Member Info for Mjd2020

No problem brisbestbet - for me the “if” is more important than the “when” within reason, there’s no signs that the May proposal isn’t on track and will be the catalyst for the rest of the project.

This was published in June looking at how the state wants to boost exploration in Murmansk. Talks about how the larger miners are happy to sit in their existing license areas rather than develop new ones and how junior Russian explorers struggle to raise funds domestically. Kind of sets the scene for a company like EUA which has a London listing and funds to explore.

Long term it sounds like Russia wants to re-launch mineral exploration as a separate industry, able to raise funds from investors as well as investing more into state run explorers like Rosgeo. It shows how EUA was in the right place at the right time in terms of being on hand to pick up these new license areas while the state’s longer term plans are being agreed on. It wouldn’t be far fetched to think that the powers that be are looking at how EUA is set up, it’s ability to attract IIs, maintain ESG and set up EPCs and for them to want to see more companies being able to do this in the exploration sector.

I’d be happier reading this with an SP in the 30’s but nonetheless a reminder of the how important that the work EUA is doing in Murmansk is in the eyes of the state which is not a bad partner to have on your side.

https://www.google.co.uk/amp/s/rg.ru/amp/2021/06/01/reg-szfo/smozhet-li-geologorazvedka-stat-samodostatochnoj-otrasliu-v-arktike.html

Morning Mac - the May date for this specific EOI comes from this line in section 29 of the accounts:

“The Company received an expression of interest regarding a potential substantial asset sale in May 2021”

There’s a list of other events in that section that we know about from the RNS’s but it’s nice to see them bullet pointed in one place in the company’s own words.

Doesn’t mean we’re further behind in the process though - an existing bid could have been updated on award of the Rosgeo JV or if it was an entirely new bid, the steps would be completed sooner anyway as it would be the main focus, having already been selected by the BoD as being the preferred proposal.

The main puzzler is why are some people jumping ship or loosing moral now so far into the process. For me it’s clear we have a proposal that the BoD are happy to progress with and is being focused on so whatever stage it was at in May, the next asset sale update should (in my opinion) be the final one due to the NDAs unless I’m missing anything and will be worth waiting for.

Just a reminder of what happened in May as per terminology used in annual accounts (Events after the consolidated statement of financial position date):

“The Company received an expression of interest regarding a potential substantial asset sale in May 2021”

Definition of EOI:

https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-expression-of-interest-eoi/

Doesn’t mean the sale is guaranteed or the detail given in the link is applicable in our situation though before I’m strung up and DYOR - this is just a reminder as what landed in May, so be interesting to see what lands next on the disposal side now we are a few more months down the line.

It’s uncanny today - TMS deramps twice and SP reacts by wanting to go up on both occasions. Thanks TMS!

And if you read that tweet in Dmitry’s accent it is confirmed as genuine! As a side note both Alexei Boucher and the EUA account follow EM_Investor if that adds weight - I think it does but like Nukuj says it’s the RNS’s that matter.

Hi Windmaker, that makes complete sense and it’s something that the Ministry of Natural Resources would like to see happen. I posted this the other day about their proposal to significantly increase funding of Rosgeo so they do more of the exploration to get resources proven up before the licenses are sold. Their head says it’s the difference between selling licenses for billions instead of millions.

https://www.steelland.ru/news/mining/12598.html

This won’t effect us though as our options are already agreed and personally I think the format of this extra state involvement would have to be more JVs like ours but perhaps with more involvement from Rosgeo in the additional exploration to prove reserves. The issue being that Russia is so vast, has so many possible deposits not just for PGMs but every other mineral, oil etc. I don’t think a even state run company could handle it all on their own.

The good thing for EUA is you can see how motivated the state is to get more metals out of the ground so you’d expect them to be on top of things like license applications, support for new production sites and infrastructure.

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More good work by the Russian Government to ensure that licenses are not simply sat on until sold and highlights how important it was for our BoD to deploy the strategy of developing the assets at the same time as following the sales strategy:

https://www.forbes.ru/newsroom/biznes/437029-minprirody-predlozhilo-v-razy-povysit-platezhi-pri-zatyagivanii-srokov

I gave into temptation as well at 19.7475. Better than last months price of 20.3 so the extra shares are reward for waiting.

Who knows! We’ve seen lots of poorly skilled shorters here in the past. They mostly lose interest after a while or end up in the green bin. Some make it into the urban dictionary by accident if the kraken is released.

Dropping to 17p would trigger a vast amount of panic buying too. It would be like toilet paper gate from the early pandemic except trolleys piled high with EUA shares.

Found this article after initially seeing the related short release on the Rosgeo site - Ministry of Natural resources is proposing to invest more in exploration so that licenses are proved up to reserve level before being marketed. It’s not clear to me if this work is to be done solely by Rosgeo (surely too big a job even with more funding?) or if this would need to be with JVs with Explorers but more of the risk taken by the state. Either way our JV options are already binding so no worries there but will be interesting to see how this works in practice if the proposal is passed and can’t be a bad thing for us if the state is wanting to pick up the pace of exploration.

Full article:

https://www.steelland.ru/news/mining/12598.html

Initial article from the Rosgeo site:

https://rosgeo.com/press/news/glava-minprirody-predlozhil-uvelichit-zatraty-na-geologorazvedku-cherez-rosgeologiyu/

Good to hear it wasn’t anything too sinister Ian, albeit sounds unpleasant! All the best to you.

Ah balls must have had my eye patch on the wrong eye Lenoman! I’ll not trust the shiny blue stamp next time without checking the prices : )

Couple of little kippers for our Olympic breakfast on the delayed data:

06-Aug-21 08:25:42 20.15 90,000 Buy* 18.14k O
06-Aug-21 08:25:17 20.4749 2,422 Buy* 495.90 O
06-Aug-21 08:24:58 20.2001 198,044 Buy* 40.01k O

Light snack to set us up for the day?!

Report forecast also says it assumes MT flanks in production in 2023 and MT towards the end of 2023. Shows £200M creditors on the BS at 2023 which I’d assume is the EPC for MT funding the production facility? If so we’d need to be hearing about EPC activation and works on the production facility rapidly for the 2023 figures to be achievable (less than 2 years to be production ready at the flanks and a little longer at MT according to when ACF thinks we’ll be producing there). I know these are all ACF assumptions but gives us an idea of the value of mining ourselves and timescales, plus dangles the carrot of what the preferred proposal could yield if another party wanted to partner with us.

It was probably down to the deramper who kept on calling it a “Final Sale Process” and saying he should contact the Panel. Can’t remember his name! Sounds like they aren’t changing the rules though - maybe they told him to be gone with his suggestions until he actually learnt what the F in FSP stood for!

It’s good to see Mac, not just Putin but also other ministers including the Minister for Natural Resources, Finance Ministry, management of Rosnedra, all congratulating Rosgeo on their work. The JV is a big sign of confidence from the head of Rosgeo that EUA can deliver as the operating partner for these sites. I doubt he’d of sanctioned the JV if EUA wasn’t very likely to be successful given the importance Putin places on Rosgeo delivering its “responsible tasks” and great for us to be aligned with Rosgeo to achieve our part of these tasks.

Telegram from Mr P to Rosgeo to congratulate them on their anniversary this month.

https://rosgeo.com/press/news/prezident-rossiyskoy-federatsii-vladimir-putin-pozdravil-kollektiv-ao-rosgeologiya-s-yubileem/

“To the team of JSC "Rosgeologia"

I congratulate you on the 10th anniversary of Rosgeologia Joint Stock Company.

By uniting enterprises in many regions of Russia, your company makes a significant contribution to the study of the subsoil and reproduction of the mineral resource base of the country. And of course, it is important that by introducing modern technologies, implementing popular projects to search for promising areas of mineral extraction, development of Arctic shelf deposits - you remain committed to the wonderful labor traditions laid down by generations of outstanding scientists, engineers and specialists.

I am sure that the team of Rosgeologia will continue to successfully solve its responsible tasks aimed at strengthening the economic, industrial and industrial potential of the country. To set an example of well-coordinated, effective work.
I wish you the implementation of your plans and all the best.
Vladimir Putin
President of Russia“

Unconfirmed reports advise that the original draft finished with “And to the people who seek to deramp our projects, I say go fcuk yourselves”.