Member Info for mac4671

It's all in RNS -

"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."

GLA

Broxburn, we have EPCF being done, the F being FINANCE -

"Under an EPC contract, a contractor is obliged to deliver a complete facility to a developer who needs only "turn a key" to start operating the facility; hence EPC contracts are sometimes called turnkey construction contracts.[citation needed] In addition to delivering a complete facility, the contractor must deliver that facility for a guaranteed price by a fixed date and it must perform to the specified level. Failure to comply with any requirement will usually result in the contractor incurring monetary liabilities. The EPC contractor coordinates all design, procurement and construction work and ensures that the whole project is completed as required and in time. They may or may not undertake actual site work.[citation"

Hence Eurasia's model is JORC, DFS and EPCF to have Monchegorsk ready to go in to production on a turnkey basis.

GLA

The NKT NPV even has further upside on the portion they calculated at the time, why you ask, well -

"· About 2/3 of the resources have been defined as reserves under Russian classification by Norilsk Nickel, however the drill core and the trenches have only been analysed for the base metals (Nickel and Copper) and have not been analysed for platinum group metals ("PGM") thus limiting the classification to inferred under the JORC Code due to the application of regression formulas for PGM. Once all the PGM assays have been completed, this data will be used for re-estimation and re-classification providing additional upside for the next NKT MRE update."

There is only upside to be had!

All info is in RNS tbh.

GLA

Broxburn, you don't even appear to understand that a DFS is the bankable study you talk of -

"A definitive feasibility study (DFS), or bankable quality study, based on the best alternative identified in the preliminary feasibility study, and suitable as a basis for detailed design and construction. The definitive feasibility study will be based on indicated and measured mineral resources"

Eurasia own the legal rights to the area Broxburn, it's all covered by Russian law. Norilsk focussed their time and resources elsewhere, mainly their underground operations that have recently had problems with flooding etc. It allowed Anglo in to the area at one stage in a JV with Eurasia, subsequently Anglo left to focus their time and resources on Platinum dominant resources in Africa. Eurasia simply bought Anglos share on the cheap late 2014/2015 time and have been in the driving seat ever since. Anglo funded a lot of Eurasia's exploration at one stage, so, Eurasia ended up with control over the assets and a lot of exploration data on a Palladium dominant area. Even in 2016 Palladium was only $600 an ounce, the big boys had their attention elsewhere, now it's $2000 an ounce and Eurasia have the keys.

GLA

So no JORC, no DFS, no EPCF etc. Not comparable then as without those they couldn't even figure out the NPV.

The NPV is what has been officially calculated by Wardell Armstrong, they're the professionals in this situation, so, you take the numbers they give seriously. You then simply expand what is given into the wider district potential, currently a total of 184.6Moz unproven. Once JORC etc are done it becomes proven to a given percent of accuracy and the NPV calculations can begin.

The 19.7bn is just the approximate figure the final NPV for the entire district may arrive at from the figures we have been given to date.
That is of course in an all Rosgeo JV licenses arriving at Eurasia situation in the 100% owned position.

The area has had lots of historical exploration done on it, it was previously operated by Norilsk and so a previous DFS etc will have been done on various areas by them. Eurasia are using all information and their own to do the current valuations, DFS etc using a third party regulated professional body, Wardell Armstrong.

GLA

"What is Net Present Value (NPV)?

Net Present Value (NPV) is the value of all future cash flows (positive and negative) over the entire life of an investment discounted to the present. NPV analysis is a form of intrinsic valuation and is used extensively across finance and accounting for determining the value of a business, investment security, capital project, new venture, cost reduction program, and anything that involves cash flow."

https://corporatefinanceinstitute.com/resources/knowledge/valuation/net-present-value-npv/

Just so people are clear of what the NPV represents.

GLA

Add the 0.6 if you must for that wee bit of extra NPV spice lol -

"Total of 184.6Moz of Platinum equivalent resource provides for a new centre for global battery metals and PGM production on Kola"

They've released enough numbers to date, just most have never paid attention!

GLA

The thing to remember as we wait is come November the entire district will have a DFS and EPCF in place. Either it gets bought and goes in to production, or, we take the whole thing to production ourselves with an NPV at that approx figure.

Those are the numbers that have been released to date, 1.2bn for 11.2Moz and a potential full district resource of 184Moz that Wardell Armstrong are busy doing the NPV etc on.

You simply divide 184 by 11.2 and then times the result by 1.2 to get the approx full district NPV.

GLA

Eurasia can't lose either way

19.7 billion dollars if you're wondering!

GLA

Sorry, 1.2 billion. Tough typing and walking at the same time lol

GLA

Realistically you can expand from there as they've released 184MOz as the potential resourse, so if 11.2Moz is 1.3 billion NPV it's very simple to figure out what 184MOz is tbh.

GLA

Indeed Bucky, "11.2Moz of Platinum equivalent". That's just one underground aspect of one of many asset areas at Monchegorsk.

GLA

NPV is 1.2 just for the underground section Broxburn, potentially only what they currently have im the flanks license and thus disregarding anything further coming from the application that's in extending North. Then you have the open pit aspect to factor in.

Have you rearched NKT or is just others that you've looked at?

GLA

It's repetitive Derekshf, because, well, the assets have not changed, only the way they're valued has due to the increase in metal prices since 2016. Analyses at this stage will have a greater percentage of economically viable to extract metals, increasing open pit size to include for extraction and thus increasing the NPV of any individual open pit or underground mining area.

Palladium in 2016 was circa $600 an ounce, it's now over $2000. Extraction costs are largely the same, it's the profit which has increased greatly due to the increase in metal prices, also they can extract far lower grades economically at this stage compared to 2016 due to the same price increases.

GLA

GLA

You're welcome Layla1.

They never will as they have absolutely nothing to show anyone. All info is in RNS, apart from those Monchegorsk resource link areas.

We've been told in black and white that NPV etc is being done on all of it, it's stated that the DFS will be done for November, so, the DFS is for the entire lot and that's why it's now all taking so long.

It's better to have NPV on the entire lot at this stage, if Eurasia are exiting they'll want full value for what they have first mover advantage over. Dmitry is the largest shareholder and he will utilise all of his knowledge and contacts to make maximum value from it all for himself, therefore, also for us.

GLA

You know it's the entire lot as we've been told that's what Wardell Armstrong are doing -

"· 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."

So, come November we'll have NPV for all of it. How many billions will that be?

People feel the BOD are taking a long time, but, realistically the advisers will have advised them to change their tactics due to the current conflict situation. The Rosgeo JV assets, or at least a number of them, were potentially going via ROFR agreements in any case, the change will have been to simply dispose of the entire lot in one go imho. We're looking at a consortium takeover, it's simply the participants of the consortium which is up for for debate i feel. It will involve Norilsk and a Chinese company, well, that's what i believe anyway from what we know about Sinosteel and Citic Merchant already being involved with Eurasia Mining.

GLA

Come November we're going to have a DFS covering the entire lot, all set up and ready to go for any would be buyer -

"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.

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 EPCF structure will clearly be to cover the far larger processing capacity coming out of the multiple assets at Monchegorsk.

The due diligence was already done on four, the work that has been going on will be on the further five and to include them in a larger DFS in November.

You have to lean on a full exit of Monchegorsk at this stage due to the current conflict situation imho, of course, if it ends prior to November then that can potentially change for obvious reasons.

Nothing will stop Norilsk or a Chinese entity from buying the assets.

GLA

We also have what we started with on top of that list, Monchetundra. Last RNS plan being two opens pits, one at West Nittis and one at Loipishnune.

It's a district of billions upon billions worth of assets, no matter how conservative you try to be with any valuation!

GLA

Perspective, remember, there are 9 Rosgeo JV areas, so, not all are listed in this list with links i provide here, there are more on top of this lot -

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 - https://rfgf.ru/gkm/itemview.php?id=53121 - - - - $1.2/$1.7bn - - - - - - Just the underground section!
7: Poaz - https://rfgf.ru/gin/itemview.php?id=b2eabd5d1afdd02021dde143e6c0d859
"20300157 G-1-176GCM passport Layer 280
20131279 G-1-175GCM passport Eastern Vuruchuayvench
20124654 G-1-174GCM passport Poaz (bottom deposit)"
https://efgi.ru/object/20078236

GLA

Yeah, about that Fr.Jack.Hackett, we also have a recent example of a full value sale, so, perhaps you may wish to think again -

"Mondi agrees £1.3bn sale of its biggest Russian asset"

https://www.sharecast.com/news/news-and-announcements/mondi-agrees-pound13bn-sale-of-its-biggest-russian-asset--10393752.html

Realistically, due to the current situation we're now potentially looking at a full exit from Monchegorsk, so, how many areas like NKT are there again, that's right, there are many! NKT underground is simply one small fraction of the wider district there.

GLA