Share Talk Weekly Mining Sector News Round-Up, 3rd January 2022

A quiet period for the sector over the holidays, but a few notable announcements popped up that may be company game changes over 2022.

Zak Mir concluded “The Top 20 Stocks For 2022 Countdown1. Eurasia (EUA): 24.5p Target 50p 

 

 

It has to be admitted that Eurasia was not necessarily going to be top of the 2022 list.

The main reason for this is that the company already made its point as far as the bulls were concerned in 2020 when it came back from (unnecessary) suspension. However, it would appear that the court of Twitter, and private investors in general, regard this as a top play for 2022.

While this is not necessarily a good indication of whether a company is capable of greatness, I would suggest that there are nevertheless plenty of positive factors to look at. The simplest one is that this is now a £700m company, having been up to £1bn at best so far.

Despite all the mudslinging, distortion, character assassination and omission of the bears, EUA has become a mid-tier mining company and given the progress made in 2021, arguably the top tier in its space within the mining sector. I would venture to suggest that if it were not for the waiting game as far as M&A here and the slurs, its market cap would be well north of £1bn currently. Indeed, in many ways the heavy lifting here has already been done, with or without M&A. EUA has not only de-risked via this process, while we have been waiting, but the latest Hydrogen and Ammonia projects JV have also arguably made it a win-win whatever happens on the corporate action front.

Interestingly enough, it should be noted over 2021 the shares remained at the same starting price despite the flow of significant fundamental water having flowed under the bridge. For instance, the JV with Rogeo consisted of 104.6Moz of Platinum equivalent, and there have been significant increases and upgrades in mining areas and assets across the enlarged portfolio.

EUA will also be a significant Nickel player and is clearly arm in arm with the Russian State’s mining strategy to propel this further. But above all, Eurasia has shown itself to be a proactive and aggressive player in its space. It could have just sat back waiting for a buyer. Instead, we have seen one of the most active examples of a company building in the mining space in recent years and is fully funded to execute the multi-pronged strategy in 2022 and beyond with minimal dilution. As things stand a sale would merely be the icing on the cake.

Indonesia has banned coal exports in January due to concerns that low supplies at domestic power plants could lead to widespread blackouts, a senior official at the energy ministry said on Saturday.

The Southeast Asian country is the world’s biggest exporter of thermal coal, exporting around 400 million tonnes in 2020. Its biggest customers are China, India, Japan and South Korea.

Indonesia has a so-called Domestic Market Obligation (DMO) policy whereby coal miners must supply 25% of annual production to state utility Perusahaan Listrik Negara (PLN) at a maximum price of $70 per tonne, well below current market prices.

Phoenix Copper Ltd (AIM: PXC) Announced that Roger Turner is stepping down as a Non-Executive Director and Chief Technical Officer, with immediate effect, for personal and health reasons. Mr Turner will continue to advise the Company on a part-time consultancy basis.

Marcus Edwards-Jones, Chairman of Phoenix Copper, commented: “We expect 2022 to be a significant year for the Company as we look to permit, finance and construct our open-pit copper mine at Empire, and continue our exploration programmes on the surrounding mineralised district, as well as the historically mined sulphide deposit below the open pit. I know that Roger’s ongoing advice will continue to be important.

Galileo (AIM: GLR) announced its unaudited interim results for the six-month period ended 30 September 2021. The company updated with details regarding a Joint Venture Agreement (the “JV Agreement”) entered into on 29 December 2021 with Statunga Investments Limited (the “Vendor”) covering the Luansobe Copper Project, Zambia comprising Small Scale Exploration Licence No. 28340-HQ-SEL.

The JV Agreement provides Galileo the right to earn an initial 75% interest in a special purpose joint venture company (the “JV Company”) to be established under Zambia law to, with Ministerial Consent, acquire the Licence, and the technical information and other information and assets related to the Luansobe Project by making an initial payment of US$200,000 and a second payment of US$200,000 in the initial period from the date of the JV Agreement by 20 February 2022 (the “Initial JV Period”) and issuing 5,000,000 Galileo shares to the Vendor. Based on the closing price share price of 0.98 pence on 29 December 2021 the last practicable date prior to this issue of this announcement, the aggregate consideration will be approximately £350,000.

Emmerson PLC (AIM: EML) End of Year Newsletter, 2021 Key Milestones, Looking Ahead. 2021 has been a successful year for Emmerson and major strides have been made towards achieving our target of the first production at the Khemisset Potash Project (‘Khemisset’ or ‘the Project’) in Morocco.

The icing on the cake came in the form of a strategic financing deal of up to $46.75 million in November 2021 and accordingly, we look forward to 2022 with confidence as we fast-track the development of Khemisset into a low cost, high margin supplier of potash – the first primary producer on the African continent.

Eurasia Mining Plc (AIM: EUA), the palladium, platinum, rhodium, iridium and gold producing company, announced its strategy and progress update in relation to the hydrogen and ammonia markets.

With the opening of its Japan office and the appointment of director Tamerlan Abdikeev, the Company has identified opportunities in hydrogen/ammonia production that are complementary to the PGM business in Russia. Furthermore, this new business sector has created openings for a new and parallel strategy based on this new opportunity.

Christian Schaffalitzky, Executive Chairman of Eurasia commented: “The Directors are delighted to see tangible progress in the development of a broader Eurasia growth strategy, ‘Eurasia v.2.0’ in the ammonia and hydrogen markets alongside the development of our existing world-class Battery Metals and PGM projects. We are confident this will create new opportunities for value creation and expand our Company’s business.”

Cadence Minerals (AIM: KDNC) announced that it has entered into a binding settlement agreement (“Settlement Agreement”) with the secured bank creditors of DEV Mineraço S.A. (“DEV”), the owner of the Amapa iron ore project in Brazil.

The execution of the Settlement Agreement represents the last major precondition for Cadence to vest its initial US$2.5m for 20% of the large-scale Amapa iron ore mine, beneficiation plant, railway and private port (“Amapa Project”, “Amapa”) . Anglo American, a previous owner had valued its 70% stake in the Amapa Project in [date]at US$ 866 million (100% US$ 1.2 billion). It impaired the asset in its 2012 Annual Accounts to US$ 462 million (100% US$ 660 million).

Cadence CEO, Kiran Morzaria, commented: “When Cadence first announced Heads of Terms for Amapa back in May 2019, we knew that while a tremendous amount of work lay ahead, the investment and terms, if secured would represent our greatest achievement to date as a mining investment company.”

Cadence Non-Executive Chairman, Andrew Suckling, commented; “This is indeed a momentous day for Cadence, Indo Sino, DEV, the Government of Amapa, the legal teams and bank committees and administrators who have worked tirelessly, COVID notwithstanding, to finalise the final and perhaps the most lengthy part of the judicial restructuring plan agreed back in 2019.”

Jubilee Metals Group (AIM: JLP) advises that the Company host a presentation, offering shareholders the opportunity to engage with the Board for a General Company update and discussion following the Annual Results.

Shareholders are invited to participate by following the link provided below:

The presentation will be available at 11:30 am UK time (13:30 SA time) on 29 December 2021, following the formal business of the Annual General Meeting.

Jubilee Metals Group is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. We create value for all stakeholders through the transformation of mining liabilities into profitable assets in a manner that addresses mining’s historical footprint and improves the quality of life for surrounding communities. Our distinguishing value proposition is our net positive impact on all stakeholders and the environment.


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