Member Info for Mjd2020

I notice that the dragline tweet was on 23/08 which was a couple of days after the court suspended the action of the tax office against KK on 21/08 while the appeal was heard. Perhaps the BoD wanting to say something to mark that decision but not seeing the news being worthy of an RNS as no actual change in circumstances until appeal concluded? Anyway, if we get a positive result on the case before Xmas that will be something positive to end the year.

I noticed Sweden’s Auriant Mining are still updating their share holders each quarter so be good if EUA managed the same once production starts again - unless we sell of course.

https://auriant.com/upload/iblock/7b7/atl1i3ds2mz1ochgqteiwqfn1oggi204.pdf

I think the mineral extraction tax rate decision is important - if my understanding is correct the current rate is around 22% whereas the old one was nearer 6%. What does that do to the saleability of WK when extrapolated over the life of the mine?

Does that mean I think WK will be sold if the tax decision is positive? I have no idea. Vasily being brought in was interesting, even more so the new Kola license being applied for under the KK entity. Why has it been done this way? Is this also tax related or related to what’s going to happen with WK or something else?

We may find out something after the appeal is concluded which by some accounts is due in a couple of weeks barring any delays. At worst, I’m hoping they sell the concentrate and provide an operations update.

In the mean time my feet are up and relaxed 😬

Some news from NN:

ECONOMICS

13:21, november 24, 2023

Noricnickel signed an agreement to withdraw from South African Nkomati

Moscow. November 24. INTERFAX.RU - Norilsk Nickel, through the Norilsk Nickel Africa Proprietary Limited (NNAf) company, a member of the group, has concluded an agreement to transfer a 50% share in the Nkomati joint venture to a South African partner, African Rainbow Minerals Limited (ARM), the Russian company reported on Friday.

Under the terms of the agreement, in addition to the share in the joint venture, ARM will assume all Nkomati obligations, including environmental obligations, in exchange for an NNAf contribution payable to ARM. The closing of the transaction is expected during 2024 after obtaining the necessary permits from South African regulators and fulfilling other closing conditions agreed by the parties.

Nkomati's assets include a deposit of interspersed copper-nickel sulphide ores, an underground mine conserved in 2015, as well as a quarry. Production was discontinued in March 2021. Since 2021, the company has been in the process of conservation and reclamation.

"By entering into this agreement, Nonickel confirms its commitment to a long-term strategy to exit foreign assets that do not meet the criteria of first-classness, and also strengthens its focus on the implementation of the strategy of ensuring reliability and development of a unique mineral resource base and processing facilities in the Russian Federation," the company said in a statement.

Norilelle put up for sale its 50% of Nkomati in 2013 as part of its strategy to exit non-core and foreign assets. In 2014, a binding agreement on the sale of Nkomati was concluded with BCL (Botswana), all permits for the transaction were obtained in 2016, but BCL refused to fulfill its obligations, and later the government of Botswana initiated a procedure for the liquidation of BCL. Nonikel conducted legal proceedings with BCL and Botswana, which ended at the end of 2021 with the payment of compensation.

https://www.interfax.ru/business/933047

Old Chinese proverb:

A greedy man eating whole roasted pig is not interested in last roast chicken in shop until greedy lady from across the road starts dribbling against shop window.

Https://asia.nikkei.com/Spotlight/Supply-Chain/Japan-South-Korea-to-build-supply-chain-for-hydrogen-and-ammonia#:~:text=The project aims to develop,California together on Nov. 17.

I’ve seen some comments in Russian articles previously about Korea being a potential buyer of Russian Green hydrogen. I’m not suggesting this has any bearing on EUA as it probably doesn’t but this initiative could be of interest if EUA2 ever gets off the ground.

Would it be “game on” again if the MET rate was reduced 5085?

It’s a delicate topic Brookkers. This from October outlines the difficulty Europe has in terms of how much they rely on Russia for Critical Metals and shows some of the volumes which have been bought since the war. Obviously sanctions are a risk both in terms of tariffs and the likes of NN needing source equipment and financing but the flow of metals still seems to be happening.

https://www.investigate-europe.eu/posts/russia-sanctions-europe-critical-raw-materials-imports

Excuse the typos, these are from interfax or google translate:

12:11, november 8, 2023

Nonickel noted the return of part of the company's metal buyers

Moscow. November 8. INTERFAX.RU - Some of the clients of Norilsk Nickel, who refused to purchase the company's metals earlier, are now discussing the return and contracts for 2024, said Mikhail Borovikov, Director of the Investment Community Department of the company.

"The situation is becoming less confrontational and tough," he said.

Borovikov also reiterated that Noril Norillicil managed to reverse the trend of growth of working capital, which was formed in 2022 due to the lengthening of transport chains and the accumulation of finished products.

In addition, the trend of destocking (decrease in reserves) in the metal market, as Nonickel expects, will be replaced by a trend of restoling next year.

The news is being supplemented

https://www.interfax.ru/russia/929579

I can’t see their posts but I’m sure each one was a well thought out, non biased and rounded presentation of the thoughts of an impressive mind.

🐖 🐖🐖 ✈️ ☁️🌦

“U.S., European officials broach topic of peace negotiations with Ukraine, sources say”

https://www.nbcnews.com/news/world/us-european-officials-broach-topic-peace-negotiations-ukraine-sources-rcna123628

Bobby, if the costs due from Gowling relate to the Logik case then this is the Deeside deal - a totally UK based dispute between the the UK Plc and a UK law firm about fees for a UK based case. In that scenario you’d expect that the BoD could raise if needs be to pay any obligations unless I’m missing something? If so what’s the worry about? Don’t get me wrong I’m not happy about this though.

Sets us up nicely for a weekend of civil, non-biased / agenda-less discourse on the LSE BB.

DR is correct, it’s on Caseboard. Hopefully they have it in hand but it’s a pretty poor state of affairs to allow things to escalate that far. Very poor advert for any sale process. Keith better be putting a decent RNS together.

It’s possible that they’re reviewing today’s set of US sanctions if they’re going to provide some sort of general update as opposed to simply stating that options have been extended. Could be wrong. Hopefully find out tomorrow.

Couple of stories popped up earlier, not linking to EUA but any signs of foreign investment and separately, activity in the EV market can’t be a bad thing.

China's direct non-financial investment abroad increased by 18.7% in yuan in January-September

https://www.interfax.ru/business/927787

Also in the EV market:

Stellantis will invest 1.5 billion euros in the Chinese electric car manufacturer Leapmotor

https://www.interfax.ru/world/927706

Hopefully the US and China manage to work on improving their relations during this weeks meetings as well.

Might be of interest to see who attends this event in December.

VTB Investment Forum "RUSSIA IS CALLING!" will be held on December 7-8 in Moscow

23.10.23 12:24 Business

14th VTB Investment Forum "RUSSIA CALLING!" will be held on December 7-8 at the World Trade Center in Moscow, - reports the press service of the financial organization, - its main theme: "Life without globalization: uniting sovereign economies."

Participants and guests of the forum will be representatives of the authorities, the Russian business community, investors from China, India, Turkey, the Persian Gulf countries, the Middle East, Africa, Central and Southeast Asia and other countries with which Russia is developing cooperation, the report says.

"In the context of a change in the economic paradigm, the consolidation of the active part of society - entrepreneurs - is especially important. Today, the economy focuses on the introduction of breakthrough technologies, the implementation of infrastructure projects, the creation of new financial instruments. Many of these tasks are solved effectively only in cooperative conditions. And it's no longer about globalization, it's about partnerships, mutual investments. At what stage are we now, what risks and opportunities are there on this way, where to look for incentives for transformation - we will try to answer these questions at the forum "RUSSIA CALLING!" - Andrey Kostin, President - Chairman of the Board of VTB Bank, formulated the agenda.

On the first day of the forum, representatives of the government and leading Russian and international companies will discuss the trajectory of development of the Russian economy and the most effective strategies for strengthening the financial sovereignty of states in the current realities, - the release says.

For the first time, exclusive closed meetings with the participation of retail investors will be held on the second day of the forum. Their participants will be able to communicate with business leaders, exchange views on the prospects of financial markets, discuss the challenges facing the investment community.

The forum will be held in a face-to-face format. Everyone will be able to join the broadcast of the first day sessions and hear speakers' speeches live from anywhere in the world, the bank adds.

https://bankinform.ru/news/131066

Sweden’s Auriant Mining seems to be able to produce and sell gold in Russia without violating sanctions.

Any difference between UK and Swedish sanctions or Gold Vs Gold and PGMs?

https://www.auriant.com/upload/iblock/400/e4y97i0mqm4stxlnqyuedvc4hvootqqy.pdf

Https://www.ft.com/content/8af8c05c-8e54-40e9-9051-5a0b2b036c32

India is on the list so maybe should look at it’s wider supply chain for battery metals and similar.

Sorry to but in …

“Why have they stopped mining? And stopped processing concentrate?”

I thought they were still stripping (as per dragline tweet) but not producing.

Either way, a lot of people have shared what appears to be the reason for not producing see below ref getting the mineral extraction tax rate reviewed.


https://www.interfax.ru/amp/922075 



The approach seems to have worked. Now we need to see what the situation is with the stockpile which was obviously produced before any changes were agreed and brought into effect.

Interfax story:

https://www.interfax.ru/business/926742

Maybe a success story in the exploration sector would help attract the investment they say they need.