Member Info for CHRI5P

UFO are very much like us but with 4 or 5 projects and are really getting them ready for the bigger companies. They could not afford to pay more than £4 million. There SP is not robust enough to offer us shares either IMO.

I would be extremely surprised if UFO buy us. They have a lot off expensive drilling to be done and their explorations are not as far advanced as Toral.

First of all I am glad we didn't have the sort of fall I was expecting yesterday morning because the CEO leaving does leave a lot off uncertainty. So I am pleased to be wrong. When I listened to LR's interview I could no believe how p***** off he was and almost wrote a post asking him to get a grip but it his now understandable why he was but we do not know the ifs and the buts.
Going forward if LR left on his own accord then that could be worrying but it will depend why. Shed you said it could be because Bennelong/DBA are wanting a 'smaller value event' (not your words) and be able to exit with a modest profit. I do think this is plausible, hence why I don't think it is the once 10 bagger I thought last year (unless new drilling proves up the copper).
Experience, tells me that we will get a farm-in and the SP will disappoint those people who are 96% down. Although, (and Shed please, give your opinion) EUZ are further along than someone like EUA. Yes EUA have a small mine (which is loss making) and huge inferred resources but they have not done a fully costed report stating the cost of actually getting it all out of the ground and they have been trying to sell themselves for over 2 years. EUZ have much less inferred and indicated but all the ducks do seem to be lining up but we need a lot of money to get it to that final BFS/DFS stage where funding for the construction of the mine is on the table. I also feel the reason we did not fall yesterday is that when you are right at the bottom there is not much further you can go. BCN sold on the cheap to the Chinese even though the price was around 6 times off their lows and it was the new investment which started the 6 bagger rise. PI's were moaning about the low ball offer but that was because it was AIM and many AIM companies are not only overvalued but also undervalued it is a very poor market to have your shares floated on.
A lot of people wanted change and you have it now so lets try and be more positive and lets hope this project can push forward.

MM you might be right and I was always positive on bennelong coming in. I do feel LR was pushed. After the directorial change UFO quickly announced a JV and SP went through the roof. I still feel LR did well on the ground. However, the ground work may be coming to an end for EUZ in Toral and a new investor is required to take up the final stages.

Let's hope they have someone lined up

I hope I am wrong and LR was stopping other PI's from buying in.

Well I suspect a large fall in the SP today. You will get your shares cheaper today BricksSA. Good luck LR.

Bricks I absolutely understand where you are coming from and the SP could go lower. However, valuing a exploration mine is extremely difficult and it is more about sentiment than anything else in the early days and sentiment with EUZ could not be much lower today. Last year I really thought that EUZ was worth between £40 million and zero. Now due to the placing and the de-risking I think it worth between £20 million and £4, million. So I don't think it will 10 bag but I also think it is worth more than it's current SP.

The update was very good and the copper angle, the high Zinc price and the location to me seems to be very positive. I have taken the view over the last 3 months to keep buying below the consolidation price. Yes we need a partner but I think we will get one and the SP will rise due to it. I also think DBA and other bodies invested based on the resources update.

September 7th resources update:

Commenting today, Laurence Read, CEO of Europa Metals said:

"The results from this latest round of drilling in terms of grades and widths of lead, zinc and silver are in our view exceptional and exceed our initial expectations for the upper zone of the Toral project, an area that we have always viewed as being the 'path' towards the lower, high-grade production zones.

"The 2021 drilling campaign has been excellent and I would like to thank our team on the ground for their hard work in consistently delivering within the highly challenging environment of COVID-19.

"The Company has decided to conclude drilling and is assessing the potentially positive impact these intersections could have on the existing resource model and the potential future economics for the Toral project. Even with a high-grade project with a robust EBITDA margin at the three-year trailing metals prices in the last independent economic study, we believe that further enhancements can be achieved from optimising the mining route and further determining processing systems such as ore sorting, or separate ore sorting processes for different ore types.

"We are also considering the recent copper results of nearly one per cent. and potential options for technical partnering to assess what is happening within the system regarding this metal. Whilst Toral is to date primarily a lead, zinc and silver project, the presence of copper in the system encourages our belief that potential sources may be present below the current 1,000 metre cut off.

"Such work continues to de-risk the Toral project as a viable low cost, high margin future production source with the potential to significantly expand both the current mine life and the metals concentrate profile."

Commenting today, Myles Campion, Executive Chairman of Europa Metals said:

"This year's drilling campaign into the upper siliceous zone of Toral has indeed exceeded expectations. We have obtained a significant amount of bulk sample material from this zone, through the utilisation of PQ size drilling, that will enable us to complete an ore sorting and metallurgical testwork programme in conjunction with WAI.

"Throughout the campaign the Europa Metals team has, in house, been updating our resource model as further information has become available. This will enable us to move quickly to commission an independent update to the existing resource estimate. We look forward to releasing such update to the market in due course."

My view is that the BOD wrongly assumed the good work last year would be enough to keep the SP up and above 10p to get the placing required at a better price. Unfortunately, like everyone one on this board they gave poor communication and not enough updates to keep shareholders old and new inspired.

Yes Bricks I agree and that it is internationally accepted in general apart from Russia. This backs up what I was saying and a BFS is required for institutions to fund the development costs of the mine and production. However, what tends to happen is the the smaller explorer finds a bigger one to get to the final fund raising and quite often at a premium to the SP but not the true value of the exploration so both parties do well.

Bricks CB has left Jubilee last month I think or announced he was - he also sold out completely this time last year. This idea that a PFS is essential to sell is just not true and CB has commented on this many times. Yes, if you need a bank to lend money then you need the PFS, BFS and the DFS but that is not the case if you are going to sell to a partner. GGP did not have a PFS and EUA have a PFS with mainly inferred resources and both are worth north of £600 million. What you do need is to demonstrate that we have a mine worthy of a big fish to pay for a stake in it at the right price to forward it to the completion of works up to the mine being built.
The RNS is showing that the directors feel the asset is worthy of been developed by them being paid in shares but also the very reason they are now going to own more shares they want to use the cash more wisely. When they mention funding it can come in all shapes and sizes and Bricks you think it will be a huge discounted placing but it might well be the funding from a partner to get this to the final stage of building the mine which as happened to GGP and the SP is now up at
least 20 times.
The timing of the 'value event' is still impossible to comprehend but it could be any time from April until the end of the year and possible further down the road. Hence, I think this is the other reason for the RNS. Finally, and this is one thing I have always said and that as long as there are no unforeseen issues such as the water table the price of the resources and the running out of certain metals due to the lack of new mine exploration worldwide could see the NPV go much , much higher and the more appealing we look then the sooner that value event will arrive . However, EUZ is very high risk but is 96% less risky than when the likes of when BB/Highside invested.

so Bricks you're now trying to encourage the the SP south to get in at a lower price. New shareholders need to know you agenda.

Bricks all I am saying is would DBA bother with a proxy small AIM miner like EUZ if they didn't think that paying 5p for a company with a NPV of £1.50 a share was not getting them on the cheap but of course they might be wrong just like anyone who owns the shares and does not sell like you have.

Bricks come on do you really think DBA could buy the number of shares that they have received for 5p on the open market at 4.5p the SP would have gone through the roof you only have to see our insanely low volume to realize that - institutions like DBA buy on placements on the cheap they do not buy on the open market.

For me this is a positive RNS. From what I have seen directors tend to start to sell when the SP spikes for no reason and they start having there wages paid in shares when they feel that the huge value is not being reflected in the SP.

Bricks I disagree with you on DBA because IMO they were able to buy in at a bargain price of 5p which is the same price we consolidated on 18 months ago and if the SP stays at this price for another 6 months will be a bargain price for the directors. EUA were paid in share for work before the SP went through the roof.

This is the sort of RNS I was hoping for and hopefully there will be more good news on the resources and the possible partner within the next 6 months.

The BOD are increasing their stake in the company which is good news.

Yes, a sale of part of the asset will be required. Zinc is at a 7 year high and we keep increasing the knowledge of the exploration which is all good news. A prospective partner will look at the asset and the price they pay will be determined by that and not the SP. The SP is important when you need a quick placement but this is different if the asset is good and the market is completely undervaluing it. GGP multi-bagged 20 times when they sold out 75% (yes 75% of their main exploration) to fund it to a DFS. I am not saying this will happen to EUZ because there are multiple prospective mines out there and we have to show that we can become a productive and profitable mine. Again I am not saying we will but the higher Zinc can rise and the more essential data we can show then the more likely we will get a good deal. Again I am not saying this will happen.

If I was thinking that the company would need new funding in 3 months time without the chance of new information coming within that 3 months I would sell up now because the SP will fall and you will get back in at a lower price.

Shed you deceived no one and have always said EUZ was high risk.
The more negative the board becomes then the higher the chances of a huge re-rate and a multi-bagger. This reminds me of EUA 6 months before they did. Only high risk, unloved shares with potential multi-bag and this fits the bill but it might keep dragging its feet- time will tell.

If EUZ does get it's act together then if the data warrants a JV then we will fly. However, unlike last year and unlike Shed I was too optimistic around the timescale but who knows what the deal was last summer. The thing I have learnt with AIM mining is don't get in too early and on the noise. If you miss it so be it but most companies will go back down for you to buy at a lower price. To think if you had bought EUA in 1995 you would still be down by 97% down and yet buying in September 2019 you would be up by 50 times. GGP is similar. If EUZ makes it then at this value price the companies worth will be a multiple of today's value but the issue is, placing and resources prices when it does. Sadly I got it a bit wrong last year but I have bought some more since the drop because I still believe.