Member Info for mac4671

Good spot, it's doing very well!

GLA

"The report was ridiculously conservative" - That's it Alta, that's exactly it.

It's why i provided all the tools necessary yesterday, for anyone to do their own valuation. Even if they don't do a valuation, reading through the valuewalk link i provided, will give anyone who is a little unsure, a far better understanding of what adds value.

PFS's on flank areas, DFS on initial main MT mine area, and also DFS on WK, all add value. Then look at the price forecasts for a lot of the metals we have at our assets, it really is the perfect storm.

UBS running the FSP on a success fee basis, ii's in at 22.5p etc etc. We're all in a very unique and perfect position imho.

FLA

Hi saxon, yes, it is very much the perfect storm brewing here. A lot of our metals have very strong future pricing forecasts, which is highly beneficial when people are trying to value things, both as a buyer and as a seller.

GLA

Palladium Forecast: Q4 2020
Price: $ 2,500-$ 2,600

Palladium Forecast: 1 Year
Price: $ 2,800-$ 3,000

Palladium Forecast: 3 Years
Price: $ 3,500-$ 4,000

https://www.fxleaders.com/forecasts/commodities/palladium-price-forecast/

"The main component of batteries is nickel itself."

https://www.somagnews.com/elon-musk-thinks-nickel-is-the-new-gold-heres-why/

"Attention is turning to platinum as gold price trades below $2,000 an ounce"

https://www.kitco.com/news/2020-08-26/Attention-is-turning-to-platinum-as-gold-price-trades-below-2-000-an-ounce-Commerzbank.html

"Rhodium price on track for new record as mine output plummets"

https://www.mining.com/rhodium-price-on-track-for-fresh-record-as-mine-output-plummets/?utm_source=Daily_Digest&utm_medium=email&utm_campaign=MNG-DIGESTS&utm_content=rhodium-price-on-track-for-new-record-as-mine-output-plummets

GLA

"The EU estimates that to meet its climate neutrality goal, it will need up to 18 times more lithium and five times more cobalt in 2030"

https://technocodex.com/eu-sounds-alarm-on-critical-raw-materials-shortages/

GLA

The interviews are very good scoobie, but this thread is for people who want to value things themselves.

If anyone wants to, which i highly suggest they do, if they're serious about investing in miners, then go through this link. You won't be better informed imho -

"In collaboration with the University of Zürich, Swiss Banking Institute and Prof. Dr. T. Hens"

https://www.valuewalk.com/wp-content/uploads/2015/06/Valuation_of_Metals_and_Mining_Companies.pdf

GLA

Certainly saxon,

If people are into mining investments, then it's a very important read in my eyes -

"Chapter 8 is a practical chapter. A copper mining group, Antofagasta, is valued
with different valuation methods."

GLA

Cheers saxon,
There's enough info in this thread to allow anyone to come to their own valuation figures, from industry known ways of making valuations.

I thought i would just drop it all here, because there seems to be a constant valuation theme going. Once people make their way through the valuewalk link, they will appreciate the importance of those recently mentioned PFS's where it comes to MT flanks, and also the ongoing DFS's at WK and MT.

I hope it all helps anyone who has been waning to try and value things themselves.

GLA

"There is enough reliable information available to value the
property by discounted cash flow methods, with a reasonable degree of confidence."

DMITRY SUSCHOV
Non-Executive Director
Commodities trading veteran (primarily various grades of metallurgical and thermal coals) who has successfully built a major Pulverized Coal Injection (PCI) franchise throughout Asia, Europe and America with an annual turnover of up to $100 million, therby accumulating around 2.5% of the global PCI market share. He is also an investment banker with extensive experience in the Russian resources industry having previously worked with IG Capital, MDM Bank, PricewaterhouseCoopers and Ernst&Young as mining & metals leader in corporate finance for Russia and CIS.

ALEXEI CHURAKOV
Strategic advisor to the board
Mr. Churakov is a former Goldman Sachs and Morgan Stanley senior investment banker specialized in the mining sector. He has a background in cross-border M&A transactions operating from Moscow, London and New York. Alexei brings his extensive experience in mining M&A as well as maintaining a hands on approach at operational level.

The BOD's valuation will always be the superior one, because they have all the info available to them, and are experts in their field.

GLA

Cough cough, hint hint -

"Development properties are those on which economically viable deposit has been
demonstrated to exist by a Feasibility Study or Pre-feasibility Study, but is not yet
financed or under construction. Such properties are at a sufficiently advanced stage or are
former producing mines. There is enough reliable information available to value the
property by discounted cash flow methods, with a reasonable degree of confidence."

"but is not yet financed" - we differ here, because we are financed via the Sinosteel EPCF.

GLA

Since it's a bank hol, and people may have plenty of time, this could be of interest to some-

https://www.valuewalk.com/wp-content/uploads/2015/06/Valuation_of_Metals_and_Mining_Companies.pdf

GLA

You can also bench mark against previous deals done in the sector. The obvious ones are the ones mentioned in RNS, but there are others out there as well -

"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"."

GLA

You can do the same for the new production target figures given for MT -

"Mine life: >20 years

Target production: 1,000koz at full capacity"

https://finbox.com/blog/discounted-cash-flow-ebitda/

GLA

The $10m is to ramp WK production up towards this level i believe -

"Target production: 64koz at full capacity"

Target production mentioned in July RNS is as above.

"The net proceeds from the Placing, which was undertaken by the Company's Joint Broker Optiva Securities, will be used towards scaling up the production of West Kytlim, as announced in the Company's Annual Report dated 1 July 2020."

With that, you can work out a EBITDA figure, you then use the industry EBITDA muliplier to value WK -

"The study found that EBITDA multiples are highest for the information sector (11.1x) and the mining, quarrying, and oil and gas extraction sector (8.6x)."

https://www.bvresources.com/blogs/bvwire-news/2019/01/03/ebitda-multiples-by-industry-new-statistics-on-private-company-selling-prices

https://www.valuadder.com/glossary/ebitda-business-valuation-multiple.html#:~:text=You%20can%20estimate%20the%20value

GLA

Doesn't apply to Eurasia, but this is pretty interesting -

https://www.independent.co.uk/news/world/asia/crater-explosion-arctic-tundra-russia-heatwave-methane-a9695581.html?utm_content=Echobox&utm_medium=Social&utm_source=Facebook&fbclid=IwAR0uLMxLLu2gKhof9Om9oJ-MoPkUW-89M2N8X98eRIffIQ-3-11J5X9AJvo#Echobox=1598776992

GLA

AISC is low, it's all open pit with no blasting at both main assets. The third smaller asset, is a small gold tailings operation.

GLA

The 28 day PUSU has been removed, but we anticipate that UBS have placed a timeline on proceedings. Currently, from what we have available, Raharhs 12 week timeline seems the most likely. If you click on my moniker, which is highlighted in blue, it will take you to my posting history, and you'll find his example there.

GLA

Lesego has been interesting since they were mentioned last year -

"With dynamic teams in both China and South Africa, downstream opportunities are being evaluated to fully exploit the numerous sought after properties of the PGE's, thereby maximizing the return on investment for the benefit of all the stakeholders, including the communities and employees."

They also appear to have Heaven-sent Capital Management Group Co., Ltd. backing them -

https://www.lesego.com/lesego-platinum-story.php

http://www.ggttvc.com/en/

GLA

This is where we're currently at ianbo, into week 9 of it -

https://www.lse.co.uk/rns/EUA/statement-re-formal-sale-process-jtwyvaxxdax49q0.html

You're very welcome, and you have plenty time until the markets open again.

GLA

It's just the home page that appears to be off at the minute Ianbo. Click on the operations tab to get to each asset.
Monchetundra is now 15Moz with the flanks added -

https://www.eurasiamining.co.uk/operations/monchetundra

A1EX, who is R1EX on twitter, monitors progress at West Kytlym vis satellite -

https://twitter.com/R1EXG/status/1295755597720297472?s=20

They've been working a known bonanza grade area at West Kytlym.

Hope this helps.

GLA