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>

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 :)