Member Info for mac4671

To hear about the first bid?.

My original thought was the first two weeks would see at least the first bid come in, as discussions have went on for quite some time now so any suitor should already have a good idea of what they want to pay.

GLA

All of our potential suitors now know that there is more than one of them, bid high or go home empty handed is a buyers reality here.

GLA

" $14bn bid by a consortium consisting of French, Singaporean and Chinese interests. "

That certainly shows you what difference a bidding war can make, even with just a couple of would be suitors!

GLA

It's good that it's the UBS table that they have to be putting their bids on, they will know UBS only deal with big deals so will have to put big bids in lol

GLA

Got my feet up, chilled, just waiting to see what they put on the table tbh -

"In recent months, Eurasia has received a number of inbound expressions of interest from multiple parties interested in acquiring all of or a stake in its assets"

GLA

My £1+ is after a bidding war, easily obtained in my eyes if the right war materialises. You would be looking at 50% on top of any fair value in the right situation.

All present dynamics lead to that war materialising imho. S.A problems, palladium demand, last non consolidated palladium play etc etc.

Perfect assets at the perfect time is very much the situation at play here.

GLA

Tbh i think you guys are worrying about absolutely nothing, clearly over thinking a relatively simple process imho.

GLA

Eurasia also have offices in the area, they will know exactly what's what with the application -

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

GLA

A Russian buyer will fully understand the flanks process, the rights to them and also the rights to the next 4Moz mentioned in RNS.

If it is NN, which pretty much most people assume it to be, they know that applying for flanks under rights is just a paperwork formality tbh.

GLA

Russian law tells you that it's in the bag either way, they just have to follow the process to obtain it -

"Under Russian subsoil licensing rules, where a Company or entity holds a mining permit the Company has the automatic right to apply for exploration ground directly adjacent or surrounding the already identified mineral reserves, to a limit of 5km. This application shall be uncontested and further protects the rights of the company to which the mining permit has been attributed"

GLA

GFD, they may have requested further information, at some stage with the first WK flanks they did that which lead to a small delay.

Whatever it is, the BOD are confident at this stage to put the sale price up and to complete their 2015 plan, which was to
"crystallise substantial value from our Monchetundra interests".

The company will have been in constant contact with Sevzapnedra throughout.

GLA

That was a potential JV, james did the due diligence at the time. But that doesn't mean that he was not taken on board for his EPC experience, in interview it was mentioned by Dmitry i believe, that some people prefer Sinosteel and others have different preferences.
James would be the ideal candidate to help with other preferences as he'll have many contacts.

GLA

Chinese wall?

"James has an engineering background and has also held senior positions at a number of EPC organisations"

GLA

Something you will note, is this mans EPC experience -

"JAMES NIEUWENHUYS
Non-executive Director
James has held senior positions including Chief Operating Officer at Polyus Gold, Russias largest gold miner, and is currently Chief Executive Officer at South African Lesego Platinum Mining Limited. James has an engineering background and has also held senior positions at a number of EPC organisations."

Could a different/revised EPC option be bundled into a sale?. That's a question i've been asking myself since i saw the new MT production target.

GLA

Part of any buyers dues diligence will be assessing how feasible their plans are to reach the mentioned production targets, that's a given.

GLA

You can work it out on the projected figures Dore. There is a EPC contract in place, and part of that contract is a guaranteed production output, it's all in RNS.

They have also just dropped new projected production targets into the Annual Report and Accounts RNS.
New suggesting that they've altered mining plans.

GLA

"Norilsk Nickel reported that it didn’t consider the partnership or purchase of the license from Barrick"

Possibly because they have been an interested party in MT since 2015. They were part of the drilling for the nittis flanks, so they know what's in the ground there. Pure speculation on my part about them being the interested party.

GLA

Ebitda is the language they speak dore, it's even used in the kommersant article.

GLA

WK target production, so projection is - "Target production: 64koz at full capacity"

MT target production is - "Target production: 1,000koz at full capacity"

Ebitda dear watson.

GLA

EBITDA is used a lot in this industry -

https://www.kommersant.ru/doc/4221391

GLA