Member Info for Sharegar

On the subject of dividends.
Companies that start to generate positive cashflows due to steadily increasing sales, assuming there is a complimentary economic setting (preferably, increasing product pricing) are nearly always better investing profits back into that successful growth model.
We have a great opportunity to continue to grow our sales and expand geographically and thus further improve profits (due to relatively fixed costs). Remember, the higher our sales figures are the higher our overall margins will be.
We have no debt and assuming we hit the targets Harvest would indeed be in a position to reward loyal shareholders with a dividend.
However, now is not the time because much bigger gains can be attained via the SP.

GLA Sharegar.

Just noticed this link from JLP chat board (thanks to Happydays43).
https://www.youtube.com/watch?v=GqQLoEC2Cos
The first half of the video could be relevant to EUA with maybe Sibanye being one of our potential suiters.
The lady talks about Sibanye diversification into new geographical areas and wanting to be involved more with Battery metals outside of SA.
GLA Sharegar.

One thought occurs to me regarding the "special dividend" that is almost certainly incoming.
Let us say, the special dividend is announced as £1 (equivalent) to keep things simple and conservative.
However, is it possible the special "dividend" could include shares of the Company/companies who are buying our tremendous world class (Bushfieldian) assets.
If that were the case, would I be correct in saying that if you were happy with shares of another world class company you would therefore be able to avoid the immediate dilemma of how you deal with potential taxes from either CGT or divi tax by simply holding on to the newly gained shares?
The cash part of the dividend would still be the same in terms of tax implications discussed earlier.
I tend to believe, if the dividend is comprised of cash plus shares it is likely to be mega!
Plus, you would still have EUA mark 2 in this scenario.
What do you guys think?
Maybe I am talking nonsense but It does no harm to cover all scenarios.

GLA Sharegar.

I recommend the filter button for constantly negative posters like Stockready1 (I will wait for a final response before I decide to use the green bin).
Why? It makes no sense for someone to spend as much time as she/he does in talking down a company whether invested or not. There has to be an ulterior motive.
To wish people good luck while at the same time trying to damage the companies and Harry's reputations is also very insincere.
I do not mind someone giving a negative assessment before clearing off into the sunset, or raising the odd concern here or there.
However, people like Stockready1 are all to common on such forums and always busy (like they are employed), so I won't hold my breath.
Currently, I believe the SP is being manipulated downwards because someone wants your cheap shares.
I'm holding, let us see who has the last laugh.

GLA (genuine holders) Sharegar.

Hi tony_currie,
In your post at 11:53 you say:

"Polyus Gold (PLZL) besides being a subsidiary of Norilsk Nickel also fit the MkCap of the company involved in the take over, this was stated by the BOD as a £22billion company, current MkCap of PLZL is $25,219m. I researched this at the time and no Japanese mining companies fitted this criteria. As of June 2021 Polyus have a revenue of $780m and cash in hand of $1.53 billion with debt of $2.36 billion."
I think you are referencing the RNS : Fri, 9th Apr 2021 18:29
The key info from that RNS is stated (see below).
"Tamerlan has introduced several Asian companies interested in working with Eurasia, including a Japanese US$21b net revenue company, that is already present in a PGM mining asset."
It could be a lot better than you think, because it is a US$21B net Revenue company meaning that the Mcap of this company is likelier to be much more than US$21B.

GLA Sharegar.

GAZALA69,

If you sell your shares one day after the ex-dividend date. you will be eligible the dividend even if the dividend is actually paid into your account a few days or weeks after the sale date, but the shares you sell should re-rate £1 lower in theory (compared to SP before ex-dividend date) because anyone buying shares from you will not receive the £1 dividend.
Your other question is about the share price after dividend. This is more complicated.
My thoughts: current SP is 28p.
I believe it should be north of £1 and not a measly 28p.
So lets say I am correct and they announce a dividend of £1.
In this case the remaining assets might also have to be re-rated upwards to correct the mistake the market has been making valuing the company.
It is therefore possible the SP could re-rate to £1 (dividend) plus 30p for remaining assets which sounds strange because this is above our current SP of 28p.
In my made up scenario this would mean that once details are known about the sale/dividend, the SP would theoretically be £1.30 and if you collected the dividend by selling after ex-dividend deadline you would receive your £1 dividend and then be able to sell your ex-dividend re-rated 30p shares.
Why do I think the remaining assets will be valued much higher as well?
If the market makers do not re-rate the remaining assets fairly, you will have a mad rush of cash rich people trying to buy ridiculously cheap stock once the dividend has been bagged.

Hope this helps and makes sense.

GLA DYOR Sharegar.

Yes Chapo,
You can sell on any normal trading day.
If they announce a dividend of 50p (your example). The SP would instantly re-rate to account for this amount plus whatever the market values any remaining assets.
So that could be 50p plus ??
If you sell, you should get in theory 50p plus ?? .
Note, there could be a slight decrease set by the MM's (maybe 5%). So sometimes it can be better to wait but bear in mind any tax implications (CGT v Dividend tax).
You still have to assess weather they are valuing the remaining assets fairly. If not, I would consider holding the shares and waiting for the dividend.

GLA Sharegar.

Treadingcarefuly,

I've Found the missing mad stork with his very good friend.
https://www.youtube.com/watch?v=C0xR5CzMbmM
Do not worry I will not require your kind offer of EUA shares as I have already indulged!

GLA Sharegar.

Some great detective work and excellent links recently provided from a few of Ironveld's regular posters.
I think your conclusions sound very convincing Davethedumplin and it is appreciated when people like yourself provide your sources.
I am certainly going to hold onto these shares.
Lack of RNS's can sometimes be a concern but I think there is good reason for the silence and look forward to the conclusion of the discussions.
GLA Sharegar.

Were do we want to see the next expansion for Jubilee?
1. Australia
2. Chile (especially for the Copper!)
3. Other large African nations.
That would be a nice list for Jubilee to start with in the short/medium term.

We could set up subsidiaries or even spin out brand new listed companies that has access to the mothership Jubilee in the form of intellectual property and access to funding
Could this be the way to reap the rewards for negligible risk?

GLA Sharegar.

Looking further afield is something that Leon has alluded to.
I watched the three Crux Investor interviews that Leon has taken part in.
He talks about how the expertise that Jubilee have is easily transferrable, and in these interviews the following jurisdictions are specifically mentioned by Leon: Namibia, Chile, Australia and if I remember correctly one or two more.
However the important thing to take away from those interviews is that the world is our oyster and Jubilee are the type of company governments like to deal with.
This is a story that is making money from cleaning up what other companies regard as waste and that is because these companies do not have the technical expertise to economically extract from tailings that Jubilee have grown over the years.
The sky is the limit for this company, and what makes it even more compelling is that is might only take 2 years to get one of their projects to cash flow, but if you are a mining company the same end point takes normally 10 years or more.
We have a situation now that can really have a snowball effect if we use our cash flow wisely, and I suspect we have the management that will do just that.
In summary, as time goes on we could go anywhere in the world and make money from tailings and at the same time clean up the environment, pleasing Governments who are all under pressure to make the world a greener place.
Instead of Jubilee exploring for a mine, the explorers final task is to bring the mine (tailings) to us!
The Crux Interviews:
https://www.youtube.com/watch?v=6ZMNrNAfBc0
https://www.youtube.com/watch?v=Zmw3wyPVKE4&t=4s
https://www.youtube.com/watch?v=HXi5xrWx3qA

GLA Sharegar.

The last Q&A was almost a year ago.
There have been no significant communications via media such as Proactive or Crux for a very long time as well.
The Company does not update the Presentation on a regular basis.
The RNS's have been in the main positive this year. We are meeting/exceeding the increased sales targets and there have been exciting developments with new higher margin products plus more positive studies that will lead to diversification of the customer/crop base and presumably even more sales.
Concerns that still need addressed are cash burn rates and what production figures the company needs to finally become a cash cow for many years ahead.
We know that there were one off costs like the Licence payment and plant expansion.
So come on Harvest, put some effort into marketing especially now that we are coming into Q3/Q4 were the sales really do ramp up (expected to represent to 80% of our sales per annum).
Tweeting the odd titbit is lazy and is not challenging. Show us what you are made of and get the excitement back into this stock.
My message to the company is:
Never forget the power of communication to potential shareholders.

GLA Sharegar.

All references from sequential RNS's as dated.
Fri, 18th Sep 2020 07:00
Dmitry Suschov leaves the Board in order to allow him to focus as the Company's Chief M&A Officer on the M&A work streams with Eurasia's professional advisers.
Christian Schaffalitzky, Eurasia's Executive Chairman commented: "This reorganization is designed to optimise our execution team.
Wed, 30th Sep 2020 16:56
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. With the final approval of the Flanks license surrounding Monchetundra
Thu, 14th Jan 2021 07:00
Since launching the Formal Sale Process on 1 July 2020, Eurasia and its advisers have engaged with a wide range of parties and have to date received non-binding offers in respect of both a possible acquisition of the Company as well as other transaction structures.
Fri, 26th Mar 2021 17:00
Binding Agreement Signed with Rosgeo
Wed, 12th May 2021 18:08
The Company has more recently focused its attention, including providing due diligence access, on a limited number of potential bidders
However, after conclusion of the joint venture with Rosgeo ("Rosgeo JV")
the Company has now received several proposals including a proposal from a credible party for the potential acquisition of substantially all of Company's assets. The Board has decided to focus on this potential asset sale.
The Board has therefore also decided that it is time for the Company to exit from the Formal Sale Process
Tue, 15th Jun 2021 07:00
Christian Schaffalitzky, Executive Chairman of Eurasia commented: "The Directors are committed to maximising the value for all shareholders, and thus committed to advance the Rosgeo JV concurrently with the progress we are making on our strategy as announced on 12 May".
Mon, 26th Jul 2021 17:37
Konstantin has further been appointed an interim CEO (interim in the framework of the RNS released on 12 May 2021) of Eurasia's 80% subsidiary Terskaya Mining Company / Terskaya Gornaya Kompaniya (that holds the Monchetundra license and the Monchetundra Flanks license).
Wed, 11th Aug 2021 12:17
Christian Schaffalitzky, Executive Chairman of Eurasia commented: "The Board and our Team are enthusiastic about developing the business concurrently with making progress on the strategic options that we have on the table".
Thu, 26th Aug 2021 07:00
Christian Schaffalitzky, Executive Chairman of Eurasia commented: "The Directors are delighted to see tangible progress on our JV with Rosgeo that is an integral part of our development strategy and a part of some of our strategic options that we are developing with our advisers: UBS and DLA Piper".

GLA Sharegar.

If the company is tweeting about preparing a site for construction of "the Smelter" I would have thought it was something they would also need to RNS?
You would think the Nomad would ask for such activity to be explained to shareholders in the proper fashion.
After all, we could do with some positive formal news?
Going by recent tweets from Ironveld and reading between the lines, things seem to be going well

GLA Sharegar.

On Mon, 21st Jun 2021 07:00 RNS it stated that Kefi expected to sign off the funding package by the end of July.
So, why is the package only stated as being assembled now in late August? Surely it had to be assembled much earlier than this to make the Jun RNS realistic.
Also, todays RNS states that the majority of funders have agreed in principle and it is expected to be signed off in October.
Why would one or more not have agreed in principle by now? Surely that needs further explanation or assurances that some other partner is going to step in.
Considering the amount of delays we have had in the past I think there should have been more clarity.

Despite my concerns I continue to hold, but I think the company could do more to be transparent.
If the funding is finalised the returns could be exceptional and the SA project as back up is probably the reason I am taking this risk.

GLA Sharegar.

A few snippets from RNS's:
Wed, 11th Aug 2021 12:17
"The Board and our Team are enthusiastic about developing the business concurrently with making progress on the strategic options that we have on the table".
Mon, 26th Jul 2021 17:37
"Konstantin has further been appointed an interim CEO (interim in the framework of the RNS released on 12 May 2021) of Eurasia's 80% subsidiary Terskaya Mining Company / Terskaya Gornaya Kompaniya (that holds the Monchetundra license and the Monchetundra Flanks license)".
Tue, 22nd Jun 2021 13:55
"Our RNS of 12 May 2021 stated the Company had received a proposal for the potential acquisition of substantially all the Company's assets".
Fri, 4th Jun 2021 16:43
"Our key objectives in 2021 include a continued and targeted development programme at both assets, while negotiations regarding strategic opportunities are progressed as per the Company's announcement of 12 May 2021".
Thu, 20th May 2021 07:00
"Eurasia and its advisers are focused on advancing our strategy as announced on 12 May 2021".
Wed, 12th May 2021 18:08
"The Company has more recently focused its attention, including providing due diligence access, on a limited number of potential bidders who had shown consistent interest in Eurasia and its high-quality asset base".
"the Company has now received several proposals including a proposal from a credible party for the potential acquisition of substantially all of Company's assets. The Board has decided to focus on this potential asset sale".
"The Directors are committed to maximising the value for all the shareholders, and we are delighted to have received a proposal from a credible party that could allow us to pay a significant dividend to all shareholders".
The message is consistent and it is just a matter of time.

GLA Sharegar.

I have a bowl of Cereal on the table.
Eurasia have an interesting piece of paper on their table.
Another massive hint of what is to come.
Nice update of West Kytlim as well. The company continue to do as they say.

GLA Sharegar.

Good post Hedgehog100,

There is tremendous value to be had if management get the required funding and move the company forward.
I believe we would already be at a much higher SP if the management communicated better than they have for the last couple of years. The recent tweets have been an improvement.
Maybe their hands are tied with the nature of the seemingly never ending negotiations, but I would have thought they could be a bit more inventive in getting the message across.
However, since the strategic review was initiated roughly about two years ago it has been one false dawn after another.
Certainly not been impressed with the updates from the company in this period. Missed timelines and funding cancellations to name a couple. Although, to be fair, we could end up with a much better deal by being patient.
I will continue to hold despite the disappointments. The resource alone is worth the risk. If the management can step up to the mark and deliver then the rewards can be great.
More upside potential vs downside risk is not ideal but I think the odds are still heavily in favour for the patient investor.
I would suggest that the Ironveld should update the company presentation and carry out some Media duties for starters.
Just because they have been having discussions for the last couple of years is not much of an excuse.

GLA Sharegar.

I think the updated ACF report merits an RNS from Eurasia.
Just a gentle reminder to the market regarding our current and unjustified low valuation.

GLA Sharegar.

mugwump083,

You have highlighted it very well, that EUA is an absolute steal at this SP and we should get multiples from here.

It is only a back of the fag packet calculation. So, although it could be argued that the pgm figures used could be lower than 2,500 USD it could also be argued that we have potentially much more resources to come as well.
We are only looking for a tiny fraction of the in-ground value (for an SP in the £'s) from a company that will be amongst the lowest cost open pit producer worldwide.
No wonder the interest is so high and we have the worlds best advisors/Lawyers involved.
World class.

GLA Sharegar.