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Adam Habib, President of Amur Minerals (AMC.L) Interview
October 1, 2020
There will doubtless be times when stock market investors wished that their portfolios only consisted of companies with solid cash flow, a clear corporate strategy and management that has the ability to ability to surprise on the upside. A small mining development company that has sufficient funding to see through the development process of a massive project. The massive project in question is Kun Manie, a nickel-copper sulphide asset in Russia. In particular, Amur’s $4.67m investment via a Convertible Loan Note in Nathan River Resources (NRR) (who own Roper Bar) carries a 14% coupon. The return on this should amount to quite a tidy return in terms of bankrolling Amur’s flagship Kun Manie project. That is not to say that Roper Bar is insignificant in its own right, being a 446m tonne JORC resource. Added plus points are that the project in Australia is set to commence production imminently, and as Amur has a CLN, should things blossom with Roper Bar, it has the option to convert into an equity share and then get paid a dividend. There is also the maths of Roper Bar to consider: 4-5m tonnes of production annually, at an iron ore price of even $100 a tonne or more, and revenues are pretty substantial at $500m a year. Amur’s 19% share of Roper Bar means it could earn close to $100m per annum. Perhaps the icing on the cake though is the way that the deal to buy into NRR involved multinational miner Glencore (GLEN), and the process clearly brought Amur closer to the giant company in terms NRR’s offtake agreement being with it.