23rd Aug 2006 Write Up : http://www.proactiveinvestors.co.uk/articles/article.asp?EKA



Main Web Site : http://www.eurekamining.co.uk

EKA is now a Molybdenum producer in Kazahkstan, and is in the process of bringing the Chelyabinsk Copper/Gold project into production in 2008.

Latest Presentation June 2006 : Presentation Link (10MB PPT file)



Research Report : http://www.fox-davies.com/FDC_Eureka_Report_220605.pdf

26th Jan 2006 Press Commentary : Press Link

About Eureka Mining

Key contact : Mr Kevin Foo Non-Exec Chairman
E-Mail : kevin.foo@eurekamining.co.uk


Eureka Mining Plc is a UK based mining exploration and project development company, focusing on projects in the Former Soviet Union. It is the Companys view that Kazakhstan and other central Asian FSU countries represent an area of significant opportunity. This belief is supported by the quality of the portfolio of assets which Eureka has acquired including;
the Shorskoye molybdenum deposit;
the acquisition of the Chelyabinsk Copper Project; and
the advanced exploration projects of Kentau, Mykubinsk and Central Kazakhstan projects. The Mykubinsk and Central Kazakhstan polymetallic project has assets situated in northern Kazakhstan and the Kentau exploration project has identified several gold and base metal deposits.

Shorskoye Molybdenum Project:

50/50 JV with KazAtomProm, largest Kazakhstan State Mining Company
Production projected for 1st Qtr 2006
Project Finance in place

Chelyabinsk Copper Project

Production planned for 2008
Very large resource base with with 3.57Mt Cu / 4.2Moz Au
First western group into Russian Copper Heartland and consequential opportunities in base metals


Kazakhstan Exploration Projects

At the Dostyk Copper-Gold Projects in Central Kazakhstan, we have reviewed all historical data and identified at least six drill targets, with particular focus on base metal projects. During 2004, we drilled five projects and completed significant field activity on two projects, including the high priority targets Berezky Central, Maiozek, Akkuduk (porphyry style), Ushtagan (epithermal gold), Maikain, Baygustam and Burovoy (VMS). We intend to focus on the most promising of these deposits in 2005/2006.

The Kentau Project in southern Kazakhstan has undergone an extensive data review, with a comprehensive Geographic Information Systems database being created. This has enabled us to plan a focused exploration programme on previously identified targets. Drilling is expected to commence in May 2005 at two of the best targets, using a large Reverse Circulation (RC) rig.

We entered into an option agreement to acquire the Nova Dnieprovka (Nova) Gold Mine in northern Kazakhstan. However, after a thorough assessment and reinterpretation of the project, including the completion of a drilling programme, we decided not to exercise the option and purchase agreement over the Nova project.

Our exploration and assessment teams are continuously reviewing potential projects for Eureka across the FSU and only the very best are selected for further work.
__________________________________________________________________


Some figures to think about (thanks to unionhall)

Current Market cap (@ 1.37) - 36m

Chelyabinsk NPV 508m (@ $1.60 copper and $550 Gold)

Shorskoye - 10m profit p/a @ $20 Moly



Major shareholders
Latest major holder figures are, from 26.6 million shares in issue :

Celtic Resources hold 15.02%
RAB Capital hold 6.19%
Kevin Foo holds 3.43% (Director)
David Bartley holds 3.02% (Director)
Malcom James holds 1.070% (Director)
Andrzej Sliwa holds 0.76% (Director)
JSB holds 0.177% (Director)

Latest News / Links / Research Reports

Reserach Report : http://www.fox-davies.com/FDC_Eureka_Report_220605.pdf

25th April 2006 Moly Update :
http://www.resourceinvestor.com/pebble.asp?relid=19141

2006 Moly Report : http://www.golden-phoenix.com/documents/TheEconomicsofMolybdenum.pdf

____________________________________________________________________



The Company has used an average molybdenum price of US$19/lb throughout the first year and US$12/lb thereafter to calculate cash flows arising from the project.

(*Note : Molybdenum does not trade on the London Metals Exchange or any other publicly traded commodity exchange. Its price is determined solely by supply/demand in the marketplace and supply contracts. In a report dated Oct. 28, 2005, RBC Capital Markets forecast that 2006 and 2007 molybdenum prices would be approximately US$25/lb and US$15/lb, respectively [source: RBC Capital Markets, Global Base Metal Equity and Commodity Report Card, company reports].*)

How will the Moly be processed ? Eureka pulled off a deal with KazAtProm.Eureka has 15-year access to state-owned KazAtomProm's processing facilities, which will allow the company to start producing molybdenum concentrate in February.The processing plant also handles other minerals.The proximity of the plant to the Chinese border, allows for quick, cheap and simple transport links to a major demand area for Moly

Implementation and schedule of Moly production

Utilising the Stepnogorsk processing facility allows Eureka to develop the Shorskoye asset and take advantage of the buoyant molybdenum market, commencing mining in Q3 05 and saleable concentrate by Q1 06. The key project milestones are:

August 2005 - award contracts
August 2005 - first blast and ore to crusher
September 2005 - first ore to Stepnogorsk
October 2005 - first equipment to Stepnogorsk
February 2006 - concentrator commissioning (Stepnogorsk)
February 2006 - Chelyabinsk 100% purchased by Eureka

May 2006 - first production from Stepnogorsk (Skorshoye)

____________________________________________________________________

Molybdenum Information Links

http://www.freemarketnews.com/Analysis/60/3742/2006-02-10.asp?wid=60&nid=3742

http://www.gold-eagle.com/editorials_05/reser092205.html

http://321energy.com/editorials/fross/fross120605.html

http://www.cozine.com/archive/cc2005/01370511.html

At 25$ / lb Moly prices : (Shorskoye Project)

2006 Moly production = 600,000 lbs = 14.7 million dollars sales price
2007 Moly production = 1,200,000 lbs = 29.4 million dollars sales price
2008 Moly production = 1,200,000 lbs = 29.4 million dollars sales price
2009 Moly production = 1,200,000 lbs = 29.4 million dollars sales price
2010 etc etc etc
___________________________________________________________

Recent Director Buying :

Kevin Foo BUY 5,000 on 21 June 2006 @ 81p
Kevin Foo BUY 18,000 on 21 June 2006 @ 90.3p
Kevin Foo BUY 9,000 on 22 June 2006 @ 92pb>

http://www.minesite.com/storyFull5.php?storySeq=3265

Feature Story Date: January 26, 2006

Eureka Mining Moving Fast At Both Chelyabinsk And Shorskoye.

By Jack Hammer

What with recurring illness and deal-making across central Asia, Eureka Mining chief executive David Bartley didnt have much time to stay in touch with the City last year, except when he was announcing big deals. But although the newsflow was sometimes a bit thin, those long hard hours on the road are beginning to pay off. Eureka is shaping up nicely full scale mining on the fifty per cent owned Shorksoye molybdenum project in Kazakhstan is imminent, and a pre-feasibility on the Chelyabinsk copper project in Russia is underway.

So, late in December Mr Bartley promised to pay more attention to the deskbound folk in London, to be around more, and to provide regular updates. He was off alcohol back then, on account of his recurring bouts of malaria, putting him for the time being - and somewhat unusually - on a level with Joe Nally, the mining money-man at Cenkos who is a close ally, and who has given up the booze for January. But some resolutions are harder to keep than others - David Bartley is not currently in town, and nor is he in touch. One mining analyst is under the impression that hes lying in hospital in Australia with another attack of malaria, but a PR for Eureka eventually establishes that hes in Moscow so, sorry, can I get back to you in two weeks?

Fair enough its not so long since Mr Bartley visited London to update press and investors. But he also spent a fair bit of time on that visit moaning about weakness in Eurekas share price. There are moves afoot to rectify that weakness from the broking angle, but if Mr Bartley wants the shares to firm up someone needs to be here pushing the story full time.

Its not clear either what exactly Mr Bartley is doing in Russia. With any luck though, its something to do with the pre-feasibility study on Chelyabinsk, which is due to be delivered in the first quarter of this year.

Chelyabinsk is a copper-gold project with a total resource 687 million tonnes at 0.7 % copper equivalent in the Russian C1 and C2 categories. Those numbers are derived from three deposits within Chelyabinsk, and a JORC calculation has been made and verified by Snowden - for Miheevskjoye, the largest. It shows 405 million tonnes at average grades of 0.4 % copper and 0.22 g/t gold in the inferred category. Its not world class, says Richard Chase, who continues to provide analysis for broker Ambrian, in spite of a recent move up the foodchain there, but its not bad either. It should be cheaper to develop than Montericcos bigger Rio Blanco project in Peru for example.

Last year Eureka signed up Barclays Capital to act as advisor on financing. Barclays chief Gerard Holden went out to take a look for himself, was favourably impressed, and on current plans could be looking to put the finance in place before the year is out. Post tax, assuming 60 per cent debt finance, and on a 15 per cent discount, Ambrians Mr Chase values Chelyabinsk at US$105 million. This isnt going to be a 200 million company, he says, before adding, with one eye on future developments, at least not on these assets.

Eureka is not a one trick pony, however. In the summer David Bartley pulled off a deal in which the company gave up 50 per cent of Shorskoye in exchange for access to the plant and processing facilities of local operator Kazatomprom. Thats a lot of a project to give away, but the point was to get producing fast. Molybdenum wont stay above US$30/lb forever the long-term average is below US$10/lb. Ambrians Richard Chase says: I wouldnt be surprised if Shorskoye is all done and dusted in three years. But over those three years he forecasts nearly US$45 million in net cash flow, assuming a (currently) conservative US$20/lb molybdenum price. Those are reasonable numbers, and should sustain Mr Bartley nicely on his travels, as he works up other early stage exploration assets and hunts down more deals.

Companies featured in this Story Eureka Mining Plc (AIM-EKA)

PapalPower - 27 Jan 2006 23:05 - 204 of 215
I want news on the BFS for Chelyabinsk asap, as it looks like a very good time is approaching for copper, if Chelyabinsk is producing in 2008, it will be perfect timing to catch the wave maybe.


Extract from Jan 06 report on copper (from http://www.miningnews.net) :


"Meantime a report early this month by UBS Warburg will have seen miners lighting up cigars and breaking open crates of the finest malt whiskey.

UBS said there were "strong similarities" between the positive fundamentals for oil and copper, including:

- Decline in reserve quality, and cost inflation
- Chinese demand
- Energy link (Electrical power requirements are growing, and the potential for increased copper use in hybrid autos is being driven by high energy values)
- Fund money
- Bottlenecks (Refining in oil, smelters in copper)
- Corporate perception M&A activity (It appears that both oil and copper companies remain unconvinced that high prices are here to stay; a consequence is conservatism on capital spending delaying the supply response. Even so, competition for operating assets remains heated)
- Elastic demand response to high prices (Consumers of both products looking at substitution)
- Focus on inventories

"While the similarities between the two commodities are quite striking, we believe that an argument could be made that copper fundamentals are superior," UBS said.

"A key difference between the two is supply reaction; a new copper mine takes a least two years to build and much longer to find; an oil well takes less than a year to bring to production.

"Furthermore, the copper market has no OPEC to satisfy unexpected demand when it arises."

All of which begs the question, is this copper nirvana?"

PapalPower - 28 Jan 2006 06:24 - 205 of 215
Extract from an 18th Jan The Australian report :


"A year ago copper was forecast to average $US1.23 a pound but came in at $US1.66 a pound. The red metal is now at a record high around $US2.15.

In a report from London last week, Credit Suisse First Boston warned that the market could be seriously underestimating the strength of the metal price outlook.

According to CSFB's scenario, mining executives remain scarred by past busts and are too focused on value, so they are reluctant to commit themselves to new mines, the costs of which have jumped 20-50 per cent in the past five years. That means supply simply won't ramp up quickly enough and the market is in for further metal price spikes in the next two years.

CSFB estimates that in metals such as copper, zinc, nickel and aluminium new supply won't be enough to cover demand growth of 3 per cent.

"Mining executives today are too focused on returns and aren't incentivised to take risk to build new mines or smelters. Share buybacks and mergers and acquisitions are a lower-risk strategy than developing a mine with four-year lead times and the uncertainty of where prices will be once the project is finished," it says.

CSFB says that while Rio Tinto and BHP Billiton are pulling out all stops to expand iron ore production following a 71 per cent price leap last year, growth plans are generally characterised by smaller brownfield expansions rather than large new projects.

CSFB estimates that for a new copper mine to earn a 20 per cent return, it needs a long-term price of about $US1.50 a pound, up from current thinking of US90c a pound.

CSFB sees copper prices averaging a whopping $US2.30 a pound this year.

The wide range in forecasts makes it tough for investors. Diversified majors such as BHP and Rio Tinto are trading at 10-11 times earnings, which is approaching the high side, if commodity prices are peaking. But if you plug in spot prices, they are trading closer to an attractive 8 times earnings.

According to UBS, the sector's quarterly reporting season, which kicks off with Rio's production report, could trigger a fall in prices if the reports highlight continued cost pressures.

But it says any fall should be seen as a buying opportunity. "Whereas we believe the market is lagging on updating for rising costs, we believe it is also lagging on upgrading for higher commodity prices," UBS says. "

Some good information from unionhall in recent posts :

unionhall - 1 Feb'06

Meanwhile, Phelps Dodge Senior Vice President for Marketing Arthur Miele Tuesday forecast a $2 per pound copper price during the first quarter, along with a 3.5%-4% growth in copper consumption this year. He also predicted an $18 to $25 per pound average molybdenum price during 2006 with a first-quarter average price of $22/lb.

I understand Shorskoye production mid-April.

Stockpiled ore from mining confirms required grades.

All equipment in country following delay at customs. Clear for takeoff.

Trying to force final positive confirmation re Chelyabinsk while work continues on site.

3rd Feb

David Bartley was in Russia beginning of week trying to finalise Chelyabinsk.

In all day meeting in London today.

Back in Russia next Monday and Tuesday.

Some basic info on 2006 and 2007 Moly price forecasts in the link below, which is good as Eureka have used levels of 19 and 12 for year 1 and 2 for their project cash flow forecasts, so these expected higher levels offer upside :) and of course the latest drive into alternative fuels and process, is a big boost to Moly, which is used in many of these applications, see the links above :

Link Click Here

It is a good article in the link above and also conforms to the consensus that Moly prices will be above those taken in the EKA cash flow projections, meaning more money for profits.

We also must not forget the bullish outlook on copper, which if Chelyabinsk news is good, then demands that EKA takes a serious re-rating upwards.

Moly prices now look to be rising, which was expect into the end of Q1/start of Q2. An average price of 25$ or more in 2006 is certainly looking on.

Link for latest prices


From the link you provided :

Indium
99.99%min European market
950-990 usd/kg

Manganese Flake
99.7%min European market
1280-1330 usd/mt

Molybdenum Oxide
57%min European market
25.5-26.5 usd/lb Mo

Selenium
99.9%min European market
31-33 usd/lb

Silicon
4-4-1 European market
1250-1280 eur/mt

Tungsten APT
88.5%min European market
265-275 usd/mtu

Vanadium Pentoxide
98%min European market
8.0-9.0 usd/lb VO5

Nice to see the rises continue, now we need DB to do the business today or tomorrow and give us the good news :)

Its looking good, what a nice intraday chart :)

Cracking start to the week Papal, has news leaked or is it just the Moly price that's driving this?

Thanks for the work on this new thread, succint repository of info.

The NEWS IS OUT for EKA - CHELYABINSK 100% owned by EUREKA !! Read the Fox Davies report link for forecast price of EKA with Moly and now with Chelyabinsk :)

http://www.fox-davies.com/FDC_Eureka_Report_220605.pdf

Here we go, up through 200p and more to come...............the full RNS is much longer than the highlights below and full of information !


RNS Number:9954X
Eureka Mining PLC
06 February 2006

Eureka Mining PLC
("Eureka" or "the Company")

06 February 2006

Eureka acquires 100% ownership of the
Chelyabinsk Copper/Gold Project, Russia and announces results of Scoping Study

* Ownership increased to 100% by payment of US$6 million
* Confirmation of good and unencumbered title received
* Miheevskoye Scoping study demonstrates robust economics
* NPV(10%) of US$257m and IRR of 23.6%, at US$1.00/lb copper and US$400/oz gold
* Capital cost estimate US$342m and cash costs of US$0.39/lb before credits
* Start-up scheduled for 2008


Acquisition of 100% of Chelyabinsk Copper Company

Fantastic news. Just managed to catch another 60K at 136/7 before the market close. I would expect that buy alone to net me a good 10k tomorrow!

If you look at the difference between the NPV with copper at $1 and $1.10 and with gold at $400 and $425, you can exptrapolate that the current prices of copper and gold would lead to a NPV of well over 20 times the current market cap of the company.

Adding 10 cents to copper price and 25 cents to the gold price adds $109m to the NPV.

So with a copper price of $1.70 and a gold price of $575, you could add 7 times $109 to the NPV of $257m. That would give a total NPV of over $1000m (580m), 17 times the current Market Cap (34m) of EKA. The copper price is in fact way above $1.70 at the moment, but using that price allows for a simple calculation.

tallsiii, you must have got what I wanted, I tried for a 20K final top up, no chance, all was flying and shut down quickly.

The figures are mind boggling, VOG had its day in the sun, now its sister company EKA to have the fun.

Brilliant news, the only way is up. No doubt the MMs will jump on this one tomorrow morning!

2 by the end of the week!

Moly prices rising, Copper outlook bullish, and now everything in place for EKA, it is wonderful news.

The Fox Davies reports gives target prices, and its all in the link above.

Copper prices are currently at $4900. I think that equates to $2.45 per lb. Moly should hopefully pick from it's current downtrend and the cash should start rolling in for EKA. Once that starts happening I can't see the SP stopping short of 10!

Some figures to think about (thanks to unionhall)

Current Market cap (@ 1.37) - 36m


Chelyabinsk NPV 508m (@ $1.60 copper and $550 Gold)

Shorskoye - 10m profit p/a @ $20 Moly

This should be heading way higher tomorrow :)

Certainly is heading higher. Target price for 2008 will be over 500p, so we should see a nice rising trend into that :)

Looks like the profit takers are out after the news, and now we edge up slowely into the next major news, that Moly production is on line, should be around the end of March :)

http://www.freemarketnews.com/Analysis/60/3742/2006-02-10.asp?wid=60&nid=3742

MOLYMANIA HAS JUST BEGUN
Friday, February 10, 2006

The path of moly appears to be on the up again.

Yes tallsii, the chart above shows Moly rising again.

Shame about David and hope he gets well soon, he deserves a rest after gettin Chelyabinsk in the bag.

Good news from it, the Foo man say "iminent first production" !!


RNS Number:8784Y
Eureka Mining PLC
24 February 2006
Eureka Mining PLC
("Eureka" or "the Company") (TIC: EKA)
David Bartley temporarily steps down as Eureka CEO

Eureka Mining Plc announces that David Bartley is temporarily stepping down from the position of Chief Executive Officer due to health reasons; he remains a non executive director of the Company. David anticipates resuming the role of CEO towards the middle of the year.

During this period, the Board has appointed Jonathan Scott-Barrett, a
non-executive Director of Eureka since listing, as Chief Executive Officer. Mr
Scott-Barrett will be assisted in this role by Andrzej Sliwa, Executive
Technical Director, Vernon Martins, General Manager Operations, Karl Herrington, Director Russia and Mukhtar Tuyakbayev, Director Kazakhstan.

Mr. Scott-Barrett, 61, is a Chartered Surveyor and has had an extensive career
in senior management and executive positions, including nine years as a
non-executive director of Hanson Plc whose operating companies at that time
included Peabody Coal, the largest coal producer in the US. He was also a
publishing director of Centaur Communications Ltd for over 15 years, one of the
largest business to business publishers in the UK and was publisher of Money
Marketing, The Lawyer and Chairman of Perfect Information, a City based
financial information provider.

Eureka Chairman Kevin Foo said, "David has, through his untiring efforts,
positioned the Company well to take advantage of the high molybdenum prices with imminent first production from the Shorskoye project in Kazakhstan and the advancement of the pre-feasibility study on the Chelyabinsk Copper-Gold project in Russia. We wish David a rapid recovery and with Jonathan assuming the position of Chief Executive Officer the Company will continue to make rapid
progress."

For further information:

Jonathan Scott-Barrett/Kevin Foo Laurence Read
Chief Executive Officer/Chairman Conduit PR
Eureka Mining Plc Tel: +44 (0)20 7429 6666 /
Tel: +44 (0)20 7921 8810 +44 (0)7979 955923

www.eurekamining.co.uk

The new ammended version comfirms what has been rumoured, mid April for Moly.


Directorate Change - Amended

RNS Number:8950Y
Eureka Mining PLC
24 February 2006

Eureka Mining PLC
("Eureka" or "the Company") (TIC: EKA)
Eureka CEO

The following replaces the Directorate Change Announcement released on 24
February 2006 at 07.01 under RNS No. 8784Y. The notice did not include details
of the timing for studies of the Shorskoye and Chelyabinsk projects
respectively. These are now included. The full amended text appears below, all other information remains unchanged.

Eureka Mining Plc announces that David Bartley is temporarily stepping down from the position of Chief Executive Officer due to health reasons; he remains a non-executive director of the Company. David anticipates resuming the role of
CEO towards the middle of the year.

During this period, the Board has appointed Jonathan Scott-Barrett, a
non-executive Director of Eureka since listing, as Chief Executive Officer. Mr
Scott-Barrett will be assisted in this role by Andrzej Sliwa, Executive
Technical Director, Vernon Martins, General Manager Operations, Karl Herrington, Director Russia and Mukhtar Tuyakbayev, Director Kazakhstan. This team is responsible for the Shorskoye Molybdenum project in Kazakhstan and the
Chelyabinsk Copper-Gold project in Russia. Shorskoye is scheduled for first
production in April and the Chelyabinsk pre-feasibility study is due for
completion in May. The main feasibility study for Chelyabinsk is planned for
completion by end 2006.

Molybdenum Oxide
57%min Europe
23.0-24.0 USD/lb Mo

We are now just 4 to 5 weeks away from the first Moly production for Eureka, and also 8 to 10 weeks away from news the pre BFS is done.

The Fox Davies report puts the value at this stage at over 300p with a long term price target of over 500p when Chelyabinsk is on line from 2008, therefore we should be looking for a price of well over 200p once Moly production is on line and news comes from the pre BFS :


http://www.fox-davies.com/FDC_Eureka_Report_220605.pdf

Base Case: Around 330380p/share: this assumes US$1.10/lb copper long-term, US$20/lb molybdenum in 2006, and a discount rate of 20%.

Upper Case: Around 550p/share: this uses the Base Case metal prices, but uses a lower discount rate of 15%. The market will apply this lower rate over time, as management demonstrates success at Shorskoye and Chelyabinsk

Moly prices are still above 20$ and the Long Term outlook for Copper remains bullish. This was recent comment from Hemscott on copper 9th March :

There has been some nervousness over mining stocks on uncertainty over metal pricing negotiations and some oversupply. Copper prices fell back over the past few days to a low of around $4750/t although there are signs of recovery. 2006 commodity prices overall are set to be pretty buoyant against historical levels but not as high as in 2005, an exceptionally strong year. None of this, though, changes our fairly bullish long term view on commodities overall - there will inevitably be short term relaxation of sector performance and accompanying investor nervousness but, in our view, the long term path is up.

Nice moves today, L2 is 4 v 1 so there should be more to come as well.

If you have read the FoxD report on EKA and price targets, this takes a US1.1 per lb figure for copper long term. Presently the markert is volatile however long term many are expecting to see copper remain over 2$ on average.

Presently its 2.21$ per pound as per below :


"DJ Comex Copper Review: Reverses From Lows To End Higher 10th March

NEW YORK (Dow Jones)--Comex copper overcame a lower open and pressure
throughout the session to settled higher on Friday at the New York Mercantile
Exchange.

The most-active May contract settled 1.45 cents higher at $2.2100 per pound.
During the session the contract dipped to a $2.1550 low but buying interest
moved in to take it higher by the close.

Analysts at Barclays Capital in London said current trading conditions remain
highly nervous, creating large price volatility, with market participants
particularly uncertain over the effects of a rising interest-rate environment
across major economies.

"While higher borrowing costs might limit fund involvement, we think the
recent negative reaction in the base metal markets is exaggerated, based on the
outlook for supply and demand fundamentals," said Barclays.

Bill O'Neill, a managing partner at LOGIC Advisors, said copper has been
easing along with other metals, but he added that strong U.S. economic data on
Friday was helpful for copper.

The U.S. data, which also took the dollar higher, included a rise in nonfarm
payrolls by 243,000 after rising by a revised 170,000 in January and 145,000 in
December. The unemployment rate rose slightly to 4.8% last month from 4.7% in
January. The jobs figure rose above market expectations of 212,000 but
economists had been looking for a steady 4.7% unemployment reading.

Settlements (ranges include overnight and day sessions):
March(HGH06) $2.2170; up 1.25c; Range $2.1660-$2.2220
May (HGK06) $2.2100; up 1.45c; Range $2.1550-$2.2130 "

Molybdenum Price
US$24.50/lb
(Metal Bulletin,
U.S. molybdenum oxide,
Feb. 28, 2006)


Another link to get up to date Moly prices on :

http://www.bluepearl.ca/s/Home.asp

Good news for future Molybdenum prices in this article !

http://tinyurl.com/hhvrc


"In other news, South Korea plans to begin stockpiling strategic reserves of industrial metals needed for making electronic goods, according to an official at a state-run resources agency, cited in a Reuters report.
"If the metal imports from the countries are suspended because of war or natural disaster, this would badly hit South Korea's IT industry," an official at the Korea Resources Corporation was cited as saying.
Seoul will reportedly start from 2007 to stock pile 14 types of minor metals including indium, ferro-molybdenum, cobalt, manganese, antimony, ferro-titanium and ferro-tungsten. "

It would be good to get some detailed figures on just how much S Korea are going to stockpile, if they start to build up a large amount (like 1 year to 2 supply) then it will surely impact future prices by keeping them high, or even raising them.

It might also point to them getting ready for war before the end of this decade, as a final solution to the problems with North Korea.....that is not such a nice thought.

10K MM buy and a nice strong start to the week.

Things are picking up again at last. The expected drift downwards looks like it's now coming to an end as we approach April which will hopefully bring moly production.

Big news and big moves it should be now.

Roughly 4 to 5 weeks from April Moly production on line.

Then from that 4 to 6 weeks for pre BFS complete.

The from there 5 to 6 months for the very big one, BFS complete.

With BFS done this should be over 300p I think, so lets start the ball rolling slowely and build up first with Moly production on line, then some more before pre-BFS and then more for the final BFS done :)

A good day and remained strong at the end.

Another couple of tick ups.

A colleague of mine has been in contact with Jonathan Scott-Barrett yesterday at EKA, and the timescales of the recent RNS still hold, these being Moly production on line and producing in April, then pre-BFS complete in May and final BFS complete in December.

Excellent news :) no concerns or worries and all proceeding well.

PP,

Just to let you know that your posts are read and appreciated, these do look good long term roll on 300p :)

silvermede, thats what BB's are for, information, even if I am talking to myself, the info is there for anyone to read, including the silent majority if they wish.

Things do look good, should be over 300p by year end on a complete and done BFS in December.

Bit of consolidation after some nice rises, should be a good buying op at around 126/127 before the next move up I think :)

Excellent news from unionhall given the earlier statement by Eureka and that year 1 starts April for Eureka production. Add into this Korean stockpiling in 2007 and it could yet remain well above 12$ for year 2, that would be fantastic !


"The Company has used an average molybdenum price of US$19/lb throughout the first year and US$12/lb thereafter to calculate cash flows arising from the project."




unionhall - 15 Mar'06 - 20:52 - 105 of 105
Chilean copper producer Antofagasta PLC said Tuesday it expected molybdenum prices to average about $23/lb in 2006 due to current tight supplies and the unlikelihood of significant supply increases. However, prices are expected to be lower than the Platts 2005 average moly oxide price of about $32/lb as the second-half of 2006 might see some slowing.

I am going to enhance my position in this before the end of March, expecting plenty of action here in April/May and also perhaps one thing we are forgetting, apart from Moly production April and May pre BFS, there is also the matter of the Kentau Gold Project, which is due an update, perhaps before the summer.

50K buy and then a 25K rollover right at the end.

Looks good for next week.

Only around 4 weeks now until Molybdenum production is on line, which means EKA moves from explorer to being producer/explorer, and that is a big change for the company in terms of vauation and also attraction, as it then has a cash generation bow to its string.

PapalPower

Why do you think these dipped to below 100p around Christmas time? Steady climb since then.

dale4j, there was a Mineweb "DERAMPING" article by Helmer, which was then repeated through different media circles in Dec 05. The article by Helmer claimed that Chelyabinsk (then 49% owned by EKA) was going to be taken away from them and in fact EKA did not own it. He was a complete idiot I think, as is now proven as EKA purchased the remaining percentage and own Chelyabinsk 100%. However, his article (Claiming that Chelyabinsk for EKA was lost along with the Gold for CER) did the damage to Eureka and caused a lot of panic selling, and until Moly is produced next month I cannot see real confidence returning, Helmer really damaged EKA I think, with his nonsense and proven totally incorrect claims in Nov 05. This is just my opinon of him and events and therefore is only an opinion.

If you want to see that article the details are below :

Celtic Twilight - Not only the gold is lost
By: John Helmer
Posted: '29-NOV-05 08:00' GMT Mineweb

tallsiii, would you agree the Mineweb Helmer article knocked the stuffing out of EKA in December...

All quiet and waiting for news, which should be within 4 weeks now.

A good post by unionhall which tells a clear story :


"unionhall - 21 Mar'06 - 16:38 - 134 of 134

I understand that the company has approx 90k tonnes of ore stock-piled in preparation for plant commissioning.
Commissioning is on track for mid-April with production increasing to full-tilt by May.
Pre-feasibility still planned to complete in May on Chelyabinsk.

Confirmed that the logic used in extrapolating the Chelyabinsk NPV to reflect more realistic copper/gold prices is correct.

(Market cap (@ 1.37) - 36m

Chelyabinsk NPV 508m (@ $1.60 copper and $550 Gold)

Shorskoye - 10m profit p/a @ $20 Moly).

They are constrained by Barclays and the current norms used worldwide for these calculations but are hoping to be allowed increase them in the next release.
Presumably as the strength in Copper and gold prices becomes more established the norms for feasibility studies will increase..."

L2 moved up, now 3 v 3.

April and May news draws ever closer :)

PP

There has been very little activity on this share this week. Is this something to worry about? Apart from EKA, LEAD and TAG, is there anything else you would strongly recommend at the moment?

dale4j, nothing to be worried about, patience is the key to all shares, whether its a week, a month or 6 months, the biggest gains go to those who wait :)

Good reading in the below link :

http://www.golden-phoenix.com/documents/TheEconomicsofMolybdenum.pdf

Continued strong growth in Chinese demand for molybdenum is
expected as stainless steel production capacity is scheduled to double
by the end of 2006.

There may be a decline in Chinese supplies to the West (maybe to zero)
as Chinese demand increases and its production either plateaus or even
declines because of restructuring of the domestic mining industry.

Molybdenum production in the USA, Chile and Peru was able to increase
rapidly in 2004 and 2005, mainly by employing unused capacity to meet
increased demand. This is unlikely to continue, and new projects may
take some time to come into production. There could be a period in
2006/07 of very tight supply, if demand continues to rise.

Highly corrosion resistant molybdenum-bearing stainless steel appears
to be gaining ground on other types of stainless steel. Consequently,
growth rates for molybdenum demand could be higher than those for the
stainless steel market as a whole.

Although the price of molybdenum eased slightly through late 2005 and
early 2006, it could be expected to rise again through 2006.

pp fully agree with your patience is the key post. How do you fell about the stop loss strategy. I do not have this policy and 8/10 it has proved to be right. The only real disappointment for me has been superscape. BPRG and CYH, are pushing my patience to the limit.

Kivver, do not operate a stop loss, as (whatever people say) MM's do and will take them out on a shake if they need to lossen up stock to fill buys.

L2 strengthened a little today, so this might mark the new bottom level before we move up now in April news on Moly production.

Good news for EKA (copper) and TMC (Nickel) :

More background info - from this week :

Citigroup turns bullish
Earlier, Citigroup said it's abandoning a long-held bearish outlook on copper and nickel on expectations of economic growth, tight supplies, sluggish capacity additions and persistent operating outages or shortfalls.

"We continue to adhere to the Commodity Supercycle theory, believing that the combination of 15 years of underinvestment, thorough-going corporate consolidation, mounting regulatory/NGO pressure, and input cost escalation are conspiring to prevent the industry from mounting a meaningful supply response to "peak-peak" prices," said analyst John Hill.

Citigroup raised its 2006 forecast for gold to $553 an ounce from $540, and upped its copper outlook to $1.85 per pound from $1.59.

On the supply side, copper inventories were down 44 short tons at 28,104 short tons as of late Friday, according to data from Nymex.

Gold supplies were down 487 troy ounces at 7.53 million troy ounces, while silver supplies were down 119,875 troy ounces at 124.9 million troy ounces.

http://www.forbes.com/afxnewslimited/feeds/afx/2006/03/26/afx2622080.html

Lehman Bros. raised its 2006 copper price forecast to $2.05 a pound from $1.90 on the belief that increasing global supplies of copper will be much more difficult than expected.

'With mature mines throughout the world facing shortages of labor, machinery, and tires and encountering tougher mining conditions, 'unexpected' production disappointments should be expected,' said Analyst Peter Ward.

He also raised his 2007 forecast to $1.75 a pound from $1.60 and his 2008 projection to $1.50 a pound from $1.40.

China may become net moly importer in five years


Written by Platts

Sunday, 26 March 2006

China may become a net importer of molybdenum in five years from now,
George Song, president of Shangxiang Minmetals said Friday. Speaking at the
Metal Bulletin's 7th Asian ferroalloys conference in Hong Kong, Song said
China's domestic consumption on moly had been on the uptrend and the country
would continue to see steady demand growth in 2006. "China now consumes
about 50% of the country's total moly production and this will continue to
increase," he said.

Song said China's molybdenum output in 2005 stood at around 69 million lb
and the country was expected to produce 75 million lb in 2006.

......

According to Song, China imported 44.34 million lb of moly concentrate
in 2005, doubling the 2004 level. "China will import more moly concentrate in
the future due to the tolling conversion being introduced again after the ban
in 2004-2005," he said.

......

According to Song, China exported not more than 80 million lb of
molybdenum in 2005, 25% less than the 2004 level mainly due to growing
domestic demand and limited output in the country.


http://www.molyseek.com/index.php?option=com_content&task=view&id=29&Itemid=28

Al the indicators Cu & Moly indicators look very strong, happy to hold :-)

Nice little tick up, just a couple of weeks now from Moly production starting on line :)

This comes from todays tip by GE&CR (www.uk-analyst.com) on their latest tip Sirius (SXX) however, the bit I am interested in is their summary on copper, so this about copper comes from their article today, and of course is relevent to Chelyabinsk :

Copper and other base metals - outlook

Sirius's core strategy is to focus upon the exploration and identification of sources of base metals. Although other junior exploration companies on AIM concentrate upon the search for high-value precious metals such as gold and silver, Sirius's regards the demand dynamics for base metals (of which copper is the most valuable) as particularly positive and a stable foundation upon which to build.
The technical and industrial advances of recent years have driven a massive expansion in the world's physical infrastructure and explain the soaring demand for commodities such as base metals (as well as precious metals, crude oil and natural gas).
Demand for base metals is being driven particularly by the growth in the so-called BRIC ( Brazil , Russia , India and China ) economies. However copper has always been fundamental to the growth of human civilization, because of specific properties that make it applicable for a wide range of domestic, industrial, and high technology applications. Copper is ductile, resists corrosion, malleable and an excellent conductor of heat and electricity. As an alloy, with other metals, such as zinc (to form brass), aluminium or tin (to form bronzes), or nickel, it acquires new characteristics for use in highly specialised applications.

The China Effect
Vast amounts have been written about China 's status as an emerging economic powerhouse. It represents a credible basis upon which to project long-term growth in demand for base metals as China has a huge and diverse manufacturing base with a large appetite for raw materials.. Previous cyclical demand peaks tracked the industrialisation of other economies such as the US , Japan and Korea , each of which experienced long periods of sustained economic growth.
China 's ongoing urbanisation is a key component of this, as it has been undergoing a huge internal migration over the last two decades, which has seen an estimated 200m people move from rural to urban settings. However the scale dwarfs the equivalent phase in the evolution of any of the other economies mentioned, has created considerable wealth and had very significant implications for base metal consumption.

Yet this process may have much further to run. In previous cycles, commodity demand has peaked when between 65% and 90% of a country's population had migrated to an urban environment. Currently, the figure for China is still estimated to be below 40%, which would suggest that at least another 300m people may migrate to urban environments. China already has over 600 cities but the infrastructure needed to fulfil that rate of growth could keep demand for raw materials under pressure for some years to come.

The rise in the urban population is also a key component of the rapid growth in China's manufacturing capability, because access to a huge supply of cheap labour enables it to transform relatively high-priced commodities into large volumes of cheap, quality manufactured goods that satisfy the world's 6.5bn global consumers. During the last commodities bull market of the 1970s the world's population was around 4bn, many located in the former communist states that did not compete as aggressively for natural resources.

Consequently supply is struggling to keep up with demand and if these dynamics are maintained, new sources of minerals, including base metals, will be needed urgently. The finite nature of that latter group of commodities has put producers under considerable pressure and although rising prices may make it more profitable to find and mine mineral resources, the time taken to identify new sources and the huge financial commitment each new project represents is a strong argument for the investment in exploration by companies such as Sirius.

Outlook

During March 2006 copper and zinc prices surged to new peaks, with some analysts expecting further rises. The projections are that demand will continue to exceed supply, and therefore drive demand for raw materials that have essential industrial and economic uses. In a recent presentation to analysts by Sirius's partner, Phelps Dodge stated that it expect copper prices to remain strong on the back of Chinese consumption, a jump in investment demand and "unprecedented" supply disruptions during 2005. Although price cycles will remain tied to the ups and downs of the economy, it commented that it expects that "demand will be quite strong over the next couple of cycles and it will be quite challenging for our industry to make sure that we find the supplies to provide for that demand growth".
Although there may be sufficient resources below ground, new sources take time to find and extract. Currently Chile produces over a third of all copper mined annually, with its two best known mines, at Escondida and Chuquicamata together producing nearly 10% of all copper mined globally. The region is however forecast to reach its peak production in 2008 and although it has plans to expand, new copper discoveries are still urgently required.

World's Top Four Copper Producers 2005e
Chile 36%
USA 8%
Indonesia 7%
Peru 7%

During 2005, the International Copper Study Group estimated suggest that global copper production was broadly in line with demand, post an estimated 4% growth in production. Its forecast for 2006 is that demand will exceed 17m metric tons and t he outlook is for market conditions to remain tight during 2006 with limited production growth and demand picking up outside of China . That environment suggests that copper prices should be supported at relatively high levels during 2006.

Up again and L2 is 4 v 2

Looks nice and blue :)

Something in the air ?? ;

We are in April!

And so we should have news soon on the first initial production of Moly :)

I bet these will be up again today.

L2 is 3 v 1 so it will not take much to start it moving I think.

Very strong, 5 MM's all moving up, and now CNKS off of 130p offer, so we could be on a good move now.

I think that news from the production line might be leaking back, has to be something like that, that all is good and we will have first production in a couple of weeks time :)

With a positive view the price could now easily double and be fairly priced for Moly production on line with price now well above 19 US$, and Chelyabinsk 100% owned, that is my opinion :)

Although the old Fox Davies report would support this view, I really want to see this new report that is due out soon, to see their summaries and milestone targets.

Cenkos now way up at 135p after the latest move, highest offer price from any MM.

Looking good.

L2 at 4 v 2, opened there and stable.

3 MM's moving up, L2 now 4 v 2 after the tick up.

CNKS well out of the way holding at lowest and highest they are 125/135.

I have had a chat with a few people, April commissioning completion is on schedule for Moly at Stepnogorsk and the pre-BFS should be complete in May for Chelyabinsk- both as previously announced, no issues so far :)

Sounds good for a leg up over the next couple of month then.

Which people did you talk to papal?

The ones in the know tallsiii :) say no more, I have no reason to question there comments.

129K T trade. Price stable after moving up earlier this week, I would guess we have some insti buying ahead of the news for April and May !! :)

Should be moving up next week too then :)

Another 105K at 128p........ :)

The expectation has to be plant commissioned and first production of Moly this month (April), then ramping up to full output in May, and along with this comes the pre-BFS for Chelyabinsk in May.

Therefore we should be hoping for news once the Moly plant is commissioned :) sometime this month :)

Nice shake down, from previous action I would say in my opinion its a collection round to shake out weak holders, and therefore later this week or next week we should start powering upwards, too much news coming in April and May, and therefore, a good buying op.

Given news coming, I would expect this to move back upwards (and more with news) after the Easter hols.

Ignoring the big pre-BFS completion news for Chelyabinsk Copper/Gold project in May, looking at the Molyken project that will start producing Moly this month, there are some upsides to the project that are not presently accounted for, in terms of copper and rhenium which might be providing some news later in 2006 after the plant is ramped up to full output in May of this year :

"Key Financials - Molybednum Poject 21st July 2005:

Payback six months

Only eight per cent. of Shorskoye reserves mined Further cash flow can be generated by increasing tonnage through plant

Molybdenum price assumed is conservative against todays price, at US$20/lb for one year and US$10/lb thereafter (current price is US$35/lb)

Further review of Copper (Cu) and Rhenium (Re) will be undertaken during production to evaluate the economic viability of their recovery "

Bullish commentary on Moly and silver....go to the link below to watch the video.


ROBTV Mon 17th April 11:13AM:
Title: Look To Industrial Metals For Superior Returns with Otto Spork, president and CEO, Sextant Capital Management

http://www.robtv.com/shows/past_archive.tv

I would not dispute the underlying promise of this company, but may i be so bold as to point fellow investors to CER (Celtic Resources) who hold a hefty chunk of EKA, as well as about 7% of VOG and also have mining rights of their own ..... IMO, CER is a good way of getting a spread across some interesting companies, notwithstanding that its sp has gained a lot of ground in the last couple of weeks.

Moving nicely today !!

L2 now 5 v 1 so we should be moving up some more I think :)

Nice strong day.

We should be getting prelims anytime soon, and that should give us the latest updates :)

From the Intermoly (IMY) results today which bodes well as Eureka has allowed for 19$ for year one starting now, and 12$ for year two, prices being above those targets means cash generation far in excess of present plans :) :


"Whilst molybdenum prices have fallen from their recent highs, they seem to have stabilised at around US$24/lb currently, reflecting strong demand from stainless steel producers and chemical users in Asia and the western world. The outlook for demand and prices in the medium term appears to be good."

http://www.321gold.com/editorials/moriarty/moriarty042006.html

Whatever happened to MolyMania?
Bob Moriarty
April 20, 2006


.....................I like moly, it's an interesting metal. Some 80% of moly mined, goes into stainless steel. The rest is used in industrial chemicals and in aerospace applications. China is the swing producer and their production determines the world price. Most moly is produced as a byproduct of copper production so the price doesn't have a major effect on supply. China has shut down hundreds of small moly mines in the last two years and since all their production goes straight to steel mills, the price of moly rocketed from $2 a pound to as high as $38 before stabilizing in the $24 range.

It's important for anyone considering the purchase of any primary moly stock to understand there is no shortage of moly properties. In fact, we know of enough moly in the ground to supply 200 years worth of moly. But there is a short term (at least short term) supply shortage. The first companies to actually get into production are the ones who are going to reap the benefit......................................

As we await the pre-BFS results on the Chelyabinsk Copper/Gold project due in May and final complete BFS due in December of this year, a recent article on Copper for info, extracts below, full article on the link :



http://www.dailyreckoning.co.uk/article/130420062.html

Keith Cotterill - Other articles
Thu 13 Apr, 2006

Investing in copper

Five-year...ten-year...20...then 25-year...now
ALL TIME highs - copper prices are literally going
nuts.

The copper bull story is quickly told and quickly grasped when you see the performance of Phelps Dodge, (one of the world's largest producers of the metal) in the past 16 months:

- Supply is down - Chiles production has slipped and new mines arent being discovered. Prospectors havent found any easy (cheap) new fields in 100
years. In short, were running low on supplies... dangerously low.

- Demand is through the roof - Copper is needed for wiring and plumbing and there is seemingly no viable substitute.

Chinas roaring economic growth is being powered by a massive build-out of the electrical grid, and this demand alone has shaken the delicate balance that
held copper below $1 a pound for decades. And I mean shaken it to the ground: at $2.30 a pound, which it has now hit, we are in uncharted territory.

Investing in copper: Indispensable uses

Though copper is neither a precious metal nor a source of energy, it boasts indispensable industrial, technological and economic uses...it's one of the
most important nonferrous commodities today.
Prices have soared in the last four years with all-time highs being achieved this week. Those companies that produce and sell copper have watched their
revenues and profits skyrocket in this time, and have consequentially provided their shareholders with very handsome gains.
In the 1980s and 1990s commodities were beaten and battered. Inventories were full, mines and drills were shut down left, right and centre, and for all
consumption purposes, commodities were cheap and easy to get. Aside from the occasional bear-market rally, from an investors standpoint commodities were the dogs of the markets.
Well, how times have changed...The global economy is growing at a fast and furious pace led by the super-economies of China and India.

Investing in copper: Supply and demand
Commodities that were once undervalued are now starting to rise in price due to the simple economic imbalance of supply and demand. Industrial
development and growth in manufacturing and high technology have kicked up demand for the various natural resources used in their production causing
global inventories to sharply decline as they struggle to keep up with this new-found demand.

Copper falls comfortably into this cycle and Chinas voracious appetite for this metal has almost single-handedly emptied warehouses, drastically decreasing worldwide stock levels.
Look what happened in July of last year...copper stocks at the London Metals Exchange (LME) hit 31-year lows of 25,550 tonnes...the equivalent of less
than two days of global consumption. The hundreds of warehouses around the world, most commissioned and approved by the major metal exchanges (LME, COMEX, SHFE) have seen their inventories hit dangerously low levels.
According to Zeal.com, Chinas demand for copper has hit such extremes that in 2002 it created a large state-owned enterprise to exploit the international
development of nonferrous metals, mainly copper. The firm is called China Nonferrous Metal Mining & Construction Co., Ltd. (CNMC). Nearly four years
later CNMC has operations in over 30 different countries and is aggressively feeding its smelters back home.

Investing in copper: "...exploit overseas mineral resources"

Upon CNMCs creation, Zhang Jian, general manager of China Nonferrous Metal Industrys Foreign Engineering and Construction Group Company (CNFC) said, "It is of strategic significance to Chinas economic development to set up a long-term and stable overseas mineral resources supply base. However many domestic
small-scale nonferrous companies are incapable of solely tapping mines abroad. The only way is to jointly exploit overseas mineral resources."
With China as well as many other growing economies drawing down global inventories, it becomes clear why copper prices are on the rise and why we are
currently facing a global copper deficit.

Investing in copper: How to play the bull run
So how do you play this bull-run in copper?
First and most important, just like any other metal pulled from the ground, copper is dependent on miners to ultimately provide the supply.
To keep up with today and tomorrow's copper demand, mined output will need to increase.
Sounds simple...but as with all metals, ramping up production and opening up new mines requires significant time and capital. And I reckon it's
during that time, or cycle, that investors have the opportunity to take advantage of rising prices.
The USA's Copper Development Association (CDA)estimates that global copper resources are nearly 6 trillion pounds. The CDA also estimates that
throughout history only 700 billion pounds of copper have been mined.
These massive reserves coupled with coppers high recycle rate show we have no imminent risk of ever running out of the stuff. So for copper it is not an
issue of rarity or store of value, rather a matter of ramping up supply to meet demand. And just like all commodities, until this happens, market forces will adjust the prices accordingly in the upwards direction and give investors the opportunity to go long and profit...
And that's exactly what traders are doing today explains Keith Cotterill.......................More on the original link to the article......

....................................Investing in copper: "...the opportunity for legendary gains"

The bottom line is that the reddish metal we call copper continues to show future promise in this exciting secular bull market. Global inventories are
down and demand is up as the world economy grows.

Whereas in the 1980s and 1990s commodities producers, including copper, were the black plague of stock investing...todays commodities bull presents the
opportunity for legendary gains to investors and speculators.

Buying pressure is building up now 5 v 1 @ 124/128 ready for news next week then.....

Checked now Prelim Results between 2nd and 4th of May, most likely the 2nd.

So a few extra days to wait before news :)

following this morning's very long article in Sunday Times, there is likely to be a rush for uranium mining shares on the morrow ...... Summit, an Oz share, got a big mention, but I don't know if that is traded on LSE (I think not), but EKA and similar will no doubt be hanging on to the coattails ...... However, as a better spread of risk and mining areas and commdodities, strongly suggest looking at CER (Celtic Resources) who own 22% of EKA.

My only real misgivings about CER is that they have already moved quite substantially over the last 2/3 weeks.

Starting to move now.

Results due next Tuesday after the bank holiday, where we should get the news that the Moly plant is on line and producing, along with updates on all the other stuff.

Then not long to wait (early June) for the pre BFS news, as pre BFS due to be complete by end of May.

http://news.bbc.co.uk/1/hi/business/4937622.stm

Monday, 24 April 2006, 06:44 GMT 07:44 UK

Copper price nears $7,000 a tonne

Demand in China has boosted copper prices

The price of copper has risen to nearly $7,000 a tonne on the back of strong demand and worries over supply. Copper was up $110 on Friday's close to $6,940 a tonne in early Monday trade.

The rise in metal prices, including copper which is used in construction and electronics, has been prompted by growing demand from developing nations.

Copper prices also rose following concerns that supplies could be disrupted by strike action in mines in Mexico and Chile.

Strong demand from China, combined with a lack of investment in new mining projects, has caused surge in commodity prices.

The rise in copper follows peaks in recent weeks in silver, gold and other metals.

"The evidence is the underlying trend is very strong" said Peter Richardson, chief metals economist at Deutsche Bank. "All metals are becoming precious," he added.

The price of copper has risen by 57% this year and has increased nearly five-fold from when it was under $1,400 a tonne in November 2001.

The rise in commodities has prompted investment banks to launch many new funds that specialise exclusively in metals and oil.

Shanghai copper futures hit a record high, with May contracts hitting $7,794 a tonne.

Ticked up a little again, prelims next Tuesday its said.

Couple of MM buys in the afternoon, looks nicely primed for a solid move upwards on a sniff of good news. Also looks good for Chely/Copper outlook from this post by unionhall :



unionhall - 25 Apr'06 - 16:49 - 396 of 399

By Nick Trevethan
LONDON (Reuters) - Copper extended its record-breaking rally on Tuesday, supported by threats to supply and strong demand, and the trend may extend into the long term, analysts said.

"I think we are still in the early stages of the bull trend in copper. We have years of strong prices ahead of us," Barclays Capital analyst Ingrid Sternby said.

"In this uncharted territory, I would look for round numbers. With inventories where they are, prices can spiral higher very quickly. The fundamentals are very compelling."

Three-month copper futures on the London Metal Exchange (LME) hit a record $7,045 a tonne on Tuesday, climbing more than three percent from Monday.

Stocks of the key industrial metal in LME-bonded warehouses were 117,450 tonnes on Tuesday, equivalent to about 2-1/2 days of global consumption. Inventories have fallen from almost 1 million tonnes in April 2002.

"Copper is going to continue up. Supporting that is the latest Ifo business survey and comments from Caterpillar who see many years of strong growth ahead," Sternby said.

Germany's Ifo April business sentiment index unexpectedly rose to a fresh 15-year high of 105.9 from 105.4 in March.

Caterpillar Inc.'s chief financial officer said on Monday he believed the machinery maker had several more years of strong growth ahead.

"This cycle has legs," he said. "We don't think people understand how strong things are...Virtually everywhere on the planet, things look good."

DEMAND STRONG

Net imports of the copper by China, which consumes a fifth of the world's production, rose to 39,760 tonnes in March from a net 32,825 tonnes in February despite increased exports attributed to the State Reserve Bureau.

As a result copper prices would remain high.

The Chilean Copper Commission on Monday raised its forecast for the average 2006 copper price to a range of $2.60-$2.64/lb from its previous forecast of $1.72-$1.76/lb.

Sentiment was also supported by industrial unrest in Mexico, Chile and Canada.

"Copper will continue to go higher. We could see $200-300 on the downside, but the trend is up and I can't see where any real weakness will come from," an LME trader said

http://www.resourceinvestor.com/pebble.asp?relid=19141

By Jack Lifton
25 Apr 2006 at 05:08 PM EDT


.................................Molybdenum

Since I last wrote about molybdenum there has been some significant movement in the American domestic market to re-open past producers and to develop new mines, because the global market is in a basic undersupply condition.

I said in my earlier article that considering all of the factors involved, the price of molybdenum would not go higher and would probably drop, as additional concentrates get refined in reopened capacity in the near term. I did not take into account the substantial increase in the demand for oil, Chinese resource shortages and the real possibility of U.S. dollar devaluation.

Phelps Dodge [NYSE:PD] has taken these factors into account and has just (April 6, 2006) announced the reopening of the old Climax Molybdenum Mine in the Leadville, Colorado, area. This is a dramatic vote by Phelps Dodge in the future value of molybdenum, because Colorado is one of the three most difficult places in the world to get an environmental permit to remove anything from the ground or process it above ground.

Phelps Dodge has committed up to $250 million to bring the Climax mine back into production beginning in late 2009 or early 2010. The mine when back to full operation is projected to produce 30 million pounds of Mo per year at an estimated cost of $4.00 (2006 U.S. dollars per pound). PD estimates that the value of this output will be, in constant 2006 dollars, $750 million per year. They are clearly putting their money where their mouths are.

The gold price rush now occurring is another factor increasing the supply of molybdenum in the U.S. Past producing gold mines are being brought into operation, as fast as environmental permitting will allow throughout the U.S. west.

Many of them produced molybdenum as a by-product that was ignored when, as recently as six years ago it was worth only $3.50 per pound. Last June, 2005, molybdenum touched $50 per pound; it has since settled at about half of that, but I think that we will not see any further decreases as long as the economies of Asia and India are growing.

Note also that Phelps Dodge has historically been a receptive toll producer for other companies, so some other gold miners with molybdenum by-products will not have to construct their own smelters. This will make permitting much easier for them.

Conclusion

Finally, since major mining companies today use juniors as their prospecting arms, keep your eyes open for reports of tungsten, molybdenum, vanadium and chromium, along with gold and platinum group metals reported and hyped by the juniors.

And if you must follow a trend let it be the trend to invest in natural resources outside of the United States other than gold and platinum. Maybe, just maybe, commodity and minor metals will be the new global currency.

I would expect an update from the IC after the prelims next week, they have EKA as a buy tip a couple of months or so back, and will be wanting to give a decent Skorshoye announcement in the prelims maximum coverage.

Therefore, with added potential for mid May IC coverage, then June pre BFS news, plus June IC update, then December final BFS complete for Chelyabinsk, you see a lovely stream of events coming this year !! :)

Playing with T reporting and delayed reporting it looks like, anyway, looks to me only just over 4K sells so far, they are trying to make it look like more, as short of stock :) I think so.

L2 presently 4 v 2 and still all blue :)

Up again and looking strong :)

.

Mining sector weakness on the China tiny interest rate move dropped the price yesterday afternoon, looks like another good buying chance, would expect all miners to have a strong end of day Friday/Tuesday.

Looks like it is the 2nd of May, so roll on Tuesday for a news update.


Tuesday 2 May
UK RESULTS: : (final) Epic Reconstruction, Eureka Mining; (interim) Aberdeen Asset Management, CSR, Formation

Wednesday 3 May
UK RESULTS: (F) Babcock International, Matalan; (I) easyJet, Tomkins, BG Group, British Sky Broadcasting, British American Tobacco, Numis, Surfcontrol

Thursday 4 May
UK RESULTS: (F) Blacks Leisure, iTrain; (I) Imperial Chemical Industries, Lonmin, Royal Dutch Shell, Sanderson

Friday 5 May
UK RESULTS: (F) Body Shop International, NWD

Fingers crossed for good news today, time to start the re-rating process if it is :)

Moly production on line, and Chelyabinsk 100% owned, where does that put us with the target prices...

http://www.fox-davies.com/FDC_Eureka_Report_220605.pdf

O/T If you want a forgotten miner, one who is profitable at 7000$ tin (excluding Saphires and small gold amounts), one who will be going into production in the summer, with agreements in place for the tin already for 6 years, and where the tin price is now over 9000$ then look at VDM.

350K X trade today, looks like its time for VDM to wake up ahead of the summer start of mining :) Maybe................

I am assured the results will be released tomorrow morning :)

Early start to the day then ;)

Well I am ready, where are they ? Have I got to wait until 7 or 8 ? ;)

Link to the full article : http://www.investegate.co.uk/Article.aspx?id=200605030700293186C


Good news, we are producing Moly concentrates now :)



3 May 2006 Eureka Mining Plc
Preliminary results

Financial Highlights

Net assets of approximately US$46 million
Successful 9 million placing with institutional investors of 7.2 million
shares issued at 125p per share in September 2005.
Appointment of Barclays Capital in July 2005 to act as financial advisors
to assist with the Chelyabinsk Copper Project.
As the Company is still in the exploration and development phase, 2005 had
an operating loss of US$2.7 million of which US$1.6 million was exchange
losses

Kazakhstan

50/50 Joint Venture signed with the Kazakhstan State uranium company,
KazAtomProm. KazAtomProm has contributed existing processing plant capacity
and infrastructure, substantially reducing capital costs and enabling fast
track development of project.
Mining at Shorskoye has commenced, with the average grade for the first
three years expected to be 0.2% molybdenum; equivalent to 2-3% copper at
current prices.
First concentrates at Stepnogorsk plant produced during current
commissioning, with Eureka's share of production in 2006 estimated at
600,000lbs of molybdenum.

Russia

In January 2005, we announced the 51% acquisition of the Urals based Chelyabinsk Copper/Gold project in Southern Russia. All the conditions to acquire the remaining 49% were substantially met prior to year end, and the acquisition has now been completed.

Scoping studies on the larger Miheevskoye deposit carried out by St. Barbara
Consultancy Services indicate a robust project, with the following highlights:

NPV(10%) of US$257m and IRR of 23.6% @ US$1.00/lb copper and $400/oz gold.
Mine cash operating cost of US$0.39c/lb copper before credits.
Capital cost estimated at US$342m for 26 Mt per annum concentrator.
High grade starter pit of 45 Mt of ore, with greater than 0.7% copper
equivalent which can be mined in the initial years based on a copper price
of US$0.90c/lb and a gold price of US$425/oz.
Mining strip ratio low at 0.35:1 waste: ore.
Metallurgical test work positive, concentrate grades of 24-25% copper and
9g/t gold.
First production anticipated in late 2008.

The Company would also like to thank David Bartley for all his work at Eureka
and we wish him a speedy recovery. Jonathan Scott-Barrett, who took over as CEO earlier this year, is now building on David's work and actively developing the Company's assets.

Accompanying this highlights page, please find the Chairman's statement, Chief
Executive Officer's report and financial results as extracted from the Company's annual report and accounts, which will be distributed to shareholders on 12 May and available shortly thereafter on our website.

Looking forward

Eureka has set the key operational targets outlined for 2006. We are working
hard on these tasks and look forward to keeping our shareholders informed of our
progress towards these objectives.

Operational targets for 2006:

Full production of the molybdenum concentrate by the plant at Stepnogorsk,
which takes Eureka from exploration into revenue generation.

Complete the Definitive Feasibility Study at Chelyabinsk by Q1 2007 and
then, working with our financial partners, raise the project finance to
enable production to commence in late 2008

Continue exploration in Russia and the FSU to identify new mining
opportunities.

Raise additional funds as appropriate.

In summary, I feel that Eureka Mining is poised to become a profitable
molybdenum producer, is actively developing the large Miheevskoye copper/gold
deposit and is ready to take advantage of the buoyant metal prices we are
enjoying by further acquisitions. Moreover, our field of expertise, the FSU, is
the most exciting of all new regions in mining developments, because of the vast potential and the undeveloped riches that are present. We are relishing the challenge and are determined for success.

Jonathan Scott-Barrett
Chief Executive Officer

At present price of 24.5$ then Eureka's share of 2006 Moly production will be 600,000 lbs and this equates to gross sales of 14.7 Million dollars in 2006.

The EKA price is very cheap in my opinion for a Moly producer now !! :)

03/05 09:23 - Eureka Mining FY Pretax Loss $2.394M; Targets Buys -2-

Edited Press Release


Eureka Mining said Wednesday it has made "outstanding progress" on its key objectives since its flotation.

The group said: "Our special expertise is operating in the former Soviet Union, or FSU, and with the abundant resources base in this huge area and with metal markets enjoying buoyant times, we feel we are in the right place, at the right time, with the right team."

The group said its objectives met included developing a mining company focused on assets based in Kazakhstan and the surrounding regions of the FSU, acquiring additional assets which represent realistic commercial ventures for Eureka and allocating resources to achieve maximum value for the company.

Eureka said it is poised to become a profitable molybdenum producer and is actively developing the large Miheevskoye copper/gold deposit. The company added it is ready to take advantage of the buoyant metal prices with further acquisitions.

The group said its 50/50 joint venture signed with the Kazakhstan State uranium company, KazAtomProm, has contributed existing processing plant capacity and infrastructure, substantially reducing capital costs and enabling fast track development of project.

The company said mining at Shorskoye has commenced, with the average grade for the first three years expected to be 0.2% molybdenum; equivalent to 2-3% copper at current prices.

Eureka said that first concentrates at Stepnogorsk plant produced during current commissioning, with the groups share of production in 2006 estimated at 600,000lbs of molybdenum. The company added that scoping studies on the larger Miheevskoye deposit carried out by St. Barbara Consultancy Services indicate a robust project, with first production anticipated in late 2008.

Eureka said that during 2005 it raised GBP9.0 million and expect to seek further funds this summer to continue its development and exploitation of the Chelyabinsk project.

Mining operations at the Shorskoye project are well underway to ensure adequate stockpiles are ready for processing, the company added.

Eureka said the Dostyk Copper/Gold project in central Kazakhstan is still being reviewed and the six best drill targets, focused mainly on base metal projects, have been identified. The results are being evaluated and decisions will be taken regarding further activities once the results are known.

At the Chelyabinsk Copper/Gold Projec, the company said Wardrop Engineers, an independent Canadian mining and engineering consultancy, is conducting a pre-feasibility study due for completion in the second quarter of 2006. Subject to satisfactory results of this study, the Company will proceed to a Definitive Feasibility Study which will be due in early 2007.


(END) Dow Jones Newswires

From todays Daily Mail and with Cenkos recently appointed for EKA, could be good news for Eureka :

"COINCIDENCE'? Maybe. Only 24 hours after broker and investment bank Evolution revealed it has entered into exclusive talks with Dutch bank ING; to buy stockbroker Williams de Broe, its top small-cap sales team led by Jeremy Warner-Allen resigns to join Cenkos Securities, the specialist broking firm set up by Andy Stewart, the racehorse enthusiast who founded Collins Stewart."

http://www.basemetals.com/ReportItem.aspx?Code=XWilliamX


05/05/2006 12:00:00
Copper pulls the other metals higher, there seems no stopping it at the moment

BaseMetals.com Report

Copper prices advanced further on Thursday as concerns rose about the fundamental situation copper is in, with more talk that the supply deficit may extend into 2007 or possibly even 2008 as strikes and production difficulties continue to ravish the market. In addition there seems to be a fairly broad based rise in nationalistic protests against the mining industry, which has affected copper, nickel, Indonesia, New Caledonia, Peru and is now a potential worrying in Bolivia. Which ever way you look at the market it seems that all the news is stacked up on the side of the bulls. Indeed it is difficult to see just what is capable of derailing this runaway train. Obviously it could be something as simple as funds deciding to take profits, but who knows when they will decide to do this?

The other metals started to follow copper higher yesterday, but initially they seemed to follow reluctantly, but as copper failed to retreat the buying in the other metals gained upward momentum with aluminium and zinc hitting fresh highs and nickel moving back towards the $20,000 level. Even lead is hammering on the top line of its sideways channel and may now have enough incentive to break higher.

This new found strength in the metals once again should act as a strong reminder that there is little point trying to pick the top of the market, but you should have your contingency plan ready and in place. At some stage before too long the acceleration is likely to grind to a sudden halt, stall and then collapse, but it could go higher still in the short term.

- ends -

For further information please contact:

William Adams
Metals analyst, BaseMetals.com
press@basemetals.com
http://www.basemetals.com

BaseMetals.com
12 Camomile Street
London EC3A 7PT
UK

T: +44 (0) 20 7929 6339
F: +44 (0) 20 7929 2369

Very undervalued in my opinion, lets see where June/July events takes us :

At present Moly prices : (Shorskoye Project)

2006 Moly production = 600,000 lbs = 14.7 million dollars sales price
2007 Moly production = 1,200,000 lbs = 29.4 million dollars sales price
2008 Moly production = 1,200,000 lbs = 29.4 million dollars sales price
2009 Moly production = 1,200,000 lbs = 29.4 million dollars sales price
2010 etc etc etc
___________________________________________________________

At present Copper/Gold prices : (Chelyabinsk Project)

2008 Copper production = Starting late 2008......

Chelyabinsk NPV of over 1 billion pounds.

While i have nothing at all against EKA per se, would it not be preferable to invest in CER which owns 22% of EKA? ..... CER also has other very good holdings inc 7% VOG and prospects ..... and that is despite being rather forced to take an 80m settlement to settle a gold mine dispute in Khazakstan (or similar) and walk away from same.

Why would it be better ? What are the risks ? I would say given a simple and very undervalued play that EKA is, with minimal risks, its better to be more in EKA and less in CER !!!!

I happen not to agree ...... Unfortunately I sold my CER a few weeks ago, since which time it has gone from about 250 to 320 (from memory) ...... I suppose you could argue that EKA has fallen from about 140 to 120 in the same period and is therefore undervalued ...... However, (a) the prelim results on 3/5 clearly failed to excite, (b) average trading volumes are very small (+/-80k) and (c) NMS is only 2000 shares, all of which indicates poor liquidity.

Poor liquidity does not detract from an undervalued play, it is an opportune moment to add to a long term holding. With Moly production underway, and with the pre-DFS to be complete soon andwith potential for upgrades to the Copper/Gold resource at Chelyabinsk, I would say its all to play for :)

Can be in a major prob with low liquidity if commodity prices and thus other shares are badly affected .... knowck on effect may be inability to liquidate your own postion here should you want or need to.

Comment on last week's news:

http://uk.biz.yahoo.com/03052006/214/eureka-dips-despite-meeting-targets.html

=============================================================

Eureka dips despite meeting targets

LONDON (ShareCast) - Eureka Mining (LSE: EKA.L - news) , focused on assets based in Kazakhstan and the surrounding regions of the former Soviet Advertisement Union, slipped back today despite meeting all its targets for 2005.
First concentrates at its Stepnogorsk plant in Kazakhstan produced during current commissioning, with Eureka's share of production in 2006 estimated at 600,000lbs of molybdenum.
Scoping studies on the Russian Miheevskoye deposit, the largest of the Chelyabinsk deposits, indicate a robust project, with first production expected in late 2008, it said.
Chairman Kevin Foo said, "I believe 2006 will be another exciting year. The Shorskoye molybdenum project should generate cash, although initially this will retire local bank project finance, following our decision to 'fast track' this project to take advantage of the high molybdenum prices."
"We also expect to complete the pre-feasibility study of the Chelyabinsk copper/gold project in Russia and to start work on the definitive feasibility study of this project which should be available in early 2007."
"We are developing our existing assets to provide cash and targeting further acquisitions in base metal and gold projects to participate actively in the current resources boom," he added.
Broker Ambrian said the re-calculation of the Miheevskoye resource to JORC measured and indicated resource categories is one of the key objectives for 2006.
The scoping study envisages processing 20m tonnes per annum of ore for 100,000 tonnes of copper in concentrate.
At a capital cost of $342m, the company's consultants estimate a project NPV (10%) of $257m at $1/lb copper and $400/oz gold.
"With an expected flow of news during the year, we re-iterate our previous target valuation of 175p/share," it said.

A few buyers coming back today, up on the bid and offer a penny.

Few more buyers must be back, L2 up this morning, now 2 v 1 @ 120/123

12th May 06 from the IC on Copper : (Free content)

http://www.investorschronicle.co.uk/content/free/2006/News/news_20060512_4.html


Soaring copper prices set to boost base-metals market


Metals consultancy Bloomsbury Minerals Economics has taken a contrarian view on the copper market, with real upside implications for base-metals stocks. The red metal continues to confound expectations, with the three-month future on the London Metals Exchange up 80 per cent this year, and just breaching a fresh record at 8,000 a tonne. But the consensus view, according to the much-respected International Copper Study Group (ICSG), is that the market will move into surplus in the second half of 2006, with a subsequent cooling of prices. This view has been echoed in the media recently, with widespread stories in national newspapers about a speculator-blown bubble distorting the underlying fundamentals of the market.

However, while Bloomsbury says that it has a broadly similar demand growth estimate to that assumed by the ICSG, it believes that the latter has underestimated the baseline consumption for last year on which this growth will build. And the resulting divergence in calculations is such that Bloomsbury does not see a surplus emerging until the middle of next year. Until then, there will be ongoing deficits, resulting in further price spikes, although in absolute terms neither may match current levels. The difference is important because much of the analyst community pays attention to the ICSG, and will have formed their outlook accordingly. If Bloomsbury is right, though, the wild ride on copper isn't drawing to a close any time soon.

Nice buy today :)

News today, RNS about drilling update, here is a little bit of the news ;

" These Results are expected to enhance the resource size, with an
update planned for June 2006.

Since the original resource estimate and mining study was completed, Eureka has
conducted a major drilling programme with the objective of upgrading the Russian
category resource to JORC compliant Measured and Indicated Mineral Resources.
These results will form the basis of an updated resource estimate scheduled to
be issued in June, followed by pre-feasibility study results scheduled for early
July. It is anticipated that this will provide a bankable resource statement for
the Definitive Feasibility Study, due in early 2007.

Jonathan Scott-Barrett, CEO of Eureka Mining said, 'We have completed a
comprehensive drilling campaign of more than 23,000m to confirm assays, geology
and resources potential and so far the results have exceeded our expectations.
We have a substantial Copper Porphyry Deposit on our hands and we are looking
forward to the next phase of development at Miheevskoye and increasing our
understanding and size of the deposit.'"

Some good information on copper in this BHP May 2006 presentation :

Link Click Here

http://the-infoshop.com/study/ros36458-molybdenum.html

The Economics of Molybdenum
Pub Time: 2006/03

Abstract

This report provides up-to-date market analysis of resources, production, consumption, end-use market trends, international trade and prices.

This report offers in-depth, independent analysis of the current and future supply, demand from end-use markets, and the implications these developments are likely to have on prices in the future, including:

Continued strong growth in Chinese demand for molybdenum is expected as stainless steel production capacity is scheduled to double by the end of 2006.

There may be a decline in Chinese supplies to the West (maybe to zero) as Chinese demand increases and its production either plateaus or even declines because of restructuring of the domestic mining industry.

Molybdenum production in the USA, Chile and Peru was able to increase rapidly in 2004 and 2005, mainly by employing unused capacity to meet increased demand. This is unlikely to continue, and new projects may take some time to come into production.

There could be a period in 2006/07 of very tight supply, if demand continues to rise....

Highly corrosion resistant molybdenum-bearing stainless steel appears to be gaining ground on other types of stainless steel. Consequently, growth rates for molybdenum demand could be higher than those for stainless steel market as a whole.

Although the price of molybdenum eased slightly through late 2005 and early 2006, it could be expected to rise again through 2006."

Moly price going up again.... :)

Molybdenum Oxide
57%min FOB China
25.3-26.3 USD/lb Mo

Small volume, big fall..........what does that say ;)


Anyway, looks like UBS are turning back to bullish on mining, well at least on copper, from digitallook.com


Broker tips: Antofagasta, C&W, Yell, British Energy, Cadbury

Chilean copper miner Antofagasta has been upped to buy from neutral at UBS as part of a wider note on the mining sector.

The Swiss broker noted that the miner has fallen some 23% in the last three weeks, as it raised commodity price forecasts and EPS estimates. UBS added that the likelihood of further M&A action has increased.

Credit Suisse applauded Cable & Wireless managements new business plan as it upgraded th e shares to outperform from neutral.

The telecoms firm argued that the companys UK operations remain key to its valuation, adding that the balance of risk is on the upside. Credit Suisse upped its price target to 116p from 100p.

Directories group Yell Group offers a better discount to concerns over regulatory and acquisition issues, said SG Securities, following its recent weakness.

It tells you that with Bogeyman Inflation now rearing his head, albeit in an historically modest way, there is a fear that US economy will shrink and thus worldwide demand for hard commodities.

I have been calling copper over-valued for a few weeks, though I did not have the courage of my convictions ...... You will very strong nerves and deep pockets to start buying mining issues for the time-being

Bargain hunters coming back.

And more.......

Strangely quiet on this thread when the price is rising upwards ;) LOL :)

I said at those lovely 80p prices that some buys there would pay back very well, and now is just the start, hold on and watch what unfolds with Chelyabinsk :)

We are a producer now on Eureka, with Moly production at very nice prices as well :)

Well, lets see if we can continue the recovery uptrend on Eureka, today will be difficult as the markets might be down today, however they should pick up from Wednesday onwards :)

We are still waiting for the updates on drilling at Chelyabinsk.........resource upgrade etc...

Good read on the link below :

19 June 2006 Eureka Mining project to double Chelyabinsk gold output

http://metalsplace.com/metalsnews/?a=5644

This one is as undervalued as it's ever been. Looking forward to the Chelyabinsk resource upgrade due this month. It will probably be next month now as most things seem to come late with this company.

The closer we get to 2008 and production, the more valuable the resource becomes.

Moly price is rising on the chart as well !

But no one has any idea what moly price will be at end 2006 let alone some time in 2008! ..... While it is true that the long term trend for hard commodities is still rising, all sorts of things can upset this

cynic, EKA are producing Moly NOW............this is why EKA is so undervalued.

In 2008 comes the additional copper/gold from Chelyabinsk in Russia, but as of now EKA is a producer of Moly with shipping of the first consignment due July :)

I think you have not researched EKA fully :)

You're right! I haven't researched thios company at all ..... just saw mention that production was starting in 2008 and, having failed to read properly, assumed it was for moly; hence my comment ..... in fact, there are a lot of top quality mining shares that are now probably (relatively) badly undervalued, but the market is very dangerous and unpredictable at the moment.

PP, where did you read about the shipping of the first consignment in July?

Another posters comments, it also ties in with the plans...........so no reason to doubt at the moment.

It is good to see the main man buying some :) and buying EKA and not VOG ;)

RNS Number:2257F
Eureka Mining PLC
27 June 2006
Eureka Mining Plc
Directors' dealings and significant shareholding

Eureka Mining Plc ("Eureka") was informed on 23 June 2006 that Kevin Foo, a
director of Eureka, had purchased ordinary shares of 1 penny each ("Shares") in
the share capital of Eureka in the market as follows:

Kevin Foo

5,000 on 21 June 2006 at 81p
18,000 on 21 June 2006 90.3p
9,000 on 22 June 2006 92p

At the date of this announcement Kevin Foo is beneficially interested in 911,192 Shares (3.43 per cent. of the currently issued Shares).

www.eurekamining.co.uk

Two large T buys today (shown in the sell column as delayed). With Kevin Foo buying recently and now these large buys, it might signal some kind of agreement made on progressing Chelyabinsk.

Cannot see any news in the next few weeks, as Director purchases have happened, but late summer we are overdue news on the Chelyabinsk drill results and possible resource upgrade. However if they are presently negotiating something on Chelyabinsk they may withhold the drill results until such time as a potential agreement is made.

L2 moving up, now 3 v 1 @90/93 so its keeping going :)

I think people can see why Kevin Foo purchased EKA and not VOG now ;)

New updated website now on line, with plenty of information :

http://www.eurekamining.co.uk/

http://www.alacrastore.com/storecontent/markintel/50018533

Click on "Purchase by Section" and then "Starting Page 9" puts some meat on to the bone for the rumour of no placing, but a Russian partner coming in to develop Chelyabinsk. Might explain why Foo was buying stock, and why there has been no placing :)

The new June 2006 presentation goes into plenty of detail (link below, its a 10 MB Powerpoint file).

http://tinyurl.com/klpf8


Also clears up the Major Shareholders, who presently are :

Shares in issue 26.5m Total

Major shareholders

Celtic Resources ----- 14.2%
JP Morgan funds ----- 8.4%
EKA Management ----- 8.3%
Hendersons ----- 3.9%
Rathbones ----- 3.8%
Gartmore ----- 3.5%

A good summary post from a poster at AFN :


novicedave - 21 Jul'06 - 13:11 - 810 of 815


A few of my notes, and my rationale for adding 2.5k shares just now (not yet reported, oddly).

Chelyabinsk, Kentau and Dostyk have had $22.7m spent on mineral exploration between them. Shorskoye, rather than being capitalised as an intangible asset is classed as an investment due to the 50:50 JV structure (EKA do not have a controlling interest so rather than a subsidiary the JV is classed as an associated company); its value (that is, the acquisition and exploration costs for EKAs share of the JV) is reported at $16.9m. The company also has tax losses worth $850,000 which can be considered as an asset. Thus, a simplistic valuation would be $40.45m (or £21.9m, a share price of 83p). This is now my limit buying price, i'll keep adding whenever i have profits from elsewhere up to a limit i have set myself for small punts like EKA.

Dostyk and Kentau, in my opinion, are of virtually no potential value to EKA at the moment, they are 5+ years away from production and so should only be considered as potential for the future (beyond that provided by Shorskoye and Chekyabinsk).

Chelyabinsk, on the other hand, is well progressed as an exploration licence. The economic scoping study (using low metals prices of $1/lb copper and $400/oz gold) suggested an NPV (10%) to Eureka of $257m back in February (so $266m currently), assuming a late 2008 start. I have gone through the numbers and they are conservative enough for me (which is saying something). This valuation would, of course, ignore the remaining risks which will have to be negotiated to get the project to production, as well as the dilution which will be necessary pre-construction (i.e: this summers rights issue). To account for this I assign a risk-discount for each of the remaining components which will lead to production (Bankable resource, due now, 10%; pre-feasibility, now, 10%; BFS, Q107, 25%; Financing and construction contracts, Q207, 30%; Construction, sales contracts and commissioning, Q408, 35%), so for me a fair valuation right now for Chelyabinsk would be $71m.

As for the dilution, the maximum (without an EGM) has been set by the company at 25% of the current issued share capital. This should be plenty to progress to BFS at Chelyabinsk.

Shorskoye was producing first concentrates from commissioning on the second of May this year, leaving only two remaining risks (the completion of commissioning and sales contracts), which I will discount for at 25%. There have been significant changes to the project since the Fox-Davies report last June, so I did a simplistic 3-year 10% NPV valuation myself (assuming moly prices $20 this year, $15 next, $12 next, sub-economic thereafter) which came to $22.1m, giving a fair current valuation of $16.6m.

So, for me, a fair valuation for Eureka at the moment would be $105.6m (£57m). Assuming the dilution is 25% when funds are required later this summer that would give a fair share price of £1.72. Thats a potential reward of 135% over todays buy price, even before the company progresses its projects further!

There is no news in the public domain which would explain the disparity between the share price and a fair valuation, and judging by the volume on which the price has been going down there is no information circulating privately which is causing people to sell. In addition to this the directors hold over 2.5m shares between them and have not sold any (or at least have not informed the market of any sales). Im reasonably confident, therefore, that there is nothing amiss (bar the usual delays as with any miner); with the impending ramp-up of news-flow (pre-FS and JORC for Chelyabinsk, sales agreements and completion of commissioning at Shorskoye are overdue) I consider the current price a good opportunity to open some positions.

NOVICEDave

A good post from AFN :

unionhall - 23 Jul'06 - 09:42 - 816


Shouldn't have any problem negotiating sales contracts....


From Gold World Friday, July 21...
A Hungry China Set to Gobble More Moly
By Steve Christ


BALTIMORE, MD -- China is still hungry. Go figure. After all, this is the same nation that continues to build the city equivalent of a Philadelphia...every single month!

It seems like no matter how much the world markets put on its plate, it is never enough. This fact is never more apparent than in the steel market where the dragon seems to be completely unquenchable.

Recently released Chinese GDP figures only underscore this fact.

On Tuesday the National Bureau of Statistics released a figure that even took some China watchers by surprise. Amazingly, China's second quarter growth had surged at the fastest rate of any quarter in a decade despite official efforts to slow the pace of growth by curbing investment.

On an annualized basis, this equated to a stunning annualized growth rate of 11.3%.

Naturally, this type of growth requires enormous amounts of commodities. And none of these is more important than steel.

Simply put, China needs steel in the same way that its babies need rice. Without it they would simply wither away. I know this because I recently talked to my publisher Brian Hicks, whose wife is Chinese.

He said his 3-year old daughter can eat 3-times the amount of rice than he can.

And to feed Chinese economy it takes lots and lots of steel. All types of steel that you can imagine. Its massive trade surplus couldn't be built or maintained without it. Without steel China would wither.

Because of this it is no secret that China has entered into tens of billions of dollars worth of iron ore contracts to maintain their mills.

This is where Molybdenum comes in. In fact "moly" and steel are joined at the hip.

This is because without Moly the production of certain grades of steel becomes impossible. Used as an alloy in the steel making process it lends both strength and corrosion resistance to the finished product. As such over 2/3 of all moly is used in the production of these steel alloys.

Needless to say these are important qualities. In fact, these types of steel are crucial to water distribution systems, chemical processing systems, automotive parts, construction equipment, gas and oil pipelines and off shore rigs.

In fact without these moly-laden steels offshore drilling would be exceedingly difficult. Not only is high molybdenum steel used as a hardener in drill stems, but an incredible 27% of all off shore rigs are built with stainless steel containing moly.

And in today's world one thing is for sure- we can't get enough of these rigs.

These and other factors have combined to propel moly to new heights. The chart below illustrates this fact as moly prices have soared beginning in Sept 02. Since then, moly increased an incredible 800% in late 05 and has since pulled back to a $26.25/lb for an overall gain of over 500%.


These price levels naturally are the result of supply and demand imbalance in the market.

These imbalances will certain continue well into the future as China continues to gobble up more and more moly.

In fact, recently released figures have projected that China's domestic consumption of molybdenum is set to increase 20% this year as strong demand from steel plants is continuing amid tight domestic moly supplies.

These tight supplies have been further deepened by increased stainless steel production in Japan. Japanese stainless production is up 7.75% year over year. As a result, Japan imported 214mt of roasted molybdenum concentrates and ores from China in May 2006, an increase of 29% year over year.

This is creating tighter and tighter markets. And tight market mean one thing-big profits.

30K sell knocked the price back this morning (might be a SB closing), given director buying at 90.3p and 92p a few weeks ago, a bargain at the moment I think when you can buy at 72p now, maybe even 71p.

News is due in the coming weeks of license granted for Moly exports, and then the firsts sales and shipping contracts for the Molybdenum already produced and being produced.

Pre-Feasability completed :)

http://www.investegate.co.uk/article.aspx?id=200607260958567423G

Ticking up nicely today.

Broker target price was 175p.......lets hope that gets upgraded too soon.

I would guess the seller is clear now, from the positive moves. It cannot have been any institutional selling, as you would not have seen a director buying stock at 90p just 4 weeks ago. Must have been a private investor who needed the cash and had to sell at any price, and why the MM's took them for a ride and crashed the bid price down.

Never mind, its all over now, and with the pre FS done, and Moly news imminent, its still below the 90p price paid by a director 4 weeks ago.... bargain I think :)

From uk-analyst.com - email

.......In a note on the mining sector, UBS upped its commodity price forecasts for copper, nickel, iron ore platinum and molybdenum by an average of 7% in 2006 and 19% in 2007 following revisions to its supply-demand balances. However, UBS lowered its alumina price forecast by 6% and its aluminium forecast by 20%. The broker raised sector earnings forecast by 4% in 2006 and 11% in 2007. The Swiss broker's top picks were Xstrata and Lonmin , but it has "buy" ratings on all the major UK mining groups. Shares in Xstrata added 107p to 2,141p and Lonmin stock added 89p to 2,865p........

380K X trade yesterday, and with the present rises, and again today it would point to the seller being now out, which means we can and should recover quickly from the drop caused by the MM's obliging the seller with a nasty low bid price.

Looking fine, L2 now 2 v 1 @77/81.

No delayed trades so a T at the end of the day perhaps ?

A good read about the possible strong outlook for Molybdenum (which EKA already now produce)

http://www.stockinterview.com/molybdenum-energy.html

Post from AFN :


azalea - 9 Aug'06 - 14:33 - 953 of 966

konil

Following the issues we raised in our posts regarding production, licences and orders, I emailed EKA and have today received the following reply.

We have produced over 200 tons of molybdenum concentrate during the commissioning and "optimized running" phase of the plant. The production licence should be granted in the next week or so.

We have buyers for the concentrate, so once we get the necessary permits we shall sell all our production.

Jonathan Scott-Barrett
CEO
Eureka Mining Plc


By my reading that is explictly good news and very reassuring.

Considering the pending news of first Moly sales/shipment for Eureka the following report on Moly is good news.....especially look for the paragraph starting "......Now as for molybdenum. I wrote about its supply, demand, and............."


http://www.resourceinvestor.com/pebble.asp?relid=22727

Nice write up on ProactiveInvestors (free to register and read) :


http://www.proactiveinvestors.co.uk/articles/article.asp?EKA

Moly price keeps rising, now 28.5 US$. This is excellent news for EKA and well above their year 1 target of 19$ (year 2 being 12$).

If the above 20$ trend continues, and short term a spike back up above 30$ happens, it certainly will be boosting the revenues for Eureka.

I get the feeling the 2 off 50K trades yesterday that were made to appear like a rollover were actually a 100K buy split in two. The spread says this as its too large for a rollover, looks like someone clearing the overhang, with two protected trades.

Now, it looks like its cleared the overhang, and perhaps we can start now moving back on up.

Certainly is starting to move now.

And still going strong.

News is overdue, so there could well be good reason behind the rise :) DYOR !

L2 now 4 v 2 @85/90

No sellers around, thats whats good to see.

And you can still buy cheaper than the director buy at 92p paid by Kevin Foo recently on the 22nd June 06..............so there you go.

Post close company announcement of potential buyer for EKA - any ideas who it is?

Not yet g64946.

Present Ambrian valuation (prior to Moly shipping news) was around 180p per share fair value, which should now increase should Moly shipping be happening.

I would not think an inside job, as Foo would not have purchased shares in June and supported the SP.

With Moly shipment happening, the valuation should be well over 200p I think.

I was in on Neutec Pharma (NTP) recently, which was 500p SP and then the final bid for that was over 1000p, a solid doubling between market SP and take out price. This one has better potential to rise more than that IMO. I am still in on OSH which has doubled already from the takeover interest being announced, and should, we hope, have tripled by take out price.

Get ready for some action in the days and weeks ahead :)

One thing for sure, I will not be selling cheaply, and will be holding steady through the treeshakes until we get the offer. No point throwing money away, if you are prepared to sit through the drop, be prepared to enjoy the sit through a rise.

With present Copper/Gold price the Chely project NPV @ 10% discount is into the billions of pounds and rising.


That famous Buffet saying of "Patience".......

"Five years later, Buffett took his step into the world of high finance.
At eleven years old, he purchased three shares of Cities Service Preferred at $38 per share for both himself and his older sister, Doris. Shortly after buying the stock, it fell to just over $27 per share. A frightened but resilient Warren held his shares until they rebounded to $40. He promptly sold them - a mistake he would soon come to regret. Cities Service shot up to $200. The experience taught him one of the basic lessons of investing: patience is a virtue."

14K buy at 3p above the offer. It looks like they are going to wait for sells if they can, in the absence of too much buying pressure. Could be a slow walk up, but who knows.

DYOR !!

Potential purchaser ?

Well done Papal Power looks like your persistence may pay off

Hang on in there

Sheba

Will do Sheba :)


Rule 2.10 Announcement

RNS Number:2856I
Eureka Mining PLC
31 August 2006


Eureka Mining plc ("Eureka" or the "Company")

Rule 2.10 announcement


Disclosure in accordance with Rule 2.10 of the City Code:

In accordance with Rule 2.10 of the City Code, Eureka Mining plc confirms that
it has in issue and admitted to trading on AIM, a market operated by the London
Stock Exchange, 26,562,666 ordinary shares of 1 penny each under the ISIN code
GB0033844118.


This information is provided by RNS
The company news service from the London Stock Exchange
END

RTTEANPFDALKEEE

If no further buying pressure this morning I would expect the MM's to wait and see what sells come out at lunch time, and we should start moving again from around 13:30 onwards........at a guess.

Just logged on and seen the news. Very pleasantly surprised at RNS. Of course the devil will be in a formal bid and if so what valuation is agreed. Even so, share price has now recovered, so a very positive start to post summer trading. :-)

A good post from AFN :



novicedave - 31 Aug'06 - 12:53 - 1082 of 1086

Hey, just done some reading:

Total shares in issue 26,562,666
Institutional Holdings:
Celtic Resources 3,742,743 (14.1%)
Hendersen Global now hold 1,040,900 (3.92%)
Man Financial hold 598,917 (2.25%)
Fidelity hold 588,635 (2.22%)

Director Holdings
Kevin Foo 911,192 (3.43%)
David Bartley 798,516 (3.01%)
Malcolm James 282,676 (1.06%)
Jonathan Scott-Barrett 44,219 (0.17%)
Andrzej Sliwa 200,653 (0.76%)

Total known holdings: 30.9%

With such a decentralised shareholder register (most AIM mining companies I am familiar with have well over 60% of the shares placed with the larger institutions) a successful offer is likely to be forced higher than if there were one or two institutions/investors who had a controlling interest between them (when negotiations are simpler, and 'backhand' incentives may be offered which would not be positive for us PIs).
If you consider that over 20 institutions were involved in the first placing alone (at 120p) it is likely that any negotiations over a takeover price will be protracted. Of course a cheeky offer could be tabled, but even with the support of Celtic and the directors it would not be likely to go through (imo).

Feeling much safer,
ND

Another good post from AFN, and it must be remembered the pre-BFS NPV was done at very conservative values for Copper and Gold (being 1.3 US$ for copper and 550 US$ for Gold, present prices would put that NPV on a value much much higher than the one stated in the pre-BFS)

"

konil - 31 Aug'06 - 13:45 - 1087 of 1095


i believe the pre-bfs gave a npv figure of $179m for chely. if eka is bought out for that plus the cash generation from shorskoye $150m (let's say $30m p.a. eka's share for 5 years at full production), then that totals $329m, and deducting say 35% for risks, operating costs (not development costs because the npv takes account of that), etc. gives a sale price of $329m - $115m = $214m.

Current mkt cap. at 111p is 30m i.e. $57m.

214 is a multiple of 3.75 away from 57, so does that mean we should be looking for the exit price to be 3 to 4 times its current level?

"

Should add to the above post that there is the Kentau Gold project as well, this license is undergoing first drilling, so there is more on top of the valuation above.

Rumours of a 200 pence per share initial bid, but thats all they are, rumours.



DYOR !

Entries for the Sept stock challenge have to be in by Monday, EKA was my best performer for August and managed 5th overall :)

EKA is one of my picks for September, hoping for that 200p bid :)

Entries at the link below (click on Entry Form on the page)


http://www.stockchallenge.co.uk/sc/index.htm

2 points for look at a price for takeover.

1/ Previous director buys :

Top Director Buys

Eureka Mining (EKA)
Director name: Mr David Bartley
Amount purchased: 123,840 @ 127.00p
Value: 157,277

Eureka Mining (EKA)
Director name: Mr Malcolm James
Amount purchased: 61,000 @ 122.00p
Value: 74,420

Eureka Mining (EKA)
Director name: Mr Malcolm James
Amount purchased: 47,000 @ 127.00p
Value: 59,690


2/ Last placing was at 125p


The management want a return for themselves, and also for those institutions, in order to build the relationship for the future.


Therefore, for me, over 200p does, as I keep saying, seem very very likely IMO :)

DYOR !!

Interims are scheduled for Friday 15th September.

Bit of a retrace today, but interesting 65k buy at 95p. If we see a late reported T trade today, a large sell, I'll guess therefore its a shorter trying to chase out the hot money, which would explain why someone else snapped up 65K at 95p once they had thrown them out.

Will watch for a T sell later in the day, or late reported in the coming days.

"Ianwc" put another slant on to it in a post elsewhere (the new BB on http://www.proactiveinvestors.co.uk/main.asp (under Forum the BB)) I missed out on so far, that being the Russian access to the AIM market that it would give, should it be a Russian bidder coming in.
If we get firm new of it being Russian, I might revise my price target up from 200+p to being 250p to 300p+ range :)



Quote - "It would seem likely that any bidder would be Russian. The Russian have really turned it up a gear over the last 2 years to build a group of heavy hitting resource companies. This would be an easy take out option to pick up some interesting projects, get into bed with KazAtomProm and probably most interesting, pick up an AIM listing to tap capital markets."

Interesting strength today, for no apparent reason......I like that when a bid is around.

PP, Any views on today's RNS. Some initial panic is evident w.r.t. statement on ability to continue to trading if no additional funds raised. Doesn't sound good.

Looking at Celtic Resources Interim Results out today, they are flush with Cash.

With Kevin FOO having a foot in both camps, does this indicate a common sense move or is it a SH*T or Bust move & grasping at straws?

PP, any thoughts on current situation?

Hi silvermede.

I am still holding, not selling, and think the PI selling yesterday was overdone. The wording of the RNS was in compliance of the takeover rules, so they had to say what they said.

I would hope now for an all paper deal from CER, maybe 120p a share equivalent, like 1 CER share for every 2 EKA or something like that.

Mind you, it could also go the wrong way, but I think its simply come down to delays on Moly shipments have left them exposed for interims, so time for CER to make their play.

Fingers crossed and wait for further news end of this week and next.

PP, Thanks for that perspective. Last placing and Director Buys was at the 125p mark although Kevin Foo bought more in the 90s, so they may hold out for around that former price. The portfolio is still exciting in my view & CER may get it at a discount. Either way EKA needs to start generating cash. Only time will tell. Holding for the moment also.

Eureka Mining PLC
14 September 2006


Eureka Mining Plc

14 September 2006

USD1.25m from First Molybdenum Sales, Kazakhstan


Highlights:


First revenues of USD 1.25m received by the JV and further revenue
anticipated

Molybdenum prices remaining high at $25/$27/Ib

Mining rates at Shorskoye 40,000 BCM per month, tonnage rates through the
processing facility doubled from 700t/d at commissioning to 1,400t/d at
present.

Eureka Mining Plc ('Eureka') (Tic: EKA) announces that our joint venture company
has signed contracts for the sale of molybdenum concentrate and has received its
first cash payment of USD 1.25 million. This revenue will be used to cover
operating costs and repay local bank debt.

Commenting today, Jonathan Scott-Barrett, CEO of Eureka said, 'This is an
important milestone for Molyken and Eureka, with first revenue of USD 1.25
million from concentrate sales received by the joint venture. Today Eureka
realises its key objective of having a revenue producing mining asset within its
portfolio. With a very strong joint venture partnership and established
production we are well placed to immediately take advantage of high molybdenum
prices and we shall look to pursue expansion of throughput at Shorskoye. '


For further information:


Jonathan Scott-Barrett Kevin Foo
Chief Executive Officer Chairman
Eureka Mining Plc Eureka Mining Plc
Tel: +44 (0)20 7921 8810 Tel: +44 (0)20 7921 8810

Laurence Read/Ed Portman
Conduit PR
Tel: +44 (0)20 7429 6605 / +44 (0)20 7429 6607

Well they are generating Cash!
How does that compare with their Operating costs??

Do not know off hand silvermede.

Really good news though is it not :)

Excellent news PP, SP up 20% so far in a short time, Hope it is maintained. Feeling less worried now about CER/EKA as EKA have a producing & cash generating operation in a high Moly price market. So they have a real bargaining tool. Question is what valuation and will SP recover to previous levels. Holding and Good Luck. :-)

Yes silvermede, its all a question of what and when.

I am still hoping for all paper and 120p+.........so fingers crossed we can :)

Well the new rule 8.3 just out says RAB Capital have 6% of EKA, and they just purchased another 25K at 51p......

I would guess they know whats going on ??? perhaps........


http://www.advfn.com/p.php?pid=nmona&article=16836515



Thats a positive sign :)

Latest major holder figures are, from 26.6 million shares in issue :

Celtic Resources hold 15.02%
RAB Capital hold 6.19%
Kevin Foo holds 3.43% (Director)
David Bartley holds 3.02% (Director)
Malcom James holds 1.070% (Director)
Andrzej Sliwa holds 0.76% (Director)
JSB holds 0.177% (Director)

Eureka Minings Share Price Stymied By Its Advisers With Bid In Offing.

Its a funny old world this one of mining corporate finance and sometimes compliance makes a mockery of common sense. On 31 August AIM listed Eureka Mining, which was a base metal spin-off from Celtic Resources at the beginning of 2004, announced that it had entered talks with an undisclosed party, but said there was no guarantee that a deal would materialise. That is one good way to get shares on the move and old Minews surmised that the most likely bidder must be Celtic Resources as it still has a holding of 18 per cent in Eureka and is stuffed with cash after being paid US$80 million for a diminished stake in the Nezhdaninskoye gold mine in Siberia. .. more ..

http://www.minesite.com/storyFull5.php?storySeq=3794

PP

I'm confused on this one. One minute they are short of funds and about to cease trading, or be bought out by some unknown group, the next they get $1.5m from sales - which they must have had some knowledge about.

Any idea what their cash burn rate is? Am I alone in thinking this odd?

You could take it as strange :)

The Moly sales will run operations there and pay back the local debt.


On the move again, seems to move a little everyday with minimal volume, and any run of buys pushes the price up fast :)

L2 now 1 v 1 @67/72

Looks to me like they are filling a buy order this present price action. Gradually lifting it up to mop up sells.

Someone is confident, 21K at 75p.....above the offer

L2 now 2 v 1 @68/74

Post from AFN - Good news :)


jon_s - 21 Sep'06 - 09:48 - 1554 of 1556


Hey all,

Off ill from work today - so I can spend some time digging around :-)

Anyone seen the Shares article? Quite a positive one in fact. I know PP is travelling around so here is a summary:

EKA has blamed Cenkos for the slump in SP.

Wording 'wrongly' implied the company was on the verge of collapse (for the reasons we all know).

EKA say that Cenkos insisted on a strict financial warning (at an early stage) despite EKA securing the first moly sale.

Jon Scott-Barrett says Cenkos has stopped EKA from announcing the Moly sale until two days later when the cash was in the bank.

He (JSB) said he was upset that SH value has been completely wiped due to uncertainties in the RNS.

Moly sale to cover costs (as we know).

Barclays Capital has promised to advise on financing EKA's Chelyabinsk project once the company has carried out a bankable fesability study (due late 2007).

Institutional investors saw a buying opportunity - RAB capital & Evolution Securities.

Cenkos said it has 'put the matter behind it' and was comitted to having a good working relationship. A spokesperson said, EKA has very attractive assets notwithstanding its funding position. Cenkos remains supportive of the business and its management.

50K delayed repoted T buy at 70p from yesterday.

25K T buy at 70p and 40K T buy at 70p today.


Someone has now started to buy up the slack, and why the price has been lifting up in recent days.

The world seems to ignore that any bid should be at minimum 120p.........potentially more and possibly a lot more.

Looks like the buyer is back, purchased 75K at 70p just now.

Now they have this out of the way and are in happy mood, maybe CER can now make the offer for EKA next week, and make us all happy too !!


Celtic Resources Holdings PLC
12 October 2006

Celtic Resources Holdings Plc
('Celtic' or 'the Company')

Celtic wins Arduina Appeal

Celtic is pleased to announce that on 10 October 2006 the High Court of Justice
in London dismissed Arduina Holding BV's (Arduina) appeal against the
arbitration award made in Celtic's favour. The Judge found that the Ardiuna
appeal was misconceived and awarded Celtic its costs of the appeal on the
indemnity basis. There is no leave to appeal this decision. Arduina was also
ordered to make a substantial interim payment on account of Celtic's costs.

Celtic reported to its shareholders in December 2005 that an award had been made in the Company's favour in the London Court of International Arbitration as a result of being the respondent in proceedings brought by Arduina. The claims arose from an unsuccessful association between the companies in November 2002. It then followed that Celtic was awarded its costs of approximately 916,000.

As the Company stated in its Interim results released in September 2006, Arduina appealed these awards and it is this appeal that was heard this week and dismissed.

Comment

Commenting on the Award, Celtic's Chairman, Peter Hannen said 'this judgement
confirms the Company's consistent belief that Arduina had no case and its
efforts were wasteful of Celtic's and the Courts time'

PP: Where to now with EKA? It's seriously testing my resolve.......

Keep waiting for news, there should be a bid news before the end of October, so should not be too much longer to wait.

Perhaps things are soon to happen ??