Amur Minerals

LN: AMC

£25.2m market cap

1.82p last close

Amur Minerals is an exploration and development company focused on base metal projects in Russia’s Far East. The company’s principal asset is the Kun-Manie nickel sulphide deposit in the Amur Oblast, comprising over a million tonnes of contained nickel.

Investment summary

Amur’s updated pre-feasibility study on the toll smelt (TS) option at Kun-Manie calculated an NPV of US$614.5m at US$8.00/lb Ni and US$987.4m for the low grade matte (LGM) option. Initial capex is estimated at US$570.4m and US$695.0m, respectively, and C1 cash costs at US$3.87/lb and US$2.34/lb, putting both in the second lowest cost quartile.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 0.0 (1.9) (1.9) (0.3) N/A N/A
2018A 0.0 (2.2) (3.4) (0.5) N/A N/A
2019E 0.0 (2.3) (2.8) (0.4) N/A N/A
2020E 0.0 (3.8) (3.8) (0.5) N/A N/A
Industry outlook

Amur’s published NPVs imply an immediate company valuation of US$60.8m (or 6.6cps) for the TS option and US$97.8m (10.6c/share) for the LGM option. However, we estimate that the NPV of the TS option in particular could increase by 32.4% to US$813.6m (implying a value for Amur of US$80.5m or 8.7c/share) in the event that a copper concentrate (the subject of ongoing met-test work) can be produced as well as a nickel one. Fully diluted discounted dividend valuations for the TS and LGM options are 5.3c (rising to 7.2c/share with a copper concentrate) and 8.7c, respectively at US$7.17/lb Ni. Amur’s Russian TEO feasibility study is expected in December.

Last updated on 26/11/2020
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Share price graph
Balance sheet
Forecast net debt (US$m) 0.2
Forecast gearing ratio (%) 1
Price performance
%
1m
3m
12m
Actual (17.0) (4.0) (17.2)
Relative* (23.8) (10.3) (6.2)
52-week high/low 2.9p/0.9p
*% relative to local index
Key management
Robert Schafer Chairman
Robin J Young CEO

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