Member Info for mac4671

Q1: Why is the company seeking further authority, given a large fundraising has just been undertaken?

It would be quite unusual to not seek authority and these resolutions are put to shareholders at every AGM. The Board considers the Company very well-funded and does not currently have specific intentions for a further fundraising, however, the Board asks that its members make that option available, for example, in case the Rosgeo Joint Venture development this year results in proving a resource higher than already released (104.6Moz Pt eq) and only if further funding will add value to Eurasia taking into account the implications of shareholder dilution, which the Board and management prefer to limit, being collectively the largest shareholders in Eurasia Mining.

Q2: Have the board used the circa £14m from the recent placing?

No. As announced on 4 June 2021 the cash balance of Eurasia is c.$23m. The work programme is being developed in relation to the Rosgeo Joint Venture.

Q3: Can the board release a comprehensive update regarding the potential asset sale?

Our RNS of 12 May 2021 stated the Company had received a proposal for the potential acquisition of substantially all of the Company's assets, and that the transaction would make the Company subject to AIM rule 15 (any disposal which exceeds 75% in any of the class tests is deemed to be a disposal resulting in a "fundamental change of business"). The Company has provided as much detail as permitted by the AIM Rules regarding this proposal and looks forward to providing more detail when appropriate and permitted by the AIM Rules. Proceeding under the remit of AIM Rule 15 would require a shareholder circular to be published and a general meeting of shareholders held to approve any transaction

GLA

"· Wardell Armstrong International engaged in April for several comprehensive tasks including JORC resource audits which are almost complete and are expected to be announced shortly"

And is hopefully the catalyst to the asset sale details as well.

Koka Kola's all round!

GLA

Everything passes away sooner or later Tilly, as long as they/we have a good time while we're here that's all that really matters.

You love a bit of strictly, we can all tell lol

GLA

"Gordon Ramsay weeps watching daughter Tilly on Strictly"

https://www.edinburghlive.co.uk/news/uk-world-news/gordon-ramsay-weeps-watching-daughter-21746956?fbclid=IwAR1n4YytG7qt18Fguoftem_7mrqHv2qVhqw-AmWRaGp1t1ruHYFwqMDfYsE

We're all super proud lol

GLA

It's a recalculation to increase the target resource, due to metal price increases since 2016 the ore processing cut off grade gets reduced to include lower levels of metal per tonne. Zones they wouldn't have touched in 2016 are now economically viable and thus the target resource gets increased. Going from RNS the increase is the 1.7 factor (70%) increase in target resource.

Potentially 100Moz Palladium equivalent (around there) is very possible for the Monchegorsk area. When you begin to look at Volchetundra again the resource potential runs into hundreds of millions of ounces. That's without even taking into account the Nickel, Cobalt and Copper in the whole area.

The figures for the area as it increases are simply mind boggling -

"The Company would also like to highlight further regional potential specifically in the Volchetundra Project, previously operated by the Company under a Joint Venture with Anglo American from 2004 to 2011, and subsequently surrendered to focus on the Monchetundra Project. Volchetundra occurs 5 km from Monchegorsk. This high palladium deposit now becomes of interest given the recent price appreciation in palladium and the future price outlook. Palladium prices through 2011 averaged less than $600 per ounce. The Company's database of proprietary information including 12,000m of drilling will be compiled in due course to reassess the projects future potential development. If the Company did want to explore this project again, it would have to re-apply for the relevant licences and there can be no guarantee that they will be granted."

GLA

Indeed, PGM's and battery metals available to the highest bidder, dig deep as it takes a lot to impress the Eurasia collective shareholder group.

Looking forward to seeing the JORC's and the new target resource figures with the new stronger metal pricing.

Koka Kola's all round!

GLA

No problem, you're very welcome. The large upgrade makes sense with the large metal price increases since 2016. They've timed the whole thing to perfection tbh.

GLA

Perhaps it has, perhaps they've had to adjust the processing plant to account for the new larger target resource. Mine life stays the same, ore throughput and metal produced increases by the 70% margin. I worded part of my original answer wrong to be fair mushyP.

I just know that's what they've told us in RNS, due to the price differences from 2016 until now, the target resource has been recalculated. More ore and metals gets inserted into the mine plan due to the metal price increases, again, the 1.7 (70%) correlates to the entire district. It has to due to the uniformed nature of metal price increases, it brings a uniformed amount of cut off ore into play theoretically.

GLA

This part here, that is what it is telling you, they have recalculated the TARGET resource due to the new favourable pricing conditions compared to 2016 -

"· Recalculation of MT and Flanks resources and pit outlines, reflecting considerable metal price increase since FS of 2016, integrated to Detailed Mining Plan as announced 15 September."

It tells you that is how it has been integrated into the new mining plan. Like i say, reading my original answer back i did word it wrong. You can't edit on here, so, it has been corrected in following posts.

TARGET resource has increased over the ENTIRE district due to the new favourable price environment compared to 2016. Lower ore grades are now economically viable to extract.

GLA

Say it's highest ore grade is in the centre and it decreases outwards. Say 10g/t centre decreasing to 1g/t at the edge of marked zone. They target what is economically viable to extract, what they will make money on, they don't make money on the very edge of resource in my example and so ignore it from their plans. They adjust their open pit modelling to efficiently remove the target resource which has increased due to the new favourable pricing conditions. 2016 for example, Palladium was at around $600 an ounce, now look at the price. As the price has increased more ore has become economically viable to extract.

GLA

Yes mushyP, which comes from the increased target resource. Since FS day metal prices have increased a great deal, which in turn makes lower grade ore economically feasible, that increases the TARGET resource in the area. Where it was once 2Moz, or, 15Moz (with flanks), that figure increases to include the new lower ore grades.

GLA

I agree Realsicilian, i'm fully expecting something well North of a pound now, that's just on MT + Flanks being sold. If they throw Rosgeo JV assets in also through a ROFR arrangement then we'll have multiple pounds imho. I don't see any way where this doesn't end up a significant multibagger from this point. ACF is at around the pound level and that's a highly conservative valuation case.

GLA

What has happened Realsicilian, is that due to metal price increases, lower ore grades are able to be economically processed. I perhaps did word part of my original answer wrong reading it back. Simply put, the TARGET resource increases. The optimisations and modelling are adjusted to include the lower grade ore.

GLA

Realsicilian, i only gave you my answer. Like i say, what you believe is up to you. I have sown you how the 1.7 applies to the increase in needed Rosgeo JV funding. Why would they need the extra funding if it is not to pay for extra found resources?

GLA

Seems a fair value, i could be convinced to accept that ; ) lol

GLA

Ok Realsicilian, we know MT output is upgraded by 1.7 right so how does that come about?. It comes about through an increase in resources there, an increase in resources per tonne of ore processed. Mine life stays the same, throughput of ore stays the same, the upgrade comes from open pit optimisations, therefore it has to be a resource upgrade. Apply 1.7 to $20mn, the money we originally had a placing for to get Rosgeo JV financed.......$34mn. You think the approx $35mn is just a coincidence or do you think that it's a logical upgrade over the entire complex?

Couple of RNS snippets to help you -

See it there, shining bright?, recalculation:

"· Recalculation of MT and Flanks resources and pit outlines, reflecting considerable metal price increase since FS of 2016, integrated to Detailed Mining Plan as announced 15 September."

See it there shining bright?:

"Q1: Why is the company seeking further authority, given a large fundraising has just been undertaken?

It would be quite unusual to not seek authority and these resolutions are put to shareholders at every AGM. The Board considers the Company very well-funded and does not currently have specific intentions for a further fundraising, however, the Board asks that its members make that option available, for example, in case the Rosgeo Joint Venture development this year results in proving a resource higher than already released (104.6Moz Pt eq) and only if further funding will add value to Eurasia taking into account the implications of shareholder dilution, which the Board and management prefer to limit, being collectively the largest shareholders in Eurasia Mining"

"""in case the Rosgeo Joint Venture development this year results in proving a resource higher than already released (104.6Moz Pt eq)"""

If you think funding for Rosgeo JV and MT output have both increased by around the same factor because it's just a coincidence then that's up to you. When things have been accurately measured and things increase at around the same factor, i lean on the consistent resource upgrade over the entire complex theory.

GLA

"These assets will be held by new joint venture companies where Rosgeo will retain 25%.'" - It's only up to the point of JORC, once JORC is done they can seemingly acquire the other 25%, hence the requirement for around $35mn. They have clearly calculated things accurately at this stage, they have stated that Rosgeo JV is now fully funded, that's all 9 assets imo. Whatever plan they have it all leads to Monchegorsk in production, it would be silly to sell everything, even more so when it's mainly open pit mining and the majority of what is needed is already in place and close by. Either Rosgeo JV assets get to production via a JV, or, some are sold and some are taken to production by Eurasia, hence why they stuck to the significant asset disposal route.

Eurasia can only sell what they own, well the percentage of ownership, just the same as us selling shares, we can only sell what we own. They own nothing of any Rosgeo JV assets at this stage, but, that looks set to change and license arrival and JORC arrival appears to be set to arrive at the same time from what they've released to date.
If they are doing JORC on Rosgeo JV assets then it makes sense that they're also doing it for MT & MT Flanks.

We can only really wait and see what gets sold and what doesn't tbh. Every route however, leads to far higher levels than this current SP. Rosgeo JV JORC'd on top of MT + Flanks JORC'd has to have it somewhere around 100Moz Palladium equivalent when using their 1.7 upgrade factor. That's before you try to account for the Nickel, Cobalt and Copper at the district.

I'm excited to see what numbers finally get released tbh and the exact route they have chosen to take to get the whole district into production, very excited indeed.

Hope you have a lovely evening CAW and all.

GLA

That's what we're all waiting on, both are progressing well going off the very latest RNS drops. No idea why people feel the need to argue, it's all there in black and white.

The SP will do what the SP does up until the JORC and asset sales news drops, who cares, i don't, if it drops like it did to 14p a while ago i'll just add more to my very large collection. The more you have the more you will benefit from JORC news and asset sale news, it isn't rocket science.

I hope everyone has a lovely evening, i've personally got one eye on the red dot system just in case something drops, things can land at any point when they use words like 'shortly'.

Koka Kola's all round!

GLA

I wonder which ones JORC's are nearly done on. If they've recalculated MT Flanks they will have done the NKT part which lands outside of the flanks area, that makes sense. Nyud & Moroshkovoe and others to make up the 6? Resources just keep getting bigger and bigger!

"· Recalculation of MT and Flanks resources and pit outlines, reflecting considerable metal price increase since FS of 2016, integrated to Detailed Mining Plan as announced 15 September."

"including the upcoming acquisitions of Nyud, Moroshkovoe and other significant Rosgeo JV PGM and battery metals open pit deposits"

For current potential Rosgeo JV marked areas, we currently have -

1: Vuruchuayvench, Arvarench plot - https://efgi.ru/object/3117078
2: Vuruchuayvench, Plast "330" area - https://efgi.ru/object/3117080
3: Vuruchuayvench, Vuruchuayvench plot - https://efgi.ru/object/3117079
4: Yuzhnosopchinsky - https://rfgf.ru/gkm/itemview.php?id=38851
5: Nyud-Moroshkovoye - https://rfgf.ru/gkm/itemview.php?id=53232 - Currently in the process of gaining the license.
6: NKT (Nittis-Kumuzhia-Herbal) - The rest of it that we didn't get in the flanks app - https://rfgf.ru/gkm/itemview.php?id=53121
7: Poaz: Richard managed to find that, i've not come across it myself digging around on there - https://twitter.com/RichardDugdale3/status/1410555717984137223?s=20

Those are the main areas i believe we're looking at.

Resource shopping is fun!

Wash the cake down with a nice chilled Koka Kola!

GLA

Very good interim tbh, full of goodies. Looks like the bidding war outside of the FSP is plausible at this stage -

"· Proposal received in May for the potential acquisition of substantially all of the Company's assets. Since then, additional interest from other parties is being considered by the Board"

"· Near nine-fold increase in mine revenue compared to the same period last year"

"· Recalculation of MT and Flanks resources and pit outlines, reflecting considerable metal price increase since FS of 2016, integrated to Detailed Mining Plan as announced 15 September.

· Block Modelling and open pit contouring and optimisation complete for 6 of 9 Rosgeo JV projects."

JORC's come next as big news, they will open a few eyes when they land. Numbers only ever grow at Eurasia!

Koka Kola's and triple WK production sprinkles all round!

GLA