Member Info for Sharegar

Many might not think it, but I would say we have made much progress in recent months. Just step back one month.

Jan 6th 2022 RNS: Clarity regarding the Massive dividend.
"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."
In other words the >80% dividend will be a reality. They have made it clear there are "preparations" specifically regarding this.
Jan 14th 2022 RNS:
"The Board members are looking forward to finalising the consolidation of formerly operating nickel mines on the Kola Peninsula. Splitting our nickel, PGM and hydrogen projects into separate subsidiary companies allows us to execute on our strategy as announced".
It is clear that EUA is being packaged into 2 entities. The RNS was all about consolidating the predominantly Nickel assets so that they can in IMO announce the sale which ties in with the dividend announcement. The statement made it clear that separating certain assets not only made logistical sense but was necessary for the sale.
Remember, they have previously informed us that they are progressing "several transactions" and are being advised by UBS/DLA Piper.
I think the biggest issue PI's would like more information on is the progress of the licences and their imminent transfer to the subsidiaries that have been set up specifically for these. Once the licences are issued the sale is much more likely to be announced
Maybe the Authorities are waiting on EUA giving the nod that they have finally completed all the JORC reports as promised.
There is absolutely no reason to doubt the JORC reports are not forthcoming and that is because of the calibre of firms that are undertaking these tasks.
Remember, these world class independent entities that EUA are dealing with are all well known to the Tier-one mining. community.
You don't want to hear those ominous words made famous from the show Bullseye.
"Here is what you could have won."
Another one for the impatient. "Rome was not built in a day."

GLA Sharegar.

Eurasia tweeted on the 27th Jan 2022.
"Happy Chinese NY of the Tiger! 2 big CATs arriving to WK. 2 much bigger e-draglines to follow with electricity connected. EUA is focused on ESG and executing our strategy for benefit of all shareholders as previously announced."
Another cryptic message?
My feeling is that we should expect another flurry of RNS's and going by this tweet I think today being the first of the Chinese New year is an excellent time for a comprehensive update.
"executing our strategy for benefit of all shareholders as previously announced." Is the part we really want to know the glorious details.
EUA have been consistent in their claims that they are "executing" and "shareholders will benefit."
Investors have been very patient and now is the time to reveal much more and at the same time silence those annoying derampers.
We know there is an NDA and the BOD respect the rules.
EUA have got the very best advisors and a great BOD but please, never tire of giving us clues so that we can at least read between the lines!

GLA Sharegar.

...and the offer is approximately £100m.
Which rules out Fredstash pessimistic £0 option

Correction: Resource update was 30 Jun 2021 (See RNS).

Page 13 of Amur presentation states NPV (10%) Post tax = $614.5m.Using Ni price of $8/Lb.
However Ni has increased to $10.5/Lb.
Bearing in mind break even was stated as Ni @ $6/Lb. So assuming costs have risen a little with inflation it could be argued that the profit margin has doubled for the project.
New post tax NPV (10%) should easily be over $1 Billion.
Generally speaking the basket of metals have all increased significantly. Also, note that the original PFS only counted Ni and Cu. So if you add Pd/Pt and Co this could add another significant value to an updated NPV.
Remember these metals took the NI equivalent up to 1% from 0.75% using 2019 data.
Furthermore, the NPV only included the Open pits. and does not include the 2020 Resource upgrade that took our resources up another >12% with 25% more in Measured and indicated.
Mineralisation is Known to be present downdip and there are other targets that remain untested.
I've not done the calculation exactly but we already have >1.7MT Ni equivalent which is approx $40B in-ground before taking into account losses in metallurgical extraction.
We are talking NI (Sulphide) which means our main product is sought after for the EV revolution and Power grid storage.
I have the feeling that the leak of a £100m potential offer is just Amur at the starting blocks for a bidding war.
The starting price is known. Which would be about 7p SP.
How high will the needle go?
I do not think >£300m (>21p) is out of the question when the dust settles.

GLA Sharegar (DYOR).

Evan3020 asks,
"Anyone know what the smallest deals they have done?"
I know that two DLA Piper executives once bought a McDonalds meal deal whilst out for lunch.
Hope that answers your question.
I think the EUA deal will be bigger though.

GLA Sharegar.

chique,
You ask me:
can I ask how you are arriving at your profit figure?

The answer was already included in the post you are referring to. So have another read.
I also include a caveat to put the figures the company provide into context.

Sales guidance from RNS 10 Jan 2022:

"2022 Sales guidance established at 150,000 tonnes, or 76% increase from 2021
Substantial sales orders for 2022 started to be placed towards the end of 2021."

My calculation if this rate of growth continues:
150Ktpa x 76% increase = 264Ktpa for end of 2023 figures.
264Ktpa x 76% increase = 465Ktpa for end of 2024.

That would be nice.

GLA Sharegar.

Forgot to add the m. Just to be clear I am not ramping and suggesting a b

The company has the following ambition (see website Homepage: Why Harvest Minerals?).
At 450Ktpa expect EBITDA of US$21.45m.
Sector average P/E is 26.75
Equals a valuation of US$360m.

Worth remembering.
Interesting snippet from RNS: 18 July 2018

"Covering 14,946 hectares and located in the heart of the Brazilian agriculture belt in Minas Gerais, Arapua is a shallow, low cost mine with an indicated and inferred resource of 13.07Mt at 3.1% K2O and 2.49% P2O5. This is based on drilling just 6.7% of the known mineralisation, leaving significant upside potential. This resource is equivalent over 29 years' production and the known mineralisation expected to support 100+ years' production at 450,000 tonnes per annum."

The company has the following ambition (see website Homepage: Why Harvest Minerals?).
At 450Ktpa expect EBITDA of US$21.45.
Sector average P/E is 26.75
Equals a valuation of US$360.

The figures given will need an update for accuracy at todays margins. However, this gives an indication of what is possible.
We are all experiencing higher prices these days but history tells us that this is normally to the enormous benefit of commodity companies.
If our sales continue at the current protectory we could actually be talking about 450Ktpa by year end 2024/25.
The talk about Directors remunerations will be of little significance.
This does not take into account the plans for the recent additions of the Lime and Phosphate projects in 2021.

GLA Sharegar.

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.

Yes KingofClangers,
I'm thinking what you are too.
There is a bidding war going on for good ship Eurasia.

Treat yourself to a Rum me old hearty.

GLA Sharegar.

Thanks to carpfisher for bringing the same point to the attention of James0309.
Sorry, James0309 I've decided to filter you.
You have been misrepresenting several posters and I suspect it has been on purpose.

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.

I was out for a nice walk around the Loch today.
This is what I saw.

Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck, Duck.

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.

Closed at 24.5p here and on II.