Member Info for mac4671

Simply put, not one Rosgeo JV can be developed until all analysis is done. If it can't be developed what would the point of an asset license transfer be? None, this is why they are doing the analysis on the entire Kola position as per RNS.

To get to the stage of knowing which assets can and can't be developed you need DFS and NPV in place, it's why they're even doing the new one on Monchetundra itself, the original asset in the area, so that they 100% know the most economically viable way to take the assets to production, develop.

"the Group seeks to develop the options available at Monchetundra, the Monchetundra Flanks, NKT and projects within the Rosgeo agreement."

If they seek to develop those then they seek to do DFS and NPV on all of them, the assets can't be developed to production without such analysis taking place first. Either a company holds a license or it doesn't, the 75% and 100% thing was originally quoted indeed, but, without JORC, DFS, NPV and 100% ownership the assets can't be developed in any case. Eurasia will go straight to 100% ownership of all Rosgeo JV assets which they choose to develop after all of the correct analysis is done imho. Rosgeo is simply holding them until all of the analysis is done. That is of course if they're heading Eurasia's way at this stage, what if there is a buying consortium after the whole lot? The chances are that there is and things are now being done in a way where the licenses will go to the buyer on completion of the correct analysis and at a given price from the NPV aspect. A consortium involving the Chinese, which would be deemed a friendly entity by Russia and so sale permission would sail straight through.

Rosgeo is a state exploration company, the area can't be developed by them, so, the licenses have to transfer to an entity that can once the correct analysis is done.

The DFS is the only way to develop a mining asset to production.

GLA

CAW, last year in AUG -

"Additional drilling has recently been completed on Nyud at Rosgeo's cost and Eurasia has engaged Wardell Armstrong International in relation to Nyud to among other things:

· Audit the quality assurance and quality control procedures;

· Review the block modelling and open pit optimisations; and

· Prepare CPR under the JORC Code."

What i have provided is this years most recent info, it comes straight from source.

Why has the license not arrived at it taken to production with your view? Well, because they don't know how to without a DFS and NPV in place. You simply can't develop a mining asset without the correct financial analysis being done first, it's impossible. You could be throwing money a hole in the ground and gain nothing from it if you tried to develop without the correct analysis being done!

GLA

Do tell us all how they will determine whether to proceed with the assets or not if no DFS and NPV analysis is done -

"The decision on whether to proceed and thereby incur all or part of the Earnout is wholly at the discretion of Eurasia. The Earnout (if Eurasia decides to proceed) will be spread over the period of the development of the Additional Assets. Eurasia has 24 months in which to decide whether to select some or all of the assets to develop. If Eurasia determines not to proceed with any assets, no consideration would be due beyond the Initial Consideration."

They have to thoroughly assess the projects to select them, that can only be done one way with mining!

GLA

It tells anyone in black and white in RNS what they're doing CAW -

"The focus at Monchetundra during 2022 has been on the analysis of this catalogue of projects - the Kola Battery Metals and PGM projects. The task for Eurasia and its subsidiaries has been in identifying the most sensible and economic means to schedule project development, within the context of the Rosgeo agreement and as independent projects. Wardell Armstrong International have been appointed as chief mining consultants to manage the reporting process in some cases undertaking new resource calculations."

All of the, the whole Kola position -

"A new mining-focused CEO was appointed at Kola subsidiaries level in July 2021 as the Group seeks to develop the options available at Monchetundra, the Monchetundra Flanks, NKT and projects within the Rosgeo agreement."

I'll repeat, they can only determine if an asset is economically viable to develop in a DFS is done. You can also only figure out an NPV from a DFS as you have to know the projected future cash flows to do one.
So, if they're doing NPV analysis on all then they're doing DFS on them all, it's all pretty straight forward tbh!

GLA

The only way to achieve this part is with a DFS -

"The task for Eurasia and its subsidiaries has been in identifying the most sensible and economic means to schedule project development"

On the whole catalogue -

"The focus at Monchetundra during 2022 has been on the analysis of this catalogue of projects"

GLA

We're told numerous times that they're doing the whole lot tbh -

"the Group seeks to develop the options available at Monchetundra, the Monchetundra Flanks, NKT and projects within the Rosgeo agreement."

"within the context of the Rosgeo agreement and as independent projects. Wardell Armstrong International have been appointed as chief mining consultants to manage the reporting process in some cases undertaking new resource calculations." - - - - - - - - -

"A new mining-focused CEO was appointed at Kola subsidiaries level in July 2021 as the Group seeks to develop the options available at Monchetundra, the Monchetundra Flanks, NKT and projects within the Rosgeo agreement. The Monchegorsk area is quite unique globally in having high levels of extensive previous exploration and reporting, and numerous deposits of a similar deposit style and metallurgical type in both the Monchegorsk and Monchepluton Massifs, directly adjacent to a major infrastructure corridor and in a mining friendly jurisdiction. This has created a large body of work by previous explorers and producing mines, state funded and private.

The focus at Monchetundra during 2022 has been on the analysis of this catalogue of projects - the Kola Battery Metals and PGM projects. The task for Eurasia and its subsidiaries has been in identifying the most sensible and economic means to schedule project development, within the context of the Rosgeo agreement and as independent projects. Wardell Armstrong International have been appointed as chief mining consultants to manage the reporting process in some cases undertaking new resource calculations."

GLA

The one that contains this -

"· Definitive Feasibility study on schedule for submission in 2022.

· Wardell Armstrong International engaged for various comprehensive studies on Eurasia and its projects (also the ones included in the agreement with Rosgeo), i.e. JORC standard MRE reporting and NPV analyses."

Strangely enough, after it states that DFS is on schedule for completion in 2022, well before the March deadline.

GLA

Well lovelyboy you're clearly taking it wrong. They had 24 months to assess all Rosgeo JV assets, that timeframe ends in March next year. Due to the very harsh winter at Monchegorsk they have to have everything done prior to winter, hence November given in RNS as the date for DFS.

It's in RNS that WAI are doing the entire lot, that is what it says in black and white, quite clearly tbh -

"(also the ones included in the agreement with Rosgeo)" - That's what that says right there, includes the Rosgeo JV assets.

The reason we have not seen the report is quite clear, because they're doing the whole lot and will release the whole lot when it is all done -

"· Wardell Armstrong International was engaged by Eurasia to produce JORC Mineral Resource Estimate at Nyud, as well as a CPR and net present value model. The results of this engagement is almost complete and will be announced separately."

GLA

If you look at when they created the subsidiaries for asset (or metal) segregation, it was February and again it explains what WAI are doing -

"· Similar to NKT, Nyud's main metal is also nickel. Nyud is included in the agreement with Rosgeo (for more information on Nyud please refer the last bullet point below and RNS of 26 August 2021).

· Wardell Armstrong International was engaged by Eurasia to produce JORC Mineral Resource Estimate at Nyud, as well as a CPR and net present value model. The results of this engagement is almost complete and will be announced separately.

· Like NKT, Nyud is a nickel open pit mine previously operated by Norilsk Nickel. A trial open pit was developed at Nyud by Norilsk Nickel and nickel dominant ore was shipped directly to Severonickel, the world's largest nickel processing plant. Similar to NKT, the Nyud area is well served with the infrastructure required for the relaunch of mining and processing and the tailings will be used as backfill for the old NKT mine developed in the past, following the best practices in ESG and saving on the tailings storage facility capital expenditure."

It's all potentially going straight to any buyer once JORC is done. The gov has to approve the sale also and so it has to be to an entity Russia deems friendly in the current geopolitical environment, that only leaves certain options . . . . BRICS!!

Sold via the two set up subsidiaries -

14th Feb 2022 10:32 am RNS Kola Mining LLC Incorporation
8th Feb 2022 7:00 am RNS Reserves and Resources Update
14th Jan 2022 1:11 pm RNS Kola Nickel Incorporation

Once all JORCS are done all licenses can arrive and be allocated to their appropriate subsidiary in a 100% owned position, they developed as per the sub intention or sold imho.

GLA

This is exactly why WAI are here right now doing the JORC etc on the entire district -

"The Rosgeo Agreement provides that Eurasia acquires 75% equity stakes in each of the Additional Assets and Rosgeo will retain 25% equity stakes in the Additional Assets (being those companies holding relevant licenses for palladium, platinum, copper, nickel and cobalt projects outlined above). Eurasia also has a call option to acquire 25% from Rosgeo after completion of the reserves audit under the JORC Code. Any engagement with Rosgeo as a contractor in relation to the Additional Assets will be on an arm's length basis."

To arrive at an NPV for each asset, therefore, an NPV for the entire district. They have to do it to understand whether the assets are financially viable to develop in any case, just we have banks banging on the door with buyers wanting to buy relevant assets.

Watch that vid link i shared and see what price their recent M&A was at, that is the level the big players are going at to secure resources for the boom.

GLA

lovelboy, it's in black and white what they're currently doing -

"(also the ones included in the agreement with Rosgeo), i.e. JORC standard MRE reporting and NPV analyses."

They're doing the entire district, they have to in either case as the 24 months given will run out in March next year. That's the time they were initially given to choose which assets to develop. They gain 100% of an asset after JORC, if they JORC the entire lot and pay for the entire lot then they have fully achieved their side of the Rosgeo JV. What they do with the 100% owned assets at that stage is entirely up to Eurasia, it looks like the whole lot is going to a consortium involving the chinese if i'm honest. Allowing better BRICS relations between Russia and China and also allowing Eurasia to exit at full value.

GLA

Living in your tiny little heads rent free green boxes -

https://www.youtube.com/watch?v=yK3FRCmYJYU

Enjoy the video genuine shareholders!

GLA

It's all in the numbers, numbers can't lie -

"· 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.

All coming in November -

"· Definitive Feasibility study on schedule for submission in 2022.

· Wardell Armstrong International engaged for various comprehensive studies on Eurasia and its projects (also the ones included in the agreement with Rosgeo), i.e. JORC standard MRE reporting and NPV analyses."

People try to speak badly about the BOD, but, the BOD have provided everyone with enough information, in fact, they've provided more than enough to figure things out if i'm honest!

GLA

On entire Monchegorsk area which is scheduled to arrive in November.

184.6Moz of Platinum equivalent, an absolute monster of a metals district!

GLA

You would expect an update this week imho -

"· Tantalum production from Namibia now at acceptable grades, with first shipment to Chinese off take partner now underway

· Tantalum production expected to be substantially increased during Q4 2022

· Diamond mine pan plant now installed and commissioned

· Cashflows from diamond operations expected to substantially improve"

Updates on a second shipment of tant, what the improvement of cashflows has been with the pan plant running at the diamomd asset, and of course the second tranche payment arriving. One update to cover all is perhaps more logical due to the overall contained info in such an update being relatively small, but, important to hear about for us shareholders.

GLA

Similar to this which was given for a trial cycle titled Dec 2021/Jan 2022. This time it would be July 2022/ Aug 2022 you see with the announced pan plant -

"Diamond sales and operational update"

GLA

They could drop a pan plant production update since it's been running for four weeks, at the same time announce the receipt of the second tranche. That could come later this week.

Looking at your RNS feed, you've had regular RNS every month since febuary, so, something should land sooner or later either way tbh.

GLA

Engagement letter signed with Citic Merchant -

"A changing global geopolitical environment and China’s ambitious investment strategies are bringing resource-rich countries of Central Asia, the Middle East and North Africa closer to Beijing"

https://law.asia/china-ambitious-investment-strategies/

BRICS!

GLA

Citic have been here the entire time on that success fee basis and are still here now, what does that tell everyone? -

"The Banks have agreed to work on a success fee basis, so that their motivation is directly linked to a successful completion of an alternative asset transaction superior to those outlined in the announcement of 15 September 2019. The interest from the Banks is originating from the recent palladium acquisitions namely Stillwater for c. US$2bn by Sibanye in 2017 and NAP for approximately CAD$1bn by Impala Platinum earlier this month. The title of the slides for investors prepared by VTB Capital is as follows: "The Last Non Consolidated Palladium Play"."

They arrived interested in all of the assets at Kola at the time -

""including the ones in Kola which are much improved in size following the addition of the new 'Flanks' areas""

Christian Schaffalitzky, the Chairman of Eurasia commented: "The board is pleased that major banks such as CITIC and VTB Capital, the largest investment banks in China and Russia respectively, are interested in Eurasia's PGM deposits including the ones in Kola which are much improved in size following the addition of the new 'Flanks' areas (see announcement dated 26 September 2019). Our total resource with the account of areas within the flanks contours is about 15 Moz of PGM (mostly palladium) that we believe puts us in a completely different league of major palladium companies already in production stage."

So, if they were interested in all of them back then, logic would suggest that they're very much interested in any further assets coming from the Rosgeo JV, especially ones that can inevitably be 100% owned after doing JORC -

"The Company confirms that it has entered into a success fee based engagement letter with CITIC Merchant to, amongst other things, explore possible strategic options for the Company's mining assets.

launch of formal sale process under the takeover code

As per the announcement released by the Company on 1 July 2020, the Board has appointed UBS Investment Bank ("UBS") as its leading adviser to assist in a review of its strategic options including asset sales or a sale of the Company. For more details please refer to the RNS released on 1 July 2020.

In summary, the Company now has success fee based engagement letters signed with UBS and CITIC Merchant"

November comes and we have a DFS for the entire Monchegorsk area, all assets JORC's and EPCF in place, all turnkey and ready to roll. Now, wouldn't that type of asset situation suit banks who have been here for years now on a success fee basis, yes, it certainly would. The more that is sold the more they make through the success fee!

GLA

Broxburn, we were updated in 2019, the banks approached saying they could get a better deal than the JV in Sept at the time. You're going to have to do far better than this, i've been here since 2016, i know it like the back of my hand lol

"The Banks have agreed to work on a success fee basis, so that their motivation is directly linked to a successful completion of an alternative asset transaction superior to those outlined in the announcement of 15 September 2019"

They arrived at the time where the BOD were going to draw down on the $50mn financing from the Sinosteel EPCF. Since that point they've been working on the sale of Monchetundra -

"All existing non-disclosure agreements interested parties have already signed with the Company in relation to the potential acquisition of the Monchetundra asset remain valid"

Now they're working on the entire Monchegorsk district with Wardell Armstrong, it's all in RNS.

GLA