Amur Minerals

LN: AMC

£20.3m market cap

2.9p 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

In Q118, Amur reported a 50% increase in its Kun-Manie resource to 1.58Mt NiE at a grade of 1.02% NiE. The increase means that Kun-Manie now ranks fourth among the world’s greenfield nickel sulphide deposits that contain a minimum of 1.0Mt Ni at a grade of >0.4% Ni. It also provides an important input into Amur’s ongoing PFS, which is expected to be completed in Q119.

Y/E Dec
Revenue (US$m)
EBITDA (US$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 (3.8) (3.6) (0.3) N/A N/A
2018E 0.0 (3.8) (3.7) (0.2) N/A N/A
2019E N/A N/A N/A N/A N/A N/A
Last updated on 21/02/2019
Industry outlook

Based on new assumptions incorporating a higher percentage of underground mining for longer, we calculate fully diluted (at 4.4p/share) values for concentrate sales (toll smelting), low-grade matte, high-grade matte and refined metal project options of 15 US cents, 27c, 26c and 46c, respectively, at a nickel price of US$7.50/lb – although note that Amur has a number of development options according to its strategic plan (see announcement of 19 November). Internal estimates also project that Kun-Manie will be one of the ten lowest cost producers of class 1 nickel globally, with C1 cash costs in the range US$2.61-2.77/lb Ni.

Last updated on 21/02/2019
Share price graph
Balance sheet
Forecast net cash (US$m) 130.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (10.9) (19.3) (46.1)
Relative* (13.2) (20.8) (45.1)
52-week high/low 5.6p/2.7p
*% relative to local index
Key management
Robert Schafer Chairman
Robin J Young CEO