#EUA from Russia with love

Plenty of decent research on Telegram today, a summary with links provided below :

1. Russia Govt have created a load of financial incentives to get investment into Arctic Circle – Kola region included (need to pinpoint exact incentives)

Keynote speech from Russian Deputy PM Trutnev

  1. http://council.gov.ru/events/news/130312/
  2. https://news.rambler.ru/ecology/47334560-v-arktike-realizuyut-investproekty-bolee-chem-na-1-trln-rubley-soobschil-trutnev

Over 1.1 trillion rubles invested since 2020

A little dig at NN perhaps ?!

2. Rosgeo are showcasing Poaz as an example of how amazing they are whilst raising finance via bonds (document on Moscow Stock Exchange)

https://fs.moex.com/f/15249/rosgeologija.pdf

Good explanation of how JV work with Rosgeo. Note they only work on promising projects with a high level of research.

3. Looks like Eurasia are bolting the flanks and other areas into the original mining licence area which is a shortcut to a higher valuation as reduces uncertainty. Great summary from Duggy as per his tweets, more in the telegram group on this aspect.

https://twitter.com/richarddugdale3/status/1445804734028427265?s=21

Summary

Awaiting Nyud licence, flanks mining plan, Wardell JORC to knit all this together into one master plan, which a buyer could find very atttactive especially if it is revealed that taxes are lower than the 20% we expected. State support and lower taxes means a higher NPV calculation if the assets are as good as expected. All down to Wardell to validate the assumptions and then which potential buyer is going to get the keys to the treasure… find out shortly perhaps !

(Published on my phone away from laptop so apologies in advance if links are wrong )

#EUA – why the silence ?

Why I think it means multiple offers are being considered

So we know we have a credible party that the Board is progressing with (12.5.21)

This also means that every single other company that was interested knew they were no longer in pole position and had to withdraw or come back with a better proposal. I’ve said this before it isn’t much more than a simple statement of fact.

You don’t want to lose the credible party but equally you don’t want to lose better proposals if they did arrive.

The latest RNS about West Kytlim was a little hint towards this being the case – strategic options on the table.

So how do you handle it ? Two options as I see it.

1. Announce you have multiple interested parties again and update shareholders (what I wanted to see as proof of my theory but hasn’t happened)

2. Stay silent

If you announce it, does the credible party get the hump and lose interest feeling they are being played ?

If you stay silent shareholders bear the brunt but it keeps the process alive inside the loop. Perhaps you do what you can to appease but essentially it is focus on the deal. All forgiven when it concludes etc. I believe the line about options was the hint.

This sounds to me like where we find ourselves. If you trust the Board then it’s easier to believe in a decent outcome, they have delivered so far in abundance.

The amount of negativity and worrying springing up is two fold. Genuine worry I get it, investing is never a smooth path. The larger holders remain intact. If the former adviser hadn’t had his cash call we would be higher priced, Churakov did buy back most of his shares though. Obviously the Board haven’t sold any shares throughout this process

But for those attacking and spreading false rumours, I get it as well. Enjoy your moment, it won’t last forever. One RNS will spoil your fun permanently.

Sometimes silence is golden, well platinum…

#EUA – Sibanye Updates

Sibanye Stillwater have issued a few updates lately that are worth noting :

1. Increase in profits H1 2021 to $1.7bn (up 162%)

https://thevault.exchange/?get_group_doc=245/1628167650-sibanye-stillwate-trading-statement-operating-update-H12021-5aug2021.pdf

Generating profit generates options, with debt finance at record lows they now have the firepower to make an acquisition larger than Stillwater in 2017

2. Sibanye-Stillwater progresses battery metals strategy with the exclusive put option to acquire Eramet’s Sandouville nickel processing facilities

https://thevault.exchange/?get_group_doc=245/1627623615-Sibanye-Stillwater-progresses-battery-metals-strategy-exclusive-put-option-sandouville-nickel-30Jul2021.pdf

“The Sandouville facility is situated in the industrial heart of Europe at Le Havre, France’s second largest industrial port, with strategic access to extensive logistical infrastructure including shipping, rail and key motorways, supporting any future supply into the European end user markets. The current Sandouville facilities include a hydrometallurgical nickel refinery with a production capacity of 12,000 tonnes per annum of high-purity nickel metal, 4,000 tonnes per annum of high-purity nickel salts and solutions and around 600 tonnes per annum of cobalt chloride. For more information on the transaction, please refer to https://www.sibanyestillwater.com/news-investors/news/transactions/sandouville/.
Investment rationale
The transaction is the second step in Sibanye-Stillwater’s battery metals strategy, building on the investment in the Keliber lithium hydroxide project, in partnership with the State of Finland and the Finnish Minerals Group, announced in February 2021. The Sandouville site is a polyvalent facility which is already zoned for heavy industrial purposes. The site is scaleable for nickel, cobalt and lithium battery grade products, and will enable Sibanye-Stillwater to further advance its battery metals strategy and recycling activities.”

Thoughts

So why are these relevant ? Well for one it shows the increasing firepower and appetite to diversify away from South African assets. Stillwater acquisition showed Froneman is prepared to be brave and make big decisions and now they are building a battery metals business – but a nickel processing plant needs some nickel…

Also, they call it their ‘second step’ – not the final step. Crucial signal of more activity to follow as they build a European presence. If for example they shipped nickel from Murmansk area, they would not be reliant on NorNickel processing plant in Monchegorsk.

I think it was a huge clue as to the scale of Froneman’s ambitions and intrigued to see where it goes next. Very much on my shortlist of companies in talks with Eurasia, could even be the preferred bidder as announced on May 12th.

#EUA – @em_investor

Just a quick post to acknowledge the increasing activity of this prominent twitter account. Many believe it to be run by Dmitry Suschov, the largest shareholder of Eurasia Mining. I don’t wish to speculate too much but he clearly got a thing for hydrogen now!

Question is – is this his next project after EUA ?

Which leads to another question – does it mean the long awaited asset sale is about to conclude ?

Hydrogen Fuel Cells

So he has an interest in Japan and HFC’s – along with an uncanny ability to predict future demand before the markets cotton on, as displayed with his recently updated bio on the EUA website.

I don’t believe in coincidences, but equally unsure what it all means. Adds to the mystery and gives a whole new research topic to get stuck into. I’ll definitely be following his next investment closely and looking to join in if possible…

#EUA – Kola Subsidiaries CEO

So we knew he was appointed a couple of weeks ago now. An excellent appointment as well, allowing Alexei Boucher to continue his exploration work whilst a true mining professional ties up loose ends at TGK and helps create the mining plan for the JV alongside the work Rosgeo have already done – the work he did for Rosgeo !!

Another smart move from Eurasia in my eyes – best person to help bring the JV into production is the person who explored with Rosgeo and knows the area so well. Doesn’t hurt having solid connections to Rusal who own a chunk of NN of course.

So what has changed in that time ? He is interim CEO of TGK (MT + Flanks) and CEO of YGK (first licence in Rosgeo JV)

* Opinion only – shows plans are fluid. On appointment he was listed as Acting CEO of both TGK and YGK, could be wording or could be someone has now taken pole position on a bid to buy Monchetundra + Flanks and not any of Rosgeo JV for time being. I am convinced we have people coming back to the table for another nibble, said this before and this cements my belief.

Could be nothing more than doing due diligence took some time though. I try to flag opinion vs fact to help those who are hard of understanding.

James goes out of his way to mention WK and Rosgeo JV but not MT – it’s definitely what is being sold.

Note the wording though, ‘on the sites’ – so WK is mining concurrent areas now and making use of the washplants referred to previously

Having a break from the world of investments at moment, but really pleased to see the RNS I was expecting after we found out about Konstantin Firstov appointment. As briefly explained, we have a couple of breadcrumbs in here for the trained eye to spot 👍

They’ve brought another top pro into the team, they got this. Amused me seeing people proclaim this will be months and months away from a divi sale, there is nothing in this to suggest that – they don’t give timelines, just PIs doing that regularly without understanding the complexity of selling the last unconsolidated palladium play…

Will post more thoughts when I assign more time to this kind of activity. In the meantime enjoy the sunshine and the company of good people, life far too short to stress over minutiae and timelines.

#EUA – video interview with Rosgeo

https://otr-online.ru/programmy/specproekt-otr-professionalnye-prazdniki/geolog-vladimir-ivanchenko-50071.html (opens in new tab)

This interview was found by the top researcher Michael not Mr P from the telegram group. Feel free to join https://t.me/eua_palladium

Interview Summary

Vladimir Ivanchenko is a very reputable geologist in Russia and a senior geologist at Rosgeo (the head geologist at Rosgeo for North West including Kola). He makes the following statements in his interview to OTR, the mainstream TV channel in Russia on 4 April 2021:

1. PAS [GMF78 : is in fact POAZ, it is a typo in the Russian script of the interview, the voice interview clearly says POAZ] is the largest in Europe deposit of PGMs. Palladium resources are 325 tons of palladium, we have estimated platinum – 37 tons, besides platinum and palladium, there is also nickel, copper, cobalt and gold. Nickel – 570 thousand tons, copper – 320 thousand tons, plus a rather large ore occurrence, which, in general, gives the right to work for about 60 years. If in dollars, then this is about 41 billion dollars

[GMF78 : this is now around $42.3bn on current prices]

2. Moreover, Nittis-Kumuzhya-Travyanaya and Poaz, or rather, Nyud-Morshkovoye, all this gives out about 60 billion dollars.

[GMF78 : he means NKT (Eurasia’s MT flanks license) and Nyud (announced by Eurasia as the first project within Rosgeo JV) in total give $60bn.]

3. In addition to this, even before that, large deposits had already been found – these are Plast 330 and Monchetundrovskoe [GMF78: this is our MT production license].

4. Norilsk, there is also ore, in general, there is not so much rich ore, do you understand? Poor ores, they are poorer than we have in Monchegorsk

5. That is, if we compare with Norilsk, ore is mined there at great depths, then in Monchegorsk it is practically on top and its cost is lower than in Norilsk

Opinion

So we have an area of the Rosgeo JV that their lead geologist is clearly excited about, with a rough value of $60bn assigned to this. The full JV will contain more areas, but it seems the first area Nyud is round $19bn extra in situ value and Eurasia will soon have 75% ownership of the licence for this deposit.

Full transcript

Angelina Grokholskaya: We continue the program dedicated to the Day of the Geologist. Ishaq, please tell me, how many minerals are discovered on earth now? In general, is there any exact figure?
Iskhak Farkhutdinov: At the moment, about 6,000 minerals are already known to geologists and every year more and more minerals are discovered.
Angelina Grokholskaya: How interesting! These are minerals, but are there any new deposits? Because we often hear that the field is closed and depleted.
Iskhak Farkhutdinov: Of course, the deposits are being depleted and therefore it is very important that new geologists appear and look for new deposits, because in fact there are a lot of deposits that have not yet been discovered.
Angelina Grokholskaya: By the way, I also know about one deposit that was recently discovered: a new deposit of nickel and platinum was discovered in the Murmansk region and this is a unique discovery. And we asked Vladimir Ivanchenko, the Honorary Exploration of Subsoil, the leading geologist of the North-West Production and Geological Association, to tell us more about him.
PROFILE
Angelina Grokholskaya: Vladimir Ivanchenko came to geology at the peak of the romanticization of the profession and never regretted his youthful choice. He traveled all over the country: he washed gold in the Magadan region, saw diamond mining in Yakutia, worked in prospecting for antimony, mercury, gold in the Fan Mountains, looked for nickel, palladium, and now platinum on the Kola Peninsula. He believes that it is impossible without luck in the work of a geologist, but this luck is based on knowledge and experience.
Hello Vladimir Nikolaevich!
Vladimir Ivanchenko: Hello!
Iskhak Farkhutdinov: Hello!
Angelina Grokholskaya: Happy Holidays!
Vladimir Ivanchenko: Thank you!
Angelina Grokholskaya: Since we are talking about discoveries, about deposits, about platinum, you know, I want money right away, because platinum is associated with the fact that it is very expensive. How much is platinum now?
Vladimir Ivanchenko: Now the most expensive metal is palladium, it is also made of platinoids, platinum costs $ 38 per gram, and palladium costs $ 84 per gram, and I think it will only go up further, of course.
Angelina Grokholskaya: Everyone is talking about this that minerals will increase in price anyway, so we can say that you have made the whole city richer, or will you do it if everything goes well?
Vladimir Ivanchenko: In principle, yes, I think that Monchegorsk has a great future, and I am a fan of Monchegorsk, I really like Monchegorsk – it is a beautiful city, probably the best on the Kola Peninsula, bright, so joyful, and I want and all the young people stayed in Monchegorsk, did not leave anywhere, had a high-paying job due to the fact that a new combine would work, as well as mines. There were mines at one time, which were closed in the 71st year, and now we are reviving the ore base of Monchegorsk.
Angelina Grokholskaya: Oh, this is a balm for the soul right now, because I already said that I was born on the Kola Peninsula and Monchegorsk is my hometown, so for me your discovery is, of course, a personal story. I suggest now, if you do not mind, do not mind our viewers, take a little walk around Monchegorsk.
Vladimir Ivanchenko: Let’s take a walk together, yes.
Angelina Grokholskaya: Let’s watch a short video.
PLOT
Angelina Grokholskaya: At the entrance to Monchegorsk there is a monument to pioneering geologists, conquerors of Monche-tundra. 101 years ago, they came to the Kola North, in May 1920, a special train brought a special commission, which included Alexander Fersman. This is what he wrote in his book “A Journey for the Stone”: “Huge ridges were spreading before us, a whole unfamiliar new mountain world was opening up.” A little later Fersman will say: “Here the city will be founded, and the beautiful Monchegorsk will grow among three lakes and three peaks.

” Thanks to the reserves of nickel ore, it received the status of a “city of metallurgists”, but in the 21st century it may become the “platinum capital of the Arctic”.
What’s with this project now? How is it developing?
Vladimir Ivanchenko: We have been working in Monchegorsk for 6 years already. Our first project was – Nittis, remember, there is such a mountain in Monchegorsk?
Angelina Grokholskaya: Yes.
Vladimir Ivanchenko: Nittis and Nyud-Morshkovoye, “Cloudberry Lake”, is also such a pleasant lake – this was our first project, we worked it out, in general, we got a positive result, there is also a large occurrence of platinum-metal ores, then in the 17th year we completed the first project, in the 18th year they started the second project – Poaz, this is where the TV tower in Monchegorsk is. The largest in Europe manifestation of platinoids, which is also associated with the marginal zone, was discovered at Poaz. Palladium resources are 325 tons of palladium, we have estimated platinum – 37 tons, besides platinum and palladium, there is also nickel, copper, cobalt and gold. Nickel – 570 thousand tons, copper – 320 thousand tons, plus a rather large ore occurrence, which, in general, gives the right to work for about 60 years. If in dollars, then this is about 41 billion dollars from this ore, which is in the bowels, a fairly large object. Moreover, Nittis-Kumuzhya-Travyanaya and PAS, or rather, Nyud-Morshkovoye, all this gives out about 60 billion dollars, that is, there is no end to work in Monchegorsk. In addition to this, even before that, large deposits had already been found – these are Plast 330, Monchetundrovskoe, that is, Monchegorsk is slowly gaining, overgrowing with deposits that in the near future, I think, will earn very quickly, because platinum and palladium are in demand , nickel is also in demand. The fact is that Pechenga is already suffocating, because there is not enough ore, the same is with Norilsk, there is also ore, in general, there is not so much rich ore, do you understand? Poor ores, they are poorer than we have in Monchegorsk, that is, if we compare with Norilsk, ore is mined there at great depths, then in Monchegorsk it is practically on top and its cost is lower than in Norilsk, and I think,
Angelina Grokholskaya: Oh, how I would like! Of course, because there were projects, Iskhak, I will say that the city will have to be closed, either work there on a rotational basis …
Vladimir Ivanchenko: It was like that, yes.
Angelina Grokholskaya: Because there were no deposits and all the mines were closed. This is really very good news and straight, you know, I want to give a standing ovation to the geologists for your work, thank you very much!
Iskhak Farkhutdinov: Yes, now it is important that young people go to geology and come to Monchegorsk.
Angelina Grokholskaya: Yes, and of course there are more investors. Vladimir Nikolaevich, you have been in the industry for almost 50 years – this is a huge period, please tell me, but there were some moments, a day, an event, maybe when you wanted to leave?
Vladimir Ivanchenko: You know, there was one moment, I will say frankly, this was my first practice in Yakutia, it was the Markha and Morkoka rivers, we had such an area, we had a 200,000th rent, and the first route was very difficult: the heat was terrible, 35 degrees somewhere, and somewhere late mosquito repellents, and here we go, and there is an overgrown plain and dwarf birches with bushes somewhere around the waist and it was necessary to stomp 30 kilometers, but I have not yet entered the rhythm, very it’s hard, sweat, not to undress, because mosquitoes are horrible – 3 centimeters on the body, everywhere they cover 3 centimeters of mosquitoes, it’s still hot, it’s generally impossible. At the end I think: “Where have I got to? Probably, I need to leave, leave this profession. ” But then heroically we reached, the next day they did not find us with the deer, we had a rest for a day and then the work went like this, and now I remember Yakutia better, than seen at all.

It was very difficult to pass the first route.
Angelina Grokholskaya: Mosquitoes scared me. We walked a lot in the fields, were there any other interesting cases, so curious?
Vladimir Ivanchenko: Once we, when I was still working in Central Asia, I worked for 7 years in Central Asia, and now we worked in the Fan Mountains, carried samples, samples from the stone-ore manifestation were taken, and there the fact is that the bridges were built: 2 sticks were laid , twigs, covered with earth, you go, it all trembles, and we crossed the stream, but the fact is that there are streams – in the morning there is barely water running, and in the evening it all spills when the glaciers begin to melt in the mountains, it turns out such a stormy mudflow a stream that drags stones and all that jazz. And we walk, and the horse that was carrying the furrow samples was loaded with 100 kilograms, probably, we were already finishing work, and the horse falls through and falls into this stormy stream. I had to jump and pull her out of there, because a horse, if it picks up water in its ears, it can drown right away, you know? And so that she does not drown
Angelina Grokholskaya: Yeah, I don’t know how funny he is, you probably remember it with a laugh. Vladimir Nikolaevich, do you have some kind of tradition – how do you celebrate the Day of the Geologist?
Vladimir Ivanchenko: Traditionally, we meet here in a team, we celebrate, as it should be for geologists, we wish those who are in the field, the first toast, the second toast to women, of course, this is how we celebrate, in general, all the friendly good guys in the team, especially now young people came up, which makes us happy, they also want to become good geologists.
Angelina Grokholskaya: Maybe now then, you know, not even congratulations to colleagues, but parting words to your young colleagues, those who are just entering the profession, is that what you always say to them?
Vladimir Ivanchenko: What to say? First, to wish them goals in life, in order to find a deposit, one must believe in this, you know, because without this faith, without knowledge, nothing can be found. I wish them persistence, good luck and congratulate all fellow geologists on the upcoming Day of the Geologist, this year is 55 years of the Day of the Geologist, so I congratulate everyone, I wish everyone great health, good luck, success and good field seasons!
Angelina Grokholskaya: Vladimir Nikolaevich, thank you very much, happy holiday, goodbye!
Vladimir Ivanchenko: Thank you, goodbye!

#EUA – Nyud and MT sale together

So having a think about the RNS today and recent timelines beginning with the EGM

EUA 9.4.21 – Announcement of EGM to gain ability to raise significant funds quickly.

EUA 12.5.21 – Asset sale, leaving the FSP to progress this particular deal, plus one of the potential transactions proposed would invoke AIM rule 15.

EUA 20.5.21 – Private placement for $20m to accelerate progress on Rosgeo JV

EUA 15.6.21 – licence for Nyud is happening. Doesn’t reveal resources but estimates are all over 1Moz say. More like 5-6Moz but that’s beside the point. They haven’t mentioned the resource level for a reason. I suspect JORC status is being sought which will be great to see.

This Monchegorskoe LLC was set up a while ago according to our research, now activated to soon hold the licence 75:25 between EUA and Rosgeo. Point being this has been known about a little while now and certainly before the statement on 12.5.21

Now statements are always correct at time of writing, but to my mind there is no way that a sale of just MT would trigger the fundamental disposal clause. Nyud is big enough to mean this isn’t the case now in my opinion but not proven yet.

Therefore one of the following different scenarios may be true :

  1. Nyud is being sold/part sold with MT and that is why they were keen for the EGM
  2. The sale of MT is imminent before this Nyud transfer takes place.
  3. The sale of MT will happen before another licence granted, if Nyud wasn’t enough.
  4. Aim rule 15 will no longer apply to a sale

If option 1 or 2 are seen as most plausible, then things are very close to the finishing line. The buyer has what they want now potentially. If it is option 3 then the clock is also ticking, just not as fast but within weeks/months not years.

Option 4 serves to remind that news could land at any time. The longer it takes, the bigger the firm becomes.

My opinion – selling Monchetundra and Nyud together

After considering events this morning, I’m of the opinion that the offer to buy just MT was sufficient to end the FSP, because it also includes a part of the Rosgeo JV. It just makes sense to me. What is bigger than the whole company at the time of the FSP and worth changing approach for – answer MT+Nyud

It also makes sense as to why Rosgeo came on board – perhaps the buyer is very well known to Rosgeo, could be another State department for example. Rosgeo wanted the JV to allow them to sell an asset (Nyud) that bordered Monchetundra, they had to get Eurasia involved and make it worth our while, as well as their own time and effort. Don’t forget they’ve been proving up the area, we have seen the research now and it is compelling. Eurasia have stressed how well developed 4 areas are, with 5 needing more work. You can see the strategy in execution now.

Look at the map below, area 1 is now being added to ourexisting resources on the left of the main road to Monchegorsk, how long before 2,3 and 4 join the ranks?

Image
(As borrowed from @richarddugdale3 – I am a map thief, who credits the right person)

Pricing for a sale

This is perhaps the most important part to many, after all that is why we invested. I maintain my fair pricing for Monchetundra and West Kytlim at 94-111p for a sale. Too early to calculate what Nyud may yield, we need to identify the correct resources in the Cadastre. Obviously it will add significant value though.

Share price disconnect – I get it. People are waiting for the asset sale. The market has fixated on the sale and thats fair enough. Equally, I’m trying to demonstrate that yet again that the company is growing whilst progressing on that front. They aren’t going to stand still and do nothing. They state it on most RNS and I trust them to deliver. After all, they stand to benefit more than most with 20% skin in the game.

Please vote at the AGM

I voted in favour, several investors were waiting for an update on what happened to the $20m. You’ve had the update now. The company has done us proud the last 12 months when you think back to being 7.2p and suspended. If all the resolutions pass, they will have the firepower they need to secure more licences over the next 12 months.

#EUA – June thoughts

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

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.

https://www.voxmarkets.co.uk/articles/onthemarket-ceo-jason-tebb-on-their-partnership-with-sprift-technologies-and-john-meyer-on-3-resource-companies-ac9d982

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.