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I have just bought 208.57 quid worth at a price of 15.88p a share, which is magnificent, as it is below the price that the placing was at and to be fair that is part of the reason that the share price has dropped, albeit not as low as others, but it definitely hasn't helped out.
I DO understand the reason for the placing, it was to fluff out the bank sheet, expedite the copper /cobalt side of the business and increase the stakes percentage in the tailings that we have sources, to where we get all or very near to most of the profits. All those are pros for the placing, however on the con side of the placing, there was the statement that Jubilee WOULDN'T be diluting again, as they had a mixture of money in the bank and project finance/debt moving forward and yet they diluted again, resulting in Leon breaking his promise not to dilute, opportune or not.
Yes, I know some people will see only the positive nature of it and there will be those who only see the negative side of it. I can see both sides of the coin in the terms of expediting the copper/cobalt side of things whilst prices are high and expecting to climb higher, but a broken promise is still a broken promise.
In time, I hope that we we will laugh at these prices, saying the dividends that we receive are more than I paid each for my shares and I do feel that we WILL get to dividends and to the FTSE 250, before being bought out at multiples of this prices, as it will just be too disruptive to the mining industry, as the liabilities that cost them hundreds of millions a year can be turned into money, by reducing their liability costs and generating income for what most consider a waste product. That last bit is only my opinion, but these big mining companies HAVE to improve the ESG, by tidy up the waste of yesteryear and prevent tailings dams slipping and killing people aka. VALE in Brazil.
I do feel that we are at the forefront of this new world and hope to make some serious capital here to pay off chunks or all of my mortgage and I do think that has a VERY GOOD possibility of happening.
The entire stock market is done by 1-1.5% this morning. In fact, SLP is down by 6% (having risen by similar amount last Friday). Sit tight through the next few days....
I don't think they will be selling any straight away at these stupid prices.
Dorf, I completely agree! If I remember rightly with previous placings the share price always remained around the placing price until the shares went into circulation. Sometimes went down from there and more recently has gone up. I think they go into circulation tomorrow.
Mickie
All I can say is that as far as I am concerned the last two RNS's regarding the direction the company is taking to produce copper and cobalt is the most obvious game changer I have ever experienced.
My only surprise is the reaction of the share price.
Morning Kaiser,
Yes we can definitely agree the Zambian assets are very like to propel Jubilee into the Ftse . Thus I feel making this a game changer. But being able to compare Tjate to the above ground tailings we will remain at odds. As a stand alone asset I do not feel Tjate will propel us to the ftse in our current position. It may one day provide a large dividend or lots of investment capital helping support a 250 position, but as you say the Zambian tailings could take us straight there. Sorry for quite short answers, but got back late yesterday and have a very busy working schedule. I have re read your posts again this morning and can see where you are coming from, but will always disagree on this point.
Mikie,
So if both assets are worth the same and both cost the same amount in total costs to get to the point of sale, there is no difference is there? That is what I am alluding too. Yes, potentially both Tjate and the 115 million tons of tailing could have similar return of outlay per unit overall, the good points about the above ground tailings positions is that the unknown is removed and the start up is cheaper, but the grades are much lower and require more processing to extract value, raising overall costs. The plus point of Tjate is the grades are exceptional and potentially, if we wanted to process our our ROM, for little to no cost we could go from the next-door Twickenham mine and bring the ROM up through Twickenham, via a JV with the current owners of the mine and then we'd have ROM to process, with exceptional grades of chrome and PGM's.
I also didn't say it was a game changer, I said the following:
As for highlighting Cobalt being a game changer, that is fair, but basically you are insinuating is that the 115 million tons of Copper and Cobalt tailings is worth near 5 BILLION dollars of Net Asset Value, when it has to be processed, refined, etc or a long period of time and the aforementioned costs aren't available for the Cobalt side either.
It was you that said it was a game changer, I just said that it was fair for you to call it a game changer in your opinion but not to insinuate that the copper and cobalt in those tailings were worth a near 5 billion dollar valuation.
Regardless of anything else I think that we can agree the Zambian assets are instrumental in Jubilee achieving a FTSE 250 position, but where we agree to disagree is the point of ascribing value to an asset without the costs to concentrate, process and refine, etc being known at least to us PI's at this time.
I think we are going to have to agree to disagree Kaiser! An asset deep underground is at an obvious disadvantage to an asset above ground! Beyond that I’m not really sure what you are trying to say. It may cost $46,000 to process, but you think it’s a game changer! Let’s just agree to disagree.
So what you are saying is that Tjate and the 115 million tons of tailings can't be compared, despite being around the same asset value, because one is underground and one is at surface? If you can't see how ridiculous that statement is, then there really is no point trying to have a reasoned debate with you, is there? I state this, because you either understand Net Asset Value or you don't. To highlight the point further, Tjate was worth in excess of 2 Billion Pounds a number of years ago and that was only based on 2 out of the 3 farms, so the NET ASSET VALUE probably isn't that far off your predicted Net Asset Value of the 115 million tons of Tailings. The downside to Tjate is that it will cost a billion pounds to get to the PGM's, but say for example, what happens if it costs 46,000 dollars to manufacture a ton of Cobalt? Are they comparable now?
As for highlighting Cobalt being a game changer, that is fair, but basically you are insinuating is that the 115 million tons of Copper and Cobalt tailings is worth near 5 BILLION dollars of Net Asset Value, when it has to be processed, refined, etc or a long period of time and the aforementioned costs aren't available for the Cobalt side either.
Evening Kaiser, thank you for your post and yes it is unlikely 100%, will be retrieved. I was trying to highlight what a game changer Cobalt has become and is possibly more important at present even than the copper! I am very encouraged by the following statement in the RNS “Jubilee's process development centre has confirmed very promising results from the cobalt recovery strategy which holds the potential to significantly increase the overall project economics. “ From this I hope we will be able to recover a large percentage of the Cobalt, but even in the most pessimistic outlooks the cobalt is clearly now going to be a game changer and there is there is a lot of it! Your comments regarding Tjate cannot be compared. One resource is above ground and one is buried deep underground!! I feel this is what sets Jubilee apart and the quicker the market twigs this, Jubilee will be placed on a pedestal.
And before anyone says it. Yes it might be worth that much, but Tjate is worth a similar amount, if not more in these times, but no one is buying us out for it. We have, according to some fag packet maths, well over 5 billion dollars in those two efforts alone in a company that is worth less than 400 million pounds. If that doesn't tell you what you need to know right there, nothing will and yes I DO hold shares here, just trying to be realistic with valuations. We will get there but let's do it properly.
Mikie,
I know that what you have put is a bit of fag packet maths, but we do need to be realist even with that, as you predict 2.7 billion dollars for the Cobalt, but you have predicted that we manage to retrieve 100% of the Cobalt and that will be a completely unachievable goal, at best, I hope for 50-60% and yes it still leaves a good margin for what is a secondary material, but there is no guarantee that the price of Cobalt will stay at 47,000 or even in the current range of 53k dollars per tonne.
If you are going to put fag packet maths down try to temper them with a hint of realism, because if the value WAS actually 2.7 BILLION Dollars, we would literally see world leading mining companies turning their spoil into a veritable gold mine of profit.
To say Cobalt is changing everything is the understatement of the year. I have just reviewed the RNS dated the 5th November. This states an additional 115 tonnes have been secured. So around a quarter of the total copper and cobalt tailings accumulated. It further states the average copper grade to be 0.3% and cobalt to be 0.05%. So copper after production costs gives you around $1.725 B ( 115Mx0.3 x 5k) but this is where it all changes! Cobalt after allowing a further $4k production costs gives you $2.7B ! ( 115M x0.05x 47,000). So $4.425B in processed value on roughly a quarter of the assets secured in Zambia!! £30M raised in equity is a mere fraction in comparison, a pimple on the moon! So £17M on securing the assets and £13M to clear up a few bits and pieces, bring the time line forward dramatically, double the sable capacity and leave the balance sheet in good order. We start producing meaningful copper in about 6 weeks! Then the ramp up begins. Full production at sable first quarter next year! Cobalt is a slam dunk. Once the market cottons on to the asset Jubes has accumulated, a serious re rate has to be on the cards. This is simple maths, no more! We haven’t even got to dig it up! Priceless and the starting gun goes off in 6 weeks!