Member Info for mac4671

And you're welcome shrew.

What a place to be with what's happening to palladium supply and demand fundamentals!!!!

GLA

Once whatever is happening with MT is dealt with, i do fully expect eurasia to do something with volchetundra. The palladium to platinum ratio is strong and we all know how strong the palladium price is currently.

In fact, they even mentioned it in a RNS, just in different words -

"The Directors further believe the new favourable price environment for PGM, and particularly historically all-time high prices for palladium create an opportunity to recommence work at currently lapsed primarily palladium projects in the region, should any such opportunities arise"

GLA

Correct, they would indeed need to apply for a mining license for that area, but you appreciate that under russian law they have rights to protect them for making that mineral discovery!.
Or at least that is what i believe the case to be from everything i've read!

GLA

Under russian law they have special rights -

"As a direct consequence of the issue of the mining right, the Company was entitled, as per Russian sub-soil licensing laws, to apply for further ground in the immediate vicinity of the mining license. This exclusive right is in place to protect parties to which a mineral discovery is credited, in the event that their mineral reserve can be shown to be continuous beyond their production license."

GLA

It's part of other areas they had licenses for years ago in an anglo JV. Anglo funded the exploration, eurasia did the exploration back in those days. Anglo sold their stake to eurasia when palladium prices were pretty low to focus their attention on south africa. Eurasia still have all that exploration info and seem to be just re-applying for ground they've already explored from back then IMHO

"Eurasia's Monchetundra Project saw state approval of maiden reserves and resources in late 2018 with the final issue of a mining right issued for this PGM discovery following shortly thereafter. The Company has operated various exploration licenses in the area since 2005, when considerable work was undertaken in a joint venture with Anglo American, then the world's largest PGM producer. As is normal practice, the exploration tenement was redrawn on a number of occasions, and finally rescinded into a mining license in two sub-areas within the larger exploration license. These are the West Nittis and Loipishnune deposits, issued as a single mining license valid to 2038, but existing as two areas separated by 3km (see announcement dated 11 December 2018 which sets out the details of this licence grant)."

GLA

The average Pd:Pt ratio for Monchetundra is 2.36:1.

The average Pd:Pt ratio for Volchetundra is 2.93:1.

Very important information with the current palladium shortage situation, and eurasia know the areas very well due to those JV days.

GLA

Monchetundra

To date, 16,121m of drilling have been completed on the licence

Volchetundra

To date, 12,192m of drilling have been completed on the Volchetundra Licence.

https://polaris.brighterir.com/public/eurasia_mining_plc/news/rns/story/x55ym2x

GLA

It's a good break down and with already doing exploration there, they are indeed in a very strong negotiating position -

"Eurasia maintains a drilling and exploration database of proprietary information for the Monchetundra Project some of which is information dating back to the Company's joint venture with Anglo American. This includes the area for which the mining licence was received in late 2018, as well as the surrounding area within a larger exploration license."

https://www.proactiveinvestors.co.uk/companies/news/226/eurasia-mining-revisited-0188.html

It's what makes eurasia so unique, they already know what's in the areas that they're re-applying for IMHO

GLA

"In particular Eurasia has just received the approval in writing from Rosnedra, Russian agency for subsoil use in relation to its Tipil license application. This is the final approval and the appropriate license is to be issued in due course."

GLA

"Eurasia maintains a drilling and exploration database of proprietary information for the Monchetundra Project some of which is information dating back to the Company's joint venture with Anglo American. This includes the area for which the mining licence was received in late 2018, as well as the surrounding area within a larger exploration license."

GLA

Exploration licenses, exploration on multiple areas was done years ago back in JV days -

https://www.proactiveinvestors.co.uk/companies/news/226/eurasia-mining-revisited-0188.html

Think more 're-applying for the sweet spots' IMHO

The 2 i'm confused on, we had the final sign off for tipil back in december, we are only currently waiting for the final sign off for MT flanks to take it to 15Moz.

GLA

This is a major thing which sets the MT asset apart from anything else out there - "The Last Non Consolidated Palladium Play”

There's no 3rd or 2nd chance for a buyer, get it now or miss out!!

GLA

No it's not your average mine/assets. The MT side of things is complicated, not in production but has a EPCF contract in place with sinosteel to take it to production at an agreed processing rate
Open pit, very low cost and fast to production for someone like NN.

GLA

So where the russian article says this - "the company’s EBITDA will reach $ 250 million after full production is reached."

The potential deal value is around $2.150 billion.

I apologise for any confusion with the earlier posted figure!.

GLA

"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)."

GLA

Correction - the EBITDA multiple

GLA

8.6x current share price is the market average deal factor for the mining sector -

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

GLA

3.925 × 8.6 = 33.755p a share!.

When you look into things, a potential high sale price looks inevitable. All imho!

GLA

It can't be far off now, the world demand scenario for palladium and rhodium is adding pressure to the big players to secure sources so they can satisfy their customers.
Their reputation is very much at stake in an industry where reputation is very much key!

GLA

Very much still there, great to see -

https://www.eurasiamining.co.uk/investors/latest-trades

GLA