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Thats right if I remember rightly first five years 0 tax , then 10 percent tax and so on so on.

That being said no sure if that still stands today. I did read somewhere about the sanctions in Russia and pandemic my force Russia to raise taxes and change the laws to make up the deficit. Something to be aware off

Thanks, MadMat, Garf

I thought that was the case, thanks for confirming

I always assumed we would be going for the FFS option, but the figures they quote do not match.

“Payable nickel for the TS Option is projected to be 24,306 tonnes per annum, whilst payable nickel (plus credits for copper, cobalt, platinum and palladium) for the FFS Option will average 29,155 nickel equivalent tonnes.” https://amurminerals.com/content/wp-content/uploads/Executive-Summary-20190301.pdf

It is the 24,306 t they mention in the recent RNS dated 25 November 2020.
“annual tonnes of nickel concentrate have increased to 27,124 tonnes from the PFS 24,306 tonnes per annum” leads me to believe they are going for the TS option first? But I thought the TS option will not allow revenue generation from the other metals including the copper?

“Payable nickel for the TS Option is projected to be 24,306 tonnes per annum, whilst payable nickel (plus credits for copper, cobalt, platinum and palladium) for the FFS Option will average 29,155 nickel equivalent tonnes.” From the PFS page 1.

Is AMC being cheeky with the findings?

Garf
Yes it looks like the new figures for the TEO only consider Open-pit mining

theEast post about risk in Russia got me looking back at some of my homework and found this article from 2012

Interesting to understand some of the challenges AMC faced in the past working under Russian Jurisdiction. Interestingly RY has a guest appearance in the article discussing his experience in Russia:
https://www.gbreports.com/wp-content/uploads/2014/12/Russia_Mining2012.pdf

The last sentence made me chuckle!!!
“Typically, applications take six months, but we are dealing with a federal agency. Just as in Canada or the US, their calendar seems to be different from ours. It has already been 20 months. There are four separate agencies that review the documentation, which is eventually given to the Ministry of Natural Resources, the ultimate license granter. We are now just waiting for the fourth agency to submit their report. We are making progress, but I have learned in this business never to project a date”.

I cannot find the article or paper but I remember reading somewhere that in Russia and similar regulatory procedures could take 2/3 times as long as in other places. not worth much but, my experience in the medical device field can attest to the regulatory hurdles one must jump to get anywhere in places like Russia, China, Brazil, protectionism comes to mind

Also this
Fraser Institute Survey of Mining Companies, Investment Attractiveness Index this is how Russia ranks, was not ranked in 2019, not enough data.
Ranking: 2018 - 27/83 2017 - 33/91 2016- 44/104 2015- 47/109 2014- 64/122
https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2018

The delayed reports are the financial/economic reports and some of the environmental. It's more than likely that the economics of the project have improved so much from what it was it contributed to the delay.

The risk is still there, the reward is a little bigger!!!

Hello Sparticus12 , Yep you are correct the 12bn. Once the economic report is out this will give us an idea of the new project numbers.

Tuckman, my thoughts are the same as yours in regard to the timelines, is it as simple as everything shifts 3 to 6 months sideways?

We know that some of the TEO documents will feed into the BFS. These documents will either slot right in, need more content or needs improved accuracy, I assume that the documents they have already received and/or completed themselves can be worked on to gain BFS acceptability!

Thanks, CT

Yes true about the extra revenue from the other metals stated. and yes any extra value should be added to the spreadsheet for potential suitors to mull over.

If the calc of an extra 500m for the Rh is correct then that is promising, I assume the calc doesn't take into account the cost to extract? If there is so much promise the BOD should state this clearly.

The fundamentals of the project have improved massively, and that is the dilemma with this project. The potential is there, but can the BOD deliver!!!

- the fact that the mine life has extended from 15 years to potential a minimum of 24 up to 41 years is impressive
- Also, the copper concentrate which give or take will add 30% more on the NPV pushing it to $12bn not bad. Plus the other cost savings.
- Revenue all be it small from other metals

It’s a shame about the delay and how it has played out. Unlike some I think COVID is a valid reason for the delay; (from my own working experience, working on multiple projects I have experienced delays from contractors).

What fuels the argument that the BOD are untrustworthy is how, during the past few months the TEO was presented to the shareholders of being on course to meet the deadline and, no CLEAR indications that there was any problems or potential delays, although an extension was mentioned somewhere.

I understand that AMC was not responsible for the reports, but AMC should be project managing; they should have been in regular contact with all contractors and monitoring progress. And if they did that then they would have had some indication of potential delays in October. AH told the public that all was on course in the videos.

I still believe in the project and will take the opportunity to add, but the risk is still there. I do have sympathy for AMC as the moto of ‘right place’ ‘right time’ should have been ‘wrong place’ = Russia , ‘wrong time’ = the crashes that occurred and now the pandemic!! as CBS has said, I have waited this long, what's a few more decades!!

Hello BB2

that is my interpretation, that we only get paid for the metals stated in the RNS and not the Rhodium

In terms of the Rhodium (haven't done the maths, my abacus has gone missing) but not convinced there is any value there, If there was I suspect AMC to advertise this to some degree in the presentation, RNS.

Hello Sparticus12

Good idea to work on the average,

During the delay of 3 to 6 months there may be times when one can trade (if this is your thing)?

Other than the delay the fundamentals of what is minable to make money have substantially changed for the better, not sure by how much so will need to do some homework and get the abacus out, time permitting.

When I get the chance will try to add more to my holding!! (Must be crazy, but the potential has just got bigger)

Good luck to new and old

Sorry guys
Big disappointment,
1- Potential 3 to 6 month delay
2- They have already applied for an extension, therefore, they knew in advance
3- Taking salary. Depends on individual circumstances to take
4- Mcap is explained away by the fact they are based in Russia

But then they tickle your private parts with:
1- Grade estimates for nickel, copper, cobalt, platinum, palladium, gold and silver have been generated. This is the first time gold and silver have been estimated.
2- Using the Gipronickel flowsheet and metallurgical test work results, it is projected that annually about 6,704 tonnes of payable copper would be recovered from 30,000 tonnes
3- Reserve tonnages indicate a potential mine life ranging from a minimum of 24 years to a maximum of 41 years based on 6.0 mtpa nominal capacity.

Blackrhino1: I think the newbies will see this as an opportunity to add more.

Hello Sparticus12, yes agreed

eTank, sorry to burst your bubble. I find the Edison reports easier to digest as I am a 'dumbass' at understanding these things. Bear in mind the report is commissioned by AMC Make of that what you will.

Hello eTank

BillyBoy & Sp are correct, based on the PFS released in 2019 the NPV was
TS: $614.5 @ 8.00 /lb
FFS: $987.4 @ 8.00 /lb
(Not include 2018 drill results or separate copper concentrate)
https://amurminerals.com/content/wp-content/uploads/Executive-Summary-20190301.pdf

Actually, the Edison report maybe a better read
https://www.edisongroup.com/publication/russian-teo-status/25718/

At the time they estimated that the share price would be 5.3c (4.0pps). this does not include the additional dilution of shares, capital raised and NRR deal. If you also take into account the current nickel prices of about 7.17/lb, the share price of 2.0pps is about right

Hello CBS,

I will reiterate what you said in previous posts, hang in there mate, next few years will make us or break us.

colbaltblue, I think you will get your opportunity to exit at 10pps, but it's not the time to bail out now. You have waited this long!! ( if you have noticed I haven't stated when you will get your 10pps!!!! )

CBS, :-| the credibility you had is gone!!!

GB33, I think that is a source of frustration to many. Unless you are Redlee who seemed to lap it up!!

CBS has put it very nicely indeed
"How that data is taken and modelled into something that investors can agree is viable is something beyond us - but fully within the capabilities of RY and his team. It clearly was enough of a draw to bring in Adam."

Just one more comment, I don't expect to see the full TEO published, and if it was I wouldn't understand it anyway unless it had pictures... lots of them!!

I expect an abridged version and hopefully, AMC will not abridge it too much.

Hello, Guys good discussion here,

Yes Glandore

that is my understanding. 2018 included moving inferred to indicated resources which inferred resources not good enough for the PFS. An extra 25m has been discovered which needs to be indicated level of confidence to appease the PSF or TEO

https://amurminerals.com/content/wp-content/uploads/20180511-RNS-Oct-Drilling.mp3

I think they mentioned the 'Project Economics' report ion the FAQ which for me is the important one (this information should be in the PSF/TEO report) this will highlight the true value to the project

S44DYK, very true

CBS no problems, its this lockdown, giving me too much time to think about it!! I need to stop!
Yep agree with the crashes, I think RY did his best to steer the ship through this time. The timelines AMC set seems to have worked in our favour, in that once this gets to the point of BFS, near production, EV revolution would have started!! And better prices. Was this planned or just share luck?

Yep I think you are right in that they planned to further drill for 2 to 3 years hoping for the best
Yep to AH, a slick operator!! to slick for me haha, I think RY is more trustworthy!!! Some may disagree!!

Sasa43, yep that is correct, but I am guessing that they would have to go through the TEO process again to establish what they what to mine?

I will stop now!

"DEATH SPIRAL FINANCE " still cracks me up!!

Continued if you are still reading haha ..................

, Nickel wasn’t worth much back then, institutions weren’t interested , (AH alluded to the fact that being in Russia didn’t help), banks closed their doors. The option was to keep going or close up shop. Yes, massive dilution has occurred but for me getting to the end goal more important. Alternatives! then ‘DEATH SPIRAL FINANCE’ spooky voice, they did have Landstead, but no one liked that deal did they. Open offer to shareholders? Maybe ??!!

The solution they have now seems better!!

Some perspective on this:
EUA 2,759m shares in issue
SRES 3,685m
AMC 1,380m
HZM 1,449m
GGP 3,873m

I have questioned the ability of the BOD to get this project to production: I don’t expect RY to take this forward alone, a good manager is someone who surrounds themselves with people who have better skills for the task. Recent additions, TB, AH. I do blame them for the mix up of the report’s Australian vs Russian units fiasco.

So I must be the only one; since 2015 they have been working towards the TEO if AMC gets to present the TEO I think they have a done a good job. I do not expect the share price to move massively but with all the other information and news next year we may see a little improvement. End of 2021 will be where the fun starts. (the time will go quick!! )

ALL LTH stick with it and you will be rewarded, (unless your average is 44pps then doh you better start average down now)

Apologies for the rambling !!

Hello CBS sorry lots of waffle but here it is

You got me thinking about AMC and the approach they have taken over the years, reading some of the criticism of AMC also prompted me to revaluate my investment with AMC. Criticism that ranged from lying to shareholders, missed goals/deadlines, to thrust upon us new regulatory hurdles such as the TEO spring to mind.
To me they are about to complete phase two :
- Phase 1 was getting the license which was awarded in 2015

- Phase 2 started from 2015: To complete the PFS and TEO major milestones, BFS and mining plan 2022. Ultimately all the minor milestones completed over the 5 years are inputs that get feed into the PFS, TEO, BFS .

I will squash the myth about the TEO thrust upon us; the TEO was mentioned in many RNS including the 22nd May 2015 RNS Kun-Manie Production Licence Awarded. The deadline was also agreed upon with AMC council.

Now this deadline is important because RY and the team must have to balance several things. We know that the TEO requires AMC to declare everything they wish to mine; therefore, the question is how long should they spend digging holes and firming up the numbers? Obviously, we want the maximum amount of resources to put in the TEO, but they cannot dig forever. Cost and shareholders would not be pleased if they continued to dig holes Thus, they set themselves a target of 5 years. I suspect they hoped that someone would open a dusty chequebook out and write a large number as a lot of holders did to.

Missed goals and deadlines: I included the ‘goals’ terminology because AMC rarely states actual dates other than Major Milestones such as the TEO. If you look back at the goals set vs goals missed, they aren’t doing that bad. For example, RNS 19- Nov-2018 Strategic Plan Overview, they achieved the Assessment reports, Road costs etc…… For me the ultimate goals were/is the PFS, TEO, mine plan, BFS, which all these drills result from assessments are part of its inputs. I will also note I have several shares and none give exact dates of milestones/deliverables.

If the TEO had to be extended then I would be very disappointed, (I must be crazy), but I rather they get it right, the only reason to extend is to include the 2018 drill results and project costing. I suspect that the 2018 results were much better than expected and they have been on the back foot to get this data into the PFS (which they have said is a dynamic report) but more importantly the TEO so that they have the right to mine this extra bonus. This is a good reason for me to extend. (I don’t think it will be extended)

During these five years, they had to find funding! ‘DEATH SPIRAL FINANCE’ spooky voice (forgotten who that was, still cracks me up) Dilution. Firstly, they are a public company on AIM with no revenue and assets of a bucket and spade, dilution was always going to occur. They had to survive until they were in a better position, they needed the lights on, Nickel wasn’t w

Hello CBS

I would add

The Interim Results 2020 (RNS 30th Sept)

"Chairman's Statement

The main focus of the Company has been and continues to be the Kun-Manie nickel copper sulphide project ("Kun-Manie" or "the Project") in the far east of Russia. Despite the disruptive outbreak of Covid-19, work on the Permanent Conditions TEO ("TEO") has continued throughout the year to date. The TEO is an independently compiled Russian feasibility study which enables the Company to proceed to the next stage of development at Kun-Manie. Work on the TEO commenced in 2019, and as a summary of the areas completed so far:

· Completion of an independent Hydrological assessment which established that a more than sufficient water supply is available to support the project

· Completion of the Rock Mechanics study which confirmed that open pit and/or underground operations can be successfully implemented

· Completion of the Base Line Environmental Assessment which defines the base line preproduction environmental setting and conditions

· Completion of metallurgical test work confirming that individual copper and nickel sulphide concentrates can be generated using standard industry sulphide floatation methods

During this time there has also been considerable amount of work undertaken on metallurgical recoveries, process flow sheets and operating costs, as well as reserves and cut-off grade estimation. These areas are all interconnected, and in June 2020 the Company was able to announce that it had received non-binding indicative offtake terms for both the nickel and copper concentrates, thereby providing indicative revenue terms. This information has been fed back into the metallurgical and reserve work programmes which are the last major input elements of the TEO and are very close to completion.
"

Also to add the drill results 2018
Q.When can the market expect to be updated on the long-promised project economics which include the 2018 drilling data.
A. As noted in the RNS dated 11 June 2020, with the completion of the metallurgical results for the nickel and copper concentrates, as well as the receipt of non-binding indicative offtake terms which covers both concentrates (as well as the by-product metals of platinum, palladium, gold, silver etc), the Company can now use this information for the calculation of reserves, cut-off grades, mine scheduling and the project economics. The ability to generate and market two concentrates can have a material impact on the reserves, cut-off grades etc. This work is currently underway. (12 June)
https://www.investegate.co.uk/amur-minerals-corp--amc-/rns/posting-of-q-a-ahead-of-egm/202006121540108643P/