The only real ‘facts’ as people talk about so often are the actual prices of Palladium and platinum.
With regard to EUA, it is a fact that the RNS state a certain level of resource. It seems to be opinion whether to believe it or not!
It is also opinion that 15Moz of Pd will fetch at least $100/Oz for a company sale – but it is opinion based on looking at the facts of every other sale of a PGM company in the last 4 years. This gives $1.5bn.
It is optimistic opinion that it could go for max $300/Oz given the price of Pd. This gives $4.5bn.
It is more opinion that several buyers would want this resource, based on the low AISC $325/Oz.
It is a fact that South African miners are struggling with reduced output due to coronavirus and ongoing power cuts.
It is opinion whether Pd demand and pricing will be higher or lower in future, but fact that there is a structural deficit currently.
It was further opinion that EUA won’t get a nomad and will have to delist. It is fact that they appointed a new Nomad – SP Angel. It is fact that they represent more mining firms than any other nomad, leading to the opinion that this was a substantial upgrade for Eurasia Mining.
It is more opinion whether people will sell their shares should we relist. It is a fact I will be looking for a lot more, another million or so. It is also fact several funds want to buy more than me, but you have to treat this as my opinion!
And so we go on. When there are facts you can rely on, they can inform your opinions or you can disregard everything factual. Your choice.
Going to be a good week would be my strong opinion
Unlike some special people who claim to know the ins and outs to within a few minutes, I prefer to consider what is likely in the coming weeks and months. Our Board of Directors are professionals, the notion of a leak is not worth considering.
Nomad RNS – Whilst it would have been better to stick to original timings, this didn’t happen. Not the end of the world. Now we are in a period without a Nomad, it makes some sense to wait until w/c 25th May to announce the Nomad appointment, gives the company longer to add extra information about flank approvals or opening bids.
When trading resumes – some people will want to sell, many investors and funds will wish to buy, share price will react accordingly. Rose 100% in the couple of weeks before suspension so no reason to doubt this will stop. Could see 15-20p by end of June if buying pressure continues.
Sale of Monchetundra – main asset to be sold, expect to see some bids this summer that recognise what 15Moz of Palladium are worth over the next 20 years (over $25bn after AISC of $325/oz taken into account). Norilsk Nickel in pole position with proximity (as recent RNS kindly reiterated). Max price once flanks approved $2-2.5bn
Sale of West Kytlim – keep producing until it is sold to maximise revenue. No need to sell on the cheap, expect minor producers to be interested. Makes sense to sell at similar time to Monchetundra if suitable bid received. If recent plans to increase production are feasible, expect Max price $500m
So as many others have said before, Eurasia could be worth up to $3bn when sold in full. So much room to grow from current 7.2p, look beyond the Nomad ‘issue’, once it is sorted it will be full steam ahead…