Member Info for mac4671

"This was all about avoiding a sell off in Russia which would destabilise it's Market" - It's exactly that, hence why Sakhalin is specifically mentioned in the decree.

A sale of Eurasia assets at Monchegorsk to either Norilsk or a Chinese entity will create zero destabilisation.

If Norilsk, trade to BRIC's is strengthened via that buyer, if Chinese or even another BRIC's country, trade would also be strengthened via that route.

The decree is against unfriendly entities, Western entities looking to bail in an unorderly fashion, it's fairly clear i feel from what is actually stated in the decree.

Eurasia may even drop a clarification RNS for this one, because, well, it could be quite confusing to some imho!

GLA

What it all boils down to is this -

"It seems to me to be a really good strategy: Try to secure some of the best resources right now, even if you have to pay a premium," Goldstein said. "It ultimately results in having that security of supply in the future."

Security of supply, resources are limited and are only in certain geological locations, Eurasia have simply managed to find themselves holding the perfect area at the perfect time with Monchegorsk. It's primarily known as an old Nickel and Copper mining area!

GLA

Here, an example of what they've done for another battery commodity -

"Chinese companies are snatching up lithium projects worldwide, ensuring access to supplies of the metal amid worsening global shortages and surging prices."

"Chinese companies have done the math and realized how much lithium they're going to need to meet either battery or EV growth plans and have decided to try to secure that by going after some of the most promising junior projects in development,"

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/china-mining-battery-companies-sweep-up-lithium-supplies-in-acquisition-blitz-67205411

Nickel, Copper and Cobalt is required just the same ;)

GLA

Not sure what their structure is lovelyboy but they do appear to be in panic mode.

The Sinosteel EPCF is the most beneficial thing here at Eurasia at the moment, it's a plan B that can not fail in any situation. If the asset sale does not happen on Eurasia's terms, they simply take the assets to production themselves. Come November they would be in a position to do so with a more recent DFS having been done and the Sinosteel agreement already in place.

Either route will lead to the area being in production long after this conflict, so, is still just as valuable to either side.

The market for the metals and the metal pricing will remain intact throughout.

GLA

"I just don’t see many suitors paying good money for anything Russian based at the moment" - It's a typical western thought process. If the buyer was western it would hold more water, but, Eurasia is all BRIC's, they sell their West Kytlym metals in BRIC's, the sale of any assets will also be to a BRIC's nation. To BRIC's nations the asset value remains, the reason is because any BRIC's entity can still trade freely with Russia and the price of metals is pegged to a third party system, the London Metal Exchange.

No sanction have affected any trade between BRIC's nations, in fact, as this has all gone on more countries have applied to join BRIC's, that's more potential suitors for any metal wares or asset purchases.

Essentially, the current situation is perhaps preferential to a BRIC's suitor as it locks out any potential western competition for the assets. It's not really a loss to Eurasia as most western entities bid in a way to get things as cheap as possible, an entity like China bids the complete opposite, they bid way over the top to secure what they require! The bidding between BRIC's nations for assets would therefore be more lucrative than the bidding between a western counterpart!

GLA

Hopefully nore positive developments surface from them. Grain sorted, i wonder what's next on their agenda -

https://www.theguardian.com/world/2022/aug/05/putin-erdogan-meet-secretive-talks-sochi-russia-turkey-ukraine

I guess we're left having to watch what happens with Turkey somewhat closer due to talks there being constructive, grain now getting out ok Ukraine regularly is pretty positive!

GLA

"Nov lines up with the warrants expiring too (02/11/2022)" - There is that, yes, i had forgot about those tbh. It makes sense that something happens prior to that date in order to allow people to capitalise on their available warrants, or, they would be lost.

Hope you had a lovely holiday, todays decree news has been about the most excitement. Take a look at it and see what your thoughts are, i believe it won't apply to us due to how Eurasia's company is set up to hold asset licenses in Russian subsidiaries. Always best to get a few peoples opinion on something like that!

GLA

To look at the decree we're looking at what doesn't apply -

"3. The prohibition established by this Decree does not apply to legal relations regulated by Decree of the President of the Russian Federation of June 30, 2022 No. 416 "On the application of special economic measures in the fuel and energy sector in connection with the unfriendly actions of certain foreign states and international organizations" and Federal Law No. 320-FZ of July 14, 2022 “On Amendments to the Federal Law “On the Privatization of State and Municipal Property”, Certain Legislative Acts of the Russian Federation and on the Establishment of Peculiarities in the Regulation of Property Relations”, including transactions (operations) made in accordance with the said Decree, and transactions (operations),committed when a branch (representative office) of a foreign legal entity is transformed into a business company in the form of a limited liability company in accordance with the said Federal Law."

The specific mention of Sakhalin would make it appear that it is largely aimed at that.

The transaction would be in accordance with the decree if the assets are sold via the Russian subsidiary holding companies, something which Eurasia have set up in place for such things imho -

" including transactions (operations) made in accordance with the said Decree, and transactions (operations),committed when a branch (representative office) of a foreign legal entity is transformed into a business company in the form of a limited liability company in accordance with the said Federal Law."

You see with Sakhalin, what they specified is that they are to place Sakhalin under a Russian company and then stakeholders are to take a stake in the Russian company. Eurasia's assets are already held that way, what we buy shares of is simply the umbrella company which controls the goings on of the Russian subsidiaries.

The sale of the subsidiary holding the license to a Russian company would simply be a sale of one Russian company to another.

I don't think the decree applies to us due to our current company setup tbh.

There must be companies still operating over there who are not set up the way Eurasia is set up. What it does in effect is give Russia full control over who operates at their resources, there will clearly be given a preferential treatment to BRIC's nations from all of this. Most notably China, who, as always are looking to invest in foreign assets. They're already here via Sinosteel and Citic Merchant and we all know how they're already dominating the EV battery commodity space, their domination only looks set to increase at this stage.

GLA

Deloan would receive the special dividend payment like all other shareholders CAW. So, this is where the success oriented motivation comes in, the higher the sale price the larger the dividend payment he will get. He is also now effectively cut in on all future Deloan investment deals through the given holding - "This will help avoid the dilution of the shareholders and will allow the right success oriented motivation of Alexander."

He has 10% of Deloan, not 10% of Eurasia, he has no way of selling any Eurasia shares!

GLA

From interviews Dmitry did in 2019 to RNS, all the clues have always been there that the assets will be sold to a Russian company tbh.

They even specifically mention Alexanders role in a previous sale to a Russian company and Dmitry did quote in an interview that he would prefer a Russian buyer -

"Alexander is a former Chief Executive Officer of SMCM (molybdenum and rhenium metals producer, that he helped sell to a company affiliated with Rusal)"

Rusal being the first company to issue Yuan bonds in Russia -

https://rusal.ru/en/

It's all BRIC's no matter where you dig a little deeper!

GLA

To be honest, i think it has always been Norilsk in one shape or form, standalone or part of a larger consortium -

"Eurasia is pleased to announce the appointment of Alexander Vasilievich Sushchev (PhD in metallurgy) as strategic adviser to the Board. Alexander is a former Chief Executive Officer of SMCM (molybdenum and rhenium metals producer, that he helped sell to a company affiliated with Rusal) as well as former manager of Norilsk Nickel, the world's largest palladium producer. Alexander will be working closely with the Directors of Eurasia, Mr Alexei Churakov as well as with the banks as the Company is working on a potential disposal of the Company's assets as announced on 24 October 2019. There can, however, be no guarantee that any transaction will occur.

Alexander will not receive a salary for his role. However, it is noted that Alexander will receive 10% share in Deloan Investments Limited ("Deloan"), a Company owned and controlled by Dmitry Suschov (Director of the Company), which holds a 10.42% interest in the Company. This will help avoid the dilution of the shareholders and will allow the right success oriented motivation of Alexander."

He doesn't get paid unless the deal is successful, it has been the case since he was taken on -

"In conclusion, we are confident of achieving additional milestones during the remainder of 2022. We are well equipped for the challenge, and I look forward to working towards our goals in the coming months. I want to thank sincerely all my colleagues on the Board, the management and staff in Russia for maintaining our progress over the last year. In particular I wish to thank Alexander Sushchev, metallurgist and advisor to the Board, who is retiring this month from the Company. He has played a key role in the development of our Kola projects and has agreed to provide occasional advice as needed."

Retired now, i suspect with the feet popped up waiting on his chunky payment arriving!

GLA

It doesn't apply to us. It's a BRIC's buyer for any assets and with Dmitry being the largest shareholder here at Eurasia we're Russian owned.

The chances are at this stage it is Norilsk as the buyer also, which, keeps any sold assets in Russian hands in any case!

GLA

"there are virtually no alternatives available to our advancing development of the project" - That's the kicker right there, you see at Eurasia we can draw down on the Sinosteel EPCF and take Monchetundra to production ourselves if the sale does not take place on our terms. Part of the beauty of having a BOD who cover all possible scenarios, Dmitry has had the foresight to structure it all in a way that he wins no matter what, a very clever gentleman tbh!

GLA

It's a good sign when they start to be able to agree on some things, hopefully it expands from here.

I see amnesty international dropped a right bomb on the locations that Ukrainian forces have been using in built up areas -

"Ukrainian forces have put civilians in harm’s way by establishing bases and operating weapons systems in populated residential areas, including in schools and hospitals"

https://www.amnesty.org/en/latest/news/2022/08/ukraine-ukrainian-fighting-tactics-endanger-civilians/

There appears to be quite a good few reasons to try and work to a peaceful solution right now imho.

GLA

Poised and ready ahead of the game. . . . . .

Christian Schaffalitzky, Executive Chairman of Eurasia commented: "The Directors are delighted to see tangible progress in the development of a broader Eurasia growth strategy, 'Eurasia v.2.0' in the ammonia and hydrogen markets alongside the development of our existing world class Battery Metals and PGM projects. We are confident this will create new opportunities for value creation and expand our Company's business."

GLA

........market to grow by more than 6,000% by 2031, says new study"

https://www.rechargenews.com/energy-transition/global-green-hydrogen-market-to-grow-by-more-than-6-000-by-2031-says-new-study/2-1-1271676

Eurasia will certainly want to expand their H4Energy JV and grab a good slice of that pie!

GLA

And as a LTH it is maximum value that we should be after in any sale environment.

Why sell for $2bn when you can sell for $3bn with a complete DFS?

Business is about making money, the route which makes the most money is always the correct business decision!

GLA

It comes as copy and paste because no one can say that i've altered it any way for an ulterior agenda. In the vast majority of cases i also always provide the relevant link so that genuine holders can follow it and read things for themselves.

Whenever they argue against what i provide they're arguing against the industry experts who have provided the information realistically, i'm not sure if they realise how stupid that appears to most intelligent investors.

All information is out there, available to anyone who cares to look. The green boxes never do as they're not interested in the company, they're interested in pushing their agenda, and they do so in such a poor fashion that it really is hard not to sit and laugh at their child like responses tbh.

GLA

No contradiction CAW, they have always processed multiple metals at Monchegorsk -

"The Kola Division develops deposits located within a 25 km stretch between Nikel and Zapolyarny in the west of the Murmansk Region. The Division mines disseminated copper-nickel sulphide ores containing nickel, copper, and other valuable metals."

"Kola MMC’s production facilities in Monchegorsk process concentrate from Zapolyarny Concentrator and converter matte from the Polar Division. Kola MMC’s end products are nickel and copper cathodes, nickel carbonyl, electrolytic cobalt, and cobalt concentrate"

https://www.nornickel.com/business/assets/kola-division-russia/

The Copper project that they've named it is simply their greener and more efficient upgrades to their facility over there!

GLA

They do hate the facts, it's always entertaining watching them panic whenever i decide to drop a few reminders for genuine shareholders!

I'm there rent free green boxes, right there entirely rent free.......it's too easy lol

GLA