Resource11 Apr 2021 07:27
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.
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