RE: JORC9 Dec 2021 11:03
del,
copied from penn st and vimster on advfn. see below
About Eurasia Mining (EUA LN) and prices for platinum group metals (PGM).
We recently wrote about platinum and possible triggers that can return interest in it (primarily about its role in hydrogen energy).
Now green topics are, in principle, interesting to investors, sometimes even too much. Therefore, the price wars around platinum projects do not subside, despite the fact that now platinum itself cannot be called expensive.
For example, Impala Platinum and Northam Platinum are competing for Royal Bafokeng Platinum. Even on the open market, stocks are bought, since the beginning of October they have increased by 2 times, to almost $ 3 billion. It is dangerous to get into such stories, although it is romantic – buying up the rights to develop mineral resources from local tribes. However, the interest and activity of investors are remarkable.
As for Eurasia Mining, the story here is not really about platinum. Her basket of metals is closer to the basket of Norilsk Nickel. But this does not change the essence: there is no less interest in nickel and cobalt. And it is clear why. Nickel is one of the key metals for electric vehicle batteries. Elon Musk loves him, now nickel is trading around $ 20 thousand per ton. According to our estimates, the share of nickel in the Eurasia Mining basket could already exceed the share of palladium.
Projects with a nickel + PGM basket in the world fly away quickly and are not cheap. Sibanye Stillwater recently announced a $1 billion purchase. plus 5% royalty of the Santa Rita nickel deposit in Brazil. Eurasia Mining has a similar project. In 2020, the company received a license for the NKT project - the restart of the previously operating nickel + PGM asset, similar in size to Santa Rita. This is not counting other large assets on the Kola Peninsula and in the Urals. So, if we evaluate the quality of assets for similar transactions, it turns out that it is already significantly higher than $ 1 billion.
In general, what is happening in the world with battery metals can be called "battery fever". Take, for example, the Australian Chalice Mining Ltd. Its capitalization is already $2.3 billion. To do this, it was enough to publish a report on the JORC of resources of the inferred category, and it will take time and investment before the start of production and sales.
Comparing these resources with the resources of Eurasia, as well as with the resources of the Eurasia Mining joint venture with Rosgeo, we can say that the planned publication of resources on JORC can become a serious catalyst for the growth of the capitalization of Eurasia Mining.
Of course, the natural conditions and country risks in these projects are different. All other things being equal, investors will prefer Australia over Russia. But Brazil and South Africa sound comparable, though more familiar to the ear of a mining investor. By the way, there were 5 contenders
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