Something the ‘glass half empty investors’ tend to ignore is that you shouldn’t take each rns in isolation. They tell the story of the company over time.
For example, back in January
“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.”
So whatever this current non-binding offer for substantially all the assets will amount to, it is judged superior by the Board to the non-binding offer for the whole company as of Jan 2021.
Now something from the Annual Report becomes very relevant to me, the ‘glass half full investor’…
It credits Dmitry for landing the Rosgeo JV. No offence to the others, but they are geologists and miners and I assume it was Christian doing that JV to keep his exploring boots fresh rather than retiring.
But no, it was arranged by the same person who since September 2020 has been concentrating on M&A, landed the deal to add 75% of 104.6Moz of Pt equiv to the company assets over time.
Why would he do that when his focus is on the company sale – I suggest it is because he is a top top dealmaker. They are bolting on as much as possible for the buyer of Monchetundra. Who probably was interested but asked what else they could get. “You want to buy more?” says the dealmaker, “ Hold my pint, I’ll find you more…”
So here we are, a company on the up, that can raise money at market rates without discount, adding assets most mining exploration firms would have wet dreams over gaining access to.
So yes, it is taking longer than we want, but take the step back, see what is being assembled in front of us – the Beast from the East as Kola Peninsula takes on Bushveld over the rest of the decade.
Annual Review Summary
These two parts are important as they show company progression. Ability to raise serious funds at market rates, bringing on board more Institutional Investors whilst continuing to make progress with the asset sale. With $23m in the bank, they have the tools to develop assets.
The company acknowledge the hard work of employees, nice to see. They also acknowledge our patience – whilst developing the company we own a part of into something much bigger! I have a lot of patience, Barlowesque levels, when they are doing such a good job on this front. It was also nice to see them honouring the late Gary Fitzgerald, who did so much to further the company over 2 decades.
News about Monchetundra
This could be huge. To me, i like a bit of conjecture and I think this is instigated on behalf of the credible party interested in acquiring Monchetundra. I think we will be seeing JORC status on the reserves, whilst they work on proving up most of the 40Moz estimate. Yes 40Moz – underpinning the estimate figure is mentioned as well.
So much to be pleased about now, the progress in the last 12 months is amazing to witness.
Too much is being made of the current share price and talk of the FSP ending. I think it is clear they are working on better options than a full company sale at the time it was explored. Now I hold my hands up at this point, I wanted the full company sale. So apologies to anyone who feels I misled them, I merely express my opinions at the time of writing, same as I am doing today.
However, the palladium, the platinum, the rhodium, the consistently high PGM pricing, Rosgeo, Dmitry the dealmaker, Christian the industry figurehead, James the mining expert – these things are going nowhere.
This is what investing should be based on, analysing the fundamental prospects of a company, the strength of the management team and the desire for others to have what they are building.
All the best to everyone