Member Info for Moneymaker2015

Just grabbed another 100k myself.

As the last announcement said they expect to provide a positive update this month, prior to concluding the acquisition. I’m hoping it will be news on the contractor to work on site. The announcement in Oct said an update will be provided in the coming weeks when ‘both a contract has been signed and when work will commence’. If we do get this in the next week or so, this may nudge the share price up slightly, ready for the big news shortly after.

Not saying Aubery is right, but there’s nothing to say the 28-37p is wrong. If you were to bench mark it against other sales of Palladium dominant plays it’s not a bad sum at all. I’d be surprised if anyone is able to provide me with an example of a similar play going for even $1.5b, nevermind some of the crazy figures I’ve seen thrown around.

Just putting Invest2Saves comment in perspective;

‘You'd be valuing all of the assets (and im only talking about those in licensed areas, not the full 40Moz @MT) - so that equates to WK, Sem and MT (15+7Moz=22Moz) at around £1.2b (i.e. 37p)’

- WK - EUA have been mining here for a number of years now (most contracted out), yet haven’t been able to make it a profitable play. Whilst WK was the reason I originally invested here, realistically it’s not going to attract a huge sum.
- Sem - EUA haven’t done any work here for a number of years now. Whilst it’s a nice little extra to have, further exploration work is required. It would attract a very low figure in a sale.
- MT - We have 2m oz covered in the mining licence and 13m under an exploration licence. The 13m will be valued considerably differently to any potential buyer as it drastically affects programming and logistics of commencement. There’s actually no guarantee the 13m can be converted into a mining licence for one. The additional 7m isn’t owned by EUA, so it would be difficult for any buyer to convince their shareholders to payout a large sum here, without knowing that an exploration licence would be granted. The remaining resource to make up the 40m isn’t owned by EUA either and falls outside of the current flanks, meaning EUA have no more right to apply for this area currently than any other developer.

As I say, I’m not saying I agree with a £1.2b valuation, but I can certainly see why we may attract that kind of figure. I’d find it more difficult to justify us receiving 100p or £2.8b.

The way I look at it, the current mcap is justified by the current value of Diamond Creek, which will also gradually increase over the next couple of years with production increases. This makes Neyega a ‘nice to have’, rather a necessity. Yes it’s worth a lot more than DC, but the company can survive without it.

Yeh I’m hoping it gets finalised fairly soon. Don’t want to be giving Sunny my gains, but also don’t want to have to sell out early to avoid giving it to him either.

Usually drops to or around placing price eventually, unless some positive news is released. I hope there’s wasn’t many that bought-in here when we were around 2.5-3p a few weeks back.

9000% up, yet my account doesn’t have any additional cash. Who’s stolen it all...

Luckily, SAU have already hinted that it may be either a cash or share deal. In an ideal world we’ll be able to buy their half outright with cash from the funder, whilst also retaining enough cash to go into production. However, the top priority is finalising the situation and taking BMV to the next step, whether it be cash and/or part dilution.

Hopefully, if all goes well we’ll get the ‘positive updates from South Korea’ at some stage this coming week and possibly the week after get the big announcement.

Mac, that’s some big players it’s got us lined up with there! The name Eurasia Mining is definitely a lot more popular than it was 18 months ago.

To be fair to Vauch, your statement was a little confusing;

‘I bought them at high 0.2p and since then I kept adding to reduce my average’

This indicates that your average is lower that 0.2p and therefore you would currently be in profit.

Either way, I think long term GWMO will be fine. I’ve never invested in a mining company so far that has gone bust and so far the BoD haven’t done anything dissimilar to any others I’ve had a holding of.

Well we already know Lesego are one of the interested parties from the announcement last September. Plus, the BoD have been saying around 18 months now that they’ve received expressions of interest from a number of companies.

I’m sure NN will be one of the parties but I’m not expecting an excessively huge bid from them after they pulled out of Arctic Palladium earlier this year. They had a total outlay of $3.8b to spend but RUSAL their largest shareholder that rely on NN’s dividends didn’t want them to expend so much cash as it would have reduced the dividend, so refused to vote in favour of it. I expect they’d have a similar stance in buying us out so wouldn’t want NN getting into a bidding war.

I think Implats will likely be one of the parties interested as they’ve already confirmed that toward the end of this year they’re looking at potentially acquiring a number of Palladium plays.

I don’t know if we would get involved with KAT as their work in Tanzania is a long way off production, whereas MNRG’s aim is to acquire near production prospects. However, Christian has done a lot of work over their in the passed. He found one of KIBO’s coal projects, their nickel project (now with KAT) and also KAT’s gold project over there (now sold on). He knows the area very well and I’m sure there’ll be another couple of areas he’ll have his sights on.

Personally, I’d like to think, with the right news we should be pushing on 100% margin on the current share price. All the market needs to know is that we can purchase the remaining 50% in cash, with no dilution and that we already have a contractor lined up to start early next year. This should move fairly rapidly as people realise the potential. 3 yr mark we’re looking in the region of 30k oz. That’s circa $36m after costs! Nevermind at the 5 yr mark when aiming for 100k oz.

His ‘consultant’ role stems from being part of the BoD at KIBO. KIBO effectively released KAT on to the market separately a few years ago as a way of raising funds and now just own a small percentage still of KAT. These days CS has very little (if any) involvement in KAT.

Aside from EUA, his focus appears to be KIBO where he’s also chairman and then MNRG where he’s a Director with his predominant role being providing advice on geological areas of new prospects. He used to have a role in BNR too but once it dissolved and became TSI I don’t believe he holds any position anymore. TSI may need a double check though as I don’t have a holding there, only KAT, KIBO and MNRG (as well as EUA of course).

I haven’t scrutinised your £6.1m profit figure, but it sound roughly about what I was anticipating.

Add that to the £3.67m, 5 yr figures of Diamond Creek and it gives us an EBITA of around £9.68m. Not bad at all considering our mcap is only £7m.

It would be interesting to know what value we offered to SAU originally, just to see what kind of ball park costs we’re looking at. I’d be very surprised if it were to cost over £15m to get their half considering there’s no JORC etc. Either way, provided we can afford it and avoid dilution in the process, I’ll be a very happy man!

Very interesting situation this. IIG are effectively balls deep with the funding they have already provided and an offer of project funding is on the table. However, parties have agreed not to extend their agreement.

It did actually cross my mind admittedly, so I could increase my holding further. Only reason why I didn’t sell any is because the spread atrocious and to make it worthwhile the share price would have to drop a considerable amount, which I don’t think it will. It’s just not worth the risk chancing on missing out. Especially if the BoD do indeed provide an update before the end of the month, that would likely nudge the share price up a bit, before the big news early next month.

Well I guess that RNS answers the question...

The key for me is that we’re ‘aiming for first commercial production Spring 2021’. Shortly after production commences we’ll be in a position where we no longer require any further dilution and can self-fund exploration of other projects without the necessity for entering into joint ventures.

I know a lot of people have said that CS will be sold once in production but at the current moment in time that is purely guesswork. Even so, if it were to happen that too would put us in a strong financial position.

Someones announcements must be slightly out:

BMV’s on 12th Oct says ‘The Company is pleased to announce that an Independent Expert ("the Expert") has now been appointed and a value will be determined within the next 30 days’.

SAU’s on 29th Oct says ‘The appointment of an independent expert was made on the 20 October 2020 who will now determine the price for the assets. Both parties are bound by this determination which is expected to be made in early December 2020 after which BMV has 60 days to complete the purchase’.

As nice as it would’ve been to have news this week, another 3 weeks or so isn’t the end of the world.