RE: Was told about this7 Nov 2019 23:43
The forecast Norilsk executives have given suggests annual production of platinum from the new project of about 220,000 oz (6.9 tonnes) per year. The investment required will come from Norilsk Nickel. So will the infrastructure supporting the mine and the refinery.
With a target of 130,000 ozs of palladium and platinum per year from its planned Monchetundra project, also in Norilsk’s neighbourhood on the Kola peninsula, Eurasia Mining is in no conflict with its neighbor; the region also includes a Norilsk Nickel mine and refinery, two phosphate mines and an apatite mine. Eurasia has now negotiated independent sources of finance for the prospecting, planning and construction stages of its project. The principal source is $150 million from Sinosteel, the Chinese state-owned mine engineering group which is to build the mine and ore-processing plant. The remainder of the money required for start-up is to be raised by the Russian and Chinese financial groups, VTB and CITIC.
Monchetundra will be primarily a palladium producer, with an unusually high ratio, 3 to 1, of palladium to platinum. Published market projections, based on a palladium price of $1,000 per ounce, indicate earnings from Monchetundra will be around $28 million in 2021 and triple that within two years. The current palladium price is $1,778.
Eurasia’s West Kytlim alluvial mine, located southeast of Moscow in Sverdlovsk region, is principally a platinum producer. It has been many years in development, originally as a joint venture with the South American miner Anglo American.
Listed on the Alternative Investment Market of the London Stock Exchange, Eurasia Mining bought out Anglo American’s stake in 2014 for a nominal amount. More recently, Russian shareholders Dmitry Suschov and Dmitry Churakov have expanded their invested stakes in the company, which is led by board chairman and managing director, Christian Schaffalitzky. They have now taken over direct operation of West Kytlim from a contractor with whom revenues and royalties were shared when money was scarcer.
Market enthusiasm for Eurasia resulted in a takeoff of its shares in London in the last days of October.
KEY: Grey=Eurasia Mining (market capitalization, £53 million); orange=Norilsk Nickel ($45 billion); green=Impala Platinum $6.3 billion); yellow=North American Palladium ($914 million). Source: https://markets.ft.com
A vertical jump in share price like this has not been recorded for a Russian mining company on an international exchange since the phosphate boom of 2007.
NOTE: The controversial story of the Russian investment in platinum mining in Zimbabwe, and the state underwriting, was told here.
11:32 PM
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