Member Info for Professor1

https://youtu.be/gU0Z85mNweE

EDUCATION FOR THOSE WHO DON'T YET UNDERSTAND WHERE GOLD IS HEADING

Absolutely Phoebus

Commencement of drill to be announced anytime. Gold predicted to $3000 in 2021.

absolute reduction in WACC

If you look at the country risk factored into the discount rates being applied in various countries, under the current climate where Russia is trying to attract foreign investment in the region, it is very difficult to justify a country risk premium of 12 % to 14 % being applied to Russia. At the other end of the spectrum, you have Canada and Australia where the country risk premium applied is a mere 1% to 2% - a huge difference of 10%. If Norilsk Nickel were a party to the transaction who are resident in the same jurisdiction, I cannot see UBS applying such a high discount rate (WACC in the Powerof78 calculation). A reduction of WACC by a 10% would increase the NPV of £2.32 by a factor of X3.= £6.90 approx.

https://www.marketwatch.com/story/green-hydrogen-is-opening-doors-for-higher-platinum-demand-11605902071

Hi Ian

Please can you put down 7 Dec for me.
Many thanks.

POSTING AGAIN

FORMS 8.3 AND 8.5

Forms 8.3 and 8.5 are disclosure forms required by the Takeover Panel to clarify material interests in the share register of a UK-listed company that is in a bid situation. Any person or institution that has an interest of more than 1% of the share capital of a company in a bid situation (on both sides of the transaction) must disclose any dealings in those shares and their resultant position.

Form 8.3 should be completed by the shareholder to clarify what they have bought or sold and the resultant size of their stake. Form 8.5, meanwhile, should be completed by any principal trader that has dealt in the shares.

These disclosure forms are required as part of the Takeover Code which aims to ensure an orderly framework within which takeovers can be conducted fairly and appropriately.

Great CJ. About time

Frutsels

We used to buy off the shelf companies to park new assets in and the company would be then used for a JV purposes. The old directors and company secretary of the off the shelf company then resigns and the new ones of the acquiror are appointed. Who is to say that EUA has not acquired this off the shelf company? This matter would be a day to day company matter and would not require informing the shareholders.

https://www.thearmchairtrader.com/five-mining-stocks-we-like-eurasia-mining-kodiak-copper-sotkamo-silver-euro-manganese-peninsula-energy/

Is it possible that the reason for the delay we are seeing is because the company has probably submitted significant amount of additional documentation to increase the resource base TO (OR BY) 40 million ounces and is awaiting further license from the authorities and this is taking some time to come. If so, this will be RNS'd when received before the deal announcement. If this is the reason then the deal is going to be much much bigger as the Board will likely go for a complete sale and the price tag will be significantly higher - probably higher than what Rowka had even predicted.

Wow - Katoro Gold also saught expertise of our MD Christian Schaffalitzky on their Tanzania project. Just shows the respect CS has as a geologist. The interview in the link is dated 10 Dec 2019.

https://www.share-talk.com/katoro-gold-plc-lonkat-louis-coetzee-executive-chairman-christian-schaffalitzky/#gs.ljwrgk

By the way Katoro Gold sounds a very good prospect.

Hi Listez

It could be either or combination of both

This is indeed good news.

I have always felt that the very high discount rates which we have seen being used in the NPV calculations are not warranted. EUA valuations will be significantly higher if the appropriate discount rate is used.

Shezer -Good read. Thanks for posting.

Many thanks for this Eldorado

Very true Mac / Monkey70.

Hi Monkey70

Absolutely - I had not included these in my estimation for simplicity. REE's for instance could be significant.

Tiddlor

Agree with you.

Knowing what we all know about the future prospects of palladium and the fact that MT has mainly palladium - say 2/3 to platinum 1/3 and with the management warning that we are 'shovel ready' to take this forward alone, I believe they will seek nothing but a decent fair value of the future annual profits to be derived for the next 15 years and possibly another 15 to 20 years if we bring the additional 25m ounces (estimate and yet to be proven) into the equation.

Ignoring the time value of money, other metals including rhodium, tax relief etc, the everage SP of palladium / platinum is about $1800 (being 2/3 of $2200 for palladium and 1/3 of $1000 for platinum). With AISC of a mere $325 per ounce, this gives a net profit of $1,475 per ounce.

I think the first part of the deal will be the sale of 15m MT.

Knowing what the management have said (and if this was my business), I would be happy to accept a 30% of this sale price as settlement for the 15m ounces. So, 30% of $1,475 = $440 per ounce. Therefore, for 15m ounces, it will be $6.6B. This gives approx $2. 03per share.

I also think that there will be a Farm-in type of a deal (as with Newmont / Omi) for the remainder of MT for the 25m ounces estimate in excess of the 15m. If we accept a mere $10 per ounce upfront, this gives us additional $250m or $0.07 cents per share. We get x% (say 25%) from the farm-in when resources are proven - and keep the shares for now.

Sale proceeds from WK - say $0.15 cents per share.

Total SP = $2.25 per share.

All in my view but happy for any comments

Brilliant news. We have a smart boss.