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Rodders- it takes a lot more work to prove economics on a complex process such an benefication of Tio2 using a chemical plant than to prove economics on a simple iron and vanadium concentrate. As I’ve stated CAPEX for this would be well outside our own means so either a later stage or partner would be required.
The thread already covers grade comparison with some of the UK listed minerals sands companies. However perhaps the best indicator of the Tio2 potential is to listen to the last 2 minutes of this interview by Largo CEO.
https://www.proactiveinvestors.co.uk/companies/news/914235/largo-resources-ceo-talks-growth-plans-for-its--high-production-low-cost--maracs-menchen-mine-914235.html
As you’ll see the operators of the highest grade vanadium mine are saying their 13% Tio2 in tailings (non magnetic ore) will be as important to them as their vanadium. Our grade is 33.75%. The economics on our Tio2 will be exceptional, of that I have no doubt, when company is in a position to advise is another matter
DCAT
..."What the current PEA doesn’t currently include is monetizing the 40% of the ore that is non magnetic containing 33.75% Tio2 (approx 67% ilmenite)."
Why would they not mention that is so valuable
Older and wiser. Superb analysis by Dcat - required reading. Very compelling investment case here.
SP Angel note on Copper but interesting Iron Ore quote
• We suspect if China was to impose such draconian price limits it would have already done so in iron ore which we feel is more critical to the Chinese economy than any single base metal.
Last year, ANM launched an electronic system for mineral exploration permits. With the new system, requests are processed within an average of 34 days compared to 728 days previously.
https://www.bnamericas.com/en/news/brazil-mining-regulator-opens-public-hearing-on-exploration-permits
Previous guidance for TM approval was 3-6mths (see the shareholder Q&A RNS). Since then Luis was involved in changes to allow monetizing of multiple commodities for starters (such as iron and vanadium...) the changes also make the process faster as per the announcement in October 2020 (see Swizz tweet at the time)
https://twitter.com/swiizz/status/1322103600416514048?s=21
Will be interesting to see just how much the changes made reduce the 3-6month guidance provided prior to the TM approval process.
BF- you beat me to it with a different article! Less than 2months CAPEX payback at these prices. Should be almost no doubt financing will be interesting easily obtained by offtaker.
With our BOD member and 21% shareholder Luis having put together our TM application after changing the process in his other role of VP of Brazil mining regulator I’m very confident this will be approved.
It’s no wonder at the end of his recent tweet video he said “I’m sure we will hear a lot of good things about pitombieras and Jangada in the next few months”.
https://twitter.com/jangadamines/status/1371400909704605699?s=21
https://www.marketwatch.com/story/iron-ore-prices-hit-record-high-with-appetite-for-steel-far-beyond-expectations-11620320569
Plan A is looking none too shabby
https://www.spglobal.com/platts/en/market-insights/latest-news/metals/050721-iron-ore-export-volumes-unlikely-to-increase-in-2021-keeping-prices-bullish-platts-analytics
All- can we give the BOD at least some credit :)
If it does break 8p, it's all thanks to Dcat and his solid efforts here.
Broken 8p for the first time in a while so maybe people have found this thread!
Superb analysis ! This should be required reading for all prospective shareholders.
O&W - spot on. To me Brian saying they were even considering fast tracking to a full production method is indicative there has been expressions of interest and discussions with a party that could fund that, it’s clearly outside our own means. However at the same time we are proceeding with the DOS route as this is something we won’t be reliant on a 3rd party providing large capital.
To me it’s two different work streams. Whilst it might be possible to produce a DOS method to a PFS standard I would be pleasantly surprised that we’d find enough testing on full production methods to do a full production report to PFS. Only exception might be If we are considering a route using Fodere groups technology and pilot test plant for such study work. I’m sure fodere do have a pilot plant built, although I have no idea on suitability for our ore or if so whether it would work on the full ore or the non magnetic.
We know they are doing bulk test, exactly what though we don’t know.
I think I’ve said before that the test work may well land before the next economic study as the company have a history of releasing component parts when they can. It is certainly something I hope to see for further clues.
Twice, even! Apologies for the repetition.
I hope that Plan B doesn't involve equity in Jangada itself but in the project.
Yes, I wondered if the confusion over whether we were getting a PEA or a PFS was somehow because of bargaining going on behind the scenes! I think you hit the nail on the head OW
There's a basic inconsistency in JAN's stated plan for a revised PEA/PFS in Q3. Either they fully intend to follow through with their Trial Mining plan for first production and revenues in Q1 2022, with a mouth watering IRR and relatively capex but going the DSO route, OR, they are going to reveal the full, embarrassingly large potential of incorporating the TiO2 credits through processing the ilmenite rock. It's almost as if they are going along with Plan A but there are behind the scenes discussions maybe already started, with a friendly major, to be prepared to give away some equity ownership in exchange for the funds necessary to go the whole hog and process all parts of this very resource. Proving up triple the current resource size might be acid test, accompanied by independent verification that their ilmenite rock can be processed by a dry separation method. Decisions, decisions, for the bod, before the revised PEA is released.
There's a basic inconsistency in JAN's stated plan for a revised PEA/PFS in Q3. Either they fully intend to follow through with their Trial Mining plan for first production and revenues in Q1 2022, with a mouth watering IRR and relatively capex but going the DSO route, OR, they are going to reveal the full, embarrassingly large potential of incorporating the TiO2 credits through processing the ilmenite rock. It's almost as if they are going along with Plan A but there are behind the scenes discussions maybe already started, with a friendly major, to be prepared to give away some equity ownership in exchange for the funds necessary to go the whole hog and process all parts of this very resource. Proving up triple the current resource size might be acid test, accompanied by independent verification that their ilmenite rock can be processed by a dry separation method. Decisions, decisions, for the bod, before the revised PEA is released.
Really helpful, thanks Dcat. The February RNS with the first PEA was pretty clear the next version will have TiO2 credits included. Going to be really interesting the approach they plan to take for that. I’m assuming they would not have said that if they did not think someone would at the very least buy the non-magnetic ore.
A superb succinct summation dcat.
Excellent post, many thanks!
Superb DC, very informative and very much appreciated,....GL S
Hi Dcat - that’s a really succinct and compelling refresher - thank you. Although I had largely reached my “position” on this investment a few months ago - your analysis has prompted me to re appraise and I will be adding more in the next week. Let’s hope others do. Regards LFC2020
For those not seen elsewhere (Obelix ;) )below is some brief notes I wrote up to explain the basics recently.
The priority at the moment as we know is the DSO route. The below shouldn’t be taken as short term objective, but most here understand they’ll be various stages of development...
Jangada for dummies part 4
Any 3rd party looking at Jangada will be fully aware of the potential.... I would love to see a partner bought in on favourable terms to help expedite a full operation. The project has the potential to exceed the economics of the Hot Maden copper/gold project which is still the best I’ve seen.
Take the time to understand Jangadas project and it should be clear this is a portfolio and life changing investment opportunity. It is however illiquid and no money required in a hurry should be invested in case of low liquidity when needing to be sold. Definitely not something for traders who risk getting bored or nervous on short term SP movements!
Jangada for dummies part 3
So what is the potential for Jangada?
The Pitombieras tenement alone has a 40mt-60mt JORC target.
The Q1 PEA whilst outstanding really is just a tiny part of the potential at pitombieras.
It’s based on the maiden resource of just 5.3mt and as above purely on the magnetic ore.
Q1 PEA headline numbers are
NPV -$106.5m
IRR - 317%
Capex- $9.5m
Payback 3 months
In addition to Pitombieras we have the Mocidade tenement just 3km away.
I also expect additional licence area will be sought in the upcoming Brazil licensing rounds.
It’s clear to see Jangada have a highly commercial project if size just on a simple concentrate route on the magnetic ore alone.
It is however the non magnetic ore which holds the best potential. Pigment grade Tio2 sells for over $3,100. Therefore each tonne of our 33.75% non magnetic ore could bring in over $1,000 in revenue ($3100x 33.75%. At current prices Gold would have to grade over 17g per tonne for 1 tonne ore to be worth $1k.
Whilst any Capex to fully monetize the Tio2 to its full potential would be significant when that ore can be processed to produce $1k revenue per tonne the economics would be incredible.