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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Euro.Mins. | EUM | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
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|---|---|---|---|---|
| 0.00 | 0.00% | 45.25 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 45.25 | 45.25 |
| Top Posts |
|---|
Posted at 15/6/2008 12:15 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 15/6/2008 08:50 by strow As you say dave-they have a further C$40m in the bank from the proceeds of the lero placing,so if they do desparately need more funding ,it is potentially available to be diverted into any more production snags.If production now progresses without further snags,i think the answer to your question re the hedge/scoping study,is yes,the current production should cover-cash flow is becoming progressively more substantial and not all of it is going towards paying off the hedge-have you watched leros minesite presentation?Another good one was eums gold conference presentation If getting shafted here means i will make min 3 times my money in time,im happy with that,but i am expecting more-certainly the potential is there,it just depends how they play it I also find some of the stockhouse posts,particularly by "omniportent" very useful and informative when it comes to the financial ins and outs of it all I may be an optomist,but with good reason if the set up works and is managed well,(obviously with a healthy dose of caution),which it should be in terms of the competency aspect of the new management If they sold eum short,where do you think they would go next?-a new start up?-i think not-retirement possibly,but i think pride would more than ensure that they do well here-ORI did not have the same set up as far as i am aware-they are now producing with potentially very large cash flow and claim that they want to be a regional consolidator-that doesnt mean just sitting on their backsides-lets see what happens |
Posted at 14/6/2008 22:17 by doobydave Like you p bear I am very wary of Kurzin, who repeatedly makes himself Executive Chair - something arguably appropriate to very small companies only, to save money - and predictably appoints the same troupe of accolytes to his companies' Boards along with him. I'm also surprised that Baratov has apparently been working as Chair of the Varvarinskoye subsidiary company without being listed as EUM company management on their website. In my book it smells.The flip side of Kurzin is that if I am right, and this lawsuit is the Machiavelian plot of another Russian oligarch, Kurzin would be the man you would want around to block it. So the merger go-ahead seems very good news for shareholders. Lastly, Lero have offered EUm a C$25m 'loan' - with the rest of their C$66m going to thier 'own' properties. I find the language of this a bit surreal when the companies are merging, though I think I get the reasons. However, the main point of this post is to ask a question. Bearing in mind there should be some cashflow from sales, is C$25m going to be enough to a) fund final 'snagging' of the new mine, b) pay for the scoping study and c) pay off the hedge they have not been able to deliver into? I simply don't know. Does anyone else? |
Posted at 14/6/2008 19:15 by strow p bear-i just think the upside could be very substantial,dependinP.S-Leros nearer term fast track copper project covers the dilution aspect on its own,so the bigger possible 30/70 jv is all upside to start with |
Posted at 18/5/2008 10:14 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 15:25 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 19/4/2008 10:33 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 18:35 by donaferentes P Bear - didn't mean my post to be the bright side, but wanted to take the edge off the instinctive response that more shares in issue was only dilutive. The $25m loan is not at 10% by the way - only the $5m bridge is until closing of the merger. The $25m are on terms still to be agreed between two parts of the same new company - should cost approx. zero net. Cannacord are clear winners here and I would suspect the Lero mgt who come onto the main board. If one of them is Exec Chair what happens to TW non-exec chair - follow up RNS, as soon as the deal cemented, announcing his retirement and a nice fat cheque? That's the major concern for me - the new mgt, knowing nothing about Lero prospects or how they have been run. Where can I get more on Lero - Digital Look my main source does not list it? TIA. A lot of wood to clear before the trees become clear. No idea which way this will go on TSX Monday or AIM on end of suspension. Surely they should have lined up a new NOMAD to be part of the announcement if EUM were a willing or unsurprised party - maybe Monday, maybe no one will touch them, who knows? On the other hand, surely Canna have brought EUM major holders along with them this far? How long did this take to develop and become concrete? No mention by TW of such esoteric ways of bridging their w/c gap in his last statement. The unknown is scary, but I do not see EUM as having been so weak they had to enter a fire sale, so there should be some value/merit to the deal. How long till Lero assets start producing? Qvestions, qvestions - alvays viz ze qvestions! Happy weekend everyone. |
Posted at 18/4/2008 17:12 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 18/4/2008 15:34 by chipperfrd Difficult to get a good grasp of the numbers yet. But it looks like LER have issued 47m shares to get their $40m, plus Canna get an option for another 15% (I think). So total number of LER shares is likely to be around 120-130m!All these shares will exchanged on a 1:1 basis for EUM shares. Will probably need to see how the dust settles around this deal but as LER only has early-stage projects in the FSU it looks like they will be the big winners by securing EUM cashflow to fund through development, etc. In the short term EUM get a cash bail-out for their shortfall on hedge and debt commitments so should be able to survive through to commercial production. But I can't help thinking this has been a bit of a fit-up and raising cash by other means would have been better for holders. |
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