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There is no way to be sure if todays RNS is negative or not and there is certainly the chance that if funding is arranged with an alternative source it could be for the better.
While the talks have been ongoing the price of Iron has came back strongly and consequently there could be better funding options now available that do not involve the same extent of dilution at 0.42p.
So, yes we are still in the dark and the market does not like todays uncertainty but it should not be forgotten that the company have been in discussions with multiple interested parties for close to a year now (probably longer). Since these discussions are confidential we might be pleasantly surprised with a bolt out of the blue.
It is hard to believe that the company will not arrange funding for what many believe is a world class JORC resource that has metals worth multi $Billions in ground.
1.6 Billion lbs Vanadium, 32 Million tons high purity Iron and 9 Million tons of Titanium.
Sure there is risk, but fortune favours the brave.
GLA Sharegar.
CGT changes?
All the more reason to put your hard earned cash into EUA.
Even the most sceptical PI would probably agree that the FSP will be done and dusted before Christmas, never mind the end of the current tax year, especially now that we know DLA piper have already been working with us for some time on the end game.
Any CGT changes would likely be for gains on the next tax year onwards, so if anything this might actually be a positive for quick return shares like EUA.
Anyway, I am not so sure that the Government will follow the advice given, as there probably will not be the political will for massive tax hikes in any areas. The easy way out for the Gov is already being employed. That is easy money from the magic tree and Zero interest rates.
Inflation is the way forward and that can only be good for commodities, once the consumer starts to see the value of their paper money lose purchasing power and the population are allowed to start living normal life again on things such as entertainment/Holidays and social events.
The supply of currently banned goodies will have either been depleted and at best be stagnant due to the self inflicted economic shocks experienced
As soon as cash starts chasing these luxuries again, people will finally realise that they have to get out of currencies/Bonds and other IOU's before it is too late.
EUA is where I want to be. DLA Piper and UBS is the perfect combo to make the sale happen.
It could happen at the drop of an RNS. It is not a share for trading IMO.
Go on Go on go on!
GLA Sharegar.
Crabby,
Yes 30 Sep 2020 or earlier for DLA Piper starting work.
The Board was rearranged on 18 Sep 2020 to focus on the sale process which was again mentioned on 30 Sep 2020 in the Interim report.
Quote from 18 Sep RNS:Christian Schaffalitzky, Eurasia's Executive Chairman commented: "This reorganization is designed to optimise our execution team.
What are they going to "execute"? I know what my guess would be.
It is possible DLA Piper were onboard on 18 Sep 2020.
Land ahoy!
GLA.
Placings almost always have a short term hit on the SP but even the very best companies do this when they are cash generative. (Just look at Wheaton Precious Metals and Franko Nevada for proof).
Looking ahead, this does not seem to be a bad move. If the management did not have our interests at heart there was plenty of opportunities to make such a move when SP was as low as 5p in March.
However, management have significant skin in the game and as far as I can tell there are no Warrants coming on top of the raise, so no future overhang.
The raise will accelerate future cash generation and this will more than pay for the short term discount (no pain no gain!).
We have very exciting plans at both Singida and West Kenya that can take Shanta to a different level.
This company will make good use of the cash and I am still very pleased with the direction Eric and the team are going.
GLA.
Jobbytouch
https://www.investorschronicle.co.uk/shares/2020/09/02/highland-gold-defers-payout-amid-takeover/
Highland Gold annual production estimated 200-300Koz. Eua plan is for 1M Oz PGM/p.a. and our costs will be approx $400/Oz with a higher average basket price. Pd/PT 3:1.
HG has debt, but not too bad since it has positive EBITA. EUA, no debt rapidly increasing production at WK and sale imminent with DLA Piper (involved in example below) and UBS. My conclusion is that EUA can easily be sold for $3B plus.
A couple of other recent takeover/M&A examples:
Eastmain 6.5c March 2020. Recent takeover 42c (137% premium or 650% YTD)
https://www.miningstockdaily.com/episodes/auryn-to-acquire-eastmain-at-a-137-premium
DLA Piper like big deals and they like EUA!
https://www.dlapiper.com/en/australia/news/2020/10/dla-piper-advising-saracen-mineral-holdings-on-$16-billion-merger-with-northern-star/
Rhodium is not as easy to find the exact price, but this website gives a good idea.
Way more expensive than Gold, and it is a significant contributor to our revenues according to the Interim report.
https://www.moneymetals.com/rhodium-price
GLA
Bunion,
Thought the RNS of 24 August 2020 said that Harry transferred his shares to a fund. So a sell followed by a repurchase.
Still positive, looks like he is protecting shares from CGT/taxes and adding to the fund.
Looking forward to the funding announcement, hopefully this month.
Company has great assets in Ethiopia and sure to grow much further in Saudi. It can only be a matter of time before the SP goes North with momentum.
GLA Sharegar.
I have had this re-occurring dream in which I am running down this never ending corridor.
My Psychologist could not explain.
I eventually mentioned Eurasia, he was interested so I showed him the details.
Eureka he exclaimed!
I said, no its Eurasia.
He continued, With a Mega sale like that, the never ending corridor must be your big new house.
GLA.
Eastmain 6.5c March 2020. Recent takeover 42c (137% premium or 650% YTD)
https://www.miningstockdaily.com/episodes/auryn-to-acquire-eastmain-at-a-137-premium
DLA Piper like big deals and they like EUA!
https://www.dlapiper.com/en/australia/news/2020/10/dla-piper-advising-saracen-mineral-holdings-on-$16-billion-merger-with-northern-star/
GLA and sweet dreams.
Another positive RNS.
Good to know that the resource is open and the grades at this stage are economically promising. We certainly do not need to dilute to fund further drilling as many experienced posters have already pointed out.
A very well run company, am happy to hold long term here.
Management have been making the correct decisions and the company keep making positive progress.
GLA Sharegar.
Mac4671 and Gilen01,
I think both of you have got it spot on with regards to the timing and recent involvement of DLA Piper.
I posted this before but think it is relevant.
Mondays RNS is confirming that the very optimistic RNS of the Interim report on 30 Sep 2020 is still valid.
Why did EUA have to RNS the recent significant price rise?
We are at the finishing line and are not going to make any silly mistakes that would undermine the confidential FSP. So a response in such circumstances is par for the course.
Remember this line from the Interim report: "As you are aware, our Company is now in an offer period and has appointed several professional advisers including UBS on investment banking side and recently DLA Piper on the legal side to work with the Company through the sale process. This strategic decision was the culmination of many years of hard work by our team in realising the value in our projects."
The key word is: "culmination"
Meaning: Culmination is the highest or climactic point of something, especially as attained after a long time.
"the deal marked the culmination of years of negotiation". (from a quick google search).
When I read that RNS first time around, I was under the impression that the deal is done and the legal formalities are now being carried out. Furthermore they talk in past tense in the reference to "realising the value of their projects."
Why else would they say in the same RNS with regards to the new role for DS. "The board and executive team have now been restructured to fully focus on the sale process."
Again the wording was deliberate and precise. "fully" implies that there is only one possible outcome and that is a sale.
How that sale is structured is yet to be found out, but they have also mentioned that they are working on multiple streams when they were discussing the same subject.
Also conspicuous by its absence is the omission of the standard disclaimer that EUA normally included. This stated that they retain the right to walk away without finalising a sale.
The wording of the Interim RNS was carefully crafted and I look forward to the mother of all RNS's. Its been a long wait, but I feel it in my bones, not long now.
All IMHO and as always DYOR.
Annie38,
That is my feeling as well.
Risk ratio has to be hugely in our favour, after all there have been multiple interested parties and the market conditions have greatly improved since then.
With our gigantic resource I'm sure our potential partner will do very well indeed.
Regards Sharegar.
Libero,
Just to help you understand.
Think of Tesla (That's the big American electric vehicle and clean energy company).
It is currently valued at over $400B but was still loss making as recently as 2019.
Now thank your Uncle Sharegar for explaining, and if you are tucked in, it is time for your night-time story about the adventures of Tillywhiz and his merry crew.
Excellent RNS today.
Great that we are funding Singida from our strong cash flows.
Targeted exploration will surely add to our mine life at the Singida project and plenty of life at New Luika (with plant expansion another wise move).
The Capex spend is being very well managed by Eric.
Kenya can be the Jewel in the crown, I do not think many people would deny this asset is world class. The timing of the acquisition was key, when Gold was approx $1300.
I wonder if the Kenya asset could be spun out sometime in the future, but only after we have further demonstrated how valuable this asset is? Just a thought.
However, I am guessing the preferred option when the time comes is by raising debt at minimal dilution to shareholders.
GLA Sharegar.