Executive Director, Eurasia Mining plc
Turner Pope Investments Investor Evening - Eurasia Mining PLC - 10th December 2018
Retail clients (as defined by the rules of the FCA) must not rely on this video footage. This has been issued solely for information ...
Transcript (8 segments)
T
Tamerlan Abdikeev0:13
Eurasia Mining is the oldest resource company on AIM, founded in 1995 by Australian professionals. Initially focused on gold in Russia, we switched to PGMs in the 2000s and made two discoveries: West Kaitlin, an alluvial mine that started production in July 2018 and produced 5,300 ounces of platinum in its first season, and Mancha Tundra, a much larger hard rock project with 1.9 million ounces of PGE plus gold. Mancha Tundra is fully permitted and financed through an EPC contract with Sino Steel, which provides a $276 million facility on their balance sheet until construction is complete. The project is in the Kola Peninsula, a mining-friendly jurisdiction with excellent infrastructure. PGM markets: palladium has risen 163% since 2016 and recently surpassed gold, while platinum is at an unsustainable discount. Hydrogen fuel cells could significantly increase PGM demand. South African miners are struggling, but open-pit operations like Mancha Tundra with base metal credits are attractive. Our plan is to commence construction in 2019 and start mining in 2020. West Kaitlin has potential for expansion to multiple wash plants, increasing output. We also have a gold tailings project in Bashkiria. It's been a transformational year for Eurasia.
A
Audience Member19:25
But there's a political risk. What keeps you awake at night? Is there a risk of things going in the wrong direction?
T
Tamerlan Abdikeev19:32
It has never been a problem for us really. I think it's overstated. People are influenced by what they hear in the media. We have never had a problem. Our licensing has more or less gone on key. We have people who are very good at pushing things along; they have direct communication with people in the various offices and can pick up the phone to keep it moving. There has never been any concern with corruption or that kind of drama.
A
Audience Member20:28
You said you own 80% of Mancha Tundra. Who owns the other 20% and do they have any effect on your plans for developing the mine?
T
Tamerlan Abdikeev20:37
It's an investment house. They are a silent shareholder. We hold discussions with them but no direct effect on our plans.
A
Audience Member21:01
With respect to working in Russia, what local liaison people do you have to make things work? How open is the organization?
T
Tamerlan Abdikeev21:13
We have a director of the local company, background in law, very familiar with mining licensing and permitting. They actively lobby and have good relationships at the local level and can get things done at the state federal level. We don't employ consultants, just our own in-house people with years of experience.
If anyone else has questions, Keith will stay around. We'll be available for drinks. Thank you.