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the last bullet point in each section has a different font .
Probably the idiosyncratic style of the person typing this up :-)
Yes I noted they said zinc lines. Don't know if that is important or not.
Hi Oiltap - probably not explained myself very well.
JLP bought Sable to refine the waste products from Kabwe. The company are now describing Sable as a central processing facility for 3rd party material. This is some change in emphasis.
Secondly - for the most part the rns is written in one font but some additions are in a different font - is this to flag them up deliberately or a late addition or revision to the rns to cover an ongoing situation i.e. a spin. The Sable refinery acting as a central processing facility for 3rd party material is in a different font in the rns.
This looks like a spin doctor at work re-branding Sable as a 3rd party material processing centre whilst simultaneously explaining away vanadium and lead production on prices and timings etc.
IMO the processing at Sable is going to be far more (or totally) 3rd party at least for the time being. Is it because of the licensing and delays / major problems or is it because they can make more money short term from whacking through the zimc from Star Zinc whilst drilling and proving Kash'tu.
There is a definite change of emphasis.
For clarity I own a small amount of GLR and no JLP at this point.
From JLPs last rns:
" Jubilee is actively engaging with 3rd party suppliers of both copper and zinc ore to develop strategic partnerships as part of the expansion of the Integrated Kabwe Operations"
and
"The Sable Refinery, which acts as a central processing facility for third party material in the region,"
Note that the first statement is written in a different font in JLPs rns to the other bullet points on Kabwe - in other word the Kabwe section has been deliberately edited to add the 3rd party bit - they are either covering the bases of a priority change or deliberately flagging it up.
thats about a 12% dilution for JLP . I dunno, its depends on what CB thinks the other parts of GLR are worth. Plus he doesn't seem to be in a hurry to cash out. This company is dozing half the time
I wouldn't mind an offer from Jubilee coming in the form of shares - as far as I'm concerned Jubilee is a good long term bet and their shares are as good as or better than currency to me.
However, I would like quite a lot of Jubilee shares for my Galileo shares! Let's say 1 JLP share for every 2 GLR shares. Is that OK with you, Leon?
Agree candid and kalan. I wasn’t suggesting an offer of £5m would be acceptable (to us shareholders) but maybe highlighting our possible vulnerability because of our current market cap compared with the true value of our assets.
Let’s hope Mr Bird delivers for us!
For longterm holders a cash offer of £5m would not be a good deal (for the whole company), although JLP would probably not do it by cash anyway, they would issue JLP shares as consideration.
It would Padmaster, especially if Star Zinc has become essential to JLP rather than just an optional sweetener.
Net present value of £60 million has been mooted on this board. I think GLR shareholders would balk at £5 million especially if JLP need GLR as much as GLR need JLP. £30 million anyone. Or somewhere between the two figures. Star Zinc only or Star Zinc and Kash'tu or the whole shooting match.
Colin and Leon must have had these discussions. At least star Zinc gives JLP the options should the tailings be temporarily unavailable - all speculation of course.
If we have many £millions of ore saleable to Jubilee over the next 3+ years.
Wouldn’t it make better commercial sense for Jubilee to buy out the whole of GLR for say double current Market cap of say £5million?
Know it all.
No it all.
Mm.
CB's strategy is to wait them all out. Its a not a bad one
Well then, stop trying to be a no-it-all and you might get somewhere.
No not clever enough - I don't know what I don't know. I know that for a fact.
Ah Alan, how nice to hear from you again.
Now that you have caught up (sigh - finally), have you worked out the bit you are missing yet?
Yes Minor we are a bit slow in the old thinking department - if I had been as quick as you I could have paid .7p for my shares last time you were touting them even though a placing was imminent.
TBTT
We got there! Your musings over Kabwe and the possibility of a legal tussle between JLP and BMR following the murky and mysterious demise of BMR (at least as a listed company) and JLP's acquisition of Kabwe are just what I have been thinking. Information blackout is the right description. Consider this logic as well, that JLP are currently leaving untouched a giant pile of tailings containing well in excess of $2bn of recoverable metals. Most mysterious.
In the meantime Galileo are poised to feed that expensively acquired and refurbished Sable Zinc refinery of Jubilee's. What might Jubilee do, or pay, to acquire feed to actually start processing there? Very interesting.
Can't argue with anything you posted Tiger - we can only work on what we know which leads to creative thinking - have added the bit of spare cash I had this morning - don't hold much but at least I have a bit of skin in the game at an average just below .45p. If it comes off then there will be a good mark up.
IF JLP produce copper and Zinc from sable without any tailings then they are in the same position as the previous owners - the locally produced copper and Zinc at Star Zinc and ka****u were always available, I would assume, and they closed the plant down. Over simplifying I know but the real attraction of Sable is for the Kabwe waste as far as JLP are concerned. Not bought back in there yet - something has changed at Kabwe, chrome has sunk but PGM income should have risen markedly but is being soaked up by purchasing rights and fitting out Sable. Overall less attracted to JLP for the time being - a bit of clarity needed - a podcast would be useful just to re-affirm the plans.
Only betting what I can afford to lose here - banking on Colin getting a licence in essence.
I am wondering if all is well with Jubilee's Kabwe tailings asset. (Note: I don't mean Jubilee's Sable plant, just the mountain of tailings at the old Kabwe mine that Jubilee obtained from BMR).
Over the past few months we have learnt:
1. That Sable will also produce copper, even though it was bought to produce zinc, lead, and vanadium. (Indeed, the first copper has already been produced).
2. That plans for a vanadium line have been shelved. (Note: the Kabwe tailings are very rich in vanadium, the Star Zinc willemite ore is not. Officially, this is due to soft vanadium prices, but this explanation doesn't quite convince me).
3. That plans for the lead line have been pushed out to 2021. (Again, the Kabwe tailings are rich in lead, the Star Zinc ore is not).
4. Also, we have had no news about the conversion of the BMR holding in Kabwe into the planned royalty. In fact, we have had a total news blackout from BMR and from Jubilee about BMR for some time.
From these facts, I sense that there is an obstacle preventing Jubilee from processing the Kabwe tailings through the Sable plant. I don't think it is technical - the acid-leach process is well understood. Rather, I sense it is either legal or bureaucratic. Has somebody brought a lawsuit against the directors of BMR over the sale of Kabwe? Is there some kind of injunction in place? Are there problems with the licence that covers the tailings? Are there unresolved environmental issues?
I've sold out of Jubilee for the time being due to these concerns, even though the PGMs part of their operations must be generating a lot of cash right now.
For Galileo, this is potentially good news. The zinc line at Sable is due to complete in Q2 2020. If my suspicions are right, then they will need a source of high grade willemite zinc ore to feed the plant, not in addition to the Kabwe tailings, but instead of them. I believe this can only come from GLR's Star Zinc; I don't think anybody else mines willemite zinc in Zambia.
Does this make sense, or am I adding 2 + 2 together and making 5, or even 22?
I think I may add some more to my punt here Oiltap - the licence should trigger the rest given what JLP keep hinting at. The deal wasn't a big deal for JLP compared to Kabwe but suspicion is growing around what JLPs plans are for Kabwe in the short term at least and Star Zinc may be more important than previously thought. Not as clear as it once was thought to be at any rate.
I had cut that yesterday but forgot to paste it - thanks for sharing Oiltap. Have contacted GLR and the Zambian mining authorities by e-mail to find out if the licence has been applied for and how it's progressing - not sure if I will get any replies but worth a try. Have been holding off on a top up - would like to know the application went in.
nice find oiltap, looks like a bit of a grind (90 days!)
they could only apply for a mining licence once the Mineral Resource Estimate as complete . The JORC 2012 RNS was on 21 August. At that point CB said they intend to apply for a mining licence .
My guess is they applied after the placing on the 18th of October, to show the company is well capitalised and can proceed with production. That plus the offtake agreement
So any moment now...
Not as relaxed as you Oiltap - only got 10% of what I had in JLP at the last peak - may add to that soon. The company is in a much, much better place than 6 months ago and the sp is much cheaper. Now is the time to buy IMO - just have to have the courage to take the risk but less risky now than when it cost more.
It's funny how these things roll Oiltap - you have been a consistent supporter of the share for some time now.
Not long ago GLR was being ramped on here and on other boards at .6p and above when they needed more cash and the prospect of supplying JLP at Sable was just a pipe dream. they hadn't even applied for a small scale mining licence.
Now they have raised cash and the news coming out of JLP is getting stronger and stronger that they are going to take 3rd party Zinc sooner rather than later, the licence application result must be due very soon and the sp is near to 0.4p.
My only conclusion is that those who were touting it around were eager to sell and needed buyers above .6p - not heard much from them since.
How long do you think it will be?
A seal with JLP is almost a given looking at JLP communications - just need that licence. thinking of adding a few more shares to my GLR punt.