A bit of background info15 Jun 2020 19:47
Evening all,
For those that don’t know and feel that I add little value to discussions I hope the following will help understand the company if you were late to buy before suspension or not if you have been around for a while or maybe haven’t had time to research the company properly.
I’ve been holding shares in EUA since April 2018 so am fairly familiar with the company and operations and feel the following is interesting relating to the last RNS and some previously.
- the announcement of a new NOMAD means that we are no longer at risk of delisting as you will no doubt know.
- appointment of an M and A specialist with the level of expertise that brings as a non exec director is amazing.
- WK is an ongoing source of income and I’m sure will be proved soon, you may have missed that previously we sub-contracted the mining out and took a low percentage (30%) of the profits, we now how our own plant, machinery and staff so take 100% of profits therefore to a point ignore past accounts.
- we have license approval to expand mining at WK but this hasn’t yet been announced, Alex found some links and posted earlier this week / late last week.
- we are waiting for flanks license approval for MT, this has an estimated 15m Oz of PGM’s and has been valued at circa $1.5Bil, I believe we own 80% of this site and taking into account the exchange rate for $ to £ and our 2.9b shares we are probably looking at cash injection into the company of circa 35p per share or so. That may translate as a special dividend and is what I’m expecting.
- new Non Exec Director is likely to be onboard to facilitate that sale of asset or a wider company sale, time will tell.
- in essence all we need now is flanks license and whatever offers to be put forward, I don’t imagine this will be long.
Depending on how long you have been on the board you may be aware that certain people here enjoy scaring other holders with all sorts of rubbish, feel free to ignore me but I would take that with a pinch of salt and do your own research before letting your hard earned shares go too quickly.
In terms of the share price I think that selling MT for 30p per share would value the entire company at circa £900 million. There is £20 billion or so of assets in the ground for MT alone (we own 80%) based on valuations provided by others. Steal of the century for the buyer on that rationale. I share your sentiment in that an increase to 30p from 7.2p is an incredible upside from where we are now however I still don’t think it’s a fair value.