Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Remember, Dmitry is in charge of M&A, his guy is the one mentioned as being in charge of pre-sale activities -
https://goldman.digital/contact/
Both gentlemen are accustomed to working with one another!
GLA
The buyer will take NYUD as per recent RNS and inevitably get access to the rest of the area. All arranged via this man no doubt, the ex Rosgeo man brought in who is currently doing the 'Pre-Sale activities' -
"Konstantin Firstov, our CEO at Kola has been appointed the Country Manager and at West Kytlim, newly appointed CEO Vasily Kudrin is in charge of pre-sale activities. Vasily has a strong audit background with Ernst & Young and other firms in various senior roles including a partner position."
And remember, selling both assets has been mentioned from the very start when the banks arrived -
"If the Company was to dispose of both of its Assets, then AIM Rule 15 (Fundamental Changes of Business) would apply. Such a disposal would require shareholders' consent, an announcement which contains the information set out in Schedule Four to the AIM Rules; and be accompanied by a circular containing the details of the disposal and convening a general meeting to approve it."
The plan never changed, it simply adapted to the geopolitical situation!
GLA
It's been there the entire time -
"As announced via RNS on 14 January 2021, Eurasia and its advisers have engaged with a wide range of parties interested in acquiring either the assets and/or the Company. The Company has more recently focused its attention, including providing due diligence access, on a limited number of potential bidders who had shown consistent interest in Eurasia and its high-quality asset base.
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."
Don't waste your time responding to green boxes.
GLA
A vid about him and what he does, this is the level of the guys who are here, they don't mess around, all high level professionals -
https://youtu.be/p_SjdhXV4j8
GLA
LTH's......he's followed on Twitter by, yes you guessed it.....Lybrion -
https://youtu.be/EndQueg8YlE
GLA
"newly appointed CEO Vasily Kudrin is in charge of pre-sale activities. Vasily has a strong audit background with Ernst & Young and other firms in various senior roles including a partner position."
https://kudrin.vc/2022/03/16/riskaudit/
Something else for the green boxes to choke on lol
GLA
We'll start here, the snippet, the teaser, the wee little appetiser which was given to nibble on as we all wait patiently -
"Eurasia commissioned Wardell Armstrong International to complete a JORC analysis of the principal targets on the site during 2021 leading to publication of an NKT Competent Persons Report describing the feasibility of a room and pillar mining operation based on a 93,422kt (room-and-pillar mineable ore per 2021 WAI CPR) with a total resource of Tier-1 scale: 305Kt of Nickel, 143Kt of Copper, 57 tons of PGM and Gold (11.2Moz of Platinum equivalent) - as estimated by WAI as JORC-compliant resources. The net present value ("NPV") using an 8.33% discount rate for the underground part of the NKT project is $1.2bn under the WAI price forecast and $1.7bn under spot prices. The study had an IRR of 47% with a payback period of 3 years"
Both NKT and NYUD have been in production before, it is only Monchetundra which is virgin ground to ore extraction. Therefore, they know exactly what is there to the best degree of accuracy by this stage imho. It was simply a case of getting access to and then selling at the appropriate 'financially viable' stage -
"The NKT Project is being developed under license MUR 00950 BP.
A mine was successfully operated by Norilsk Nickel in the area, put on hold because of low IRR at a Nickel price in the region of US$2-5/lb versus above US$10/lb today1."
It's exactly what any BRICS buyer is looking for right now, not only will they buy the assets they will undoubtedly get access to the remaining Rogeo JV areas in the future also. Rosgeo have done their own exploration in the area quite recently, so, where Eurasia exit the person buying will potentially gain access to the Rosgeo proposal -
"and more recently a drilling program undertaken by Rosgeo from 2015 to 2017."
They've made the decision to exit Russia -
"The Company has demonstrated a consistent approach to creating value by bringing quality projects from exploration through to mining, as well as marketing for its proposed strategic sale following the Board's decision to exit from Russia."
That leaves NYUD as the door for the buyer to move into the Rosgeo JV areas after Eurasia's departure. It's very clever how they've orchestrated it all in amongst the current geopolitical tensions.
GLA
"Anyone aware of a company with existing interests in Canada that may also be a candidate for Eurasia's assets?" - The third large ore cluster, after Africa and Russia, is on the Canadian and US border.
Global experts to get things off the ground are usually head hunted for relevant roles due to their experience and contacts.
You also have to consider that Christian himself founded a large global mining consultancy -
https://www.csaglobal.com/
These guys can practically move anywhere in the World to get what is needed in to production.
GLA
"any buyer is likely to be found in BRICS countries" - It's to keep you forever guessing who the buyer may well be, it's part of keeping things under wraps with NDA's in place. BRICS is a large area, even with Norilsk as a neighbour at monchegorsk there are still a lot of potential buyers who would and could take on the very large assets which are for sale there.
Also, when the details come out of a deal that has been reached there is still the potential for an entity to come out of nowhere and outbid any potential buyer. You need to think a bit more open minded currently due to the large clean energy revolution which has begun, it's the entire energy sector which is being transformed, it's colossal and people need to secure their supply lines of the needed commodities no matter what.
GLA
What do others think based on what we know? -
"Eurasia commissioned Wardell Armstrong International to complete a JORC analysis of the principal targets on the site during 2021 leading to publication of an NKT Competent Persons Report describing the feasibility of a room and pillar mining operation based on a 93,422kt (room-and-pillar mineable ore per 2021 WAI CPR) with a total resource of Tier-1 scale: 305Kt of Nickel, 143Kt of Copper, 57 tons of PGM and Gold (11.2Moz of Platinum equivalent) - as estimated by WAI as JORC-compliant resources. The net present value ("NPV") using an 8.33% discount rate for the underground part of the NKT project is $1.2bn under the WAI price forecast and $1.7bn under spot prices. The study had an IRR of 47% with a payback period of 3 years"
GLA
The biggest positive is the teaser, the total can only be a multiple of the teaser -
"Eurasia commissioned Wardell Armstrong International to complete a JORC analysis of the principal targets on the site during 2021 leading to publication of an NKT Competent Persons Report describing the feasibility of a room and pillar mining operation based on a 93,422kt (room-and-pillar mineable ore per 2021 WAI CPR) with a total resource of Tier-1 scale: 305Kt of Nickel, 143Kt of Copper, 57 tons of PGM and Gold (11.2Moz of Platinum equivalent) - as estimated by WAI as JORC-compliant resources. The net present value ("NPV") using an 8.33% discount rate for the underground part of the NKT project is $1.2bn under the WAI price forecast and $1.7bn under spot prices. The study had an IRR of 47% with a payback period of 3 years"
The only question that really remains now is how many billions?
GLA
Indeed Layla, it all points to a conclusion coming up.
Found the resolutions, quite boring as usual -
RESOLUTIONS FOR AGAINST VOTE
WITHHELD
1. Ordinary resolution: To approve audited Accounts for the year ended 31 December
2021
2. Ordinary resolution: To re-appoint Grant Thornton LLP as the auditors of the
Company
3. Ordinary resolution: To authorise the Directors to determine the remuneration of
the auditors of the Company
4. Ordinary resolution: To re-appoint Kotaro Kosaka as a Director
5. Ordinary resolution: To re-appoint Artem Matyushok as a Director
I'm just wondering if something else will be announced prior to the date.
No DFS details is understandable, but, also quite annoying at the same time due to having been here many years waiting to see the details from the companies most important study.
GLA
"But a BRICS-issued currency would be different. It’d be like a new union of up-and-coming discontents who, on the scale of GDP, now collectively outweigh not only the reigning hegemon, the United States, but the entire G-7 weight class put together"
https://foreignpolicy.com/2023/04/24/brics-currency-end-dollar-dominance-united-states-russia-china/
GLA
Have a good sing and laugh fellow LTH's😂. . .
If you're thick and you know it be a green box
If you're thick and you know it be a green box
If you're thick and you know it and you really want to show it
If you're thick and you know it be a green box 🤣
GLA
Oh look, there's that house extension at WK for greater sale value, handy that -
"Following construction of a power line to site, an electric dragline was assembled at the Company's West Kytlim PGM and gold mine to provide a more environmentally sustainable and attractive asset as well as a lower cost operation for the ongoing sale discussions."
GLA
To show the green boxes exactly who knows what they're talking about -
"To enable the sale of the assets and to exit from Russia, the work during 2022 was dominated by the important Definitive Feasibility Study (Russian TEO of permanent conditions) for the open pits at Loipishnune and West Nittis within the Monchetundra project (License MUR 16493) which was submitted on time in December 2022. The study involved a new metallurgical sample collected from drill core and analysed following from the 2016 (pre-feasibility) metallurgical work. Land surveying, geophysics and hydrogeological and geotechnical studies were also completed. The ore at Monchetundra contains commercial grades of Palladium, Nickel, Copper, Platinum and Gold."
And to help them some more ; . . .
enable
/ɪˈneɪbl,ɛˈneɪbl/
verb
1.
give (someone) the authority or means to do something; make it possible for.
"the evidence would enable us to arrive at firm conclusions"
GLA