Member Info for lor_9

Sorry just going back to the JV talk...I think it's unlikely that you would put together a valuation based on historical equity raises moneymakers. A lot of the ones I have negotiated will consider three main factors:

1. historical spend as a percentage of total spend required to bring the project to end of development - if this has taken place over a number of years you may want to index to today's prices by inflating costs incurred (i.e. this first metric estimates overall project progress and project budget). Level of funding by the investor will also be consider. E.g. if the investing is funding 100% of the project and the development company is just providing the development services, the funder may want an 80% share. If both are putting up money, then a different split may be negotiated.

2. level to which the project has been de-risked (entering at a later stage means you get less of an equity stake). This would consider the cash required to reach each milestone and the risk of the project failing at each stage. For instance, securing project permits may be very high cost and have high risk as without a permit there is no project. On the other hand, consultation with local stakeholders may be lower risk as it's unlikely to completely kill a project, just raise issues that need to be mitigated.

3. current valuation/market value for comparable projects - this provides a valuation for peers and may be based on recent M&A data. This could be adjusted to reflect specific factors such as jurisdiction, projections for metals prices etc.

Hope this helps

I've read that tweet a few times now and to me everything about it suggests someone is trying to work out a sensible valuation for an equity stake in the project, considering the work done to advance it to date.

As well as the cost in taking the asset to this stage, it has been significantly de-risked so any future investment should take that into consideration in any equity split.

I do hope it's a government entity but regardless you'd want an experienced, commercial negotiator handling those for you...good job we have Adam Habib I suppose...Let's hope he's compensated on the strength of the deal, rather than just a fee for getting a deal through.

Amur Minerals released an RNS this morning to finally say that Adam Habib has left the company. I thought this would have happened a long time ago but there you go plenty of discussion on the AMC board

Please don't get everyone started on the 1 share trade again!

I'm not suggesting a leak or anything disreputable, just that is the way things are done in the finance industry. Big investors will simply know that a placing is coming and it would be naive to suggest that they don't. I don't think DBA will be influencing the share price on a daily basis by trading in and out...high net worths, I don't know, I'll let the board judge whether they would trade in and out or not.

What is clear is there is almost zero demand for shares in Europa, which is strange, almost to the point of being suspicious, given all the good news being report.

If a placing is coming, anyone with real money to invest that is regularly in contact with the broker will know well in advance. This may result in a lack of demand/buys as the pricing will be favourable and there will be no need to buy on the open market. And causes a drift in share price downwards. Exactly what is happening here in my opinion

Back to usual update tweets: '#euz PFS work progresses extremely well despite Spanish/England Euro 21 . Drilling continues on schedule alongside other key workflows now reviewed by WAI study managers, following ops kick of meeting last week. Well done EI team- safe/efficient/thorough'

Really nice to see a female employee playing a key role too and boosting diversity with the painfully male dominated management team. This project is developing fast and it will have funding in no time with so much local participation There must be something in place already with so much drilling going on.

@Teaye it's great that you managed to get hold of him and that he was happy to talk. It's a good sign of a CEO that knows their shareholders matter even if the message boards subject him to a lot of complaints!!

Difficult to be sure if the trades are buys or sells but I think there's quite a lot of buying going on here. Trading data is showing some reasonable sized trades going through this week with around £50k yesterday and £65k on Wednesday. Could this be in hope of one of those chunky contracts finally coming through? A nice £50m order would really kickstart this business again

Teaye great news getting something out of LR but isn’t saying a deal is ‘pending a signature’ pretty close to disclosing price sensitive info? Most CEOs will simply say they are working hard and sorry they can’t disclose any more details

But didn't he cause controversy at Amur after his wife sold her shares quite soon after being issued them and then he got voted off the Board while being a Director? No idea if they ever resolved that one but it was portrayed as being quite a scandal from what I remember

Anyway, let's hope we're on the verge of greatness hey? Got to keep postive as I agree with you all, big news is coming!

In a way I agree but we have one significant shareholder which is DBA. Do you mean them? Mining companies needing funding is a way of life, you have to spend to develop a quality asset. DBA will expect another call at some stage and will have factored it into their investment thesis. Other top shareholders are Hargreaves Lansdown and interactive investor so likely individuals.

What I have a problem with is a potential non pre-emptive placing where only 'wealthy' people would be invited to invest. In a lot of cases, these individuals don't care much about the long term story and will likely flip for a small profit creating another 6 month plus drag on the share price. Investor confidence is eroded in these instances so it's a vicious cycle and It's simply not in the interest of long term shareholders, unless we too are invited to participate.

Equally, strategically fundraising after a period of good work and significant progress/de-risking of the asset, when the share price is likely high would be in the interest of long term holders as you minimise dilution and get much needed cash in the company.

It's in times like this I hope a representative from Europa monitors these boards and takes shareholders' views on board

It's so difficult to know what to do here. On the one hand we could be on the cusp of something incredible, with a partially EU funded, renewable energy powered, best in class ESG mining operation in a region with amazing stakeholder support...but on the other and you wonder just how much money is left and whether a heavily discounted placing is going to be announced diluting us all, with the broker cutting deals with high net worths and again all us loyal shareholders will lose out. Please please please don't do this Europa!!!

Look at that, there are even a few buys today too. Finally an RNS which hasn't had an immediate negative impact on the SP.

I really like this EU news on Proyecto Toral, excellent indication for future funding possiblities

Don't you think it's likely that it's just people/companies that participated in the placing that are flipping stock into any rally? High net worth individuals get exclusive access to discounted placings and then sell for a small profit, then repeat at another company. I know it is unfair but likely what is happening here.

does anyone know how many options remain outstanding?

I honestly think it’s pretty poor management to suggest a value event and then not promptly update shareholders on it. In that position you should underpromise and over deliver not make comments to pump the share price when the company is in need of funding.

The final straw will be a placing which more and more I’m starting to think is coming.

I wouldn’t be surprise if the slide in share price is due to a leak somewhere of a placing just like from memory the share price suddenly shot up before the value event comment.

I have more patience than most and I’m trying to trust the process but it’s getting very frustrating when there are so many opportunities out there

Actually forget that comment about it happening here - might have been another company I'd invested in where the random drop in price happened a week or so in advance of the placing

There must be a big sell order in the background as you can't sell for more than 10p at the moment and can buy for 10.7p. Not very encouraging at all when suddenly the market makers drop the price by 10% on low volume.

Seem to remember this happening around the time of the last placing where the price was dropped for no real reason despite low volume.

Any trading experts here that can comment?