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Usman- you need to do the basics yourself reading presentation, PEA RNS and getting overview from other RBS that Jangada are basically at stage progressing from explorer to small scale producer next year (at which point when revenue is coming on further exploration continues).
Chain below should give you little more of an introduction as well.
Troajan - chain below gives good intro
Always good to reread your Jangada for Dummies thread DCat.
To be fair, that story needs to be coming from the company! They have been a bit lacking on that front and it is a good easy story to understand. The investor presentation shows it but they need to be pushing it to the market now.
I am tempted to offer to take over their Twitter account as their tweeter has gone AWOL !!
I am a big buyer of the stock
Many people see iron ore on a spike. It you simplify the tio2 story we have 3 commodities and it makes it massively easier for people to load up.
I have a good position here over 20k, all I am saying a simplified story would make this fly
The bottom line here for me is that if you forget the Vanadium,the Tio2 and the expansion areas.The existing Pitb mine will be massively profitable in iron ore alone,and using that ore will finance the route to processing out the even more valuable minerals. Really not complicated cos I get it !
Great so 550k t ×2. Let's call it 1m tonnes or ore at 300 usd.
I understand the huge benefit of processing to High purity. But is this not already a good enough theme to get the stock moving. Would it cost much to make the concentrate
Industry norm is to report the Tio2 content. Quick google search and you’ll see Ilmenite roughly has a Tio2 content of 50%. As such just double the Tio2 tonnage in the resource report and you’ll get feel for amount Ilmenite there.
It is not a suggestion of optimal approach, but more to allow people to see a basic base value for non metallic ore.
People can easily understand X tons * $y.
They can then put a simple base value on metallic and non metallic ore, and see a free call option
Yes we could probably sell an Ilmenite concentrate, no we probably shouldn’t as it’s wast of material that would produce high margins from upgrading ourselves. Plus can’t just decide to start selling more material as trial mining limits apply, so let those limits be used on the iron/vanadium and hold onto the Tio2 until a later time
Is there a simplified view?
We have ilmenite. Price of itmenite is 300 usd+
How much ilmenite do we have and do you think we could just sell it without additional processing?
This makes for a simple story without need for understanding capex, complex processes etc
Jangada for dummies part 1
Little chain for newbies or those in need of refresher on the basics (originally posted about month ago)
The pitombieras project is a district of vanadiferous titanomagnetite (VTM) deposits. As name suggests VTM deposits contain iron, vanadium and titanium dioxide.
VTM deposits vary considerably between each other. Once mined the ore is crushed into small particles some of which are magnetic and some non magnetic.
The proportion of magnetic and non magnetic particles can vary considerably between deposits as can the grades of the commodities within them.
The article below will help explain this well.
https://smallcaps.com.au/investors-guide-understanding-vanadium-deposits/
The composite make up and grade of the VTM deposit will dictate to a large degree how it’s best monetized.
The Pitombieras composite make up can be found in the 26/9/19 RNS and is approximately 60% magnetic particles/40% non-magnetic.
The magnetic particles grade 95% iron ore and 1.25% vanadium.
The non-magnetic contains 33.75% Tio2 (ilmenite has Ti02 content of roughly 50% its approx 67% ilmenite)
The above can also be seen on page 15 of current company presentation with grade comparison to other VTM deposits on page 20.
The commodities that Pitombieras stands out in grade on are Iron ore in the magnetic ore and Titanium Dioxide (ilmenite) in the non magnetic ore.
What are the commercial implications of pitombieras composite make up & grades?
Well we’ve already seen the implications for the magnetic concentrate of iron & vanadium that makes up 60% in the current PEA. The high Iron ore content (95%) provides the option of a saleable concentrate without the need for complex processing. Just mine, crush and put ore through a dry magnetic separation unit. No need for water, acid or heat. This is why a low Capex operation is possible.
For the magnetic ore concentrate we get close to iron ore spot price for each tonne with an additional $30 for the vanadium (based on vanadium pentoxide price of $6.25 per lb). Credits from iron and vanadium mean we aren’t reliant on the price of one commodity and should be profitable at all times in the pricing cycle, exactly what a district scale play needs to be.
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).
The non magnetic ore in VTM deposits is often a liability. Operators using a standard wet magnetic separation process will have to maintain tailing dams. Pitombieras on the other hand has highly valuable Ilmenite within the non magnetic ore. So instead of being a liability the non magnetic ore is actually significantly value adding, in fact it should be more valuable than the magnetic ore covered in Q1 PEA.
Jangada for dummies part 2
Ilmenite is more often known to UK investors from minerals sand operations such as Bluejays (JAY) or Capital Metals (CMET), both of which have great grade and decent looking projects. Mineral sands though come from eroded hard rock ilmenite deposits and as such becomes diluted.
Pitombieras has high grade ilmenite for a hard rock deposit and as such grades are multiples of even the best mineral sands as demonstrated below.
Jan non magnetic ore circa 34% Tio2 grade
CMET mineral sand circa 13% Tio2 grade
Jay mineral sand circa 6% Tio2 grade
The extremely high grade Tio2 content at pitombieras also means upgrading it to a pigment grade product of 99% purity is much cheaper. This is a route being pursued by a number of companies with hard rock deposits due to the pricing (ilmenite currently near $310 per tonne, pigment grade $3,100 per tonne).
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.
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!