Voxmarkets Interview Transcript – SP Angel John Meyer

Interview released 13th May 2021 after big RNS 12th May. my notes on the interview, apologies if any errors but this is an important summary from SP Angel who are well placed to give an informative professional opinion. Please listen yourself if you have time, well worth it.


Justin Waite : JW – Voxmarket Host

John Meyer : JM – SP Angel (Eurasia Nomad)

From 20mins in

JW : Eurasia Mining – explain the backstory for people who are not familiar, as it is quite a popular stock

JM : It’s an unusually interesting situation with Eurasia, they’ve been going through a formal sale process, which is a technical term in accordance with the Takeover Panel rules.

They are also expanding their operations at West Kytlim, which is the alluvial mining operations of platinum, palladium, rhodium, or shall we say the platinum group metal elements. Very palladium rich in fact, in these properties. They are going to have 3 sites up and running this year, which is good operationally.

When it comes to the FSP, they tell us they have a number of potential bidders. They’ve been doing due diligence with a number of those. They’ve had an offer for the company, but the best offer they seem to have had is an offer for a number of the assets.

So we’ve had confidence in these assets, but one of the issues has been that those assets are defined under Russian codes and we prefer to work when we are valuing things after a certain amount of extra work has been done, when those assets have JORC or NI 43-101 standard resources on them. But it doesn’t mean they’re not good assets so they are clearly considering whether they accept this offer or not. Clearly been a lot going on behind the scenes in the background.

Very interesting statement from the company today, worth reading that quite carefully. Certainly gives us more confidence.

JW : So you don’t know what the offer is as yet ? They won’t reveal that ?

JM : That’s not revealed and I suspect there’s a bit more work is needed before it is crystallised. But they talk about a proposal from a credible party that would allow us to pay a significant dividend to all shareholders. That would be a good day for the investors.

JW : So what’s happened there, it hasn’t gone up a lot today, it went up at the start and come back down. Are people not so confident in this offer, what’s going on here ?

JM : It’s difficult to know what’s going on behind the market. Sometimes there is a log jam in the orders. If people aren’t willing to sell then the market might not move very much, equally the buyers may just hold off a bit. It’s impossible to know right now.

JW : So basically it’s a wait and see, but it looks ok at the moment, is that what you are saying ?

JM : The statement today adds a degree of confidence, from the way I read it.

JW : Ok, cool. Marvellous, whats the size of it, its one of the best performing stocks of the last 2 years. It’s been Top10 best performing stocks and now its like £630m. It’s a chunky old market cap now isn’t it?

JM : Just going to check… market cap is £752m on my screen

[closed at £772.4m 13/5/21]

Much appreciated for Justin and John to do the interview, very helpful to hear their views.

My own take on this, perhaps the company are looking to issue their resources to JORC standards if that helps progress the sale and could explain a delay in confirming the deal as a huge amount of work needed to do this when you’ve got millions of ounces of PGM to verify. The Nomad sounds upbeat about things, that is important as they will be best placed to understand the situation. Very professional, not giving anything anyway but hints at the bright future we are all looking forward to as Eurasia investors.

#EUA – Phil Taylor guest post

Phil holds 28.9m shares at time of writing, one of the largest individual holders in the company and invested since 2012. So when he writes, sensible people listen. Below is as published on Telegram this morning, 6th May 2021 :

Long Post so apologies for that!
The FSP is taking a while and leads to nervousness amongst investors. I took a read back on the recent news from EUA to try and get a handle on our direction and possible outcomes from the FSP. It reinforced my belief that this is a once in a lifetime opportunity to be involved in a historically huge deal that may not be very far from coming to fruition.
I always look for the clues from the company and these things start to add up. The story is beginning to reveal itself. Eurasia is in the process of moving from small prospector with a reasonably large find, to owner and developer of a globally significant mind-boggling district of rare metals that’s importance is vital for the development of tomorrow’s technologies and therefore will only increase in value. We now control huge deposits, vastly bigger than was announced not so long ago. The company is now a major force in the area rather than the small prospector we used to be. The race is on to control such assets by not only companies but countries. I believe that when EUA has put all the pieces in place the resulting sale will dwarf the recent deals by which EUA has been benchmarked.

Snippets from recent news and announcements.

From the Notice of EGM
Non-binding offers have been received and are being progressed.
The Board believes the scaling of the Company and its projects should continue while the Formal Sale Process is ongoing.

From RNS’s 9 April ’21
Tamerlan Abdikeev has already added significant value by bringing interested parties from Japan, that are keen to secure PGM deposits. Tamerlan founded INVERO Advisors, an investment, strategy consultancy and M&A boutique focusing on private equity, project finance, global strategy, business development and cross-border M&A.

Japan, a top 4 region in terms of PGM demand in 2020 according to Johnson Matthey, has an ambition to get the leadership position as a hydrogen focused economy

Reputable members of Japan’s business community related to PGM are in discussion to join Tamerlan at Eurasia Japan.

Tamerlan has introduced several Asian companies interested in working with Eurasia, including a Japanese US$21b net revenue company, that is already present in a PGM mining asset.

…developing a new global district for PGM and battery metals mining on Kola.

Monchetundra hosts 1.9Moz PGM reserves and resources within the approved mining permit and a further 13Moz in Eurasia’s adjacent license. In addition, further predominantly open pit deposits exist in the Monchegorsk region and host 104.6Moz of Platinum equivalent Russian Code reserves and resources that are now part of the Rosgeo JV.

The Directors are confident that the ability to allot securities and demonstrate a capacity to develop the Kola PGM and battery metals district independently of other strategic options available to the Company benefits the Company and its Shareholders by improving Eurasia’s negotiating position.

RNS 26 Mar 21
The agreement with Rosgeo, which by expanding Eurasia’s open pit assets both in palladium, platinum and in battery metals by a total of 104.6 Moz Platinum equivalent resources, unlocks a number of additional opportunities for the Company and its shareholders. we look forward to working with Rosgeo, a global company with renowned proficient technical capabilities and the best partner we could have in Russia, as we are making progress on the strategic options available to the Company.

#EUA – Rising Palladium pricing

Thought it might be handy to add some extra rows to the current Net Asset Values on Eurasia Mining assets, given the rising trend for Palladium and Platinum.

Also done a first attempt at how the Rosgeo project might be assigned a NAV.

This excludes any inferred value on the joint venture with Rosgeo, and assumes 75% ownership, but should any licences be secured or further details released, would be very happy to update to include more detailed calculations again. It is clear they have more ounces than can be mined in the next 20 years, so would seek guidance from the Company on how best to value this beast of a project.

Monchetundra and West Kytlim

Rosgeo Project

Initial thoughts on Rosgeo are that I would prefer to be working with a Palladium equivalent figure instead of the 104.6Moz. If it works out at 50-60Moz Pd it would be easier to compile alongside Monchetundra, but maybe there is a Hydrogen Fuel Cell type reason they have shown it as platinum equivalent.