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Hi Lenoman,
Not trying to suggest that at all, BOD have suggested the MT DFS shows an increase in value but as we didn't know the previous value of what could be mined it's meaningless until we see the detail of the DFS although we didn't see much detail of the WK DFS.
The point I have been trying to make is relative values of reserves compared to resources, how resources can return less when proven to reserve level and some of the things relevant to trying to give a real value to a mine. It is a somewhat complicated matter to consider everything the affects mines. You can't just take a figure of reserves and resources and multiply how many tonnes there are in total by LME prices and say"yeah, it's worth billions" well you can but you'd be fooling yourself.
Hi Sirplacealot,
To try and explain further what happens when you start drilling inferred resources to see what's there.
2004 NN said they had found what they believed could be as much as 350t of PGM's at Vuruchuaivench (sp?) which is very close to MT. After exploring it up to 2014 it had 16t Pt, 79t Pd and 4t Au, all to C1 and C2 levels so around 30% of what they hoped was there. They never developed the area and I had hoped it was 1 of the Rosgeo JV areas but we were never told what they were.
Of the 1.9moz of PdEq at MT the maiden reserves RNS says not all is in the defined open pits, some is outside of the pits and underneath the L pit which goes down to 350m and may be suitable for underground mining in the future (although the undergroud part wasn't costed to see if it was economical). What % of the 1.9moz PdEq remained to be in the open pits has never been revealed. It will be in the DFS if the BOD ever want us to see it.
The L open pit contains over 70% of what's at MT and is deep relative to the WN open pit. As the L pit is deeper and the metals do not occur close to surface then the stripping ratio of worthless rock overlying and surrounding the valuable ores will be high affecting the economics of that pit. The grades also affect the ecomomics of the mine and how succeptable it is to metal price changes.
Then consider EUA own 80% of MT, that you do not recover all the metals, NAP technical report 2018 showed they recovered 74% Pd, 86% Pt, 75% Au and 78% Cu all via flotation which is what will be used at MT, smelting costs, selling at below LME prices. It all brings what you actually end up with down.
The Russian system goes from A down to P3, you can look at it as a decreasing value chain from A, highest value reserve which for gold of PGM's might need 5m drill spacings to achieve it, down to P3, an inferred resource based on verylittle, it may not even be based of a single drill hole.
Resources give a limited idea of what may be underground, reserves are considered to have been proven to a level where they may be economically viable.
The more drilling you do and the closer the drill spacing is the better the knowledge of what is underground. For gold and PGM's grades alter markedly in a matter of metres whereas a coal seam is very easy to define with minimal work as they are very consistent.
Not all of what is define to a low reserve level will necessarily be economic to extract as at MT, read and understand the Maiden Reserves RNS.
Hi Makeabundle,
Yes I am.
Whilst MT is PGM dominant NKT is Nickel/copper dominant hence the forming of 2 new companies to hold nickel/copper areas seperate to PGM ones as may be different buyers for PGM's than nickel/copper. Having said that the flanks appplication which is the NKT licence area already held is in the name of TGK who hold the MT licence (TGK 80% owned by EUA) although that licence was issued prior to the 2 new companies being set up.
Not sure which of EUA's subs first applied for the T bit of NKT but apparently it was recently changed to being applied for by KK and yet WK is miles away from NKT and WK is PGM dominant.
Part of being awarded an exploration licence is on proving you have funds to explore the area, KK/WK have the bulk of funds raised for the Rosgeo JV as far as I can see. Might explain it, might not.
Whilst this licence has recently been issued to KK for the T bit of NKT, can it be accepted. We know all the explorationlicences that were to come from the Rosgeo JV can't now due to sanctions, Nyud exploration licence transferred to Rosgeo but not so far to EUA sub due to sanctions?
Again, may not be popular answers but I'm not here trying to be popular.
Hi Makeabundle,
I think in the very early days of EUA the sp was quite high but I first bought in at 0.93p 23/07/2015 and built up a holding over a few years with an average price of 0.47p. Sold a bunch after losing a bit of faith over the mess with permit problems at WK.
I haven't been keeping up with things as I used to as only a punt in now. Mixed feelings over stopping production at WK.
Someone posted about KK (own WK, EUA own 68% of KK) questioning the Russian State (?) over sharp increases in taxes on production at WK claiming they were unable to make money there. I've also seen someone referencing another court case over this to seek to reduce those taxes which is being heard shortly. It could possibly be why there was hope to sell before year end, not sure a buyer would want to take on WK if high taxes meant no profit so if it's sorted soon then does it overcome a last hurdle to selling. Not sure if those tax rates would impact future MT production as they seemed to relate to gold production which both WK and MT would have very little of but is in the basket of metals at both.
I have suspicions that, due to sanctions, EUA might not be able to sell PGM's to Russia but are bound by the conditions of the mining licence to have to sell production to Russia via it needing to be both refined and sold in Russia, I have recently looked back through old RNS's but hadn't confirmed this. Might be why they haven't sold the sand concentrates yet, does it take months when 3 companies are supposedly tendering for it to tender for it? We had the BOD saying they were unaffected by sanctions then saying the JV was off due to sanctions with the payment to enter into the possible JV written off. That wouldn't really stop them adding to concetrate by running wash plants this season so unsure in truth.
You asked for my honest thoughts, appreciate others will have a different take and see me as negative, not trying to be, just constantly question my investments.
In for a look whilst having a cuppa and thought I would correct what is misleading about Makeabundle's post.
See all of MrY's posts of June 2021. WK was the reason he invested here with hopes for MT.
Invested well before June 2021, from when WK first started production. There was a lot of excitement then as we had regular updates on production and it was returning3 times higher grades than expected. For second year we had hardly any news on production until mining season ended where we were told the sub contractor hadn't sorted out permits and very little was produced and since then it's been a real disappointment including the DFS which showed less there than had been inferred.
His approach seems to be it's either a fraud or fraudulently intended exaggeration until proven otherwise.
Really, like to provide some quotes from me to back that up. I have related to RNS's, WAI and Rosgeo comments that suggest there is far less proven to be here than the rampers here suggest and suggested people research about reserves v's resources and their relative values as somewhat relevant when investing in mining companies.
I do think he has more trust in our splendid CEO than he lets on.
Now I have to clean my screen off as that made me laugh so much I spat out the fruit cake I was eating.
He has bought in again which is most encouraging.
Please don't be encouraged, took a punt a while back on waiting for confirmation that the Rosgeo JV would be compleated because there are so many people that have clearly fallen in love with the share and expected it to sell for billions that sp might have jumped on the news. Vlad the Impailers SMO got in the way and not happening now.
Not trying to suggest it's worthless just never saw it's value reaching the levels the happy clappers have and have tried to explain why not.
Hi Dansesca,
There I was thinking I had prompted a very defensive reaction from Tillywhiz which I then replied to.
"what isn't cool is the level of lies built by the likes of yourself and the constant abusive reaction to any and everything posted by investors to whom are generally wanting to debate information ,,,,,,,,,,,,,.the general conversation posted by the likes of yourself is impossible to keep up with and absent of any worth".
As the sole reason for me starting to post here was to correct misleading information by relating to company information and as I have been someone encouraging open debate and provide references and links to what I post and am totally opposed to the encouragement to greenbin posters so open debate can happen then I am at a loss as to what you are referring to in regard of me and what I have posted.
If you want to accuse me of lying, constant abusive reaction and posting nothing of worth then please back up your accusations with something of substance.
In reply to Beast, where is the narrative of victimhood, I have never been drawn into investing here on anything anyone has said, I was an early investor and was very open in saying when I was selling and did very well from investing here.
Still invested by the way as having sold out I had a small punt which is somewhat underwater but I certainly don't blame anyone for my choice to take that punt.
Hi Tillywhiz,
Never claimed we had a discussion over WK DFS or that you had anyone green binned.
My post 22 December 2020
Hi Tillywhiz,
Do you really see the DFS adding around £600m in value to the company. That's going some where ACF value WK at £33m before production increase there from DFS,
SP at the time of my post was 30.5p, roughly £800m MCap, so you suggested a 80% sp increase on WK DFS. Not bad for someone now saying "mining detail is not my bag" and considering WK has never made a profit and produces very little (Jewel in the crown according to Makeabundle posting earlier :) ).
Constantly referring to those with a different view as bot flies, saying they need to be tossed overboard, hovered up, trying to ridicule them, saying they have a clear trading agenda (when you are trading yourself) is a clear attempt to try and get others to ignore or bin them and control the board to be only positive (thereby seeking to help your trades).
How many times have you suggested good entry points for people, anything below the 26.5p paid at the last raise, wasn't the highs in the sp a floor as institutions were buying etc. How have all your recomendations worked out so far? Accepted that we don't know where this is going to end up yet, it could possibly sell but at what price.
Being invested and positive on a share is one thing, trading a share whilst posting to help your trades whilst vying for top spot as most ticked up poster on LSE (with Mac) and suggesting when people should buy etc is somewhat different.
Yes, people should take responsibility for their investments but as you point out, many shouldn't be invested here as they seem to have no real idea on what they are invested in. You are also aware that people have a number of times pointed the finger at you (and Mac) as having lead to their investing here and I see you are now adding something of a disclaimer to posts "Your investment, your choice". Clearly you don't see the need to take responsibility for anything.
Dear oh dear.
Currently 29 ticks for good old Tillywizz's post. I wonder if a single one of them are currently in profit here through believing in the false camaraderie created as a means of sucking naive people into investments they don't understand so Tillywizz can make money off the back of them whilst creating an echo chamber of only positives by encouraging people to green bin the "negheads".
I recall pulling him up when he claimed the DFS for WK was going to add £500m in value with the shareprice he claimed it would hit when the news was released, never came close of course just like all the other times he claimed what the shareprice was going to reach and the concreat floor under the shareprice when it was hitting it's highs etc etc.
If he was brought up to have any sort of moral compass then sadly he clearly traded it in at a young age, probably with Spooty Sam for some dodgy mag with pictures of the hairy crevaces he seems obsessed about.
Whether or not they need to RNS this new exploration licence is debatable but there were 3 RNS's for the MT flanks area licence, application, update and licence issued plus many other references to the flanks area. They don't seem to have been interested in informing on this licence area or much else of late.
So new licence issued to KK who own WK which is a long way from MT and NKT.
Which sub first applied for the licence as it was apparently changed to KK applying for it?
Didn't we set up 2 companies, both 100% owned by EUA, to hold what had been hoped would be the Rosgeo JV areas so predominantly nickel areas could be sold on seperate to the PGM areas?
KK is only 68% owned by EUA, I recall DS as having bought into the company that hold the other 32% of KK prior to him then investing in EUA.
KK appears to hold the bulk of the loans to the subs from last years accounts, over £20m and yet is only 68% owned by EUA and shouldn't need that much to develop as it was supposed to provide working capital to the rest of the company and the money raised from placings were for the, now defunct, Rosgeo JV.
It could be that the Russian authorities needed to see money in place to undertake exploration before granting the exploration licence so application switched to KK although moving funds out of KK shouldn't have been difficult.