Amur Minerals


£21.7m market cap

3.08p last close

Amur Minerals is an exploration and development company focused on base metal projects in Russia’s far east. Its principal asset is the Kun-Manie nickel sulphide deposit, comprising over 1.5Mt of contained nickel equivalent in at least five deposits.

Investment summary

On 26 February, Amur announced the long-awaited results of its updated pre-feasibility study (PFS) into its Kun-Manie project in Russia’s Far East. In contrast to previous studies, the PFS considered just two options, namely a toll smelt option and a low-grade matte option, and dispensed with the high-grade matte and refinery options. Detailed financial models are not yet available. However, both considered a 6Mtpa mining operation and results are comparable to those published by Edison in our note, Cobalt-plated nickel, published on 16 April 2018.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2016A 0.0 (3.8) (3.8) (0.7) N/A N/A
2017A 0.0 (1.9) (1.9) (0.3) N/A N/A
2018E 0.0 (2.2) (2.7) (0.4) N/A N/A
2019E 0.0 (3.8) (3.7) (0.5) N/A N/A
Last updated on 20/03/2019
Industry outlook

Amur’s published NPVs imply a prima facie valuation for the company of between US$60.8m (or 8.7c per share) for the toll smelt option and US$97.8m (or 14.0c per share) for the low grade matte option. However, given the relatively high IRRs for the project, these could increase to between US$79.9m (or 11.4c per share) and US$157.0m (or 22.5c per share) – which compare with our prior valuations (based on future dividend flows) of 15c and 27c, respectively. NB: All NPVs calculated at a discount rate of 10%.

Last updated on 20/03/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 2.2
Forecast gearing ratio (%) N/A
Price performance
Actual 3.5 9.9 (38.5)
Relative* 2.5 0.9 (39.8)
52-week high/low 5.6p/2.7p
*% relative to local index
Key management
Robert Schafer Chairman
Robin J Young CEO