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.