An eventful start to the year with 3 significant RNS updates to consider. I’ll discuss each one below but my main thought is that we are now oversold and undervalued. The resources remain as they were. Non-binding bids are only one step away from an offer the Company could put to shareholders. The company has the DFS approval for West Kytlim which pushes things along. Plus with platinum on a rising trend we shouldn’t underestimate the contribution this mine could make to a future owners’ annual profits.
Having researched extensively with many others since 2019 and gathered the opinions of over 1400 members of our Telegram group, including some of the largest private holders of EUA there, the calmness shown this last week speaks volumes. We estimate to be holding well over 10% of all stock between us. Being able to discuss matters calmly and respectfully has been a great help to many. If you want to join we are fully open, just follow the link :
It wouldn’t surprise me if we see some significant buying in the next week, also wouldn’t surprise me if the Company release a significant RNS during February. A February timeline would fit with previous mentions I feel. With holidays out of the way, the progress whilst delayed should not be forgotten about. If I decide to increase my holdings in the coming days I’m sure you will spot the buy! I remain as confident as ever in my predictions and wish every investor well in these difficult times.
14 January 2021 – Eurasia Mining Plc – Update on Formal Sale Process
Eurasia Mining Plc (“Eurasia” or the “Company”), the palladium, platinum, rhodium, iridium and gold producing company, is pleased to provide an update on the Formal Sale Process initiated by the Company under the UK Takeover Code.
Since launching the Formal Sale Process on 1 July 2020, Eurasia and its advisers have engaged with a wide range of parties, and have to date received non-binding offers in respect of both a possible acquisition of the Company as well as other transaction structures.
Progress to date has been slower than expected reflecting the complexity of the process, involving several parties and structures, as well as external factors including COVID-19 related travel restrictions, and more recently delays resulting from western and Russian holiday periods. Notwithstanding these factors, discussions regarding proceeding to binding proposals are continuing. Until a transaction is finally concluded there can be no certainty that a transaction will occur or on what terms.
Further announcements will be made when appropriate.
Main points – multiple expressions of interest are now non-binding offers. Looking to proceed to binding proposals. Note the plural there, they are working towards multiple formal offers. For me a sign of a potential bidding war inside the FSP.
21 January 2021 – Eurasia Mining PLC – West Kytlim DFS Approved
…Christian Schaffalitzky, Executive Chairman commented: “The Directors are pleased with the DFS approval, aimed at production increases, and confirming West Kytlim’s position as the world’s largest operation of this type. After significant capital investment at West Kytlim into the production scale up and into the rehabilitation, the cash position of Eurasia is robust with over $7m, while the Company is pursuing its strategy as previously reported. Further announcements will be made in due course”.
Main points – Great to see DFS approval for WK , allows year round operations for the future owner. Good to see cash position still strong, no need to bolster. The key part – “Company is pursuing its strategy as previously reported.”
28 January 2021 – Eurasia Mining PLC – Share Price Movement & Update
Eurasia Mining plc has noted the adverse movement in the Company’s share price yesterday, following announcement of the trade yesterday for 27,400,000 shares by Alexei Churakov (the “Shares”). Eurasia had received no notification of this trade prior to it being reported by Alexei Churakov himself via RNS on 27 January 2021.
The Company and its professional advisers continue to work on the Formal Sale Process as recently reported via RNS of 14 January 2021. The operations of the Company are ongoing with the DFS for West Kytlim formally approved as announced on 21 January 2021.
The Company has made initial enquiries of Alexei Churakov regarding the sale of the Shares, and he has now notified the Company that:
· he sold the Shares to cover an urgent and critical cash call,
· all the Shares were acquired by Veles International (“Veles”), a subsidiary of an investment company Veles Capital,
· he has no intention to sell his remaining shares and/or options.
The Company is continuing with these enquiries.
The Company notes that the acquisition by Veles evidences interest in Eurasia among institutional shareholders. Veles is a well-established and one of the oldest professional institutional investors in Russia.
Main points – Company didn’t know anything about this in advance. Was reported as a single transaction away from the market, at the share price of the time. He hasn’t sold all the shares he could have done.
Deloan Investments is under the control of Dmitry Suschov so consider those shares locked away. Similarly the options cannot be exercised at this time. Anything else is only speculation at this stage and we should await a further update when the company concludes its enquiries.
Clearly this event rattled the markets and confidence. Wasn’t ideal timing to release in market hours and not give the company chance to respond, so the share price took a hit.
But everything else remains as it was on 21 January. The Company points this out in the RNS to reassure everyone about the strategy they are pursuing.