Member Info for mac4671

The green boxes only come to disrupt and try to get factual posts taken down. It's pointless arguing with them, just report, filter and then continue the posting of company things to discuss, like the lovely potential NPV -

"Now, since we know it's all heading to JORC and NPV etc, the fun part, the potential entire district NPV -

"· 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"

That's for 11.2Moz of the potential 184.6Moz - "· Tier-1 scale: 305Kt of Nickel, 143Kt of Copper, 57 tons of PGM and Gold (11.2Moz of Platinum equivalent) have been estimated by WAI as JORC-compliant resources for an underground mining operation."

So 184.6 divided by 11.2, then times the answer by 1.2 = $19.78bn (rounded up) potential full Monchegorsk district NPV.

Koka Kola's all round!"

GLA

Cough cough, straight to 100% ownership after JORC.........it's all legally binding via EDRC.

GLA

Full of lovely information that some may have forgot -

"· The right of registered Arctic residents to get land lease for their projects in an out-of-auction procedure, whereby it can be the Arctic management company that grants such lease right to land plots in state or municipal ownership. This regulation considerably simplifies and speeds up the process of obtaining land lease rights (Article 15 Law 193; Resolution of the Russian Government No. 91 dated 1 February 2021 "On the Approval of the Rules of Granting Land Plots in State or Municipal Ownership and Located in the Arctic into Lease by the Management Company of the Arctic"). This enforces the titles to the projects in addition to mining related licenses and potentially speeds up the development of mines;

· Tax incentives and non-tax benefits;

· Legal defence of rights and lawful interests of registered Arctic residents by the Arctic management company (Article 17 Law 193)."

GLA

Financing, something people wonder about, well, they're working on EPCF agreements for the projects, but, they also have this via EDRC -

"The investment commitment (both equity and debt - the "Investment Commitment") planned over the course of the 10-year term of the ERDC Agreement is expected be about 3b RUB (c.$40m). The prime purpose of the Investment Commitment is the development of the projects included in the agreement with Rosgeo as announced via RNS on 26 March 2021. These projects are anticipated to employ at least 200 people in the Arctic. The Investment Commitment of the ERDC Agreement is non-binding."

I would encourage people to read the EDRC RNS from late last year to see how everyithing is legally binding, state supported and there even pretty good tax benefits.

GLA

Don't forget about the signed agreement we have with them -

"In the framework of this application, Eurasia has signed the ERDC Agreement providing that ERDC shall procure:


(i) land use rights for all Eurasia's projects in the Arctic (both Eurasia's own and all projects included in the binding agreement with Rosgeo), which will be an important contribution to an uninhibited development of the projects in the region. All the land plots of all Eurasia's projects on Kola and all projects included in the agreement with Rosgeo are included in the Appendix to the ERDC Agreement."

Everyone mentions the NYUD license for example, but, we have a signed legal agreement with the local government in Murmansk.

We have a far simpler process in place compared to the old application process!

GLA

"Turkey and the United Nations" - Currently the trusted parties by both sides, the Russian's and the Ukrainian's, so, if anyone were to be able to broker a political peaceful solution to the rest of situation over there it will be them imho

Fingers crossed it all keeps progressing, the new cargoes of wheat, corn and sunseed oil is an agreement which has worked and is growing. Could be the start of the wider agreements to reach that peaceful solution everyone is hoping for!

GLA

"that means we may well get $400k each month" - That seems highly likely, or, it could all come sooner depending on just how keen Xinjian are to get it all going.

$500k in cash in the account is like 4.6% of the current £9m MCAP, by the time the full $2.5m arrives it's 23% of the MCAP. But, the deal isn't structured like that is it, the full value of the deal is $7.5m from various assets including cash which is 69% of the current MCAP approx -

"· Non-dilutive investment of US$7.5 million in cash, machinery and services"

The MM's will have to factor the value in the more it progresses due to the percentage of MCAP the deal warrants.

That's just the Lithium side of things as well. The other Kazera arms could bring positive news at any point, 4 weeks of pan plant operation now so they'll know what difference it has made to the financials of that project also imo.

There isn't any downside to be seen now that Xinjian and the pan plant has arrived here, it's just a matter of waiting for the value to materialise imho

GLA

Nice find, i like this part -

"here we can talk about certain preferences, some benefits that can be provided within the framework of special economic zones, territories of advanced development, special investment contracts"

Eurasia have received good treatment when you really think about it, the Rosgeo JV is the biggest example as it allows them to avoid the slow process of getting the wider original license area back via flank after flank application.

GLA

Well, hopefully something positive comes out from it -

“the need for a political solution to the conflict”.

It's more people like that who should be visiting Ukraine, people who want to broker peace, not prolonged conflict!

GLA

That's literally all that matters. Due diligence was done, an agreement made and now they're making good on the agreement.

A timeline has been given to have the Lithium in production at the plant and in the meantime the Tant production is to be increased. The deal is great for Kazera.

That's half a million now sat in Kazera's account!

GLA

Certainly good to see it confirmed and the deal progressing.

With 500k now paid to date it shows that they mean business!

GLA

Good old Koka Kola -

"Exploration Update - Kola

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"

Anglo funded all of the exploration at the time and then left a few years later due to poor Palladium compared to Platinum pricing at the time. palladium being circa $600 an ounce in 2016.

Platinum Prices - Historical Annual Data
Year Average Closing Price Year Open
2016 $988.90-------------------- $891.10
2015 $1,050.61--------------- $1,193.00
2014 $1,383.62----------------- $1,388.00

Anglo simply made the correct financial decision for themselves at the time, leaving Eurasia with all of the exploration data and having to play the waiting game for certain technology to drive the demand for the metals at Monchegorsk. Along came the green industrial revolution and everything else is history!

GLA

The old license in Anglo JV days was 36.2km2. They've simply worked their way back to having control over that historical area via MT + Flanks and the Rosgeo JV.

MT + Flanks is only approx 8km2, Rosgeo JV cover the rest of the old area!

"Monchetundra

To date, 16,121m of drilling have been completed on the licence, with most of the intersections from the last phases of drilling having been previously announced in early 2009 as a table of results, without accompanying geological comment. Subsequent work during 2009 focused on an interpreted ore structure in the Loipishnyun sub-area, stemming from recent drilling, but also included several previously unreported intersections"

You need to go right back to 2010 RNS and read from there as there has been further drilling and exploration campaigns on top of the 16,121m. All of the way to Absolute Precision with their fancy gear and Rosgeo more recently.

The area is thoroughly explored, WAI are gathering all of the data and creating the relevant JORC, DFS and NPV from the data in place and any other little bits that they advise need to be done. Rosgeo being an exploration company will cover any other little bits prior to the entire district being done.

GLA

Because NKT, NYUD and Poaz have previously been operated and have open pits on them already, arriving at DFS for those assets is a lot quicker than other ones that may require further exploration.

Between ex operators like Norilsk, state exploration and the exploration done by Eurasia themselves during Anglo JV days, the entire district has had an abundance of exploration data for a very long time tbh, it all simply needed to be put together and the relevant JORC, DFS and NPV's done on them.

GLA

It all starts with block modelling, pit optimisations etc once they have a good 2D or 3D map of the resource from various exploration techniques.

It all just simply follows a logical process.

1. They rock up to some ground where historical data suggests there is the potential of a relevant ore body.

2. They explore via drilling, trench work etc to get a vague idea of ore body and do an initial not very accurate feasibility study.

3. Further exploration work and more technical geological exploration is done, including infill drilling etc. To gain a more accurate resource level and shape picture.

4. Block modelling and open pit designs are done on explored ore body. Taking in to account the ore grades right down to whatever is financially profitable to extract at the current and future forecast metal pricing.

5. DFS is done to work out how the ore will be extracted in the most profitable and efficient way. JORC, NPV etc is all part of the process of arriving at the decision to proceed with the mine construction or not.

6. If the plan is to sell you sell at that stage and the buyer takes the construction risk. If not, you get financing or put in place relevant EPCF contracts like Eurasia have already done with Monchetundra via Sinosteel. Either for sale or to production is arrives at a turnkey situation which is ready to go straight in to production.

I'm not battling with you either lovelyboy.

What comes after block modelling and open pit optimisations is simply the process an asset heads to production, or, at least the right to the stage where they male the decision to develop to production or not, DFS.

GLA

Without that DFS, they can't figure out what equipment they will need, therefore can't figure out the costs. If they can't figure that out then they can never figure out the tonnage extraction rate at X grade and therefore cashflow. Without those they can't tell if a project is economically viable, or, create an NPV on the asset as they will never have any idea about expense and income over a given mine lifetime.

If you arrive at the end of above you can never know whether to develop an asset or not! So, in summary, to arrive at a conclusion as to whether to develop an asset or not, DFS is required.

Now, we all know what has changed this year, something entirely out of the BOD and advisers hands, so, what do they do? An orderly exit out of Russian assets could be the route of choice right now for obvious reasons. Of course, we can never know anything for certain until things actually transpire, so, at this stage it's just my best educated guess due to the very clear slow down of RNS comms from the BOD this year since the conflict began.

If anyone has a different theory i'm all ears. UBS, Citic Merchant, DLA Piper etc are all still here, so, a large deal is still very much going down, that is something all genuine shareholders should be able to agree on at this stage.

As for Wolfie, i'm a Celtic Tiger, playing with you is like a cat playing with a wool ball, simply amusing and aimlessly fills in quite a bit of time as us real shareholders patiently wait for things to conclude!

Poodle pup would have perhaps been a better moniker for you tbh! In your small head rent free forever!

GLA

Indeed CAW, a debate on what's possibly being sold is far better than what the ones with a negative agenda come with.

The easiest way to think about it is like this -

1) · Block Modelling and open pit contouring and optimisation complete for 6 of 9 Rosgeo JV projects. - Complete Sept 2021

2) Now, how do we divide that ore block in to a manageable extraction process over a given lifespan?

3) We need a DFS. The DFS figures out exactly how the ore will be removed from those optimised pits, what tonnage per year to extract and feed to the processing plant.

The only thing they could have been working on for those 6 in particular is the relevant DFS. Due to the time elapsed between then and November, you can assume the other 3 have had the optimised pit work analysed and are also heading to a relevant DFS stage.

GLA

Yes CAW they will care, they're shareholders themselves and are after maximum value.

Rosgeo JV has been in assessment stage for a very long time -

30 September 2021 -

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

That was 10 and a half months ago, that's a long time CAW. By November it will be 13 months, a lot can be done in that kind of time frame.

MT DFS, it's a simple recalculation, not very time consuming CAW -

"· Recalculation of MT and Flanks resources and pit outlines, reflecting metal price increase since Feasibility study of 2016."

I agree to disagree, but, the evidence speaks for itself i feel!

GLA

You've proven the point yourself, that was 6 months ago when the draft was given to Eurasia for review. WAI were confident that their work was complete on it back then to submit it to Eurasia. NKT only needed a PGM assessment and the open pit analysis done after the last RNS on that. Monchetundra is simply an adjustment on pit size to accommodate the lower grade ore which has now become financially viable to extract due to the metal price increases since 2016.

That leaves the vast majority of work over the last 6 months being on the other Rosgeo JV assets, they simply don't have anything else that they could be working on.

POAZ is an ex operating open pit mine, satellite imagery will show anyone that, so, again, the work on that one will be minimal as a previous DFS will have been done by the previous operator there.

30 September 2021 -

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

Rosgeo JV analysis isn't a new thing, you can potentially class their initial assessments as the feasibility stage prior to heading to the more thorough DFS and NPV stages that Wardell are here for. All looking to be complete in 2022!

GLA

"Wardell Armstrong International has presented a draft CPR under the JORC Code and the NPV model to Eurasia for review." - Indeed, they can review it for as long as they like CAW. NYUD was done a while ago, so, what have they been doing since? The rest of the Kola assets, looking to have them done in 2022 and long before the March 2023 timeframe arrives.

Due to the conflict we're looking at one transaction for the entire lot and Eurasia fully exiting their Monchegorsk position imho CAW. Hence quiet comms until it is all ready to be done!

GLA