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Fair point Mac, my point wasn’t that it doesn’t add value, of course it does and I should have used more generous figures but I kept seeing posts earlier that seemed to suggest we should be the equivalent in NPV up in share price purely on the JORC which wouldn’t happen YET.
Roll on the next batch of excellent news.
State secrecy of reserves. The following information is subject to Russian state secrecy legislation:
Information regarding reserves of platinum, platinum group metals, silver, and natural diamonds in state funds and the Central Bank of Russia.
Information on the "balance reserves" of high-quality raw quartz and beryllium, as well as the production of these resources in Russia as a whole, in any particular Russian region or regarding any major deposit. (There is an exception, however, for information derived by joint ventures with foreign entities.)
For a subsoil user and its employees to be able to keep information constituting a state secret, the subsoil user must obtain a licence issued by the Federal Security Service for maintaining and handling data concerning state secrets. The procedure to issue this licence requires a special expert review of the subsoil user and a state certification of the subsoil user's executive management responsible for the protection of state secrets.
The exploration and production of diamonds is prohibited under the production sharing agreements (PSAs). Other precious metals and precious stones can be subject to a PSA (Federal law "On Production Sharing Agreements", dated 30 December 1995), but no such agreements have been entered into.
5. How are such leases, licences or concessions awarded?
Production and combined licences are awarded by either tender or auction (both of which are conducted by Rosnedra). The tender is awarded to the participant who submits the most technically competent, financially attractive, and environmentally sound proposal. In contrast, the winner of an auction is the participant who offers the highest amount of one-time payment for the right to develop subsoil resources.
Exploration licences are generally awarded by a decision of a special commission formed by Rosnedra (or its regional department) and representatives of certain local authorities. The holder of an exploration licence can obtain a production licence under a simplified procedure (that is without any tender or auction) on discovery of deposits. To proceed with the development of the deposit, the subsoil user must also provide a development plan for approval to the state authorities of the deposit and obtain a mining allotment.
The procedure for obtaining the right to develop a deposit of commonly occurring mineral resources (such as bitumen, pebble, gypsum, loam, and sand) is different from the standard licensing procedure described above. The licences are issued by the applicable regional authority under the Subsoil Law and respective regional legislation.
Subsoil users that have a subsoil licence to explore and develop the mineral resources (other than commonly occurring minerals) can extract commonly occurring minerals within the limits of their mining allotments for their operational needs, without an additional licence
https://insights.csaglobal.com/market-value-doesnt-match-npv/
I keep seeing people thinking we should be going up by 32p on this JORC.
I see where some of the real crazy valuations have come from now.
If we were to mine this for 11 years then we should make $1.19b.
It wouldn’t reflect in SP instantly it would take 11 years.
If we were to sell now we wouldn’t get $1.19b for it. Whoever bought this would be mining for 11 years they wouldn’t do that for no profit.
This is a great RNS and it adds value to the company but it doesn’t instantly add $1.19bn.
There is a lot more to come and we will undoubtedly be at a new high soon but not of this one small part.
Looking forward to seeing the rest come in.
Soon.
“ The Board has a strong confidence in our opportunity to create a globally significant PGM and battery metals producer that can be achieved through our Rosgeo JV”
Says “create” not “become or become part of”
We will see I guess I think it’s a pretty likely the JV is part is the asset sale.
· adding highly-attractive electric battery metals to Eurasia's metal basket (copper, nickel and cobalt on top of palladium and platinum all contained in the Additional Assets);
Seems EUA class them as additional Assets
Mac? Why the placement two weeks ago?
The net proceeds of the placing are intended to be used primarily to finance the joint venture with Rosgeo ("Rosgeo JV"), as announced via RNS dated 26 March 2021. The Directors have decided to limit the financing to £14,126,289 to keep shareholder dilution to a minimum and to focus primarily on advancing certain Rosgeo JV projects to production via EPC and financing contracts with minimum equity injections.
If they don’t own it now they will before the asset sale.
Hi Mac, love your updates but you keep missing off what I consider to be one of the most important parts of RNS from the 12th May.
One which I think very much implies that the JV with Rosgeo is very much part of the asset sale/deal.
“However, after conclusion of the joint venture with Rosgeo ("Rosgeo JV") in which Eurasia will gain a 75% equity stake in nine PGM and battery metals assets (four of which are post Russian Feasibility Study with state approved reserves) with a total of 104.6Moz of Platinum equivalent ("Pt eq") Russian Code reserves and resources in the immediate vicinity of the Company's Monchetundra Project on Kola (as announced on 26 March 2021), the Company has now received several proposals including a proposal from a credible party for the potential acquisition of substantially all of Company's assets. The Board has decided to focus on this potential asset sale.”
Why would the JV happening be responsible for the proposal if it wasn’t part of the proposal?