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Jonah,
$4K gross margin per ton may be a little high at the moment.
The first 6 months revenue was $6.7k per ton and costs were $4.5k per ton so gross margin was only $2.2k per ton back then. Copper average price was around $8.4k per ton at the time.
Yes copper price has increased but costs are expected to increase. JLPs revenue per ton reported is $1.7k per ton less than the price of copper at the time if that continues to be the same then a gross margin of $3K maybe nearer the mark.
As Roan builds up speed we will get a better idea of revenue and costs and copper price increasing can only help all looks good though.
Good morning everyone.
Heroric it is incorrect to say they aren't producing any copper.
At some points they wont be at other points they will be but overall they are at a consistent volume of around 300 tons per month no it isn't high production yet and it may be a couple of months before they hit those higher targets but that is what we are all waiting for.
Heroric,
Your over exaggeration means the point you rely on is missed. JLP are producing copper (the 300mt per month) but this IS less than we had hoped for with the full Roan upgrade.
I cant believe you doubled down on the no copper missive when corrected - either qualify your post or I will report as it clearly mistates the position here.
We are producing 300 metric tonnes of copper per month. Taking a pessimistic all in production cost of $6000 per tonne that equates to an earnings of $4000 per tonne or $1.2 M per month which is more than we are earning from PGMs I suspect (though the basket price is creeping up, so that comparison may be wrong). In any event, it is certainly not trivial.
"still not really producing any"!!!!
He's still at it, pumping out misleading lies
Copper pice is indeed strong, but we are still not really producing any while it's at these highs.
Full ask being paid for some chunky trades..... looks good.
METALS – Copper back up above $10,000/T on Fed rate cut hopes
05:55
May 7 (Reuters) – Copper prices in London rose above a key resistance level of $10,000 a metric ton on Tuesday, buoyed by renewed hopes for U.S. interest rate cuts this year.
Three-month copper on the London Metal Exchange (LME) rose 1.5% to $10,061.50 a ton by 0415 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange (SHFE) was nearly flat at 80,920 yuan ($11,213.35) a ton, hovering near the record high of 82,460 yuan. ...... A softer-than-expected U.S. labor market report on Friday led traders to revive bets that the U.S. Federal Reserve would ease monetary policy as early as September.
Lower interest rates could lift metals demand by boosting economic growth. They could also lead to a softer dollar, making greenback-priced metals cheaper to holders of other currencies. ...... Last month, top consumer China announced subsidies for scrapping old cars in exchange for new ones to boost car sales, especially for electric vehicles, which consume nickel in their batteries. And of course COPPER....
Copper gone back above $10000 on that news.
Goldman Sachs say $12K copper end of this year and $15k next year!
https://www.forexlive.com/news/why-goldman-sachs-boosted-its-copper-forecast-to-12000-from-10000ton-20240506/
JLPpositive
I believe you have hit the nail on it's head.It can only be the reasons for the closure
Thanks JLPositive.
Its does seem to put a floor under the price since even at these elevated chrome prices Glencore still choose not use the Rustenburg smelter. I'm guessing the prices still need to go up even higher for the Rustenburg smelter to go online?
@Happydays
Dorfan would probably have a better answer, but having been a shareholder in Merafe, the Rustenburg smelters are the ones which Merafe built, prior to the JV with Glencore.
Glencore's original sites were located in the Steelpoort, Burgerfort region and were newer and less costly to run. The Lion II project was built even later in the Steelpoort, Burgerfort region and use significantly less energy than the Rustenburg area. It would makes sense for the JV to keep the Rustenburg smelters mothballed and utiise all the smelters in the Steelpoort region to produce the ferrochrome they market and keep the price at a level where they can make money.
Historically the cost of labour is higher too on the Rustenburg side as that is home to the majority of Platinum players in the market, who command (demand) higher salaries too,
Hope this makes sense and help a bit.
GLA & DYOR
The article also says chrome prices are up again this quarter :).
With Thutse coming online soon we could really take off.
Would that mean Chrome prices should remain elevated?
Looks like Jubilee could gain the monopoly if we producing at a much lower cost than our competitors.
Happydays
Being in South Africa I would suggest sustainable and viable power supplies and increasing power supply costs would be a big factor but the article isn't in great detail on it.
Https://m.miningweekly.com/article/glencores-rustenburg-ferrochrome-smelter-remains-idled-2024-04-30
Bodes well for Jubilee.
Although I thought chrome prices are high, why would Glencore chrome plant remain idle?
Anyone have an answer?
Thanks HD
Some of us never learn dbh, that's why I'm illiterate. I have a recommended read for you, o dia wots the title, got my wive to rite it down fur me, o yea "How to win friends and influence people", that's the one, enjoy the read.
Meanwhile, looking past the short term, which I hope we can do now, fingers crossed, done some copper research and $12000 per tonne is on the cards, as many have been predicting. I know I'm behind the curve, always best to look at what JLP is doing now before we get excited about crystal ball gazing. The mist is clearing and I can see ........ huge revenues, and my grandson is going to play football for England. In the short term he needs to learn how to tie his own shoe laces first.
Congratulations Seisnav I don't have any premium bonds but have diversified into preference shares and blue chip dividend paying stock.
The wife is even better at diversifying our money:)
Happydays
At least it is up in South Africa at the start of trading
I had a nice result with my premium bonds last week. Diversification is never a bad thing!
If you are basing your investment on a couple of blokes telling you insider information then you need to move into premium bonds. Never heard such rubbish. Oh it’s nice in roan so sp doubles or not a lot in roan so price halves. The voice of desperation. When will you all learn to wait for official al notification of news worthy info?
Good morning everyone.
Hope so Chester.
I agree Chester, it's the only reason I can think of.
Being optimistic, I hope that they can't broadcast until another RNS has been released!