chique,
That might be relevant if you are looking in your rear view mirror.
The reality going forward (with one quick glance backwords to start!)
No Capital raises since June 2018.
Profitability assured and sales growth continues very strongly year after year.
Expect higher price for KP Fertil next year and don't forget the mine life is not going to be a concern for anyone in our own lifetimes.
We have a green product that does not only improve crop yields it also improves soil quality after use. We are on the doorstep of a massive market and this will also help reduce imports and therefore enhance our green credentials even further. The power for our facility has recently been changed to Solar and this also significantly reduces our energy costs.
Let us know if you find a better prospect because It has to be good.
GLA Sharegar.
James0309,
If the term EGM no longer exists, then why did Eurasia have an RNS titled "Notice of EGM" on April 9th 2021?
If you dig deep you will find many more examples of EGM terminology throughout the world of Stocks.
Regarding your other message for me.
You are no doubt correct if that is what the rules say.
I reached the same conclusion using logic only. So, in that case I am pleased you cross referenced that one for me and we are actually in agreement.
That is, we both expect the Dividend details to be revealed at the same time as the asset sale.
GLA Sharegar.
Company quote from recent Dividend Policy RNS:
"The purpose of the Policy is to provide a high degree of transparency to Eurasia shareholders and other interested parties as regards the calculation of the dividend amount and to explain the principles applied by the Board for the preparation of the recommendation to the Company general meeting on the dividend amount."
"The Board established that the target dividend amount shall be at least 80% of the Company's adjusted net income (calculated as described in the Policy)."
This part is interesting: "for the preparation of the recommendation to the Company general meeting on the dividend amount."
They do not call the meeting either an AGM or EGM.
I suggest it must be an EGM, because the RNS that will announce the date of this "prepared" meeting will surely have the details of the winning acquisition bid. Another reason it will not be an AGM is because that is due at the end of Jun 2022.
To me that makes sense, because it would not be a good idea to release the bid amount for substantially all of our assets without explaining how that money is going to be used.
This would probably be the best way to avoid a disorderly market and likely suspension because investors would be able to be much more accurate with their value estimations. We would know the dividend amount and how much money is in the pot to develop EUA 2.0
GLA Sharegar.
annie38,
(Happy 2022 to you and everyone on this board).
My concern is limited to the closing of the funding. Many have been very patient as investors over the last 2 years while the company has quite frankly been running on fumes.
I think the statements you quote are also related to the above and probably had to be included to keep on the right side of the regulators.
So, I guess I am saying that there is only one concern, not two because they both are linked to the exact same thing.
Once the funding comes through I am expecting IRON to have a very significant re-rate because it will then be clear that an independent entity has faith in us and our rich resources by putting their money were their mouths are.
I do wish I had a crystal ball.
GLA Sharegar.
A key word in the loan RNS is "maximum" when referring to the size of the directors loan.
Considering that Grosvenor are a bit slow in closing the transaction I think they must have been happy to comply with the terms of the loan.
After all, the money is effectively going to be paid by Grosvenor because the loan will be settled on receipt of their cash injection.
So hopefully this will act as an incentive for Grosvenor to finalise the paperwork ASAP.
I agree with another poster. Much better to have a Loan than be diluted. It is much better for the SP in the short term.
Assuming the funds come through in a timely manner what is there not to like about Ironveld in 2022?
GLA Sharegar.
Hi Goldenboy1111,
Thanks for your feedback regarding the AGM. However, just one point I was wondering about.
You reported the following: "Can you give us the guidance related to 2021 gold production ? "No because we were advised to not to from our regulators".
Other than that, Segun mentioned that they're rounding 1500 ounces per week (whaaaaat ?! 75k a year ?!) and way under what they were expecting to be (also in terms in Gold Recovery rate !!), but they remain really excited for 2022...."
My conclusion: If they are rounding 1500 Ounces per week then it does not necessarily mean it will be only 75KOz a year.
That is because I would expect the weekly figure to grow as they work their way through the start-up issues and probably feed higher grade ore as the year goes on.
I am not too worried about the guidance issue either. There was a similar situation for another of my investments (Harvest Minerals). They were ramping up production but were getting slated for not providing guidance (early 2020).
Fast forward 2 years later this has proved to be a wise decision. Note: Harvest were also advised.
There is no point in making bold predictions and then upsetting the market.
I think Segun is being very professional and I look forward to this time next year and beyond.
Thor Explorations has a very promising future if all goes to plan.
GLA Sharegar.
https://www.youtube.com/watch?v=5Wqg4SfdgjU
@ 18mins you will find that Leon mentioned "development Centres" in Australia and South Africa as well as various other Jurisdictions.
Coming from the horses mouth, I would conclude that Australia is very much alive.
Patience is key, we just need to be happy with the great expansions of production coming to SA and Zambia before other areas follow as the "Jubilee way" plan unfolds.
Excellent presentation today.
GLA Sharegar.
If-Only and Gotreal,
Thanks for the positive feedback. I think you are both probably correct regarding the "Stand alone business unit" now that I have checked it again.
On google:
What is a business unit of a company?
By definition, a business unit (also referred to as a division or major functional area) is a part of an organization that represents a specific line of business and is part of a firm's value chain of activities including operations, accounting, human resources, marketing, sales, and supply-chain functions.
I think I was mixing up my thoughts with the following (Unit was missing!):
A stand-alone business or organization is independent and does not receive financial support from another organization. [business] They plan to relaunch it as a stand-alone company.
Anyhow, it will be very interesting going forward. This company has a great business model, going Global and I hope to be able to hold it long term as I believe it has a terrific future.
GLA Sharegar.
Beresford2021, In an earlier post (@15:02 today) talks about this interesting interview with Dmitry. from 2018.
Dmitry talks about real world uses for Blockchain, however one thing Dmitry mentions really caught my attention.
https://a8.life/2018/06/26/dasfromtoro/
(@ 4 Min Dmitry talks exchange rates/costs).
When he was talking about the reason for mining costs being so low in Russia he pointed to the fact that USD/Russian Rouble exchange rate went from 1 USD:30 RUB to 1 USD: 60 RUB over a short period and therefore costs became much lower when mining costs were converted back to the worlds reserve currency USD.
Today the ratio is even more in our favour. For every USD the exchange rate is now 74 Russian Rouble.
https://www.xe.com/currencycharts/?from=USD&to=RUB&view=10Y
This is another important reason our Assets are in such high demand.
Note: I you go as far back as the 1990's you would get less than 10 Russian Roubles for a US Dollar.
Whoever wins the bidding war is going to have the lowest quartile costs in the world.
GLA Sharegar.
Yesterdays RNS is just what the Doctor ordered. I am surprised by the short term negativity on the SP considering our Metal basket spot prices were also showing good strength. Plus, we are going to keep on increasing profits for the foreseeable future.
Three highlights from yesterdays announcement.
1. "Jubilee's leading metal processing expertise can be deployed in multiple jurisdictions, and it has always been a major part of the Company's strategy to grow internationally."
This has been known for a long time and now they are serious about taking advantage of a vast and largely untapped market.
That is very positive.
2. "Increasingly, Jubilee is receiving approaches to work on new projects across continents."
It is no surprise that there are lots of interested parties wanting to work with Jubilee. They know how to turn a liability (Tailings) into a cash cow and in a short period of time.
Just consider how long it takes a traditional mining company to generate cash from starting out as an explorer.
Also, Governments love our business model. We clean up toxic waste during the money making process (very GREEN greenbacks). So there will be few objections to our presence in any Jurisdiction.
Very Positive.
3. "A standalone business unit will be created in the New Year comprising a number of key management team members to identify and procure the best opportunities in the global arena".
Investors are probably worried about dilution? There will be costs in the start-up and possibly more money raised for expansion as this plan is rolled out. However, "Standalone" strongly implies that Jubilee will continue to do what it does best. Generate strong cash flows and also will be safeguarded by continuing as a separate cash flowing company.
I am speculating that we will receive free shares of a spin-out Co that will ultimately expand our cash flowing business worldwide.
Yet another positive.
So, we will have two separate businesses with the right people in charge fully focused on what they are good at.
It sounds logical captain.
IMO Sharegar.
"Jubilant" meaning: Shorters to be JUBed shortly?
Christian is "Jubilant":
1. Retiring from Kibo Non-Exec Directorship
2. Jubilant about JORC's. (more to follow).
I'm told reasons to be jubilant usually come in 3's.
Is the 3rd about a Sale of the century?
Remember Christian is not "delighted" he is "delighted on steroids".
GLA Sharegar.
Talk today about NPV. What does it mean?
Below is an important example that Dmitry talked about in the interview from Oct 2019 (Highly recommended for new investors).
Kivitsa (early stage) in Finland bought by First quantum. The NPV was 8% $90m, but sold to First Quantum for $200m Before Dmitry joined EUA.
Later, Mar 2016 Bolodin bought Kivitsa from First Quantum for $712m.
https://www.youtube.com/watch?v=d_YMY6yiMDE&t=980s
He talks about valuation for about 5 minutes @ 16 Min 30 Seconds onwards.
Note: This interview was before UBS/DLA Piper/Japanese connections etc.
It is clear that The EUA board have been true to their word and delivered everything they promised plus much more from what was discussed in this interview.
Conclusion:
The NPV from the first of a series of expected EUA JORC updates was $1.2B or $1.7B (using spot prices).
using an 8.33% discount rate.
This is only a fraction of Eurasia's resources ( maybe less than 10% when you include the Rosgeo JV).
Todays JORC will be even better once more PGM's added, Metallurgy improvements announced, Open Pit portion included and the other high grade veins added.
Consider Eurasia's NPV (using an 8.33% discount rate) for the whole lot. What will it be?
>$10B NPV, I believe this could be very likely.
>$20B NPV ??
Back to the Kivitsa example.
It sold for more than double its stated NPV (8% discount rate). Dmitry in the interview stated that this was at a very early stage.
https://www.first-quantum.com/English/announcements/announcements-details/2016/First-Quantum-Minerals-Announces-the-Sale-of-Its-Kevitsa-Mine-for-US712-Million-to-Boliden/default.aspx
I will leave it to you guys. What would an NPV (8.33%) of >$10B value Eurasia at if it were sold in a bidding war?
GLA DYOR IMO Sharegar.
Part 2 of 2
Wed, 1st Sep 2021 07:00
“the CPR under the JORC Code is being finalised for our Rosgeo JV projects including Nyud and Moroshkovoe”.
“The Monchetundra Definitive Feasibility Study (DFS), contracted to CKE and EMR, is in the final stages of its development”.
“A detailed mining plan for the first 5 years of the mine is expected to be completed within 2 weeks”.
Thu, 30th Sep 2021 17:22
“Wardell Armstrong International engaged in April for several comprehensive tasks including JORC resource audits which are almost complete and are expected to be announced shortly”.
“In May we received a proposal for the potential acquisition of substantially all the Company's assets and the Board decided to focus on this potential asset sale. Since then, we have seen additional interest from other parties. We have attracted top talent and top tier partners and advisers to prioritise and execute our strategy”
Thu, 28th Oct 2021 07:00
“Further to the proposal (the "Proposal") from the credible party (the "Buyer") on the potential asset sale announced via RNS on 12 May 2021, the Buyer has informed Eurasia in writing that it has successfully completed its due diligence”.
“As announced via RNS on 30 September 2021, since the receipt of the Proposal in May for the potential acquisition of substantially all the Company's assets, additional interest from other parties is being considered by the Board”.
Christian Schaffalitzky, Executive Chairman of Eurasia commented: "The Directors are delighted that we are advancing several transactions concurrently.
Tue, 23rd Nov 2021 07:00
Christian Schaffalitzky, Executive Chairman of Eurasia commented: "While the Directors see the benefits of a Dual Listing, our priority is to execute on our strategy as announced".
Another conformation that the Sale is going ahead.
Mon, 6th Dec 2021 18:03
Binding Agreement Signed with ERDC
(whilst CURRENT majority owner of its Kola subsidiaries)
“The ERDC Agreement is a critically important milestone in developing our strategic options both in relation to the confirmation of our ownership titles and in relation to various tax and non-tax benefits adding further value to the Company".
This news is important to a “buyer”. It adds value and gives certainty of ownership.
Conclusion:
The RNS’s have consistently alluded to a sale of MT/Flanks and strongly suggest that a significant part of the Rosgeo JV will be included in the sale.
Proposals (Plural) have been received and DD has been successfully carried out.
EUA2 looks like it will have EPC contracts in place and significant funds to develop and that is after a significant dividend is paid to shareholders.
Imminent: Licence transfers/JORC and Sale RNS.
Don’t get caught SHORT.
A summary of the important RNS's relating to the sale process. Anything in quotes is taken directly from RNS.
Part 1 of 2
Fri, 18th Sep 2020 07:00
James Nieuwenhuys (appointment) is an EPC specialist and ideally suited for EUA2 (whatever remains from Rosgeo JV?).
Dmitry Suschov leaves board as the Company's Chief M&A Officer (EUA confident of a sale).
Wed, 30th Sep 2020 16:56
We already have world class UBS joined by DLA Piper busy working on deals/streams.
Resources are already being proven up for flanks MT (13 Dec 2021: JORC Imminent).
Thu, 14th Jan 2021 07:00
Several Non-Binding offers confirmed plus other work streams proposed.
Fri, 26th Mar 2021 17:00
Rosgeo JV signed. EUA has another 104.6M Oz Pt equivalent. 4 of the 9 mines (open pit) are very close to MT. Option for EUA to take 100% confirmed.
Fri, 9th Apr 2021 18:29
Tamerlan Abdikeev appointed. Japanese interest is revealed. “Tamerlan has introduced several Asian companies interested in working with Eurasia, including a Japanese US$21b net revenue company”.
Wed, 12th May 2021 18:08
Due diligence for the most serious companies has been underway probably after Jan 14th’s 2021 RNS.
Proposal received from credible party that would allow a significant dividend to be paid. (less companies in contention, However there are still multiple proposals).
It seems to me that the credible party want MT/Flanks and possibly the 4 Rosgeo JV mines near M/T. This would leave EUA2 with the remaining 5 mines from Rosgeo JV.
Thu, 20th May 2021 07:00
Financing of $20M at 26p is for “Certain” JV projects via EPC contracts as discussed before, EUA has EPC specialists on the board, also note previous cap raise was specifically for WK and therefore this further suggests MT/Flanks and the 4 mines from Rosgeo JV next to MT will not require capital because they will be sold.
Tue, 22nd Jun 2021 13:55
The company suggest that further fund raise would mean that the Rosgeo JV will have a higher resource than 104.6M OZ Pt equiv.
Mon, 26th Jul 2021 17:37
“Konstantin Firstov, former Managing Director of Rosgeo has further been appointed an interim CEO of Eurasia's 80% subsidiary Terskaya Mining Company (that holds the Monchetundra license and the Monchetundra Flanks license)”.
Being an Interim appointment confirms that Mt/Flanks will be sold.
continued in next post.....
The tax breaks go straight to the bottom line. Our already handsome profit margins have just got bigger.
Just what the "buyer" wanted to hear.
Another part of the Jigsaw is in place.
Still plenty of good news waiting to drop, and by my estimation it should be "ultra Shortly".
It might not be the RNS we have been waiting for but it is a very tasty appetiser.
Bring on the Jorc updates for the Flanks and Rosgeo JV, let the SP re-rate massively and then drop the RNS bomb for the big sale and see the SP explode (in a nice way).
GLA Sharegar.