Member Info for panda1

I'm not so sure the RNS is positive. If you compare all the figures to the original RNS, they all got worse. Higher costs, lower recovery and lower IRR even though the study increased the expected gold price by $200. Is a 25% IRR satisfactory?

Here's an extract from the original RNS for comparison:
"Feasibility Studies and Testwork

The Project will seek to use proven mining and processing technologies, whereby the JV Partners believe recoveries of 56% to 60% are achievable, based on feasibility studies and test work completed to date by Minxcon (Pty) Ltd ('Minxcon'), with additional confirmatory test work planned to optimise the financial projections and conceptual designs for the processing plant.



Cost of Production

At 500,000tpm, the Project has projected low all in sustaining costs ('AISC') of approximately US$664/oz for the first five years of full production.



Subject to funding and achieving 500,000tpm within two years, attractive financial returns are forecast, with projected unlevered IRR estimated at 31% at a gold price of US$1,300 (held flat on a nominal basis)."

From the trading update on 31 Jan:
"Scanport-Westminster have been successfully running the container screening and secondary search operations since the port opened on 28 June 2019, with Westminster providing the technical management and operations and Scanport responsible for local costs, management and employment. Revenues are shared between Scanport and Westminster and are driven by container traffic volumes passing through the Port. Westminster's share of revenues during the soft opening and start-up phase of operations in 2019 amounted to several hundred thousand USD and we look forward to the operation producing a meaningful contribution to our revenues in 2020 as the port continues to expand, the new berths come on stream, capacity and throughput increases, and new tariffs come into operation".

Why would the loan note holders choose to keep them and allow WSG to pay them off when they could sell shares for say 12p and make a 20% profit by converting the loan into shares at 10p. The loan note holders didn't convert in the past as the conversion price was much higher. It was reduced to 10p this year.

At what share price do we expect the loan note holders to start converting as it would be great to reduce amount outstanding as quickly as possible due to the very high interest rate (15% from memory)? I was thinking they may be tempted to start selling when the share price reaches 12p but I'd be interested in other opinions.

Yes, EEE will be the operator of Munni. Artemis have several projects and didn't have the resources to progress them all. There were several companies interested in acquiring the project. Artemis selected the EEE proposal due to the strength of its management team, who will now be responsible for developing the project, and it offers them very large potential upside from taking a large stake in EEE.

He's referring to EEE's acquisition of the Munni Munni palladium project in Australia.
The resource is similar in size to EUA's Monchetundra but Munni has higher grades and is more advanced with the majority of the resource in the 'Measured' category. The market cap. of EUA was around £200 million prior to suspension which is hugely out of kilter with EEE's market cap. Also EEE has the assets in Georgia where the company recently received made progress in renewing the exploration permit and will hopefully soon resume the work programme there.

The directors have reduced the running costs of the company to the bare minimum so it is certainly not a lifestyle company:
"In terms of costs and treasury, the Directors and Executive staff have not received any compensation for their strenuous efforts on behalf of the Company since May 2018, and this situation continues. As was announced on 23 May 2019, given the continued delays and resulting poor share price performance of the Company, the Board concluded it was appropriate to write-off their Directors fees owing since May 2018, with the exception of the Chief Executive who wrote off part of his fees."

I suspect the company will be more vocal as production increases. Here's some number crunching of production from ADVFN:
"Interesting to note that ore mined was 255,134 in total for 2019. H1 ore mined was 98,725 tonnes which means 156,409 tonnes was mined in H2 which is an average of 26,068 tonnes per month in H2.
From the recent production update we were told the monthly production run rate was 29,000 tonnes per month in February 2020 and equipment purchases should increase production in Q4 to 45,OOO tonnes per month. The intermediate production target to current plant capacity is 850,000 tonnes per annum which is 71,000 tonnes per month."

We knew the results weren't going to be great due to operational problems. That has been fixed now after non-dilutive funding was secured and new equipment purchased. The company mined nearly as much ore as in the previous year but less of the ore was processed due to problems with the mill, hence why gold poured fell. The mined ore was stockpiled for processing this year now the problems have been resolved.
If you read the report in full it is very positive going forward and the company is planning a huge increase in production this year and will benefit from a higher gold price and reduced operating costs.

Nice to see the directors are rewarding themselves handsomely and keeping cashburn going.
Total remuneration from today's accounts:
Robert Zimmer £498,185
Dimitri Dimitriou £309,790
Tim McCarthy £260,000

Nice to see the directors are rewarding themselves handsomely and keeping cashburn going.
Total remuneration from today's accounts:
Robert Zimmer £498,503
Di.itri Dimitriou £

I bought more on the dip today as I think it's a fantastic opportunity at this share price.
There is the potential to realise huge value in the projects in Georgia and Australia. I am very impressed with the new project the company has picked up. It greatly exceeded my expectations.
Georgia is far from a failure. The company has proved up a very substantial resource there at KBE. It has been unluckily with the permit delays but it looks like operations will re- start there and the JV partners can get on with the infill drilling and metallurgical test work.

Dave85 - Good to also see you in ALTN . Huge upside here as company ramps up production and is backed by a resource of over 8million Oz of gold.

Nice write up Dave85.
interesting point about the similarities with the Jangada/Valore tie up. Jangada had 2 key projects and wasn't in a position to take them both forward so decided to offload Pedra Branca to Valore in return for some cash and a large stake in Valore. Part of the rationale behind the deal was that Jangada saw Jim Paterson (has a great track record of selling assets for a large profit) as an ideal person to drive Pedra Branca forward and extract maximum value for shareholders whilst allowing them to concentrate on the vanadium/titanium project.
Artemis had too many projects in its portfolio so instead of keeping Munni Munni on the back burner it has decided to bring in EEE to take the project forward. There were several potential buyers that were interested in taking the project but I believe Artemis selected EEE because of the capabilities and experience of its directors, Mike Struthers and Neil O'Brien and also it gives it another potential upside in exposure to EEE's Georgian assets.

Very disappointing that Vulpes keep selling. I didn't think they were here to trade the shares ??

Some trader's probably sold after yesterday's rise but its increased from a very low level. There is potential for the share price to gain multiples of the current price given the huge upside in the 2 main projects in Australia and Georgia and the strength of the management team. The acquisition announced yesterday looks excellent, far better than I expected, so I think others will also see value and the share price will take care of itself.

Good point fatboyslimmaster. Don't forget the value of the other assets. That is one of the main reasons Artemis took shares in EEE. The assets in Georgia are excellent and the permit extension looks like it has been resolved.

Jakesdad - as well as the large PGM resource there is potential upside for conglomerate gold on the Munni project. It's in the right area. Google it and you'll see what I'm talking about

Artemis have many projects and can't advance all of them. They decided to give operational control to EEE in return for a large stake in the company. They want to keep exposure to the project, as they know the value, and they were also attracted by the potential of EEE's assets in Georgia.
Artemis have a processing plant very close to the Munni project and this could be utilised to process the ore. You say it would 'cost a fortune' to mine it but it is high grade and at the current basket price it would be very profitable. The capex would be greatly reduced if Artemis's processing plant is utilised.

Vulpes sold 500k shares at 8p