First Equity
Eurasia Mining Reach Final in Russia.
Along with the England football team, another team that has been making swift progress in Russia over the last month, but received significantly less newspaper column inches and tweets is Eurasia Mining (EUA.L), who this morning announced it had received approval from the Ministry of Natural Resources (MNR) for a mining permit at its platinum group metals project Monchetundra. This follows soon after the securing of approvals from the Ministry of Economic Development (MOED) on 3rd July, along with federal agencies, the Federal Securities Board (FSB) and the Ministry of Defence (MOD) on 13th June. The last stage of the approval process at Monchetundra, will be for the office of Prime Minister Dmitry Medvedev to give final authorisation, which may be published on a government website, prior to Eurasia being notified.
Comment & Recommendation
The final stage of the permitting process requiring the signature of the Russian Prime Minister, which amounts to what we believe is just a rubber stamping operation, should be considerably easier than the job facing Gareth Southgate's team tonight in Moscow.
With the approval process complete, Eurasia can then progress with its timeline to development at Monchetundra, by completing discussions with third-party service providers, with a view to replicating the contract mining arrangement it has already in place at its other mining operation at West Kytlim. Full production at Monchetundra could commence in Q4 of 2020. The Engineering, Procurement, Construction and Finance agreement already in place with Chinese state owned infrastructure group Sinosteel provides Eurasia with a considerable head start in its preparations.
Given the progress being made at Monchetundra, and evident economic viability of the project with the open pit location of the deposits and significant two million ounce palladium equivalent resource, existing cash flow production from West Kytlim, and unjustified country risk premium being applied to the shares by the market, we recommend Eurasia Mining as a 'Buy'.
https://mailchi.mp/826d2d709da0/eurasia-mining-eual-reach-final-in-russia-342943