers suggested ‘$50 million from a Chinese company, Sinosteel..will be paid in the form of a dividend to Eurasia shareholders’.
Of course, it is publicly known that this was never the case, and the remainder of the loan is to be used for advanced engineering and pit development work.
However, although Eurasia has signed all the final binding documentation, which allows them to receive the first payment, they are in no rush for a number of reasons. An obvious one would be potential interference with strategic options in potential asset sales in on going negotiations.
An RNS from back in 2016 mentions that Eurasia was in ‘advanced discussions with third parties for the sale or joint venture of the project’ but given the rise in Palladium prices, the profits received are unparalleled to levels of that years ago.
All of this suggests that Monchetundra is not only as good as it appears on paper – but better. Even if considering much lower than todays palladium prices (circ. $1800), shareholders can expect this to be very profitable.
In terms of palladium itself, the prices seen today are more than a temporary bubble. With environmental pollution and need for reduction in carbon emissions, palladium is forecasted to exceed $2000 by 2020, and more than double by $2025. A sustainable and viable alternative has yet to be found, and would likely take many years to implement. “This is not a bubble”, suggests analyst René Hochreiter (billed as the Mick Jagger of PGMs), “but early in a new bull market”.
[Part 4] Demand in Europe for diesel vehicles has fallen, while demand for petrol has increased. This has been duly reflected in platinum and palladium prices: the former has sunk and the latter has soared. Even should palladium be substituted for Platinum, shareholders will be pleased to have West Kytlim and its bright future prospects to enjoy.
With a current market cap that is still attractive for institutional investors and private investors alike – Eurasia has been touted to be worth north of several billions of dollars, given the assets in the ground (for Monchetundra alone).
Although a recorded a loss of around £1.5 million for the year was reported, the reasons have clearly been given (as above) and works at Monchetundra and West Kytlim, Eurasia are poised for success in the immediate and long term future.
To existing and potential future shareholders alike, there are minimal risks and potential bountiful returns to be made with their investments, despite games being played by questionable ‘gangs’ online (both public and anonymous).
In light of the recent updates, it can be seen how Eurasia reached an approximate 1000% rise near the end of November, and continues to be a success for shareholders and the board of directors. The tireless efforts of all members of the company over the years have clearly paid off, making the team, the board and subsequently the shareholders happy – and this is just the beginning.
Hi Sam1234567 future pilot this share might not be for you if you want to lose some money; when I see green boxes to help you lose money, I will post a counter balance. Here is one:
Wh should you FILL YOUR BOOTS?.. big ii’s ready to throw money’s into this. Keep hold of your tickets, sell them - totally up to you.
The palladium is in the ground, and not very deep either.
And the demand isn’t going anywhere. In fact, because it’s more expensive and mining conditions are worse In South Africa, investors will choose RUSSIA over SA. Hence Mochetundra will be a better option for investors than any other pgm mine outside Russia :)
Production costs are lower, and trade is always there. Billions in reserves, rising each day
well you've made £75k profit then, why not chuck some more in?
0.65 is a good average, have you sold any since the price rose? Or holding for the big payout
567k odd shares. Thanks MM.
Every week you keep this price I vow to top up more
Or is it reply to l***tree page? What’s more concerning than the little green box are the replies to it. You do know by replying you
A) clog up the board (like this post has forced me to do)
B) probably help said person get money & motivate to further disrupt.
EUA, meanwhile, has still got the same fundamentals as when it reached 4p, and better. The West Kytlim and Monchetundra updates show the value of the company. The low trading volume shows people are willing to wait for the outcome.
Doesn’t seem like we’ll have to wait long either. Going by previous licence applications, FLANKS would be due within 15 weeks.
I have a funny feeling this will be over long before then! #EUA
Just to reiterate: prediction is 23p minimum based on our CONFIRMED 15moz Palladium. The flanks are a formality which are guaranteed. The DD has been done numerous times on the 15moz and it will certainly be factored in negotiations.
(If they buyer would have a problem with that, EUA will be quite happy to wait 3 months, when the Pd prices are much higher and our flanks licence approval will rocket the SP much much higher, weakening any limited negotiation advantage)
Although the additional 20 odd moz is outside of our 5km area it is dangerously close and will certainly be of interest to Eurasia/the buyer. As it would nearly double the reserve and they will have a high probability of being granted said licence.
Multiple DD around the areas by numerous players in the industry show there is definitely 15moz of Pd (and more) within our 5km radius.
Therefore, I stand by my valuation of a minimum of TWENTY THREE pence (23p).
However, it’s likely to be closer to 31p.
But it would not be a shocking surprise to see 50-55p +
With this share price and market cap, an asset sale (or opting to mine) this appears to be a bargain.
Revisiting some quick conservative calculations to consider a ‘bad’ scenario.
If we look at two recent deals as a benchmark:
Noah Capital research suggests a per resource ounce basis
1. Implats’ bid for NAP ($214/reserve oz 3E) was more expensive than
2. Sibanye’s purchase of Stillwater Mining ($100/oz)
Okay, so let’s use the $100/oz resource for Sibanye. (Even though Palladium prices were lower back then)
Using the proven 1.9moz, and $100 = £77.90/oz,
= £148m for our 1.9 MoZ
- Let’s be very conservative and say we pay a TAX on that at 20% = £118.41m
- As we own 80% of Monchetundra = £94.7m
- And let’s give the Banks a healthy 10% for making this happen (generous!) = £85.25m
- Now we have 2.9bn shares to divide it with (when including directors options)
= 2.94p
2.94p is the lowest of low in an asset sale scenario we can expect based on ONLY 1.9moz.
We have 15moz (7.9x our proven 1.9moz).
For our Flanks included - we should expect a minimum of 23.2p, and that is getting a sour end of the deal.
Factors to consider in tactical negotiations:
1. We have a total of 40mOz reserve with our neighbouring areas which is open to licence applications, making this 3x worth above minimum SP.
2. A LOW $100/oz was assumed here. But Impala’s NAP acquisition was at $217 (would make ours circ. 50p!) (because of Low costs we could be asking for $300+!)
3. Our costs are lower than both of these mines. Which were approximately $575-675/oz.
I believe ours is nearer to just $400/oz. This LOW cost open pit mining is the most cost effective type of Pd extraction- in the World!
4. Palladium prices today - speaks for itself. No wonder banks and buyers are rushing. And the forecast is only set to rise, this is inevitable in the near future.
5. Rhodium hasn’t been factored in, with its ever increasing price and value, it makes a beautiful addition to our glorious basket.
Overall, a dividend payout of 23p is not unreasonable - without the above 5 advantages we have. I am sure the BoD hold a strong position here. A deal of this magnitude will need some ironing over, but has quite a large price tag to it.
I predict 31p but it’s very possible to get 50p + considering our asset and the current economical climate which has drastically changed our position (for the better).
On the contrary, I am absolutely delighted to have dashed you out. The whole point of telegram is so that the botflies and infestation can be cleansed.
TP - Telegram might be full of “many blinkered believers in there” as you so kindly put. If only you had the same level of politeness when in the group. With such an astute observation from your limited time, I am surprised you didn’t see the multiple messages that confirm Zak is really him.
“The moment you question anything” is funny because your question was answered seconds before your grand entrance. You were unhappy with the answer and rather impolitely demanded more information from Zak, despite an admin from the group confirming its Zak Mir. As we have known, for Months.
“Joey the joker” removed you because you entered the group in and posed your (already answered) questions in a Volatile manner- and you assumed the Admin response was “hearsay”.
You, who entered a group long before your arrival, wanted to “put an end to whether it was him or not” despite being told by numerous people it’s indeed him. Thank you for wishing me “good luck in (your) life because you’re going to need it”. Had you private messaged your concerns instead of continuing abhorrent attitude perhaps your question could’ve been answered in better detail.
Perhaps in future a lick of politeness and maybe a “hello” is advisable before questioning the authenticity of people in a group which you have joined for a fraction of a minute.
Joey the joker - out
hey! Ian telegram is like a whatsapp type interface where you can chat and share pictures, documents, and such in groups. if you have a smartphone you can download the telegram app. you can email trivuk@gmail.com if you have any issues
Ian thanks for your posts! You amongst many others like tilly, CClore, GLG, stockdale, g Hippo, Lb28, b.harrier, sorry if I’ve forgotten others but you know who you are- have been a great addition to the board.
Feel free to add any valid input
At t.me/joeyEua
Would love to discuss Eurasia without green boxes and ability to share more stuff.
(Telegram account)
Joey x
The share price is 700% up from October, And even without the asset sale due we’d be just fine:
- No need for cash
- no need for dilution
- one mine where we receive 100% revenue and plan on expanding it
- cash from warrants and WK due
- applications for flanks (progressing well) and further exploration licenses (TIPIL!)
- West Kytlim to be the largest alluvial Platinum mine
- last palladium mine in play
- open pit, low market costs
- Monchetundra and it’s Kola region are palladium heavy locations
- Norilsk Nickel- worlds largest Pd producer (mcap $35.9bn+) are our neighbours
- mocheduntra with flanks has an estimated worth of $27bn to us, and it will be easy to extract and mine
- potential for 40moz total Pd to increase our profits for decades
- future dividend for shareholders will be phenomenal income
- increasing revenues from WK will help MT
- Company aim to upgrade WK mines existing reserves to C1 category through an ‘single aggressive drilling programme’
- bottomof global cost curve so “the last one to die” should something unexpected happen to prices
- EUA have production licensing to 2038
- DFS showed grades that were consistently higher, 3-4x than estimated
- last year we planned on 100kg target at west Kytlim - we over achieved with 165kg
- more profitable than South Africa, cost effective and far less issues with mining
- Palladium Prices breaking records almost weekly
- Rhodium prices HIGH
- platinum looking bullish
- PGM’s are in demand and there is fierce competition to get hold of them
Eurasia are in a fantastic position at the moment and the BoD must be extremely pleased with themselves.
Not to mention:
- dream team BoD perfectly constructed, & their history in M&A is more than ideal for this sale
- payment in shares, so EUA success correlates to their success- which directly correlates to our success
- DS & AS plan to further invest in EUA, which is always a great thing
- SP subject to manipulation and BB infestation, which means this is very successful
- Sinosteel activation at the ready should we wish to go ahead mining MT
- Eyes on Volchetundra: prudent to keep these shares because a repeat of this could see a future windfall .. AGAIN!
- NED AJN very highly qualified with superb contacts and experience
- the most recent, FULL to the brim RNS’s which everybody should read, giving an indication as to the vast wealth Eurasia have worked hard for years to unlock.
- Palladium will reach new highs next year and years to follow. NO substitution is expected by any of the experts in the field
- palladium forecast and demand has been almost unanimously accepted by all. With a known structural deficit for years
This is not a ramp. These are just some of the fundamentals and facts of EURASIA MINING.
1. Negotiations have been ongoing for some months now.
2. They now have extra board members with considerable experience.
3. A sale of one of the assets would provide funding without bank involvement, other than to process the funds, for the other mine.
4. It would also provide a special dividend for shareholders which will take back control of the SP as the MMs would have to price the stock accordingly.
5. There has been virtual radio silence now for a while from the company which would indicate negotiations coming to a head after several months.
Combined with what we know about EUA’s future, a deal looks imminent.
Re-posted because a few green boxes trying to swamp the board to hide these glorious truths.
Fuse has been lit
Amers just filter them and don’t reply, as per your own advice. By replying its just as bad if not worse than their original posts.
- For Car manufacturers the increased price is an irritant. However, the amount of palladium used in each catalytic converter is relatively small - they are able to absorb the cost.
- substitution is some way away.
The Wall Street Journals Article this week:
- “Despite platinum’s widening discount to palladium, we don’t anticipate any meaningful substitution of palladium in the car sector,”. “Palladium demand for autocatalysts should keep rising.”
Giovanni Staunovo, a commodity analyst at UBS Wealth Management
https://www.wsj.com/amp/articles/higher-emissions-standards-help-extend-booming-palladium-rally-11575558578
- for the next 10-15 years palladium will dominate as electric vehicles will still be far outnumbered by vehicles requiring petroleum/ hybrid cars.
- forecasts suggest $3800+ by 2025, with some seeing it to reach those levels far earlier.
- the Kola region is the cheapest place to mine it. Should anything happen to prices (highly unlikely) we would be the last to go.
Safe to say Palladium won’t be substituted any time in the next decade. The future owners of MONCHETUNDRA will make an absolute killing.
This could very well go for $2-3bn+