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I fully agree, financing is not an issue for long term investors.

The key is the ML followed by info on the Pulawy FS (and importantly the NPV). If all good then financing will come, the West is desperate for near tern Rear Earths. Yes there will be equity need and dilution but that is the case in any new mining development, with the big gains to come longer term.

The investment in Hypromag gives another near term exposure to Rear Earths and recycling is being commented on everywhere as the next huge thing.

Therefore for me, ML is the critical thing. Then after that I don't care what share price will be next 12-24 months, after that we are looking at a significant multiple on todays price.

I feel that there is very significant long term value in HZM and we have a company that may reach a market value anywhere between 5x-8x of what we see currently. The key is long term as this will not happen overnight

Line 1 AR is funded through to completion and for mining we now have a relatively near term timeline to production and cash flow.

Line 2 AR I believe the company has already acqiured second hand equipment at a fraction of the cost of new similar equipment, from a now now operational nickel mine in Brazil. There is therefore no lead time on this equipment suply and costs for line 2 should be well under control

As the share price rises driven by the above two factors, I get less concerned about heavy dilutions, but yes we will have capital raisings so this is part of the mix

Then we have VM, where we do not have anything reflected in the current market value. The resource is well known as Vale did the work already for a very large scale operation. What we await is the DFS for the level at which HZM are able to finance and operate. This battery grade nickel is in huge demand and we can see huge deals around VM

I am here for a long time and can see similarities in HZM and equinox copper (copper mining junior in Zambia) which was finally acquired for A$7 billion

Unfortunately with the war/sanctions EUA no longer has a rational market valuation. What we have is fear and fear that this gets nationalised, can never be funded or will never be able to sell its products into the market.

The (EU) company I work for has invested billions into Russia/Belarus production facilities and we have been reassured that nationalisation of business assets is not on the agenda. For sure nothing can be funded right now so EUA is a hole in the Ground.

I did not get out so now it makes no sense to get out. Things can change very quickly in this game, for better or worse. If things in some way normalise, then EUA will have a value again, possibly higher with Nickel and PGM supply having been reduced over the effected period.

I said it some time ago and I will say it again now, Russia will not invade Ukraine and there will be no apocalyptic NATO-Russia confrontation. Yes Russia is mad that NATO keeps on growing in East Europe and for Ukraine, an ex soviet state, to fall under NATO is extremely hard to swallow and the West knows this also. What was impossible to swallow was that an ex Russian area , Crimea, which was ceded to Ukraine on establishment of the Soviet Union would end up in NATO hands and Russia was allowed to take that back to cool things off.

NATO - Russia are as always engaged in a war of words, showcasing military might and so on but neither wants a war and the dire economic consequences that will hit all. There is no elephant and mouse here, both sides will lose badly.

There will be no war, just like there was now war at the time of the Cuban missile crisis

Keep focused on EUA resources and deal making. This is the only important matter, the rest is just noise and big market players making use of it.

I would expect the licences are tied in to environmental matters, state production royalties and so on. I am not an expert on mining licences but believe that the entity doing the mining / extraction would be the one holding the licences. Having said that, there is the possibility that on the PGM sale scenario for example, that EUA retains an x% annual royalty stream as part of the deal.

Gaza, I don't see why through any restructuring we would lose anything. We would own the top entity which becomes a holding company and then this holding company owns the 3 separate subsidiaries. In my analogy the PGM subsidiary would be sold off while Nickel and Hydrogen remain but we could be diluted to less than 100% shareholdings as partners come in and take some of the equity

All speculation, but this is the general playbook

It should be clear why EUA is being split down into 3 entities. This is to allow for different financing / JV arrangements for each resource

PGM - MT, NKT etc to be sold off - The liquidity event. Just a gut feeling, but I believe it is not NN. Chinese, such Jinchuan is what I am thinking of.
Nickel - Strategic partnership with nickel hungry EV producer or similar. I see this space for Japan connection
WK - into Hydrogen JV to have vertical integration across the Hydrogen production chain

With involvement of UBS/DLA there must be very significant things behind the scenes. These guys don't play around for pennies

Definitely the mining majors will be looking to purchase HZM as it is a rare high grade and tier 1 nickel pure play. BHP, Rio Tinto, Teck, Glencore but also Vale who knows these resources and the Brazilian legal environment better than all of them. They all have large market cap so can so an all share offer as well as cash if they want to.

More so I see sale of part of Vermelho which is a resource primed for the EV market and has cobalt as well. HZM then retain Araguaia and a large share in Vermelho, while this gets fast tracked and financed by the mining majors.

I believe what we are seeing now is the quite before the storm. This will be bigger than the Tesla deal

Most commentators saying tensions are going to further increase commodity prices

There has been a strong market sell off in the last days, fuelled by inflation and acceptance that higher interest rate environment is coming.

Toe sectors do very well in inflationary / high interest rates environments - financials and commodities. My expectation is that Investor money is going to recirculate out of tech darlings / crypto and into these two sectors. With EUA one does not only get commodities but future green focused commodities, PGM and Nickel which are likely to be in high demand most of this decade.

As for Russia/Ukraine risk, we should just forget this. There is not going to be any huge war. Russian commodities businesses are doing well - NN, Eurochem, Polyus the Oil companies etc. An EUA Moscow listing is going to be very beneficial longer term and will result in its assets being priced properly and not with the Wests "Russia discount".

Free broker notes - I don't give much attention to them.

Within the heavy industry circles I work it has been mentioned for some time now that with Covid also came a 10 year boom for commodities. Add to this the supply-demand imbalance on Nickel and years of low investment, I can see a huge rerate for Nickel mining industry

Producing commodities priced in hard currency with a soft currency, depreciating fx rate country is a huge plus

The business I work for has a large production site in Turkey and I guess we all know what has happened with the Turkish Lira exchange rate over the last 2 years. The production plant has now a huge cost advantage compared to hard currency cost competitors and is also enjoying a windfall on Euro pricing for its products

Yes the construction costs will have incresed although allot of that would have already been priced in at the time of the funding deal and share issue at 7p. Inflation can be an in demand commodities best friend and I believe this is the case for nickel

@LawrenceH, fully agree with your assessment. The potential here is mouthwatering. On Araguaia alone we could go 5x current sp. I expect that Araguaia phase 1 and phase 2 will end up being done simultaneously.

Then we come to Vermelho. I expect a deal will be done on this to get it kick started. the likes of Vale, Glencore and even BHP could well be very interested to buy a stake in the project (or pro rate fund) and / or pre-fund through offtake

@Munchbox54 - 100% from here depends on your time horizon. I can see 5x - 10x rerate, over the longer term. Many variables but where things fall in place that is where MKA can get to

BHP/Glencore merger would be huge

Considering its size, BHP is rather light on the "Green and EV metals" like Copper, Nickel and Cobalt. Glencore is strong in this area and in addition has a huge commodities trading business which can benefit big time from more focus on metals.

This is definitely an indication of how valuable EUA assets are for the energy transition and the market has not event started to reflect this in the sp. Let's keep in contect however, $160 billion are metals in the ground over a given region. Allot of that value gets lost on costs of mining, extracting, financing and so on. We dont have numbers yet but possibly we are somewhere between $10 - $15 billion in total NPV. How much of that value the market will price into EUA is anyones guess. If I take 30% then we get lower end market value $3 billion and higher end $4.5 billion. Allot if assumptions, if's and but's in this but a broad indication of what we have here

Only one thing we can do - accumulate, accumulate, accumulate every time price is marked down

This is a gem in a not so crowded space, with strategically important mineral resources. The undeveloped rutile they have is probably worth a multiple of current market cap. We don't even start to talk about RE

No concern at all. This is all politics and propaganda related to eastward expansion of Nato. I don't see that Russia will mount a large scale offensive against Ukraine as they got back what they wanted, which was Crimea. Yes we have troop movements but that is a tit for tat chess game between US / their NATA puppets and Russia

Yes the west can cut off Russia from Swift and Russia then cuts off gas supply to Europe. Stalemate and will not happen

I did not and still do not give any attention to what the Motley fool says about EUA

First, we live in a capitalist world were it is all about money. In such world I do not trust anything that is a "free" advice or recommendation.

Second the Motley Fool generally does not like mining companies owing to the cyclical nature. Fair enough but I like taking a bit more risk and owing to my upbringing in South Africa, I do like mining as an industry

Finally. Motely Fool have also got there fair share of disaster recommendations. What they say is for sure not gopel

In conclusion, yes I have been a subscriber to the various paid services (Investors Chronicle as well) but I really use theur articles, tips, recommendations as the starting point for my research.

Russia invade Ukraine! ha ha ha, will not happen.

Russia has taken back back what it wanted in Ukraine (Crimea) which was always Russian heartland and handed to Ukraine administration during soviet times. Putin does not want to inherit the economic and political mess in Ukraine.

The rest is all propaganda games both sides play.

https://www.baystreet.ca/commodities/5223/Goldman-Sachs-Calls-10-Year-Commodity-Supercycle

EUA has Nickel, Cobalt and Copper - all mentioned in this commodities super cycle news release