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Added £500 more today also
Picked up another ~43k - had to buy in very small tranches.
Mms trying to hold it back, only allowing 10k but at time without order. Hopefully get a decent move and back into 4ps soon.
Remember can fill and kill order for 30k shares at quoted ask…
https://blencoweresourcesplc.com/2023/05/01/investor-webinar-and-updated-presentation/
I can’t quickly get my head around how financing from a US org and testing with a Chinese org sits together? But I’ve not read the releases carefully to try to understand.
No wonder Jangada have been tweeting so much about Blencowe
https://twitter.com/VSUNEnergy/status/1650302684224970752/photo/1
Mesb- if you’re on other platforms you can DM me then drop me line there. Few other items you might find interesting on fodere side of things.
Ok googled the 98% reference now back from 2020 before I really actively engaged.
Mesb, thought you might recognise part of it. It’s the results from Evraz material carried out years ago before they purchased 44million tonnes of the material and spent years on permitting.
They had sent pilot plant at one point to the USA, that was prior to Jangada getting involved and sure there’s an article or two online if you look, think even posted here before.
No idea where it’s been since USA, prrhaps decommissioned & put in storage. Maybe the one in kitwe is the same one put back together. Either way it’s been a particularly frustrating wait for any Pitombeiras material to be tested, but it is now finally happening..
Dcat, mind me asking how you know the first bit? Think you’ve mentioned a couple of times you thought they’d had some sort of pilot plant before even the one recently mentioned for Kitwe, but I’ve not really come across any info on that during my research.
We, or at least I, know that fodere tech has produced vanadium pentoxide from material grading 0.6%-1% vanadium and a 98% tio2 product from circa 30% tio2 feedstock. That feedstock also containing very high level of contaminants not seen at pitombieras…
I’m very confident that fodere tech applied to the concentrates current flow sheet produced (1% vanadium/42% tio2, with low contaminates) will produce similar results.
The larger unknown is if the current flowsheet can be amended and fodere tech applied without the ore having gone through the 2 stage dry and wet separation process. The change to the 2 stage prices between the PEA and technical report was the main driver of reduced recovery and higher costs between the two reports… RNS referencing improved recovery could be suggestive this is the case, however that’s something we need further data for..
Likewise if the vanadium and other materials are leached & treated out of the iron ore that should in theory increase the grade of contained iron from the current 62%, potentially increasing the value of that. Something else we’d need test work to see, but higher grade iron is both more valuable and attractive to offtakers..
Only numbers I’ve offered up to date is adding fodere tech to the current process for which we have the numbers. Using product fodere tech has got to and an added estimate opex of $100 per tonne against the product current flowsheet produced.
So basically. A ceo who does an interview with no sleep and with incorrect numbers.
. We do not know capital costs, operational costs. Purities we can get. If the process is commercialy viable.
For now it is interesting, but no way to trade without detail.
If it comes in and looks good i am a massive buyer. But once bitten
We don’t know how a new plant set up will look so the below won’t be correct, however the first set of numbers against each commodity shows their revenue in the technical report and then their weighting (%).
The middle number is exactly the same, but captures 100% of the vanadium value as if producing a V205 product which fodere tech would do by splitting it from the iron.
The 3rd set of numbers also envisages the 66k tio2 (42% grade) being processed into 20k 98% tio2 product for which se price should be nearer $2500 per tonne.
Like I said this is only demonstration as they don’t appear to be adding a fodere plant at the end of the process, but earlier on to also improve recovery rates. However it shows the affect of producing finalized vanadium and tio2 products, rather than selling as concentrated at concentrate prices, plus how such work should seriously reduce the weighting of iron in the commodity mix.
Current Just v205 upgrade
Iron $22.3m (50%) $22.3m (31%) £22.3m (21%)
Vanadium $8.5m (19%) $34m (48%) $34m (32%)
Tio2 $14.5m (31%) $14.5m (21%) $50m* (47%)
Total $45m $70.8m $106m
I think the polite comments would be Brian was tired from being up at 3am travelling.
The correct numbers I.e. those released in Technical report was 100% post tax IRR, $96.5m NPV and a 13mth payback using $120 iron price and $9.2 per lb V205.
It’s contradictory to talk about the great economics with a “9mth payback”, then saying you need $5 more per tonne sales price to be feasible!
It’s also not irrelevant. They’re looking to change the plant design by bringing in Fodere technology, that will alter the economics drastically and would also significantly reduce the weighting of iron within the basket of our commodities.
When referring to the project did I pick it up right that an iron ore price of $125 is where it becomes feasible?
I’ve been saying ‘Fodere’ all wrong it transpires!
Clearly going to take a while to unfold but intrigued where the $150m NPV, 9 month payback comes from if those were the first figures to jump into Brian’s head. Not sure I remember those being attached to any scenario released so far. I know he caveats he didn’t have paperwork to hand but still I don’t believe for one minute they don’t already have guestimates for the financials.
Hope you’re right!
Jangada of course have a 10% stake in BRES which is good news in its self when BRES shares are up 15%!
BUT, the big news is why would BRES extend warrants if no news due in next couple of months? Pointless as you could have bought in at same level as warrants anyway.
join the dots...
A double header from Brazil – Brian McMaster updates on Harvest Minerals and Jangada
https://total-market-solutions.com/2023/04/jangada-mines-harvest-minerals-april-2023/
I think under that scenario a p/e of 5 would equate to a shareprice of around 78p
Cheers Dcat, that probably helps to explain part of the waiting game we are enduring -- a prize of 50 million dollars profit per annum or thereabouts. A p/e ratio of five would see shares valued at...50p?!
Basically we do not know right.
Unlike tng who are explicit fodere are not.
Do we really know additional cost of process?. I did not see much on website.
Anyway. If they say it is game changing it should enhance profitability alot