Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Coming up for 4 years since I was introduced to this car crash by Optiva Securities-market cap was £470m
THE LAST UNCONSOLIDATED PALLADIUM PRODUCER
Placing to Raise $10m for Production Expansion
Eurasia Mining is an AIM listed company with a portfolio of large, open-pittable, world-class Palladium rich PGM assets located in an established mining jurisdiction.
Its West Kytlim Mine is in production since 2018 and is the largest open-pit soft rock PGM mine globally being the lowest cost producer with less than $300/oz 4-PGM AISC. The mine is currently ramping up providing a source of immediate cash flow to the Company. There is a strong and well-explored regional potential to expand the West Kytlim resource that the Company is now pursuing.
Its Monchetundra open pit deposit is a Palladium rich world-class project with the potential to underpin a new PGM producing district with over 15Moz of PGM resource. Monchetundra has a feasibility study and production permit for 2Moz of PGMs, out of which palladium in 64%. Its flanks area is shortly to be confirmed with 13Moz of additional resource and there is a 40Moz target resource for the entire district, which makes Monchetundra the largest unconsolidated palladium resource in the world.
The mining on all deposits is low cost open-pit mining not exposed to Covid -19 unlike underground mining. The Company has implemented strict measures to protect its employees and ensure stable development.
The company was founded in 1996, listed on AIM in 1999, and has a long and successful record of accomplishments consistently achieving multiple critical milestones at both assets. The leadership team has extensive technical experience in the global PGM industry.
Palladium is c.$2,000 per oz and this is supported by a fundamentally driven structural deficit that is not expected to revert in 5 years going forward. The global production is further declining, while the consumption has been boosted recently by China (the largest consumer) increasing consumption by 30% per one vehicle, as well as by India and EU. The palladium deficit has been increasing for the last 9 years filled in by the palladium stock that has now declined to the historically lowest level of c.500koz.
Following multiple inbound expressions of interest in relation to its assets, on 1st July 2020, it was announced that UBS had been appointed to run a formal sales process for the Company under the Takeover Code.
Besides any formal sales process news during this fundraise, we are expecting the following news flow:
There will be an announcement that the Tipil license at West Kytlim has received its final approvals. This will significantly increase the size of the producing asset, which will bring more cash flow to the Company and increase its resource.
There will be an announcement that the Monchetundra flanks license has received final approval and a formal license is now issued. This will increase the
Agreed-this company was going down the toilet many years ago under Tinkler and Co-covid and passage of time supplied the handgun
An excellent article
The sad fact is that Nomads are letting the market down-most have conflicts and populated with poor accountants who really don’t understand businesses.Some of the rubbish that has been brought to the market by the likes of Finncap is shocking, all fee driven of course
In short, good companies like this are being tainted by dross and the FCA should really be taking a look at how AIM functions
Another Finncap winner
Be careful all-Standard List shells like this are being subject to regulatory change later this year to make them genuine full listed companies.
It’s likely that companies like this will move to the less onerous Aim market but still much more onerous capital wise than Standard list
In summary, they need to do a deal or this could fall into a vaccum.Someone should ask the CEO to comment
I agree-any restructure is going to need hard cash.The issue is at what cost
Ryan Maughan?Look at the damage at Avid!
You need to go all the way back to Tinkler and Co to see where this car crash started-there should be an enquiry
Appalling report on Sudan on R4 this morning.Largely forgotten about in the maelstrom of other news but the biggest humanitarian crisis in history is unfolding
Well it looks like the herd has moved as Boris would say.
If and it’s a big if, he pulls off a deal , then it may be worth a punt but as things stand just now, it’s all hope with very little if any currency
A useful summary of….nothing !
Market cap c£6m, asset value negligible
You heard it first here!
I know from personal experience that if Hilco are lending, equity is irrelevant
The proverbial Venus Fly Trap
Another blow
It’s over-I cannot believe anyone thinks otherwise
The hydrogen RNS from several years ago was one of the most embarrassing RNSs in history-and so it has proved with time
I agree-I think the war is coming to a conclusion-the US is already contemplating it with eyes on Trump.Looks like a land swap deal with some vague promises about NATO
That said, I doubt it makes Russia any more investable-it will be a pariah for a long time
I agree with much of what you say Richard-the fact they handed the certs over means there’s an issue but the outcome is unknown.A 10pc shareholder does have a lot of protection in the Companies Act
It’s worth nothing-jump before you are left with nothing
The end of the road-appalling but I don’t blame the current team.This goes all the way back to previous management with a fixation for deals and debt
Agreed-very poor