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EUM Euro.Mins.

45.25
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Euro.Mins. LSE:EUM London Ordinary Share VGG3192Y1007 COM SHS NPV
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 45.25 0.00 00:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
  -
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 45.25 GBX

Euro.Mins. (EUM) Latest News

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Euro.Mins. (EUM) Discussions and Chat

Euro.Mins. Forums and Chat

Date Time Title Posts
13/7/200815:44European Minerals873

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Euro.Mins. (EUM) Top Chat Posts

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Posted at 18/6/2008 20:21 by ukgeorge
yeah agree with you, the Aim market is to be avoided and the sb companies are pretty crooked. i've had one other share that caught me out more than this and that was uranium1 which is listed on tsx. uranium price went from$70/lb to $140/lb and the share price dropped from$16 to about $10, pretty similar to eum.

going to short a few of the retailers and maybe a couple of recruitment companies. still got a lot (for me) of shares in these and think it is all going to start coming good soon, may add some spread bets when the trend line is broken.
Posted at 15/6/2008 11:15 by sg31
We will need to look carefully at any takeover deals,i have seen a number of companies take over others that they have links to but those links are not always obvious(a bit like Lero and EUM)each time they ensure that while the deal is apparently beneficial it is infact more beneficial to some than it is to other(again a bit like Lero and EUM where the share prices were manipulated to reduce the price of EUM shares while those of Lero were inflated.)
Once you look closely it becomes obvious games are being played.I have a number of canadian stocks and this sort of thing goes on all the time,
Posted at 18/5/2008 09:14 by p bear
> What dummies have 25% of their gold Reserves (not Resources) sold at less than $580.

As part of its debt package, EPM had to take on a gold hedge of 443,000 ounces at a gold price of $574.25, equivalent to 19% of reserves. This does not concern me (now production figures in the last RNS cover the hedge) so much and here is why.

EUM have come out with big reserve and resource estimate updates (plus Lero's gold). Basically the banks forced the company to use very low metal prices in its projections - it happens, but the crux of the issue is that EPM will continue to optimize its mine plan according to where metal prices are in reality.

As EUM + Lero develop more reserves, as they open up the mine, the percentage of hedging of the mineable reserves will fall to less than 10% (of EUM ex. Lero).

So the plant more than covers the current hedge and the actual amount hedged is much, much less than you state. I am not sure if blueskyes2 you work in the mining/commodities industry, but I do and I can tell you these kind of hedges are a necessary evil (or good in a falling market, which will happen one day (a hedge on $48k Ni was very welcome)) and got the mine financed in a very different market than today.

Most resources investors are terrified of hedges simply because they don't clearly understand them in the content of the industry/finance. As commodity prices continue to boom and with the news steel LME contracts (plus others like Co mooted) we will see more and more locking in of prices.
Posted at 17/5/2008 14:25 by p bear
> the issue is not with the new management, its what the old have done.

For all they did wrong, they got the share price at a very attractive level for those whom want to jump aboard. Days of struggling to mean loans/hedges are over. Sure Lero had to come along and it screwed longstanding PIs, but Yub and Sergei in my IHO will do a good job and won't be touching it unless they thought it is very attractive.

I'd also add that having a hedge in place to get the money for this kind of project is not that unusual and should not be viewed as a big problem (it is well priced in) plus you need to understand that the % of gold hedged will drop significantly as production and reserves (already big update announced see recent RNSs) increase.

There is money to be made from EUM and the potential down the line with Lero reserves made for an interesting chance of growth. Most small cap. shares are struggling, but EUM will become mid cap pretty fast with the cash they will start making end of this year.
Posted at 23/4/2008 17:25 by donaferentes
Thanks ukdavec.

Not a particularly overwhelming presentation, even allowing for the obvious minor language/style barrier - low key and a few details skated over (warrants, what EUM needs to fix production issues finally, e.g.) but all sounded good future stuff.

Still difficult to get a handle on how much of EUM's $250m pa free cashflow will be absorbed by Lero's prospects coming on stream. Although he was quite bullish about being into production within 3 years. Will the whole be > or < than the sum of the parts on a discounted cashflow and asset resource basis = share price within my life time?
Posted at 19/4/2008 09:33 by adam
I sold my remaining 2010 warrants recently. It is a shame that banks often require hedging pre-production, really this destroys so many miners. You can understand the logic, but it is apparent that the risk to delays in start up are as least as great, if not greater than the downside risk to the commodity price. I think I will revisit in a few months time and look at the value in the ordinaries.

I made a great deal of money on ORI, so respect Kurzin but he looks after himself - we are along for the ride. He is reintegrating Lero as it was formerly a spin out from ORI as was EUM itself. The assets he brings with lero are not much given he is getting a quarter of EUM, but that is the price of an emergency fund-raising. If you took the view that the Lero assets are immature and of little value then imputes a C$142m value for EUM (i.e. 28% @ $C40m -> 100% @ C$142m)

EMC shareholders will own approximately 81% of the combined company (72% including the shares to be issued pursuant to the Offering (as defined below)

That's a cheap entry price!

OK. On the plus side shareholders are getting some Krgystan assets and some Kazakh assets where there will be a 43-101 soon, but it is early days and you have to discount heavily. EUM on the other hand is in production!!

Also Kurzin is clearly a mover and a shaker in the former soviet republic, and you can add some value for that, but still, I find the deal disappointing.

Why did they not do a heavily discounted rights issue? At least then shareholders could have avoided dilution - ok the warrant holders like me would have been screwed, but so that goes with the territory of derivatives

What did Charlemagne Capital say?
Posted at 18/4/2008 16:12 by donaferentes
UKG - "dilution 20%-30% kick in the balls"

Not a bit - we also get added concentrate because we own 72-81% of Lero as well as 72-81% of EUM. The diluytion for all parties is Cannacord's 15% option if exercised and the additional C$20m of placing they can make at their discretion - not too bad as the cost of acquiring new assets.

Good news each EUM share is valued at 98c - not today's price of nearer 90c.

My reading is:-
Basically Cannacord were fund-raising for Lero anyway (under punitive terms 15% option but wtf). Their other client EUM needed bridging loan, so they suggested a merger whereby part of the funds raised for Lero not needed for 6-9 months could be loaned to EUM. Cannacord earn fees and options all round. They need to stick as NOMAD with Lero not EUM 'cos that's who they're raising the cash for through their contacts - but only a technical not a negative resignation from EUM.

Having swallowed Cannacord's costs, the new unit will be using EUM's future cashflow to fund Lero's future asset development. So, dust settled, some questions:-
How good are Lero's assets and their senior management who are coming on board en masse?
Who now will actually run the company? Has this in fact been akin to a reverse takeover?

Us PI's will truly find this hard to fathom without a good deal more time, thought and information.

Happy to hear any contrary views and MORE INFORMATION PLEASE.
Posted at 17/4/2008 10:07 by p bear
I don't know if a PP is a certainty. I also thinks it sucks and there must me many other ways to raise cash during a sort term period with a huge cash flow so close and sales of Cu already taking place.

I am think PP might happen because of this note from a big EUM supporter/underwritter, Canaccord:


Event
On14 April2008 European Minerals reported results for2007.

Impact
Negative.Financials indicate a funding shortfall during the second quarter of 2008.

Action
We continue to recommend European Minerals as a BUY and have reduced our target
price from C$1.95 to C$1.70 per share.

Valuation
We continue to value European Minerals on the basis of a multiple of asum-of-the-parts NAV valuation, assuming our peak gold price scenario of US$1,000/oz and a 5%discount rate.We have assumed an equity issue of US$30 million is undertaken at a 10%discount to the current share price, which reduces our estimated NAV from C$2.04 to C$1.81 per share.We maintained our target multiple of 0.95, as a result of which our target price decreased from C$1.95 to C$1.70 per share.

Next catalyst
We consider that securing the funding required to cover its cash outflows for the
remainder of this year and for the remainder of this quarter in particular is the key hurdle for the company. Assuming this is completed, progress towards the revised target for commercial production of September is likely to be the focus of attention.


Plus a PP is what happened last time in this situation.
Posted at 30/3/2008 09:18 by chrismisson555
If they ramp up production to full by 3Q 2008 the year 3Q2008-2009 could produce EPS of $0.636 (assumes share price @ 58.5p, average gold miners is EPS $0.32

Gold: 149000oz @575 (take hedge amount) - 2.0 royalties = £41,980,750
Cooper: 26m Lbs @5369 per tonner - 2.0% royalties = £54,898,800

Total: £96,379,250 or $192,758,500

EPS 303m shares in $ = $0.63

Average mining EPS $0.32, difference = 1.96%

Target share price 2008-2009 = $2.30 or £1.15 (95% uplift on 58.5, 110% on 54.5)

Assumptions:

1. All gold sold is at hedge price
2. Royalties on Gold and Copper at 2% (mining licence)

------------
I have an average of around 58.5p hence the calculations are around that.

This is quite a negative valuation, but a good starting point, add while you can.
Posted at 21/2/2008 12:41 by ukgeorge
taken of stockhouse forum.

Agnico-Eagle (AEM) just released their 2007 results and they had a cash flow of $229.2 million. This is the equivalent of USD $1.60 per share. Since AEM is trading for USD $66.77 this means they are trading at over 41X their cash flow.


At current metals prices EPM should have a cash flow of around $150 million between Spring 2008 and Spring 2009. This is around $0.49 per share. So, what value will EPM's cash flow be given compared to AEM?


The following chart shows where EPM's share price will be in a little over 1 year if it trades from 10% to 100% of AEM's cash flow per share multiple (I will assume USD $1 = CAD $1 to keep things simple):


10% = $2.01/share
20% = $4.02/share
30% = $6.03/share
40% = $8.04/share
50% = $10.05/share
60% = $12.06/share
70% = $14.07/share
80% = $16.08/share
90% = $18.09/share
100% = $20.10/share


As you can see, even if EPM trades at a whopping 50% discount to AEM's cash flow per share multiple, it would trade for over $10/share 1 year from now. Even at a 75% discount, which is ridiculous, EPM would be trading at over $5/share 1 year from now.


Considering EPM can be purchased today for around $1.30, its upside potential can only be described as outstanding. Even if EPM's share price goes up 10X over the next year, it will still be trading at a big discount when compared to AEM's cash flow multiples. And, there are many other gold producers that trade at large cash flow multiples, so once EPM starts proving-up big time cash flow numbers in their financial statements I expect people to notice.


Who dares, wins!
Euro.Mins. share price data is direct from the London Stock Exchange

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