focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
It’s my understanding that the raises where intended to be used to finance the Rosgeo JV “including Nyud, Moroshkovoe and other major Rosgeo JV platinum group metals ("PGM") and battery metals open pit deposits.”
Yet the 2021 accounts, released after the raise RNS says “The Nyud project is being used by the Company as the template for the remaining assets, which will only be evaluated after the successful conclusion of the Nyud project”
So do the existing cash balances suggest we’ve spent the funds elsewhere or have other Rosgeo projects been progressed before the successful conclusion of the Nyud project or, third option, am I missing something?
Interfax coverage below which also covers dividends.
Doesn’t seem groundbreaking as compared with the existing rules except on dividend amount as a % of net profit if self mining.
Could affect an offer price if buyer knows that the seller has to reinvest more of the profits in the event of self mining but no guarantee this rule would apply or wouldn’t be offset.
https://www.interfax.ru/business/879336
Lots of “may”, “could”, but if I’m reading this right, is the worse that the government can impose being a cap of 50% of the “asset value report”. If so, who writes the asset value report and would ours show an asset value of more or less than the equivalent of half the current SP…
“12:05, december 30, 2022
Xi Jinping is expected on a state visit to Moscow in the spring of 2023
Moscow. December 30. INTERFAX.RU - Chinese President Xi Jinping is expected on a state visit to Moscow in the spring of 2023, Russian President Vladimir Putin said.
In the coming year, intensive bilateral exchanges will continue, I have no doubt, and we will find an opportunity to meet with you in person. We are waiting for you, dear Mr. Chairman, dear friend, we are waiting for you next spring on a state visit to Moscow," Putin said at the talks with Xi Jinping, which are held via video link.
According to Putin, "this will demonstrate strong Russian-Chinese ties to the whole world," "it will become the main political event of the year in bilateral relations."
https://www.interfax.ru/russia/879285
Interesting timing to propose this visit now when China is seeing a major spike in Covid cases and with the ongoing war. Be interesting to see if the visit goes ahead and if any new projects are announced.
At least for EUA it suggests that Chinese investment would likely be viewed favourably.
Good update for us yesterday on the operational side and also good to see DS named on the M&A side still.
This interview with Polymetal’s FD gives an insight into their experiences as a company which has a listing and shareholders in an “unfriendly” jurisdiction.
Some issues around their sale process which may not match ours as it’s likely that they would be seen as being an established operator looking to leave Russia for political reasons whereas we initiated our FSP before the war and as an explorer would be expected to consider selling after exploration (I hope!).
What was interesting was it seems they don’t have issues in the licensing side or finding new markets for their products and his assessment of the general conditions they are working under for their Russian assets:
https://www.interfax.ru/interview/876878
From a NN LinkedIn post earlier:
“Our diesel-electric #containership Monchegorsk has successfully completed a pilot voyage from #Murmansk to #Shanghai and back via the #NorthernSeaRoute. She delivered our #metal products to #China and brought back consumer goods.”
Monchegorsk is literally delivering metals to China!
I was guessing EPCFs, self mine and special dividend via upfront payment on long term offtakes before the war but think the BoD are now looking for full sales while assessing if it’s viable to remain and look for more offtake partners if required.
Either way I think they are waiting for the DFS as no point rushing a sale without one if we don’t need to and it buys some time to firm up / assess the self mine options and see if the war situation improves.
Equally, I could be wrong and buyers like NN are waiting for EUA to cave and take a lower offer.
Fact is, we don’t know what’s happening apart from I) DFS submission and completion and II) discussions with different parties with differing levels of progress and we’re not likely to find out who these parties are until the company is in a position to make offers binding which could be next week, next month, next year, never or any time in between.
Regarding NN or at least Potanin, I don’t know who funds this news outlet or how objective it is regarding Potanin, but it doesn’t seem that he has a free reign anymore:
http://www.moscow-post.su/politics/potanin-spotknulsya-o-zakon-175890/?amp=1
Section about Palladium exports to the US from an article that was published yesterday:
“In addition, imports of Russian raw palladium to the United States in October were at $189 million. This is the maximum since February this year ($229.7 million). In August and September, deliveries amounted to about $26 million every month, in July - less than $1 million. In January-October 2022, the United States purchased palladium in Russia for more than $1 billion. Thus, more than 30% of American imports of this product were provided. South Africa supplied a little more to the United States during the same period - $1.17 billion. Last year, Russia was ahead of South Africa in the supply of raw palladium to the United States ($1.6 billion against $1.4 billion).”
https://newizv.ru/news/economy/09-12-2022/rossiya-uvelichila-postavki-urana-i-palladiya-v-ssha?amp=1
Possibly of interest for our sector with regards to Rosatom considering building full cycle mining operations:
Rosatom conducts due diligence of two Ural plants for processing non-ferrous metals
Moscow. December 9. INTERFAX.RU - Atomredmetzoloto, the structure of Rosatom, assesses the value of shares of Ural enterprises - Kamensk-Ural Non-Ferrous Metals Processing Plant (KUZOTs) and Yekaterinburg Non-Ferrous Metals Processing Plant (EZOCM), Kommersant writes with reference to the data of
Both plants were part of Renova Holding until December and now occupy a significant share in the Russian non-ferrous metal market.
As the publication notes, they can be useful to Rosatom in plans to build a complete chain from mining to processing of rare earth metals: among other things, KUZOTSM and EZOCM produce alloys of rare earth metals from the products of the Solikamsk Magnesium Plant, which it produces from the concentrate of Lovozersky GOK - Rosatom, according to Kommersant, is actively interested in both of these assets.
https://www.interfax.ru/russia/876091
That must be an error in the way the software that feeds the site Mac used works. There’s a Delano Investments there but the linking of the Deloan address there must be duff. Rotherham isn’t a tax haven for the wealthy unless it is and they hide is very well and all the cash is actually in disused coal mines. Come to think of it maybe that was Maggie’s plan all along?
Article from December 1st:
Despite the sanctions, the implementation of investment projects in the Murmansk region continues
01 December 2022, 07:35 Murmansk and the region
Key investment projects in the Murmansk region continue to be successfully implemented despite the unprecedented sanctions pressure of unfriendly countries against the Russian economy. About this during a visiting meeting of the regional government in Apatity.??To date, the region's portfolio includes 265 projects with investments of 1.1 trillion rubles until 2032 and the creation of more than 40 thousand jobs. Taxes for 10 years will amount to more than 440 billion rubles to budgets of all levels. These are project taxes that will be directed to the social infrastructure of our region.
(Article continues - too long to C&P)??
https://www.hibiny.com/news/archive/278429/
Interfax take on the comments from Putin’s spokesperson that Sky used from Del’s post:
https://www.interfax.ru/russia/875099
Suggests there is no consensus for peace talks yet.
Hopefully pressure is building behind the scenes in Russia but hard to tell what’s really going on.
The British investment fund that H2 Transition Capital runs was apparently looking to invest $200M on hydrogen production on Sakhalin according to this old article from before when EUA got involved:
https://sakh.online/news/16/2021-07-16/britanskiy-fond-vlozhitsya-v-ekologicheskiy-proekt-na-sahaline-158179
Be good to know if these Russian hydrogen projects are off the table for now and maybe worth keeping an eye out for any news about H2 investing in hydrogen projects outside of Russia in case they are relevant to EUA.
I can’t see anything obvious in the news but can see that there was a conference that Artem spoke at in London this summer so at least we know he’s still out there:
https://web.cvent.com/event/2a485512-df3d-4629-919e-675996859c70/websitePage:4a9f1ae7-fd5e-40ea-a47b-8748de11f650
From 19/11/2022. Ministry of Finance is proposing to set mineral extraction tax at 0 for 12 years for Russian Platinum’s Krasnoyarsk Krai project (PGM-copper-nickel) to offset the effect of sanctions on start up costs. Looks to be quite a saving and shows how keen the government is to keep this project moving forward but equally how sanctions are effecting start up costs.
https://www.dp.ru/api/amp/a/2022/11/18/Arktika_za_nedelju_Severn
Possibly positive that the market is not just China for Rosatom’s green hydrogen project on Sakhalin.
EUA referred to “international” opportunities in relation to hydrogen rather than Sakhalin in the interim update so be good to clarify if we’re doing anything there. If not then Rosatom will be needing Pt for the converters anyway so perhaps an outlet for a some of what we have.
https://sakhalinmedia.ru/news/amp/1400980/