focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Sounds like Russia would be supportive of a deal involving a Chinese buyer going off these comments from Putin earlier:
Putin said that the business of the Russian Federation and China at the Expo will be able to enter into joint projects
BEIJING, May 17. /TASS/. Russian and Chinese entrepreneurs at the Expo events will be able to enter joint projects, which will be supported by the governments of both countries. Confidence in this was expressed by Russian President Vladimir Putin at the opening ceremony of the Russian-China Expo and the Interregional Cooperation Forum.
"During numerous Expo events , Russian and Chinese participants will be able to get acquainted with the vast economic potential of the two countries, find new opportunities for commercial partnership, attract investment, exchange technology and enter new joint projects and agreements, which, I am sure, will be strongly supported by governments," Putin said.
"From the Russian side, the heads of the largest companies came to the Expo - leaders in their industries, such as Rosatom, Rostec, Russian Railways," the Russian president shared. "The coverage of the sectors of the economy is very wide: from mining of mineral resources and oil and gas chemistry to construction and metallurgy, light industry and digital technologies."
Putin said that the "Made in Russia" fair was organized at the Expo. Its guests "can try and purchase over a thousand different names of high-quality Russian products," said the President of the Russian Federation.
https://tass.ru/ekonomika/20826131
Be good to hear what the mining projects are.
Snippet below and link to full article is: https://tass.ru/ekonomika/20819677
"Business cooperation between Russia and China demonstrates steady growth. The investment portfolio is replenished annually with new joint projects. Now there are more than 80 large projects in the work for a total amount of about 200 billion dollars in the field of transport and logistics, automotive and agriculture, gas chemistry and mining," the press service of the ministry conveyed Reshetnikov's words.
Looks like quite big visit based on the write up.
No sign of anything to do with EUA but a lot of meetings planned by the looks of it.
An EUA link of sorts (tenuous?) is that amongst a lot of other people, Boris Titov is going - the business ombudsman who supported EUA’s tax case. I didn’t know he worked on a China related committee too which will be why he’s going but his name rang a bell when I saw it. Small section from story below:
The President will be accompanied by Business Ombudsman Boris Titov, who is also the Chairman of the Russian part of the Russian-Chinese Committee for Friendship, Peace and Development, Gennady Timchenko, who is the Chairman of the Russian-Chinese Business Council, as well as the head of Sberbank German Gref, entrepreneur Oleg Deripaska, heads of RDIF, VTB, NOVATEK, Rosneft, VEB. Russian Federation, Rusnano, the Russian Union of Industrialists and Entrepreneurs and Business Russia Kirill Dmitriev, Andrey Kostin, Leonid Mikhelson, Igor Sechin, Igor Shuvalov, Sergey Kulikov, Alexander Shokhin and Alexander Repik.
"During the negotiations, it is planned to discuss the general state and prospects for further development of bilateral cooperation in various fields, to consider current global and regional problems," Ushakov said.
At the same time, he noted, "trade and economic cooperation will be a priority.
https://www.interfax.ru/russia/960434
Assuming we get the accounts filed some time before the end of June, this will include the going concern comment which will shed some light on things.
Last year they assumed sale of concentrate would contribute to justifying the going concern basis. They’d also mentioned appealing against the tax rate but obviously couldn’t include potential tax rebates in the cashflow forecast at that time. I think having won the tax case they may have delayed selling the stockpile since if they don’t need the funds and prices are low it’s possibly worth holding back.
Activity wise, it follows that if prices are low, why not prep knowing that the stockpile can be sold and then kick into production with a head start when the time is right (assuming cashflow allows - which is an assumption that it does).
It’s a bit of a mystery but we should get some clarity when the accounts are filed - hopefully they don’t have problems getting these audited and then we will likely get a fuller update in June or this month going off the corporate calendar.
None directly. I’d say South Korea being one of the big car makers and also having a hydrogen policy could be a good buyer of PGMs though. The comment that despite the obvious difficulties that SK is willing to cooperate on a case by case basis is more positive than if they were to rule out any interactions. I’m not suggesting that a SK company is going to make an offer for MT by any means but they could buy some green hydrogen or need materials for the catalysts so the more end users for this the better for whoever does end up mining at the Kola sites.
Maybe interesting to see what type of economic cooperation they come up with - hydrogen has been discussed previously.
“President Yoon Seok-yeol said on the 9th that “the relationship with Russia will cooperate on a case-by-issue cooperation and oppose or be vigilant depending on the position.” “The war in Ukraine is an illegal attack under international law, and the arms trade between North Korea and Russia is a violation of the UN Security Council's sanctions resolution on North Korea,” but it was interpreted to mean that it would manage relations with Russia amistically.
President Yoon said this to a question from a foreign reporter asking, "What is the red line that South Korea cannot tolerate in relation to the North Korean-Russian arms trade" at a press conference for the 2nd anniversary of the Yongsan president's office on the same day. President Yoon said, "Russia is a country that has had good relations with us for many years, but we have a different and uncomfortable relationship with us regarding the recent war in Ukraine and the introduction of weapons by North Korea. We will manage the relationship with Russia as well as possible, and we will pursue economic cooperation and common interests together." Some interpret that the government has entered management so that Korea-Russian relations do not get worse. It is said that Russian Ambassador Lee Do-hoon attended the fifth inauguration of Russian President Vladimir Putin on the 7th. At the time, most Western countries, including the United States and Japan, boycotted the inauguration ceremony.”
https://www.hankyung.com/amp/2024050989101
The reason given for not producing in the interim update was:
“Site preparation work was completed during the first quarter of 2023, but due to the sale process being Eurasia's main priority, no metal concentrate has been produced at West Kytlim since the end of 2022.”
This approach baffled me due to the risk of running out of cash if no sale.
What did come out from the tax case was that the higher rate made producing unprofitable in some cases so maybe not producing helped to make the case that was eventually won:
“The unjustified application of the coefficient to the extraction of gold-platinum concentrate has led to the amount of the tax, which in many cases makes production unprofitable.”
https://www.pgplaw.ru/news/press-releases/yuristy-pepelyaev-grupp-zashchitili-interesy-klienta-v-vs-rf-v-ramkakh-spora-o-ndpi-pri-dobyche-zolo/
Whatever the plan is or isn’t, they still appear to be advertising for truck drivers, excavator drivers and bulldozer drivers in addition to the mining master job they’d advertised in March. All meals provided on-site too at the company’s expense 👨🍳🍜
Could just be a lot of site prep but hopefully there more to it.
https://ekaterinburg.hh.ru/employer/8964792?hhtmFrom=vacancy
“doing our best to get a result on the sales process while living with complex issues affecting our ability to manage our newsflow”.
Sounds like that the RNS machine is f***ed and Keith didn’t show the new Co. Sec how to fix it properly when he did his handover.
This seems to have happened on 24/11 too if the site is correct. Formatting doesn’t show but on the site it suggests that Vasily was replaced by Oleg as General Director with Power of Attorney. May not be relevant as Vasily could still be in charge at group level but there appears to have been a change at the KK level in any case.
Information about individuals entitled to act without a power of attorney
Hide changes
VASILY VLADIMIROVICH KUDRIN, INN:771708514305. Position: GENERAL DIRECTOR
KARMANOV OLEG SERGEEVICH, INN: 661706901998. Position: GENERAL DIRECTOR
https://star-pro.ru/proverka-kontragenta/organization/1026601102725--zao-kosvinskij-kamen
Was in Murmansk last week:
https://invest.nashsever51.ru/list_item/news/v-murmansk-s-rabochim-vizitom-pribyl-genkonsul-indii-v-sankt-peterburge
Brief mention of mining as one of the areas of discussion. Sounds early stages and no specifics but could be positive that the visit happened if India are considering investing in Murmansk.
"Today we would like to discuss the main areas of cooperation between our region and India in various spheres. At the regional level, cooperation in such areas as science, technology and innovation, pharmaceuticals and nuclear energy, mining has great potential. We thank you in advance for your interaction and further joint work," said Olga Vovk, Deputy Governor of the Murmansk region, in her welcoming speech”
Moscow. April 22. INTERFAX.RU - Norilsk Nickel plans to move the melting capacity of the Copper Plant, the modernization of which has become more complicated due to problems with Western equipment, to China, having concluded a joint venture with one of the Chinese companies, said Vladimir Potanin, President of Norilsk Nickel, in an interview with Interfax.
"The project will allow us to get away from the big losses, which are caused by the current difficulties with calculations, refusals of supply, discounts on our metal, creation of inventories," he explained. According to the company's calculations, because of this, Norilsk Nickel can now count on only 80% of its pre-sanctions income.
The decision to transfer part of the capacity to China was also influenced by the recent sanctions of the United States and the United Kingdom, as a result of which the London Metal Exchange (LME) is prohibited from accepting new batches of non-ferrous metals from Russia.
"This pressure made us think about how to deliver our goods to the markets. And one of these non-standard solutions is to transfer part of production to direct consumption markets," Potanin stressed.
"We transfer our environmental problems, problems of calculations, problems of market access, problems of customization of our goods for the consumer market to where they are solved most effectively, in this case - to China," said the head of Norilsk Nickel. "In return, we get the opportunity to extend our value chain and get advanced competencies that both the company and the country need."
These competencies are technologies for the production of battery materials, the raw material for which will also be lithium, which Nornickel plans to produce at its joint venture with Rosatom for the development of the Kolmozerskoye field.
The construction of capacities in China will be synchronized with the disposal of capacities at the Copper Plant, explained the head of Norilsk Nickel, and will take place beyond the horizon of 2027. "In terms of production plans and volumes, the process will be neutral. In the future, due to the effect of increasing production and enrichment, we expect an overall increase in production," he said. The copper concentrate will be delivered to China by the Northern Sea Route.
The project received political support and was included in the agenda of the Russian-Chinese summits, Potanin stressed.
The news is being supplemented
https://www.interfax.ru/business/957064
It says 33 vacancies but I think that some are duplicated because they list different locations which is perhaps for advertising reach? Anyway, in addition to the “Mountain Master” job there now seems to be adverts for Excavator and Bulldozer drivers amongst a couple of others…are these needed for care and maintenance?
https://ekaterinburg.hh.ru/search/vacancy?from=employerPage&employer_id=8964792&hhtmFrom=employer
What were the one off costs in 2022 Offler and how do your figures look when taking these investments into account?
“Electric dragline, power line and high voltage substations were the final CAPEX items to optimise and sell the asset, with no further investments envisaged going forward”
Admittedly the BoD need to show some return from these investments in 2024 since they didn’t produce in 2023 seemingly while the tax case was underway so will be interesting to see if there’s some news on this soon.
I don’t remember seeing a this job before. It’s dated 27/03 but other jobs have been re posted before so may not be new. I’d also be wary since we don’t know if the site is genuine but looks like it could be interesting if it’s a real. Apologies if this has appeared before.
Mountain master
from 80,000 ₽
on hands
Required work experience: 1-3 years
Full-time, Rotational method
This vacancy is currently being viewed by 2 people
Reply
ZAO Kosvinsky Kamen
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Krasnoturyinsk
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By clicking "Continue", you confirm that you fully accept the terms of the Employment Assistance Services Agreement (offer) and have read the privacy policy
Duties:
Development of alluvial deposits in the open way.
Distribution of equipment and personnel.
To instruct workers in production.
To ensure control over the quality performance of the assigned work, economical use of raw materials, materials, electricity, compliance with the rules of technical operation of electrical equipment, mechanisms, industrial sanitation.
Issue an order for work to work shift workers.
To ensure that the site performs tasks on the quality and volume of work within the prescribed time frame.
Check the safety status of all workplaces during the shift, etc.
Requirements:
Higher or secondary technical education in the mining profile;
Experience from 1 year as a mining master in the open pit mining area;
Possession of skills of operational exploration of alluvial fields.
The terms:
Official employment, according to the Labor Code of the Russian Federation.
Work on a rotational basis 20/10,
Place of work: Sverdlovsk region, 20 km from the city. Karpinsk.
Accommodation in a shift camp.
Meals in the canteen at the expense of the employer.
Provision of workwear.
Ask the employer
He will receive it with a response to the vacancy
Where is the place of work?What's the work schedule?Is the vacancy open?What's the salary?How can I contact you?Another question
Vacancy published on March 27, 2024 in Krasnoturinsk
https://ekaterinburg.hh.ru/vacancy/95650039?from=employer&hhtmFrom=employer
I do know how much Pd is used in solar (believe that there is an application) but big green projects like this in general show India’s potential in terms of the environmental aspect.
There’s been some stories about Indian companies starting to refuse types of Russian oil due to sanctions but with PGMs not being sanctioned, what’s to stop an Indian company agreeing to buy through a long term contract either direct with a Russian miner or via a commodities trader.
https://edition.cnn.com/2024/03/19/business/india-adani-green-energy-plant-climate-intl-hnk/index.html
Seems there’s going to be a tweak as to how initial exploration is conducted.
https://www.interfax.ru/business/951477
I think this video of MT shows what the problem might be…
https://m.youtube.com/watch?v=kaWnMCEAJ9U
Clearly the “For Sale” sign blew over some time before the video was made and no-one realised.
Maybe if some let’s Yellow Jersey know they’ll pass it on to the BoD then we should get some offers in when the new sign is up.
Might be risky for a large co to invest directly but who knows…could equally have a Russian miner we’ve not heard of with a long term offtake with a commodities buyer who in turn has contracts with an Essar or similar. Amounts to the same thing in that the money ultimately comes from the end user but might remove some risk.