Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
The only dependable information we have on Eurasia is from what’s released in RNS’s, and Fridays RNS stated:
‘ The Company's flagship asset is Monchetundra PGM and battery metals project near the town of Monchegorsk on Kola. The project hosts 1.9Moz PGM reserves and resources within the approved mining permit and a further 13Moz (according to the Russian Cadastre of Mines) in Eurasia's adjacent license. In addition, further predominantly open pit deposits exist in the Monchegorsk region and host 104.6Moz of Platinum equivalent Russian Code reserves and resources that are now part of the Rosgeo JV. This creates the basis for a globally significant combination of deposits to be developed as a new mining district alongside traditional PGM supply from South Africa and Norilsk regions that have to cope with various challenges posed by underground mining, legacy infrastructure, energy supply and environmental issues.‘
1.9moz + 13Moz = 14.9Moz
With the binding Rosgeo JV Eurasia can benefit from 75% of 104.6Moz which equates to 78.45Moz of PGM’s, so a total of 93.35Moz.
Using platinum as worst case with it being quoted in the Rosgeo JV, that gives Eurasia access to around $112 billion worth of resource worst case. But we know a sizeable portion of the 93.35Moz will be palladium at $2,700oz currently, plus there bits of rhodium at $29,000oz.....iridium, cobalt, gold, copper etc. We don’t currently know how the resource is split between the various PGM’s but there’s every possibility that $112billion is the bottom figure as we stand and who knows what the top figure could be.
In the DS proactive interview he quoted $300-400oz extraction costs for palladium so the profit margin is exponential of the extraction cost whatever the metal in Eurasia’s basket.
There’s no question of the multi billion dollar resource being there anymore and the BoD have a route to market even if a sale didn’t happen, but I don’t think that’s their plan. They’re strengthening their position with every move and some of the companies snooping around at the start of the sales process may have since been out priced. There’s no way Eurasia can outprice themselves as their assets is in a league of its own with regards to what’s available on the market for a buyer. With a lot of global major industries needing the golden egg Eurasia are sat on, they are firmly in the driving seat and if buyers want it it’s either BOD’s price or none. But move quick because it may get deprived again in the coming months the as the world opens back up and the demand for PGMs increases along with the prices.
Mike001 - absolutely! That DS interview in hindsight was gold, everything discussed is happening with a big emphasis on ‘we will not be rushed because when you rush you make mistakes’
Worth watching that interview again whenever you have a wobble to prove how close to plan the BoD are working / over delivering.
Sharpeye - fair point you raise. I’d like to see a special divi from sale of an asset or assets short term with enough resource kept to keep Eurasia mining for years to come.
Ryan - agree sell WK & MT, release some cash to shareholders and move forward with Rosgeo for a future business would be ideal.
At the rate we’re going though who knows what else the BoD have lined up for us...
James0309 - apologies if it’s come across wrong thats not how I meant it to sound. What I meant was I’m not keep hoping the FSP was wrapped up yesterday. With every value adding Unexpected RNS the BoD are building a bigger animal With more moving parts. Equally the FSP continues under wraps with confirmed multiple offers that are being progressed, so we could hear news on that front at any time but for My own sanity I’m not going to keep thinking it’s coming tomorrow, although I very much hope you’re right.
Bottom line is Eurasia is now reaching all corners of the globe and I’m sure it Must be on every mining and relative manufacturers radar. It’s going to be nothing short of massive.
Hopper147 - i May be wrong but even hypothetically, if Eurasia has WK running, MT financed with the Sinosteel EPC contract and moved to production, plus up to 9
Mines with the Rosgeo JV projects - I feel like they’d be spreading themselves thin to manage the lot considering only WK is currently producing. Cash in WK & MT and keep their feet fully under the table with the state with the Rosgeo JV stuff with circa 100moz.
James0309 - I’m not saying the FSP won’t conclude, quite the opposite when I say UBS & CITIC have been involved on a success fee basis for 9 & 18 months and will not walk away empty handed i.e. there’s reason they’re still
Involved as the FSP is ongoing.
Tilly, cj62 - with one that I’m going to stop guessing what will happen. Ideally sell WK and MT for a special dividend and go at the Rosgeo projects as a JV then we get out sweetener now, keep our shares and the business prospers going forward with regular divi’s....what more could we ask for?
Absolutely nobody on here knows! We have all speculated since October 2019 but nobody guessed either the Rosgeo JV binding agreement 2 weeks ago or the interest & new appointment in Japan last night and they are both huge pieces of news in their own right that prove the BoD continue to maximise shareholder value regardless of the FSP.
I’m not sure how anyone can now argue the Eurasia will become a dominant player in the global PGM industry with or without the FSP, they’ve got bases we hadn’t even thought about covered and who knows what else they’re working on in the background?
I was hoping the FSP was wrapped up a long time ago but after last nights news and the Rosgeo update a couple of weeks back it’s time to bottom drawer Eurasia for me and it happens when it happens. I had uses for the money I have in here but I don’t need it now and will manage fine without it for however long it takes as there’s no better investment for me. The BoD aren’t just building mines they’re building a district, probably bigger in size than some small countries and everything they mines is massively in demand and will continue to be, for a Long time to come. For the first time I’m starting to JV’s wouldn’t be the end of the world but equally UBS & CITIC haven’t been involved for 10 & 18 months respectively to walk away empty handed, they’re not the kind to be strung along. The fact the BoD keep making these clever moves like the Rosgeo JV must have buyers Heads in their hands thinking what are the BoD going to pull out the hat next to add Further value to Eurasia, increasing the sale price further and maybe resetting negotiations? I’ve been in here 18 months and I haven’t seen a bad RNS yet...
Oldspursfan - I agree, Eurasia hold the keys to PGM Narnia. If you want in you have to go through them, there’s no way round because they’re in bed with the Rosgeo I.e. the state.
Rosgeo are going to want some return sooner than later, they’re going to let this just be kicked by the road
Ultimately I don’t think anyone but the BoD have a clue where we stand deal wise. The bottom line is Eurasia have exclusive access to an obscene amount of PGM’s that the world is in pretty desperate need of over for at least the next 10 years and they’re not going to undersell themselves. Nothing’s changed, BoD still in the driving seat. I like everyone wish this had wrapped up long ago but I don’t dare sell because with every twist and turn we get it emphasises the enormity of what Eurasia have. Maybe the big hitters resent Eurasia because for 20 years up until 18 months ago they we coasting under a penny and they’re finally taking off?
The longer this goes on the higher the PGM prices according to the experts. A lot of the big firms will have done their DD, UBS still negotiating on Eurasia’s behalf and who knows what else is round the corner that could add further value if Eurasia isn’t snapped up asap by a major.
One unrelated note, Tigerbythetail you talk absolute s**te and everything you say is a lie, do one you twat I hope you lose your house.
Not hanging around at WK....
https://mobile.twitter.com/R1EXG/status/1380446253880852481
Toon - the cost of mining the palladium is around $300-400 per oz Dmitry stayed in the Proactive interview, and you’ll know the current price is $2,700 per oz so easily over $2,000 profit per oz. I’m not sure the exact cost of mining platinum for Eurasia but I’d imagine something similar, still a healthy $800 per oz profit.
Hairy Harris - you say you’re on a free ride and will ride it out but you don’t believe a sale will complete in which the share price will no doubt dip for a while. Therefore anyone as switched on as yourself would sell now and buy back in the dip of no sale....but for some reason you’re ‘happy to hold’. Mustn’t be here to make as much money as possible like the rest of us