Member Info for Shedulike

"Visita de WH Ireland Limited al Proyecto Toral el pasado mes de febrero de 2022", so we hosted WHI in February and they haven't yet produced any proper research - just that note in March which was basically the ore sorting RNS regurgitated.

Posted on www.proyectotoral.com last Friday:
"Another milestone of the last semester occurs at the end of October 2021, when the company appoints its new broker WH Ireland Limited with two clear objectives: to reduce the risk ratio of the project while, as the exploration company that we are, expand the focus of our future development. Specifically, the team has evaluated 10 projects, of which the company's management has identified 2 of them with great potential".

Yep Mm's US$24.8/oz spot (US$16.5/oz trailing) used in the PEA. I'm a bit more cautious about Zinc, I think demand will keep it at stable levels well above the economic report metrics but some of the reasons for the current spike could mean it's a bit frothy short term. Smelters cutting back Zinc output due to the energy crisis is not a situation we would want to be driving the price but it was improving steadily before this happened so it should find some stability long term.

Yes we don't know Bricks that's the point, if he was eased out the RNS is bound to let him save face, it's not going to say "Major shareholders got together and made it plain that Mr Reads position was untenable". I'm not saying I'm certain, it's possible that he simply decided he wanted out, just as it could have been for reasons that he might want to keep private. I just think unless we know definitively it's a better look to reserve judgement, I certainly don't see the logic in being angry about his performance over the years and now angry that he has gone. Anyway I'm more concerned as to why resource drilling which was planned to commence in early March seems to have slipped by over a month. With the energy crisis I hope that the geotechnical hasn't gone over budget rendering the resource drilling unaffordable?

"It will be hard to move on ", yes but do try to be strong :) Highside you spent years bemoaning LR's performance and now you are determined to be aghast at his leaving, why doesn't that surprise me? Naturally you are catastrophising the circumstances but none of us know what happened, it could have been made clear he wasn't part of future plans, it could have been for personal reasons, he could have walked. It could even have been a combination of those circumstances, life's like that sometimes.

I would say he simply resigned as it says in the RNS, remember in November he put his head above the parapet as per the constitution to be the one Director selected for re-election and there were more votes against Bennelong getting their options. Why he subsequently resigned I admit is intriguing but for all the SP disappointment I never doubted LR's energy and commitment to EUZ and I think it might be time to move on from this, for all we know he could have resigned for personal reasons.

I suppose when you look back, "The net proceeds from the Fundraising will primarily be utilised towards completion of certain key components of a Pre-Feasibility Study", they were always focussed on the 'key components'. That doesn't mean I'm not disappointed that a subsequent raise hasn't funded all the necessary work. I notice in the WA RNS they again use the 'key components' phrase. As I said the other day the work doesn't stop being Pre-Feasibility work because we aren't funded to complete it, it would have been better if we could have got there but the work streams are all still just as relevant and WA I guess are pulling it all together to present as Philosophical says a significantly de-risked package.

I know I'm a bit out of step with most of the board on this but I don't think the PR was too bad, certainly not the main problem. My only real complaint on that front would be LR's overly cautious presenting style which could come across as shifty at times and when MC did put in an appearance it all looked like a terrible inconvenience, okay so pretty bad :) Really I think we have to go back to the first SS mistakes and pretty much we only managed to raise money on the front foot once after that. Without checking back I think that was after the 023 set of drills and that only served to set a narrative of good field work followed by the body blow of an inevitable equity raise. The coordinates co*k up shouldn't have happened and the ASX regulations over inferred resources should have been known about particularly as we have a board member based in Australia and CB was CH at the time, with all his experience I can only imagine he wasn't giving EUZ a second thought. So that's the potted history as I see it the important thing now is what do we have and what is it worth either to a partner or to dispose of, I can't see a realistic path for EUZ to continue advancing Toral independently.

Teaye I do think we are inevitably approaching the denouement, surely the cycle of equity raises has to be broken, we're so low it probably isn't even a feasible way to progress. On the plus side the works are good and I strongly believe we all own part of a valuable asset - what Myles can deliver to reward us for staying in the fight I honestly can only guess at but I do think it's crunch time soon - will EUZ become yet another AIM disaster story or has the diligent field work over the years created a significantly better investment that the market currently recognises?

This is why I'm confused about the state of play in the field - from 23rd Feb......
· Commencement of geotechnical drilling across the proposed future plant site at Toral.
· Resource drilling scheduled to commence in early March 2022.
So have schedules slipped by a month in such a short space of time or aren't they bothering to update us on the progress?

Yes possible CHRI5P but on balance I'd have thought IG not allowing sell positions is a bit of a negative. Wouldn't anyone shorting this likely to have closed out by now? You'd pretty much have to be certain this is a dead duck to offset the risk on the upside if we can get a deal. As I said earlier there is almost seven bags in getting to TP's conservative target mcap which was set before much of the current good work was completed.

I think the European Metal Holdings coincidence was a smaller spike than the rush towards 30p from memory. Not that I thought there was anything in it at the time - EMH / EUZ hmmmm. The only certainty was that the big spike (Jul 2020) was greater on JSE so likely that it was dragging us up. There was a rumour that an investor in SA got pounds and pence mixed up and became over excited but that also seems far fetched to me. We still didn't touch the brokers conservative target so the valuation never became unrealistic, we just couldn't hold the gains with general sentiment so low for years, even I sold some and I'm supposed to be a ramper :)

I think that was Spreadex CHRI5P unless I'm mistaken. I'm confident that we should be a lot higher, even TP's risk adjusted base case valuation was mcap £17m and that was before the enhanced JORC and successful ore sorting campaign. I make that 22p in today's money.

Anybody got the first clue about what's going on? Has the geotechnical finished yet? Has the resource drilling started? At least with LR around we'd have got a Tweet of the rig, assuming Emerita and Atalaya haven't pinched them all.

I don't think they're looking for a return, they aren't making a capital investment in the same way that some local authorities here invest in commercial property for instance. In any case as long as we fulfill the conditions we don't have to repay the last 30% so it would be a strange investment that is guaranteed to lose 30%, still better than my EUZ shares :) I also don't think the CDTI get anything from any future monetising of the software, as I read it that is shared between us, SPI Drilling and the University of Salamanca. However that doesn't mean they will throw money at anything and I agree that the fact that we currently can't prove that we'll be around in 12 months time to maintain the employment and provide work for local service suppliers must be a concern.

Both Canadian companies I meant to include.

Well they demonstrated with the CDTI soft loan / grant that Spanish governmental agencies will do business with us so there is a clear precedence - I wouldn't rule it out any more than I'm banking on it. In fact there's a plaque on the EUZ office in Camponaraya saying as such "This project has been co-financed by the European Regional Development Fund (ERDF) with the aim of promoting technological development, innovation and quality research". I'm sure us shareholders would agree that "Co-financed" is stretching matters somewhat but they're obviously playing to a local audience, we know that the Mayors and regional Minister for Mining have visited us. We've created jobs including three or four graduate positions, that's a good look in a region where unemployment is a problem as is the flight of youth from the area. Personally I've always thought that it is extremely unlikely that more EU money would be on a company making scale but perhaps targeted like before, and yes likely low ball, quarry restoration would be the most likely but I do acknowledge that we can't do that until it's a mine so whether the assistance could be advanced I don't know. Cornwall received vast funds from Europe for an array of projects, I remember LR Tweeting a geothermal example from there. Just to reiterate I'm not overly confident of more public money but from the facts above I think it is wrong to rule it out, I have noted before that in both Ludin's and subsequently Goldquest Corp's announcements on the acquisition of Toral they cite potential EU loans so it's not something dreamt up by EUZ.

Another little landmark approaching later this month - the 'latest' presentation will soon be a year out of date ffs.

Quite Teaye potential EBITDA from Toral of $471 calculated before the last JORC upgrade and before the benefits of latest ore sorting, Mcap £3m ???

Yep and remember for anyone new Toral makes money with zinc at $2,668/t, now $4,470/t. Reckon we could have $2B of revenue in the block model soon.