Extractives

pgm miners- eurasia mining

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Change at PGM stock Eurasia

eurasia miningEurasia Mining (EUA.L) is an AiM-quoted Russian Pd dominated PGM miner. In this first post-FSP update valuation we are yet to include the March Rosgeo JV and Rhodium (Rh) production from all but West Kytlim or Iridium (Ir) in EUA projects. Our PGM prices are extremely conservative in this update. We assume Pt 93.5%, Pd 5% and Rh 1.5% production at WK. We assess the Pd auto-catalysis market can support $500 per car vs. $250 per car pre-covid. The largest Pd consumer, China, returned to economic growth in 2Q20. EUA has de-risked its flagship world class Monchetundra asset, the sale of which alone, could be…READ MORE.

 

Does Monchetundra make EUA a £1bn+ play?

eurasia miningEurasia Mining (EUA.L) is an AiM-quoted Russian asset PGM producer. The West Kytlim project is revenue generating with production expected to ramp up in 2020 resulting in EUA becoming a de-risked prospect compared to its peers. However, the key asset is the M&A triggering EUA flagship palladium-driven project, Monchetundra, near to production. Could a Monchetundra sale turn a 100m MCAP AiM company into a £1.5bn exit for investors, equating to an approximate 15x rerating on the current price? There are many risks reflected in our conservative 30% risk adjusted WACC for the Monchetundra flanks project (only), lower and delayed production and Pd/Pt ratio. Risk adjusted WACC for Monchetundra Lo + WN is 12%….READ MORE

 

New and Emerging Extractives Innovations

In our spotlight note for small and mid-caps we set up the natural resources market background and introduce the current and mid-term technological innovations that likely will have the greatest impact on the sector. We believe the new element in this mix is based upon the launch of up to 5 new LEO satellite constellations. We propose data can become a new revenue stream for extractives, accessible to small and mid-caps it is an opportunity to raise funds. Our favoured technologies are AI robotics, spatial data visualisation, wearable tech and IoT (connecting kit, people and vehicles and data to the net via LEOs)…READ MORE

 

Market Mechanism and Drivers U3O8

Uranium’s (U3O8) main use  is as a fuel in the production  of electricity by nuclear power stations. The uranium market is complex, illiquid (thinly traded) and opaque. Directly or indirectly State-controlled producers account for up to 70% of global production and these players do not have to follow economic logic unlike the companies without State subsidy. The majority of consumption (power stations) are geographically and often politically far from the majority of production (mines). Consumption growth requires decades-long investment cyclesREAD MORE

 

ACF Rubicon 1Q19 Earnings 13052019

rubicon initiationRubicon Minerals Corp (RMX:TSX) is a high-grade gold explorer in the prolific Canadian Red Lake District. RMX reported 1Q19A results with an updated mineral resource estimate which showed a 110% increase in resources further boosting  confidence in the Phoenix Gold Project. We adjust our full year forecasts and remodelled our NAV expectations based upon the new resource estimates. The balance sheet remains strongREAD MORE

 

 

 

 

ACF Rubicon Initiation Note 16072017

Rubicon (RMX:TSX) is a Canadian high-grade gold exploration company in the prolific Red Lake District with significant infrastructure and experienced leadership. Potential economics are exceedingly strong, especially in a weak C$ environment, milling is in place, bulk underground extraction looks possible. Key milestones include a feasibility study decision 2H18, bulk sampling results improving the project’s scope and reducing costs, and further 2018E drilling and exploration updates. RMX should undergoREAD MORE



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