Member Info for mac4671

Good to hear Ian, hope you have a speedy recovery.

Algeria is looking to join BRIC's also now by all accounts.

A BRIC's consortium could be feasible due to the need of them all to secure their supply lines for the energy transition. It will be interesting to see who exactly wins Monchetundra, that's for sure!

GLA

Here's the only schedule for the project ever released -

"The Group has spent £682,419 on a development programme for the Monchetundra asset during 2021 and has budgeted a further £527,000 for statutory reporting on this asset to November 2022, keeping the asset in good standing while strategic options for the project's development are considered."

"The Company continues to progress discussions with regard to the potential sale of its assets, appointing KPMG Russia as agent in May 2022, and has set aside sufficient funds to complete and submit a Definitive Feasibility Study for the Monchetundra project in November 2022."

The month is clearly named, i can't help that!

Certainly glad the November days are flying by nicely that's for sure.

GLA

Iknownuffin. If funding had been altered it would of came out at the interim imho. It didn't, so, as per their 'on schedule' quote it is on schedule as per the budgeting timeline for the project.

When you plan a project you plan the budget for it, if things are on or off you use a marker like the interim to tell your shareholders, it was on schedule at the interim. The budgeting is the only official schedule the BOD have released, so, you have to take it as it reads....on schedule imo.

GLA

Just for you iknownuffin, in order for you to iknowsomethin -

THE DEFINITIVE FEASIBILITY STUDY (DFS)
The question ‘To mine or not to mine?’ is resolved at this stage.

By now all processing parameters have been through detailed and accurate metallurgical test-work has occurred.

While inevitably some will be assumed, these are usually realistic because they are dependant on all mining, processing and other considerations taken at and before this point.

As an example, Arafura Resources’ (ASX: ARU) Definitive Feasibility Study for its Nolans project in the Northern Territory forecast average annual production figures of 4,356 tonnes of Neodymium-Praseodymium oxide and and 135,808 tonnes of merchant grade phosphoric acid.

The mine’s life will be 23 years and average annual pre-tax earnings at A$377 million EBITDA, although the project would require just over $1 billion in capital and up to 650 employees at the peak construction phase.

The company used the study’s release to proclaim to investors, “the Project is financially and technically robust to support a long life operation”.

https://stockhead.com.au/primers/your-guide-to-mining-feasibility-studies/

GLA

"How is November the most important month in EUA history ?" - Because the funding for the company making project ran until November. You can comprehend that can't you Iknownuffin. DFS complete on a multi-billion $ asset class is quite significant to a mining junior who has been running for a very long time now! Even more so in a 'for sale' environment, due to said DFS giving the appropriate figures to accurately value the asset/s using the relevant discounted cash flow valuation.

A buyer can only make a binding offer when they know for certain that the project is financially feasible, the DFS provide the details for such things!

GLA

7 green box replies, must have hit a nerve lol

You've made my thread look like a swamp!

GLA

It has 30 days, each one is a day where a green box gets little sleep as the news of DFS completion can land at any stage!

While they post nonsense the BOD and advisors are all hard at work on their strategy -

"With regards to the proposed sale of our Russian assets, as previously announced, our M&A team is focusing on BRICS counterparties, and discussions are ongoing with predominantly Russian, Indian and Chinese non-sanctioned counterparties."

"We expect potential buyers to remain anonymous until the Company is in a position to execute a legally binding agreement and further updates regarding the sale process will be made as appropriate."

Tick tock tick tock. . . . . . . . . . .

GLA

Isn't it strange that we have already received a phase 1 mining plan for a 5 year window. Now, if most mining operations last 20-25 years, which phase do people think Rosgeo JV assets will come in to the DFS? Some at the start, some 5 years down the line or what? -

"pleased to announce that a detailed mining plan has been completed for the first 5 years of the life of mine of Loipishnune open pit and the West Nittis open pit, both of which form part of the Monchetundra project."

"This production volume does not include Monchetundra Flanks and Rosgeo JV projects which will be separately announced"

It's all in RNS, you simply have to understand mining and comprehend what they've released.

The separately announced aspect comes from the wider long term mining plan that the DFS will cover. The reason is because of the processing plant for all ore being situated between the two originally planned open pits at Monchetundra, west nittis and loipishnune -

". Phase selection is a highly iterative process considering items like operational geometries, total volume, and ore delivery to processing."

GLA

How do they figure this part of a DFS out? Oh that's right, pit optimisation -

"Definitive Feasibility Study for its Nolans project in the Northern Territory forecast average annual production figures of 4,356 tonnes of Neodymium-Praseodymium oxide and and 135,808 tonnes of merchant grade phosphoric acid."

......

For a greenfield site, these questions may include:

What is the ultimate pit limit?
What capacity should the plant be?
Is it worth acquiring a neighboring lease?
What should internal phases look like?

Alternatively, for a brownfield operation, the questions may be:

Are the existing phases still valid?
Should one mining area develop before another?
Will capital expenditure to increase mining rates add value to the mine?
While these questions are not unsolvable, they are complex and involve many stages of problem definition and analysis.

The industry’s go-to method
The current approach to solving these problems involves a mixture of optimization techniques and heuristics. This approach consists of three primary steps:

Find the ultimate pit limit
Select internal phases
Determine mining and processing schedules

After selecting the ultimate pit limit, revenue factor shells from LG or Pseudoflow algorithms are generally used to determine candidate shapes for internal phases. Phase selection is a highly iterative process considering items like operational geometries, total volume, and ore delivery to processing.

https://www.deswik.com/news/a-new-approach-to-pit-optimization/

GLA

Most of the temper tantrums on here are purely down to a lack of actual mining knowledge.

Wouldn't it be handy to know how much money per year Monchetundra will make and for how many years? Yes, indeed it would, hence a DFS -

THE DEFINITIVE FEASIBILITY STUDY (DFS)
The question ‘To mine or not to mine?’ is resolved at this stage.

By now all processing parameters have been through detailed and accurate metallurgical test-work has occurred.

While inevitably some will be assumed, these are usually realistic because they are dependant on all mining, processing and other considerations taken at and before this point.

As an example, Arafura Resources’ (ASX: ARU) Definitive Feasibility Study for its Nolans project in the Northern Territory forecast average annual production figures of 4,356 tonnes of Neodymium-Praseodymium oxide and and 135,808 tonnes of merchant grade phosphoric acid.

The mine’s life will be 23 years and average annual pre-tax earnings at A$377 million EBITDA, although the project would require just over $1 billion in capital and up to 650 employees at the peak construction phase.

The company used the study’s release to proclaim to investors, “the Project is financially and technically robust to support a long life operation”.

https://stockhead.com.au/primers/your-guide-to-mining-feasibility-studies/

GLA

The discounted cash flow valuation won't have changed, metal prices are still nice and strong etc. The risk factor western parties try to apply to anything in Russia isn't applicable to a BRIC's entity.

It will take a while, but, markets etc will inevitably get used to BRIC's and them doing very large deals amongst themselves over this decade imo

GLA

Not really, the conflict hasn't stopped any other deals going through in Russia, just look at Dmitry's twitter feed and you'll see that many have sold assets over there during the conflict.

Eurasia's assets are further away from Ukraine than what London is, just to put some perspective on things!

Do you think Norilsk have stopped their Monchegorsk plans? No, there you go!

GLA

DFS = Sold, or, taken to production via Sinosteel EPCF.

The DFS provides the decision on whether to mine tge asset/s or not.

We're not looking at the far end of the extension here, as soon as the DFS is complete the buyer has all of the relevant numbers to make a binding offer.

GLA

Indeed kevman, this -

"A longer exercise period might also enable the employee to exercise in conjunction with a sale"

Everyone knows that they're selling substantially all of the assets, so, the extension allows them to also collect their options while doing so.

GLA

To accurately value Monchetundra and make a binding offer comes from the DFS -

THE DEFINITIVE FEASIBILITY STUDY (DFS)
The question ‘To mine or not to mine?’ is resolved at this stage.

By now all processing parameters have been through detailed and accurate metallurgical test-work has occurred.

While inevitably some will be assumed, these are usually realistic because they are dependant on all mining, processing and other considerations taken at and before this point.

As an example, Arafura Resources’ (ASX: ARU) Definitive Feasibility Study for its Nolans project in the Northern Territory forecast average annual production figures of 4,356 tonnes of Neodymium-Praseodymium oxide and and 135,808 tonnes of merchant grade phosphoric acid.

The mine’s life will be 23 years and average annual pre-tax earnings at A$377 million EBITDA, although the project would require just over $1 billion in capital and up to 650 employees at the peak construction phase.

The company used the study’s release to proclaim to investors, “the Project is financially and technically robust to support a long life operation”.

https://stockhead.com.au/primers/your-guide-to-mining-feasibility-studies/

All questions any buyer may have will all be answered by Eurasia's DFS, if all answers are made then the binding offer would have to be forthcoming.

As the example above, Eurasia's version will include all of the relevant figures for anyone to accurately value things using the relevant discounted cash flow valuation!

GLA

Probably the shortest window that they could expand them for imo. It doesn't mean that we will have to wait until 6 months time for news like one i see has suggested. It simply means that they appear to know that things will be done and that they will exercise within 6 months, could be next week, next month, a few months time, we'll never know until it takes place.

GLA

This part is from the old Anglo JV days, like i posted over the weekend, that's where the exploration data comes from, the old wider 36km2 held licensee which covered all areas at the time -

"where Eurasia has carried out due diligence including c.20km of exploration drilling and some 12 thousand samples taken by Eurasia."

That was done all of the way back here -

"Eurasia is pleased to announce the results of its 2009 drilling and exploration programme, comprising a comprehensive analysis and interpretation of its Monchetundra (36.2km2) and Volchetundra (210km2) platinum group metals (PGM) projects, located on the Kola Peninsula in north-west Russia. Both licences are held in Joint Venture with Anglo Platinum as a 40% shareholder."

https://www.lse.co.uk/rns/EUA/exploration-update-kola-lm3av5onl7erthw.html

Eurasia's most important month is upon us imho!

GLA

The four they had done due diligence on are the four previously operated pits i mentioned yesterday, they done the planning for those during due diligence, worked out it was worthwhile and took on the JV. Toll treatable to the Monchetundra planned plant. By Sept last year they had done a further two, that will have been two of the five mentioned here -

"Each of the four open pit deposits, which are located directly adjacent to Monchetundra, have already been studied by Eurasia with block modelling and open pits' optimisations performed by the Company. According to the due diligence done by Eurasia, the ores are suitable for toll treatment over distances of 5 to 8km with beneficiation and mineral processing at the proposed plant site between the Company's open pit deposits at Loipishnune and West Nittis.

· A further five mostly open pit palladium, platinum, copper, nickel and cobalt assets are included in the JV, where Eurasia has carried out due diligence including c.20km of exploration drilling and some 12 thousand samples taken by Eurasia."

The only real question is whether they have done the further three of those five as the initial four already had approved reserves status -

"· Four palladium, platinum, copper, nickel and cobalt open pit deposits, upon which Russian FS completed and reserves (according to the Russian standards) approved by the Russian State Committee of Reserves (GKZ)."

All going to production via similar EPCF to Monchetundra plans with Sinosteel -

"Eurasia will be the operator of the JV and, if it chooses to do so, will develop the Additional Assets by implementing an EPCF (Engineering, Procurement, Commissioning and Financing) structure similar to that signed with Sinosteel for the Monchetundra open pit mines."

The DFS is simply the culmination of all of the planning work that they've been doing for the district there!

GLA

From that given example, do tell us whether you believe the Rosgeo JV assets will be mined within a similar mine life as the one given -

"The mine’s life will be 23 years"

Of course they will, hence why any toll treated ore has to be included in the DFS for the processing plant, therefore, Rosgeo JV assets have to be included. There is no other way to plan for the toll treatment of their ore to the plant which is being constructed!

GLA