Member Info for Mjd2020

Things can change but we touched on this the other day GeminiLounge. Would need to clarify if there are exceptions to the previous years net profits measure in the event of a special dividend though:

The authorities have determined the conditions for paying dividends to shareholders from "unfriendly" countries

“Russian "daughters" of foreign companies will be able to pay dividends if a number of conditions are met. In particular, the amount of payment should not exceed 50% of the net profit for the previous year, foreign owners should be ready to continue working in Russia, and the company's activities should positively affect the technological sovereignty of the country.”

Full article below:

https://www.forbes.ru/finansy/482956-vlasti-opredelili-uslovia-vyplaty-dividendov-akcioneram-iz-nedruzestvennyh-stran#bounce

Depends on what minerals are present within said asteroid and whether the impact reduced the amount of blasting needed to get to the original MT deposit. Would probably have to wait for the mining plan to be adjusted and signed off though so not all rosey.

Fingers crossed the authorities recognise these and address the ones that are in their control. Recognising the need for foreign investment is a starting point at least.

Seems to relate to investment into MOEX but main point being the recognition that foreign investment is needed and references wanting to attract investors from CIS countries, China, India, Asia-Pacific countries, Africa and Latin America.

Not sure about the wording Lenta have used in the link address though, perhaps a bit too straight to the point!

https://m.lenta.ru/news/2023/01/10/give_me_your_money/

I don’t have shares in Poly but good to see them looking at another exploration JV with a Junior in Russia. I know they have different circumstances to EUA but it’s new investment in exploration by a company which has one of its listings in the UK.

https://www.interfax.ru/business/880004

The dividend route and investing the required amount into whichever assets we retain might be another option if it’s possible.

https://www.rbc.ru/economics/23/12/2022/63a414da9a79475b91011b6a?utm_source=amp_full-link

To be fair, I wouldn’t cringe at a cash raise if one was needed to ultimately get value but I would like to know where the cash from our previous raises has been spent. Regarding the use of raises generally, again from the 2021 accounts:

“The West Kytlim mine is expected to become a material contributor to the Group’s working capital, and the Directors are confident that this source of capital can be increased considerably from 2022 onwards due to the increased capacity at the mining site, thereby mitigating financing risk to the Group. At the current time, West Kytlim contributes an important but not critical component to the Group’s working capital. Historically, the Group has successfully relied on international equity and, to a lesser extent, debt capital markets to create and maintain adequate levels of working capital, and these financial resources will be supplemented by revenues from West Kytlim as and when they arise. The Group maintains tight financial and budgetary controls as well as cost control, and forward planning helps ensure the Group is adequately funded to reach its objectives. Two significant equity placings were undertaken in May and September 2021 raising a total of $35m and the Directors consider the Group to be well funded for its short and medium term objective”

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.

Have a great Xmas all. Hopefully 2023 will see an end to the war and on a separate note, a good result for EUA. Hope you all enjoy the festivities.

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

If you search on Companies House you can see who owns Delona, there’s a few companies above it before you find the individual but Delona Investments is nothing to do with EUA.

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?