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“…With the full Study incorporating the Project’s titanium component on the horizon, and the prospect thereafter of a detailed roadmap to production, this may be the right time to take a position in JAN…”
https://total-market-solutions.com/2022/09/jangada-mines-plc-4/
If you consider our market cap is circa £8.25m at the moment and we have cash and investments covering circa £3m of that then pitombieras is currently valued at just £5m.
Should we get a farm in/buy out at levels asiamet/Marianna managed then those buying or selling at current SP are effectively buying/selling at just 10% the fair value.
News when it lands could well be truly transformational. It’s an exciting time, although most just don’t understand that….
Route forward and how good it is for us shareholders really depends on the interest in the project. The economics really are outstanding.
I’ve been keeping eyes out for financing of other iron, vanadium or Tio2 projects in last month. Think count is up to 7 projects now in the last month, none of which would have the economics of pitombieras.
An example of a buy out is Marianna resources.
Pea DFS
IRR 153% 36%
NPV $1.37b $1.05b
Capex $261m $309m
Marianna resources taken over after PEA for their 30% share at £167m (£556m 100% basis)
That buy out price was at circa 50% if the PEA NPV or 65% of the FS NPV. If that was the case for pitombieras it’d effectively be in the range of a 15p-19p buy out.
The capex requirement is outside our own means. Last years TMS interview included Brian commenting on how project could be financed if further benefication was done. Mix of offtakes and industrial partner was the answer.
An example of a recent farm in to build can be found in asiamet RNS of 3rd November 2021. In that instance terms were $50m for a 51% interest. The headline numbers of their FS were IRR 19.1%, NPV $133m and capex of $223m (npv/Capex ratio just 0.57). Partner basically farming in at 75% of the project NPV.
Pitombieras economics are much much better with IRR 100%, NPV $96.5m and capex of $18.45m (npv/Capex ratio of 5.23).
Should a partner farm into pitombieras at 75% of NPV it’d be equivalent of an SP at 22p….
BF - I’m fairly certain they’re in talks now
1) They sold Pedra Branca when we were waiting for the FS. Advises were they couldn’t get support to take a small scale PGM project forward themselves i.e. at that stage they'd been in talks to take it forward. Very likely they’ll be in such discussions now with Pitombieras
2) In June advises were financing could complete as soon as start of October. Financing of course isn’t just a matter of making a phone call to the bank.
The question is rather how much interest is there in the project and in what was is that interest? Fund the mine build, drill out deposit to consider larger/different operation or even as you say to acquire it from us.
would be nice to hear something - if only a holding rns.
The trade at 3.30p is a buy by me. I have to believe that they are knee-deep in negotiations that could be transformative. That could explain why they are now looking at nickel too
Thanks DCat. Obviously a very experienced guy. Maybe they couldn’t say no to the chance to use his knowledge but the more people brought in the more it suggests there’s more to do to commercialise the technology. I’m assuming the main protagonists have other jobs/income but the Fodere venture has been going on quite a while - they surely must want to monetise their efforts soon. Hopefully it’s getting closer to the crescendo. My instinct says the investment here could eventually be a really valuable asset in the Jangada toolkit, just bucketloads of patience required!
Any signs of life for Jangada? Perhaps we are going to sell Pitombeiras to develop that nickel tenement?! Nickel appears to have good prospects...
SAO PAULO, Sept 7 (Reuters) - Brazilian mining company Vale (VALE3.SA) said on Wednesday that global demand for nickel should increase 44% by 2030 compared to that expected for this year, due to high demand for use in batteries that power electric vehicles.
"Demand for nickel is forecast to increase rapidly this decade with the energy transition," the company said in a statement, adding that the new forecast would be of 6.2 million tonnes in demand.
Fodere been recruiting. Another sign things are moving there..
https://www.linkedin.com/posts/fodere-group_its-a-pleasure-to-announce-welcome-mr-stephen-activity-6974207476606902272-XUkl?utm_source=share&utm_medium=member_ios
'...if in fact it is true.'
May be it's a conspiracy, a plot between the ANM, the Diary of the Union, Grb....., VTf....et al, that only can be true if Jamgada say so.!
Yeah, that's what it is, it's a conspiracy! How could I have missed that?
Really, then best stick to the realities of the Jamgada DFS and a 5 year look ahead price of Wolframite on the Zhengzhou commodity exchange. Lol
Surely this is material news and has to be announced by the company if in fact it is true.
Curtesy of GRB GRAFITE DO BRASIL MINERAÇÃO LTDA:
Right side column
https://sei.anm.gov.br/sei/modulos/pesquisa/md_pesq_documento_consulta_externa.php?iPKNOI4i-Tt3bdeqzGJgGCgYH-B6kWAvCl8aH0kRl60I8fidk2RqXOk3jsbGgmZohKsjfIGm9y6xgV_6W8jWNn8UOXT5zL3hC26G_kGtCtmrOIxtxew2ZxrR3BsrPT93
Concede anuência e autoriza averbação da cessão total de direitos(281)
800.268/2019-GRB GRAFITE DO BRASIL MINERAÇÃO LTDA.- Cessionário: VTF
MINERAÇÃO LTDA- CPF ou CNPJ 33.075.465/0001-60- Alvará n°3270/2020
Grants consent and authorizes registration of the total assignment of rights(281)
800.268/2019-GRB GRAFITE DO BRASIL MINERAÇÃO LTDA.- Assignee: VTF
MINERAÇÃO LTDA- CPF or CNPJ 33.075.465/0001-60- Permit No. 3270/2020
The research permit for Ptoembieras was due to expire 11/11/2022, however that too has been extended under Covid resolution 76/2021.
The new expiry date is 24/05/2024, so no rush then!
I believe the licence for that extends through 2024..... so assuming Pitoembieras progresses sharpish, they could likely use revenue to drill this nickel license.....
That does assume that we get a wriggle on .....
There's a comment by our old friend on advfn about Jangada picking up a nickel tenement owned by Luis. I don't understand why the company wouldn't tell the market about that. At least it suggests that there are signs of life! I don't know how keen they will be to drill it or what money they will have to do so?
ffs it would be nice to hear something!!!
Brian doesn’t think investors should be updated.
Slightly off topic (although the more I think about It the more I think a tie up somehow between JLP and Fodere makes sense), but JLP’s CEO has just done a short interview on directors talk. Implied their expansion strategy will be revealed quite soon, so worth I think watching out for that. But mainly the reason for the post is to highlight how a short interview that doesn’t reveal much can bolster investor sentiment. Would love a similar simple update from Jangada HQ! Good weekend all.
Waited all day to see if anyone would post, but no joy!
Aim listed Alien metal announce MOU on potential offtake and financing of their Pilbara DSO iron ore project. Alien spent most of today with an increased MC of £6m on todays news.
Jangada MC is currently £9m MC with cash and investments over £3m I.e. pitombeiras only value at £6m…
https://www.lse.co.uk/rns/UFO/agreement-for-potential-han****-project-finance-ar67cfmyah98a0u.html
Little reminder Han**** resource is at inferred stage with economics at scoping study level. Sure we all remember pitombeiras iron/vanadium is now at feasibility study level which of course means we only use the measured and indicated resource of 5.1mt (the 3.1mt inferred can’t be used in feasibility study level reports).
Despite the all the doom and gloom Minres proceed with financing the Onslow iron project.
Opex on the JV expected at circa $40 per tonne including infrastructure capital charge.
For comparison pitombieras is circa $25 per tonne mining/plant for the iron/vanadium with $30 for logistics
Pitombeiras gets vanadium credits estimated in Technical report of $45 per tonne.
https://clients3.weblink.com.au/pdf/MIN/02559559.pdf
Majority all done to FS already as below shows. It’s just the desliming and flotation of the tailings containing the Tio2 that was required. Been over 4mths since technical report during which time they’d have progressed the work on Tio2 and been engaging with offtakers on at least the iron/vanadium side.
Surprised nothing received yet, it is holiday season for some though so maybe things been slightly held up. Would hope update is soon.
I’ve just added 10.929 shares with cash added to isa earlier….
- [x] Pit design
- [x] Mining method
- [x] Infrastructure
- [x] Mining contractor costs
- [x] Dry magnetic separation capex & opex
- [x] Wet magnetic separation cape & opex
- [x] Logistics
- [x] Metal prices
- [x] Sales costs
- [x] Working capital estimates
All above been completed which is why Iron/vanadium is to FS level
Below are the extra stages required for Tio2, currently at PEA
- [ ] Tio2 Desliming
- [ ] Tio2 flotation
I thought it was close at hand. Could it really still be uncompleted?