Member Info for Kalan

Sorry JAdam - I am not being deliberately obtuse - I simply haven't read any of your posts - there are over 1200 on here and I haven't read them all - will take a look at the video - thanks - understand your frustration but seriously hadn't read your posts. |The website is seriously confusing - let's hope the video reveals all. Thanks

To be fair though Sly Rook - the other metals would be extra so 7kg of mixed production may be a regular occurrence - we just don't know - 7kg at $900 per ounce basket price may be a little over the top but I think it's reasonable. trouble is it's all on trust at the moment.

Always happens island girl when a share is pumped like this - had a carpet fitter telling me he was going to get into crypto currencies last year - so I asked him what they were - he didn't know but a mate said he's made money out of it. warned him it was at it's peak and hopefully he listened. He's still fitting carpets anyway.
CEO done agood selling job - referring to palladium every two minutes whilst they are producing mainly platinum and talking about dividends when they are no where near that stage and also can't talk about a take out price (mentions $700 million) no definitely can't talk about that (mentions $1 billion), it wouldn't be right to talk about a value (mentions 1.2 billion). He and his friends exercising the warrants will be delighted if they can buy at 0.6p and sell at 1.8p for a triple gain. 4th November - let's see what the sp is that day. Good luck Island girl - you will need it getting through the mine field of know nothing posters on here. I think the share will be worth 4p in due course when we know more but the gamble involved here leads me to want a much lower entry price for the gamble.

From the companies web site presentation:
"Highly mechanised operation producing up to 7kg (224oz) raw platinum per day."
Other credits from the refinery for extra production from palladium, iridium etc.
Haven't found information on how much in % terms there is in the extra minerals but mostly they are producing platinum, despite the constant references to palladium.
Good news is that palladium to platinum ratio in the mining is 3:1 which is exceptional and in the future 2021 or 2022 onwards the mining will bring this to market.

Thanks LB2.
British harrier - you have no idea about pgm mining and do not understand what you are invested in.
14 years as a mining surveyor and 13 years as an investor in pgm miners - I have done plenty of reading - poppet!

From the October 25th rns:
"Eurasia Mining PLC, the established producer of palladium, platinum, iridium, rhodium and gold in Russia"
i.e. the 7kg includes these metals - not all of it is palladium.
Also from the October 25th rns:
"cash payments from the refinery, for sale of metal from the operating West Kytlim mine for PGM already delivered, are due before year end. The payments for platinum will include a final payment for other metals namely palladium, iridium, rhodium and gold"
Note that it is mainly platinum with extra payments for the other metals. Also not that the refinery will be taking a percentage for refining - often about 15%. So the price per ounce received is likely to be around $900 to $1000.
two thirds of the material being sent is likely to be platinum and at a 15% discount to the prices you get on Kitco etc so around $800 currently for two thirds of the production. The other metals will lift the basket price and it may be just top side of $1000 if we are lucky with the percentages. Have the percentages of each metal been published - anyone researched it?

oops sorry - that should now read a little under 2.5p - need to learn to type faster lol.

used $900 in my calculations which is the average of the past 2 years. Currently the basket price is probably over $1000 but depends on local proportions of the 4 metals (4E). Miners usually look at the past 5 years averages when considering investments which would be around $800 per basket ounce,
$900 to $1000 would seem reasonable in predicting a valuation here. I err on the side of caution.
6p is a decent price here IMO IF what the CEO says is true. No-one has paid more than 4p so far - why do some think that everyone looking at this company is stupid - there are hundreds if not thousands looking here and no-one is paying more than 4p and currently the consensus is just above 2.5p. we have all read the rnss and watched the video and still it's 2.5p - why? Because with what we know that is what we as a market currently value the company at. That is a fact.

$900 sell and $350 production - are more realistic. So $550 per ounce profit for 180 days at 240 ounces per day gives $24 million per annum profit or £18 million. Then take off overheads, CEO et al fees and solicitors etc and we may have £15 million profit per annum here which isn't to be sniffed at. 10x that is £150 million so a valuation based on those figures would say that 6p is a reasonable valuation of the company. Discount that for the fact that we are rellying on the CEO's take on things and that we haven't seen any proof of this pudding yet and I think the market got it right with a peak share price of 4p - well done to all those who sold out at 4p - excellent work.

7kg is a lot of production at $300 to $400 per ounce production. What does the 7kg contain - everyone here seems to be thinking that it is 7kg of palladium. The CEO was very vague about it. In line with all other producers of ogms they are probably producing a basket of 4 or 6 minerals - the CEo suggested 4 which are palladium, platinum, rhodium and iridium. Anyone know the % split here. Typically for every 1 ounce of palladium you get 2 ounces of platinum which lowers the selling price of the basket of minerals to around $900 per ounce of combined minerals. So profit per ounce now may be around $600, reducing to say $300 to $400 for the 'limbs' and say $100 to $200 for actual underground mining.
Valuations need to be based on reality not fantasy or you get your fingers burnt.
Is it 7kg of pgms or 7 kg of palladium? If you don't know then do you really know what you are invested in? Anyone got the answer please - it would be useful to know.

The production costs here per ounce (current) are not only at the cheaper end - they rival Jubilee Metals for the cheapest current production costs. Jubilee (JLP) has produced below $400 per ounce and is rapidly expanding production and diversifying into other metals and regions.
The costs here are below those of JLP (according to the CEO - so a pinch or salt with that) as the alluvium can be scooped up and washed. The 'limbs' he refers to may well have significantly higher costs as it will be harder to extract and mining will be much higher (say $700 to $900 and even higher after writing down capital). The good news is the stuff they are scooping up now gives them a head start before they need to spend more money on a more sophisticated set up.
When valuing the company don't assume that all of the production will be at the current low cost. As a rule of thumb the sale basket price for pgm's will probably be around $900 at the moment. Early production from alluvium has an excellent profit margin. The 'limbs' should have a good profit margin and the mining should be profitable as long as the pgm prices remain robust. Hope that helps. p.s. I am not an owner of these shares yet but have invested in 3 or 4 pgm producers in the past - currently I hold JLP but may add EUA if I can get in at 1.8p (I know I know - no chance - it's going to 25p etc - let's hope so for all those invested).

First ore fed to concentrator.
SUCCESS

Further placing not needed as cash has been preserved.
SUCCESS.

Just for balance.
Also - thanks for your reply K3VMC - you have a great deal of experience with WRES and masterman and your reply has helped shape my future investment strategy with Wres. Thank you.

When Boris wins the election he is going to finally complete Brexit and then he is off to help Knotty finish off the 7E deal. Easy to hard - low hanging fruit first.

Cheers getinthere - so the $50 million is an advanced payment for work to be carried out as a sub contractor. Not owed and not a loan.
Something doesn't quite add up - £162,000 warrant money is nothing but CEO talking of keeping dividend policy under review and hinting at $1 billion takeout price. he bought in at 1p and surely owns some of those warrants - so ramping the sp there by talking of mega takeover and possible dividends would keep the sp buoyant until he could sell the warrant shares at a nice profit to recoup some of his money.
Done some research and calcs and the situation is promising but a little shrouded in mystery. Small punt at the right price on the cards.
Sorry for discussing on here but impossible to get any sense out of the frenzied mass on EUA bb.
Back to the nuns.

If we achieve the $20 million K3VMC - how long do you think it will take for WRES to be debt free? (2 years, 3 years? - just guessing).

I have listened to it intently getinthere - no mention of 'owed'. He said they didn't need it as they had cash flow - why would you say you didn't want the cash if you were owed it? Current ounces produced are in line with Jubilee metals in terms of price at around $400 per ounce which are the lowest in the industry (if you believe the CEO) - as you say enough EUA - come on WRES - charts and indicators say we are bottoming now IMO.

EUA dropped 30% from the peak earlier today.
Where did the fact that EUA is 'owed' $50 million come from? Strange?

Agreed Bluebelly - I never chase shares up as you often get left holding the baby when it plummets back to earth - having said that someone recommended getting Eua in at 1.8p and I thought it was overblown then - so missed out on 100% rise - chasing and running with the heard can be lucrative and also dangerous - sitting and waiting for the heard to come to me in my 3 shares - waiting.....waiting. Get rich slowly.

I can understand why you would be a remainer and Scottish and proud of both- and why not- a proud nation which is a valued part of the UK.
Personally I am proud to be British, then a Yorkshireman and thirdly and Englishman. My pride in being English is mainly limited to sport. But my pride in being British is what defines me. I would be gutted if Scotland chose to leave the UK but accept it's their choice and any vote to do so would have needed to be honoured.
I see the latest Ugov poll has given 51% remain in Uk and 49% leave which is a recent change from 55% remain. I hope it's just a blip caused by the realisation that we are leaving the EU and Scotts don't like that (historically they have nearly always sided with the French against the English).
The strange situation we have in politics is that we all have the UK parliament (which seems to represent London and no-one else) and the Scots, Irish and Welsh have their own local governments - England has none - so with my Yorkshire hat on - I get no say in anything that is decided. (The East Lothian question I think it's called - Scots get to vote on things that affect me but I don't get to vote on things that affect them - devolved things).
An opinion poll of the English was quite revealing on Scotland. Of those who expressed an opinion the result showed a desire for Scotland to stay in the Union by a vote of 3 to 1. Although 60% didn't care either way. It seems we like you more than you like us.
Quite a few people that I know have recently become quite anti- Scottish as a result of the antics of the SNP in Westminster - personally, if I believed for 1 minute that the SNP were typical of the Scottish I would say kick them out of the UK - but I know from experience that the Scottish are a great bunch and are a vital part of the UK - being British wouldn't be half of what it was without the Scots. Here's to a great future together free of the vile, corrupt, undemocratic, bribing, protection racket that is the EU.

Eua is alluvial for much of it's assets - dig up and wash - the income currently is tiny compared to JLP but the prospective area is large and also very cold for much of the year. Retailers (such as us)are pushing it up - or have pushed it up - predicting a fall back from 3.9p to 1.3p (maybe pessimistic but after FRR and GKP we know what can happen) - good rise for lots of folks who will have money to invest elsewhere and now have a taste for palladium (not pgms - use the current buzz word).