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Great news this morning and this adds to the already positive news on MT mining plan. We can expect allot more information flow and definitely we are talking tier 1 assets.
On another matter I want to stress the importance of the ERDC agreement. One of the major risks in Russia and East Europe in general are challenges against ownership rights and ERDC agreement provides considerably more certainty to any party interested in acquiring property or licences over properties. Follow the link below
https://www.asktraders.com/analysis/eurasia-mining-shares-volatile-on-strategic-considerations/
We can get a glimpse of where EUA is going on this - PGM for existing catalysts and then replacement demand from fuel cells and Green Hydrogen. Nickel for EV batteries. Looks like a perfect fit for NN as these are the two metals most important to them.
https://www.arabnews.com/node/1986816/business-economy
Know anyone who has PGM needed for the electrolysis?
Yes for sure, I have bought into this significant upside potential with an investment that is at least for me rather significant.
We cannot really say it is de-risked however;
1. This is Russia so in the eyes of investors from Europe/US etc there is huge risk. I play down the Russian risk factor and have worked on huge projects in the country. There are worse places in the EU to do business.
2. The MT mines are not yet financed nor constructed so again significant risk there .
3. Rosgeo JV is at its infancy and the list could go on but pointless
Clear that if these risks were not there we would be talking maybe a market cap of a few £ billion. There is the opportunity, but for sure there are risks
Sure, but none of this is going to drive the sp. We need deals on the table not resources in the ground and here is the risk. I am taking the risk that the deals will come.
Funny how pi are abusing each other here, depending on their views on the sp. I will say it very directly, we pi do not know jack **** about the actual situation , where the sp will go, if this will be a big multi-bagger from these levels or it all goes pear shaped.
I talk about my own situation, I am taking a rather significant risk that Green Hydrogen is going to kick off big time, key players are looking to secure PGM supplies now and that EUA will either be bought at a multiple of todays sp or there will be massive strategic agreements that will similarly drive value, be it over a longer time horizon. None of this may happen though.
There is also nothing wrong with selling out and cashing profits. How many times I have kicked myself for not doing this timely enough.
The only reality I know is that things will take their course and pi can do absolutely nothing to influence that. As a pi one can stay for the ride, however it may end, or jump off when they feel is the right time. There is no need to be rude or put down other investors views
For a reminder on what is happening between Russia and Japan, follow the link below. In my assessment Eurasia is part of this and it is much wider than just mining for PGM, but rather to be part of a vertically integrated supply chain to deliver Green Hydrogen to resource starved Japan.
The value in Eurasia can be unlocked through a sale or alternatively a strategic vertically integrated partnership. Patience is needed.
https://www.reuters.com/business/environment/japan-russia-cooperate-hydrogen-ammonia-fight-climate-change-2021-09-02/
You know a billionaire clairvoyant? I don't so suspect they cannot tell the future!
Many are asking that the company stop holding back on information but what they don't realise is that if they are in a sale process with a serious buyer, there will be very strict non disclosure arrangements agreed at the time of receiving indicative offer, that will simply not allow the BoD to give the market information.
We should just take a break here, to much when when when do we get the RNS
Things have been turned upside down since covid in terms of working deadlines. It took me 5 months just to open a bank account with one of the high street banks. With any sale we are dealing with lawyers, accountants, bankers that probably sit at home half the time and supposedly work efficiently from home office, yeah right!
The offer was announced in may and that buyer has now finished due diligence is not slow at all in the current environment and remember this is not a small deal.
Yes that killer RNS will be out "shortly" - Sorry could not resist!
Lovely discussion on Brexit. What nobody talks about is that the Uk now has no truck drivers, no waiter, no tradesmen as they all went back to Poland and Romania. I don’t see Brits taking the jobs vacated, does anyone disagree.
In order to what I think is most likely
1. Permitting matters to be put in order and final JORC / mine plans covering also flanks + Rosgeo
2. Negotiations over final price
3. Sale process has hit obstacles. Other buyers being considered
Exactly Rover62, I posted the same type of message yesterday
We are now moving away from a speculative junior mining explorer to a serious business institutionally backed business. Yes short term traders will hate this as this will eliminate the world and hugely profitable swings just on the basis of emotion.
This will have say £350-400 million market cap once all equity raising is done, but that is still the infancy stage of the story. A + V projects together can drive a market cap 10x that in a few years, depending on the EV demand for Nickel. Also the Brazilian Real has halved over the last 5 years and I expect this trend to continue. This is hugely supportive for HZM as a large part of the mining costs ate on local currency, while Nickel is priced in USD.
I am not at all disappointed that the sp has come down today. What disappoints me is that I dont have spare cash at the moment to further load up and tuck away for 2 years.
I am a good accountant - both answers are wrong. The correct answer is: What do you want it to be?
We should not be jealous that the management get 8% options. Really top talent today does not only live with a salary and if they have a vested interest in the market value of the company they will go over and above the call of duty to perform (here I mean personal sacrifice in terms of family time and so on). With what the management have pulled off on this financing deal, I want them right here and not looking for opportunities elsewhere.
Also showing that management is incentivised gives much more confidence to lenders. I will definitely not be voting against the options.
I note that some are disappointed with the equity raise and funding package announced this afternoon. My view is much more positive.
- Institutions have taken a large equity share and funding along side the syndicate of lenders / Finnish & Danish government guarantees. Construction of Araguaia through to completion is secured and this removes a huge risk
- Financing to progress feasibility study / permitting at Vermelho have been secured through the royalty sale
- Glencore has taken 100% 10 year offtake. This significantly de-risks the project.
Yes there is a massive dilution of existing shareholders with my rough calculations being that we remain with 40% of the equity in HZM. My thoughts is what is better, 100% of zero or 40% of $3 billion+ over the longer term. This deal now unlocks the potential of HZM. and is exactly along the lines of what I was expecting. Maybe next days or weeks will not be so good for the sp but as a long term investor in this EV / battery metal theme, that is of no consequence for me.
For me this dual listing RNS serves to support my thoughts that there will be a sale of producing / near term producing assets WK and MK. From this EUA will pay out the dividend.
EUA (2) will then focus on Rosgeo / other exploration targets and possibly go wider into EV battery metals such as Nickel. Moscow listing indication that they would be looking to make a large capital raise and give Russian investors to opportunity get in on the action right at the start.
Clever, I agree, difficult to find top tier high grade copper projects.
look at Kutcho copper listed on TSX. High grade project with significant expansion to potential mine life.
Only recently found this one but gives me a good gut feel.
There is huge potential in HZM as well as other developing Lithium / Rare Earth companies
The Green revolution/EV vehicles has driven up demand for relevant metals and this will only accelerate going forward. New mines take a long time to start up and we are coming off a weak decade for mining which means there were very few new major resources coming into production.
Nickel is exactly one of these metals and HZM have two exceptional deposits which together definitely sit in the top 10. Involvement of Danish and Finnish export credit providers plus a major western bank syndicate is a huge vote of confidence. I believe we are still at the infancy stage in terns of market cap and there is just huge upside, but always with the associated risks of mining.