Member Info for TheMadStork

EUA will pay full market price for their 75%, per the JV RNS. Unless you believe that the Russian state is going to set the price deliberately low in order to gift value to British PIs.

And regarding predictions:

I started shorting EUA almost exactly a year ago, when the price was 40p. I predicted that there would be no sale and that the company would raise cash. The bulls having been predicting a sale literally every day since. There's even threads for guesses!

12 months on, the share price has halved, there has been no sale, and EUA have done two placings.

I predict that in another 12 months, the share price will have at least halved again, there will still be no sale and EUA will have done at least 2 more placings.

Let's see!

Leaving aside all the insults and bluster, the fact remains:

EUA own none of the JV licenses. Even if there were 106moz of somehow undeveloped mega grade economically-recoverable pt equiv - something I find very hard to believe given that the licenses are right next to NN - EUA do not own any of it, therefore the entire worth of the JV to EUA is the $500k option. That's all they own. And they will obviously have to pay market value for whatever they *do* end up owning, meaning the current net value of the JV *following* any license transfer would still be... $500k.

"Take a no sale scenario but jorc confirming 106 or more million ounces of PD dominant PGM with X thousands or tens of thousands of oz rhodium and apply a harsh 1% in ground value and divide by number of shares in issue = what?"

Don't forget to multiply by zero to account for the fact that EUA own none of the magical 106m oz

^know

"Maybe try looking back at the one on the 12th May? We literally no nothing more than that"

Actually we literally no nothing more than when the 'sale' kicked off in 2019:

1)What is for sale?
2)Who is bidding?
3)How much are they paying?

No answers to any of those at any stage, 26 months on.

Yes. I will post if there are any changes to my position.

Er, wasn't the whole 'reason' they left the FSP because this 'credible party' had 'expressed interest' notice as a result of the [$500k] JV? How can the JV not be part of the sale?

Two scenarios:

1)They entered into the FSP in good faith and were really on the verge of selling the whole company for £1.2bn+ when suddenly they happened upon this $500k JV option which made them reject all of the completely anonymous bidders (for £1.2bn+) in favour of one particular anonymous bidder (for greater than £1.2bn+), exited the FSP, raised £20m for the JV while waiting on this £1.2bn+ bid without actually owning any of the JV assets which apparently sparked the interest of this buyer in the first place. The buyer has now completed their DD, despite the fact that EUA still not own any of the JV assets and before JORC audits are finished. Nevertheless, EUA are now waiting on this £1.2bn bid to arrive, having raised £25m cash 'for the JV' which they've not actually spent and apparently wasn't included in the buyer's(whose interest was sparked, lest we forget, by this $500k JV option) due diligence.

2)The takeover panel wouldn't let them do another placing so they exited the FSP in order to raise more cash.

Finarlies:

Please do not put any more into any risk asset, let alone AIM junk, than you can afford to lose.

Once again, I don't think anything technically illegal has gone on. I absolutely think EUA should be forced give guidance on who is bidding, what they are bidding for and how much they are paying. That they have been allowed to get away with not doing so (and that this is apparently legal) is a failure of regulation in my view.

Remind me how much proved up nickel resource EUA actually currently own?

Any suggestion that EUA are somehow a major nickel player is completely delusional.

All that bluster is fine, but EUA still only actually own a $500k option, which could obviously have been easily secured by any of the potential buyers (NN for example). They own nothing else. The JV is only worth the value of the option, and the upcoming CPR cannot add net value to EUA as they will have to pay Rosgeo market value for whatever is there. Not rocket science.

Again, this does not mean that the JV assets can't add value to EUA in the long term, once more work has been done. It simply means that the JV is net worth $500k only to any buyer at present and talk of it currently being worth mega-millions to EUA is completely illogical.

It is true that the Earnout payments will be spread over the development of the assets, which could be helpful if EUA wants to conserve its cash for burning on WK/director salaries/related party hydrogen spoofs.

But it's still EUA paying market value for their interest in the licenses, meaning that the JV cannot add any current net value to EUA, no matter what the CPR finds.

I am saying that all EUA own of the JV at the moment is the $500k option. They do not own any interest in the licenses. When they do buy in, Rosgeo will obviously charge them market value, meaning the net value of the JV to EUA will still be $500k. That may change in future, if EUA do work to add value, but right now there is no way the current value of the JV to EUA, and therefore to any buyer, can exceed that of the option.

The hilarious thing is, of course, that whatever the CPR eventually comes up with for Nyud and Moroshkovoe, EUA own none of it and will have to pay market value (prob not much as the vast majority will be Inferred and therefore almost worthless in ground) for whatever is there. The JORC report therefore cannot add net value for EUA. Of course, that won't stop the ramp, and I would imagine that they will be hoping to use it to get another placing away, probably with the excuse of funding this (unannounced so far) related-party hydrogen boondoggle.

How long will they be able to delay giving an update on the 'sale', though? That's the real question.

I am not calling this a straight up fraud. AFAIK nobody has done anything illegal. The BoD have merely taken advantage of the delusion of PIs, which has been fuelled by a massive social media ramping campaign. This has resulted in a huge bubble, which will burst when they finally admit that there will never be a sale at close to the current mcap. EUA is a particularly mad example, butsimilar things have happened on AIM before and will happen again.

Burying one's head in the sand and simply filtering out/abusing opposing views is a lot easier than actually engaging in critical thinking.

EUA have not added one single oz of proved up resource since 2017. All they have done is point to some huge entirely speculative P2 resource numbers, compiled from already available data. The proved up resources they do have are worth only a tiny fraction of the current mcap, based on peer valuations and transactions.

They have purchased a JV option from Rosgeo for $500k but have not actually paid for, and therefore do not own, any of the JV assets. They will have to pay market value for any stake in ownership, therefore the net value of the JV to EUA is the value of the option only, and will remain so until they have both paid for their share of the licenses *and added value beyond that*.

They have continued to make huge losses every year, with WK operating at a gross loss in 2020.

They have conducted a 'sale' process, both formal and informal, that has lasted 25 months with no bids, no bidders, zero pence paid out to shareholders and £35m raised in three separate placings. This is not how legitimate sales processes of listed companies ever go. It is beyond obvious that there is no sale, and it is only a matter of time before EUA are eventually forced to admit this.