Dmitry Suschov. Platinum metals group market

Right, so thank you, Julian, for the opportunity to speak. So Eurasia Mining is an already established producer of platinum group metals, which include platinum, palladium, rhodium, and iridium. So those are the basket of our current production. And Eurasia has been in production since 2016. And this basket of metals which we produce are in high demand, especially recently the palladium price has been doing quite well, and the rhodium price, which is the same as palladium and iridium, is about twice higher. So yeah, we're in good shape because the prices are doing well and also our cost is invariable on the cost curve because we have the largest alluvial PGM production and resource in the world. And alluvial basically, it's not like a Discovery Channel alluvial where people are washing and panning nuggets. It's a different story. It's mechanized production, so similar to open-pit bedrock operation. The only difference is you don't have to blast. You just straight away excavate, like we do with Komatsu excavators and trucks to the washing plant (enrichment plant), and then we get the concentrate which is 70 to 80% grade concentrate, so high grade, which we sell directly to the refineries with a very low discount to London price for the metals. So it's an established producer. It's low cost because it's shallow open pit, it doesn't require blasting. And now we're scaling up the production. It operates at mine. Plus we have a much larger project which is bordering Finland and Norway, which is a bedrock operation primarily palladium, so it's 50% palladium and a basket of other metals which include platinum, copper, nickel. And now we are adding additional areas to this project which will have significant resources of cobalt as well.

Right, that's a good question. So basically, where we are now: we are scaling up the existing production, that's of course one of our current tasks, and we've been doing it quite well over the recent few years. We've been scaling up, especially last year was very successful. So then we basically have a larger project which has been fully financed via our final binding agreement with Sensile. So it's 100% financed, and then basically our design still has an obligation to take it into production within a two-year time frame. So hopefully by the end of next year we'll already be producing, and Sensile has an obligation to bring it to full-scale production which is 140,000 ounces per year, which in the current price environment can bring us sales of over 200 million US dollars. And that's what we're working on now. So all the agreements are signed, they are already finally binding, so we are heading over, we're doing some land works which we announced recently already on our bigger mine. And now we basically position ourselves as one of the few independent palladium producers. Everything else has been consolidated, like Stillwater Mining acquired by Sibanye for consideration of 2 billion US dollars. So that was one of the deals in the palladium space. Then there's North American Palladium, which is like us, one of the few palladium pure play companies left unconsolidated.

Right, right. So our participation here in Mining Investment one-on-one is to spread the message about the company because we didn't do marketing much in the past because we didn't have title for our Maladju mine, which we finally received end of last year. So now we have the production permit until 2038, so for a 20-year life of mine. So it's again open pit, a very simple operation. And then basically we've got, at the end of last year again, we've got a much larger license area for our Turrets mine, so increased from 20 square kilometers to over 90 square kilometers, which is quite a big increase because this area before, all this 90 square kilometers, was an area which is Anglo-American, the largest platinum producer in the world. So we know this area well, and it was a significant addition to our resources. Now we can legitimately call ourselves the largest in the world alluvial PGM producer both in terms of resources and production levels. So yeah, because we haven't done marketing, we started now to spread the message because we've got the title now for our projects for a long term, for 20 years both of them. And yeah, that's the whole idea because the company is generating cash, unlike the past, we have cash and a balance sheet. So the bigger project is fully funded, and the whole idea is just to do non-dealer show and to spread the message.

It's good, it's good. So it's good that you are basically very focused on one-to-one meetings with the institutional investors and family offices. This is what we need in our company because obviously we need strong hands like me and the larger shareholders. And we have some other flagship holders that are strong hands. So they are holding the shares because I invested at a ten times higher share price than it is now because the PGM business in general in the world collapsed in 2008-2009 when the platinum price went from $2,500 per ounce to like more or less $800 nowadays. So but we are not a platinum company, we are primarily a palladium company, and I think the market just doesn't realize that. And our shares suffered probably the most in the segment. So yeah, that's a good conference because it's the target audience, the large institutional and family offices, and also it's very focused on one-to-one meetings.

Thank you very much.