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Kat, agree, hibernation and stagnation. The more I ponder it the more I can't see the recent news as being anything other than quite bad news, just dressed up to look like good news.
1. NO drilling until at least 2025 and then likely to be considerably less than the 15 initially agreed – how long before results from that will be known? 2026 sometime probably.
2. Jay now not only needs money to survive until drilling commences but it will need to fund the EM cop-out alternative in the meantime and meet its other ongoing company obligations.
3. Going forward Jay now has to match any money Kobold spends to fund its share of any drilling or other exploratory workings. If the value is to be proved up then that will be expensive – if they make cutbacks to the planned operations because they haven't (or can't get) the money then that leaves big question marks over the value of their assets. If 15 holes were needed then 15 must surely be drilled – why else state that number initially.
4. Kobold are more than happy to relinquish 2% - any shrewd company would be. They are in the driving seat now, in fact, they always have been. They've immediately saved a lot of money and can stall any future work for as long as they so please. They've been side tracked already by better prospects elsewhere and delayed work with Jay - what's to say they don't repeat that and stall beyond 2025? Stall for years? Absolutely nothing as far as I can see.
5. They need to sell something of value – but any money received will have already been allocated to required expenses and their salaries.
6. Kobold will not aid Jay in the exploration of hydrocarbons – where is Jay proposing to source the funds to pay for that extra activity? Where will they explore for hydrocarbons? Greenland is shunning oil & gas. So that leaves only White Flame Energy's licences – well they run out in 2027 so Jay had better find a lot of money pretty quickly to float that scheme. As written previously quite a few big, experienced and well financed O&G companies have already spent an awful lot of time and money in Greenland over the last few decades – with no success. Yet the Jay BOD reckon their little, under staffed, under funded and inexperienced outfit can profit from hydrocarbons. That strikes me as being a load of bs as usual.
The only silver lining I can see if that Jay have another 12 months or so in which to beg, steal or borrow some capital. As always, looking for some good news to profit from but the last rns sure wasn't it.
Without getting into controversy, here is what can be inferred from the latest RNS:
1- KOBOLD doesn't invest a penny and still benefits from what happens in Disko. It's still a cunning strategy, but in the end, at the level of JAY's management: it's rubbish. Kobold revealed itself to be a company with a low ethical level. He let an exploration window run out and saved 11.6 M$. The strategy is protected by contract clauses but nevertheless reveals a lack of interest and little confidence in field work.
2- as I said many months ago, in 2024 there will be no prospecting.
3- I'll say more: JAY, without clear evidence of having access to good mineral reserves, or only with a blind bet from a major company, is able to advance. The best bet is to end up being a royalty company.
4- most of the license assets do not have legs to walk. JAY doesn't have a geology department, it doesn't have financial resources and it has a rotten past thanks to the fraudsters who were part of its management. Its structure does not inspire confidence among investors. The solution: sell assets and keep part of the royalties in profits.
5- JAY is at a dead end. In April 2024, it will be left without a strategy or any possible alternative other than selling or entering into partnerships as a minority.
6- There is still a remote chance that, as a result of local prospecting by third parties, JAY's licenses will become valuable. But that will only be in 2025...2030...later.
At this point JAY went into hibernation mode. It became a walking portfolio courting the most important companies in the mining industry. Ashton in this aspect knows that there is nothing to happen in this board to talk now.
All is frozen. So I think we are done for the next…12 months…or 3-4 years. Anyway…good luck all.