Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Directors talk interview up on JM Site :-)
I have always been of the view that the capacity is significantly greater than both JLP's and GLR's quoted numbers for Zinc. If you look back at the original RNS on the purchase of Kabwe and work out the capacity based upon those numbers it dwarfs what will be going through the plant. Now some of that could be taken up with the Cu circuit if it uses common parts but we don't have too much information on that front yet.
Just listened to the proactive interview, and some slightly different figures given, capacity up to 9-10,000 tonnes for zinc instead of 8,000 tonnes in the RNS. Also, the addition of cobalt is now in the plan as well.
The thing is though the numbers and what LC says do not stack up with what CB/GLR are saying.
LC says the capacity is 'fully committed' to the processing of our material, and they are constantly reviewing high grade material to compliment that. LC doesn't say either way about taking star zinc ore, but is somewhat different to CB basically saying GLR have an off-take agreement with JLP.
And then theres the figures given, CB says 12,000 tonnes of zinc per year to kabwe from GLR. It doesn't appear we have the capacity for that even with higher figures given by LC in the interview, and what capacity we do have is already 'fully committed' according to LC. Of course what gets produced will be dependent on the grade of what goes in, and star zinc should be a higher grade for zinc. But we can't just stop processing all our material in favour of star zinc, or we're not producing vanadium which is more valuable.
Could be that LC is massively understating the capacity for what could be produced. That would be a pleasant surprise, but would be the first time he's done that.
Hi Portal!
It's worth adding that zinc and copper prices are low at the moment, and that vanadium (which is very volatile in price) is at the bottom of its cycle. So that revenue figure can easily increase.
In addition to $17m for copper also $18m for zinc, Vanadium- $23m, Lead- $22.7m = $80m per annum revenue
If targets are met, a large % will be profit
It is an exciting RNS because it means that there is a tailings deal which is imminent. That is over and above the rest of the projects.
3000t of copper pa = $17m revenue at todays prices :)
My impression is that the plans have been amended after they established the existing copper circuits at the plant could still be used without much work involved. And reading the RNS they have also established that they can use much the the same circuits for both copper and zinc without permanent changes, so keep capacity for both. Although the time scales for zinc looked to have slipped in the short term, this appears positive in the longer term as we've added permanent capacity for copper production to the plans.
Numbers are slightly lower on the Pb side Jonah, 11,000T instead of 15,000T. Zn and V are the same. Timescales have shifted out by 6 months for Zn & V and are quite disappointing for Pb at mid 2021. However, the plus side is 3,000T per year of Copper.
Initially they led shareholders to believe that Kabwe production would commence in Q4 this year. That's now been pushed back to possibly mid-2020 for Zinc/Vanadium and 2021 for Lead.
Now they have pushed back Z/V/L production and replaced with Copper, that nobody knows anything about because no details have been released. Not very professional really.
Good RNS, but different from what I expected. Zinc concentrate and Vanadium now targeted for Q2 2020 with a new emphasis on copper from some secret source. No mention of zinc metal, but maybe that's an oversight. Need to check on volumes against previous RNSs.