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>

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 :)