Eurasia Mining - EUA - Share Chat

Stock Discussions
103

Yeah overall I thought it was positive, although it did come across like there isn’t a full sale imminent.

Not much we can do except wait for the FSP to play out.

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104

What is an FSP?

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105

Formal Sale Process

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106

Definitely positive, it says we now have cash so if the price isn’t right, we can dig up the PGM ourselves

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107

Just to know… Any price target?

108

Gees on the LSE forum people are talking 50p - £9 (simply Wall Street)! Looks big. I’d be pretty happy at £1 but am not selling until all is clearer

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109

RNS out, the flanks licence has been approved

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110

Excellent :ok_hand:

Two things I found interesting:

  1. NN were not mentioned in the intro like the previous few RNS
  2. The wording of the last sentence ‘further announcements will be made in due course’ doesn’t fit their usual tone

:grinning:

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111

What does it mean exactly?
I am still waiting for the sale.

112

The more mining licences for resource rich land they have the more the company is worth, the new licence covers an area which is expected to hold a lot.

So although it’s not relevant to the sale it will be relevant to the sale price that is achieved (if a suitable offer is accepted that is).

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113

Does anyone have any thoughts about when sale process will finalized? Or any major updates?

114

One guess is as good as any other at this stage, hopefully before November!

115

@hookedinvesting I’m not familiar with FSP, so been reading up on it.

FSP mentions a 28day time period for PUSU. Has that deadline already been exceeded? (I thought EUA launched FSP back in July)

If so, does that mean we are potentially coming to the end of the FSP and closing a deal.

Apologies if the questions are silly, but I don’t know much about this. :sweat_smile:

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116

I haven’t read the detail in a while but I thought the PUSU period starts after a winning bid?

117

Lots of reasons to remain positive:

  • In the latest RNS they confirm several interested parties, the more bidders the higher the price!
  • The presentation they uploaded to their website last week shows target resources of 15.5Moz Pd equivalent within licence area AND an additional 7Moz within the exclusivity zone.
  • UBS are working on a success fee basis
  • CITIC & VTB Capital also engaged
  • Pd price is in an upward trend, the longer the FSP takes the more EUA is worth.
  • We are approaching the average length of a FSP (120 days, we are at 80ish)
  • Share price is irrelevant to the sale price IMO
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118

Thank you @hookedinvesting.

Hopefully will close sooner than later, though with Covid situation, may cause delays.

What do you think the sale price will be?

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119

I’ve looked at multiple ways to calculate the Sale Price and others have put in a lot more work than me (@GMF782 or @Dshox1 on twitter).

But purely for fun:
2000 (conservative price Pd)
80% (MT ownership)
15.5M (Moz Pd in licence)
3.5M (7Moz Pd within exclusivity zone discounted @50%)
2% (expected fees from banks)
15% (value in the ground)

2000 x 19M x 0.8 x 0.15 x 0.98 = $4.468B or £3.485B

Which is approx £1.26 for just MT.

Add 10p for WK.

Let’s say £1.36, which seems madness based on current share price. Happy to hold my hands up if it’s not close to this.

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120

Been a brutal few days watching gains disappear. The PGMs are still there so I’m sitting on my hands

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121

Buying at discount?

122

Picked more up in the 17’s :grimacing: