RE: Bit KOGAN17 Dec 2021 14:27
As we expected, the company has published the results of a JORC audit from Wardell Armstrong, an international technical auditor, for its NKT nickel asset. From the report: ore resources - 107 million tons, nickel resources exceeded 300 thousand tons. Significant copper and PGM resources were also mentioned.
Eurasia Mining was talked about last week. He promised to keep up to date on news from this company.
As we expected, the company has published the results of a JORC audit from Wardell Armstrong, an international technical auditor, for its NKT nickel asset. From the report: ore resources - 107 million tons, nickel resources exceeded 300 thousand tons. Significant copper and PGM resources were also mentioned. Wardell Armstrong named NKT a first-class asset (Tier-1), NPV $ 1.2-1.7 billion.
The link is a release on the London Stock Exchange website, where there is also a link to the report of Wardell Armstrong's auditors on JORC.
What can you say? A good result, since NPV of $ 1.2-1.7 billion is just one asset of the company with resources of 11.3 million ounces of platinum equivalent, which is about 10% of the total resources of Eurasia Mining, taking into account the joint venture with Rosgeo (104, 6 million ounces).
Does this mean that the entire company should be proportionally worth $ 12-17 billion? Of course no. The relationship here is non-linear, but upside in comparison with the current capitalization of $ 855 million, as we see it, takes place. And this upside, under certain circumstances, can be very emotional.
By the way, in the week since our last note, the shares have grown by almost 8%. And this is in a falling market.
Meanwhile, price wars for nickel assets are in full swing: Wyloo made another $ 500 million bid for Noront this week (for reference: Noront's resources are 5 times smaller than tubing). Wyloo is Andrew Forest's company that sits on $ 22 billion in cash and has an active interest in nickel assets. By the way, Andrew Forest opened an office in Russia and spoke this summer at the Economic Forum in St. Petersburg, where he announced big plans for Russia. However, he is unlikely to buy Norilsk Nickel??
The main asset of Eurasia Mining is platinum. In the event of a surge in precious metals prices (we have already spoken about the likelihood of such a development of events this morning), I believe that interest in platinum may also increase. However, under the current conditions, platinum is a more industrial metal than a precious one. But still…
Despite certain risks, the topic EUA.L can be quite interesting. However, decide for yourself. I have no right to give advice publicly.