Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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The latest RNS on 19 April 2024 had this statement: "This project (Disko) represents the LARGEST POTENTIAL UPSIDE in the company's current portfolio."
A key question arising from this upbeat statement is will JAY succeed in progressing the project to realise Disko's full upside potential with or without KoBold. I have repeatedly said here that the Disko project will need a major miner at some point. Let's see what the impending update says.
Catwithamnesia - That's a much better effort, listing of both negative and positive theoretical scenarios. I would add three more theoretical scenarios to the list:
1. Stock market listing of Nikkeli Greenland A/S
2. Takeover of Bluejay
3. Management Buyout (MBO) of Bluejay
Who knows, others may add to the list.
I like the qualification you have included in your concluding statement: "AT THE MOMENT lollipops and icecream are the only sweet things around. Cheers."
What none of us know is what is beyond "AT THE MOMENT". In the meantime, enjoy your lollipops and ice creams!
"Never stop wishing, because when you do, you stop believing in the magic of life."
Well...outside box? the possible routes are:
1- K starts drilling and they found something like Norilsk, once in 100 years, i will be happy to recover my cash and you will be rich
2- Jay continues to dilute shareholder portfolio by placing to pay administrative expenses and projects (?).
3- Jay is not able to handle and develop the process (geological team left, right?; funds not enough to hire staff, lack of logistics team and structure) and:
3a- finds another company big/medium size to develop in partnership Disko and whatever.
3b- handover the license and retains royalties over future profits
4- Jay sells all assets, distribute gain to share holders and closes doors.
5- Jay assets are just useless boulders and sand and goes bankrupt, closes doors
6- Jay assets are just useless but Jay continues to buy licenses in order to lire investors that inject capital, replicating the process.
7- Jay changes name to any other creative name (Sniff Mining LLC, Whiteline Mining Company LLC...) and replicate the whole story.
Did i missed anything? inside and outside the box?
I dont see any other twist. All I see is time passing by. With a timeline, it's ok. Hou guys spent 7-8 digits...hold on. I spent 5 and hold on time as soon information start to become erratic, process depending on a third party and geo surveys divergent from each other. All this without a timeline and with BOD actions completely abnoxious for shareholder interest. By the way...if i holf to share accounts and i sell my 7 millions shares at a ridiculous price to my another share account...what happens to shqte price? Goes down, right?...Ok...image your narrative plots and get the points together.
At the moment lollipops and icecream are the only sweet things around. Cheers.
Here goes Ashton with the usual tease!!
Absolutely Cat. They jerked Jay around in 2022 with drilling/not drilling. Didn’t drill in 23 but still took over a year to process the results. I get that they may have overspent in 22 but they still hav 49% if they don’t drill for one seasons work. That is not bad is it?
IvRoche - I wish I could answer your question but only JAY can. All that I would say is I am expecting an exciting development to do with the Disko story with a possible twist in the tale. I can't add much more.
Catwithamnesia - Instead of talking about lollipops, ice creams and the obvious hurdles, it might be more productive to think outside the box.
Ashtin, wishes are good for lollipops and icecreams. Summertime will be ok up to September. We are in April. To maximise work window, drillig should start in May-June. Rigs are not in place, staff is not in place, logistics and licenses are at point zero. Kobold is in silent mode, Jay in autistic mode. Impossible to have a decent and even reliable prospection in Disko. Forget 2024. In September 2024 we will replay talks from 2023. A responsable BOD would explain the hurdles of the plan. In this case the hurdles are clear: how to get out from this without loss?
Ashton, so you think we are gonna get an RNS about Disko drilling? (irrespective of what Aillen says, about RMs extracurricular activities)
"It's always darkest before the dawn."
Who are you quoting now Ashton? I think that might be Dumbledore, and not sure it ended well for him…
I started this thread on 31 Jan 2024 at 08:36. Will my wish to have good news on Disko come sooner rather than later?
“Wishes can bring light to the darkest of times.”
Maybe Eric is trying to convince Ajax Resources to buy some cheap assets from JAY? Wouldn’t that be nice. Mike H is also a major shareholder. Many fingers, many pies.
Ashton: "Would the addition of a major miner be regarded as "NEW ENERGY"?"
I don't think it's a major miner at this point because of where they are... They just had a major clear out of the old guard (and dead wood) who were drawing pay cheques and not actually doing anything to advance the company. Bringing in people in key positions aligned to the new one asset direction would be more likely IMO but the again - who knows - as we don't really have any elaboration of the strategy and still no sign of an Eric interview.
IvRoche - Thanks for that explanation.
In the note redknight1 posted on 19 Mar 2024 at 11:09, he said: "A good friend of mine is in touch with Eric. Obviously he cannot say anything but they are pursuing initiatives to bring NEW ENERGY to the company..."
Would the addition of a major miner be regarded as "NEW ENERGY"?
You may not get your money back investing in JAY but you are sure to be entertained by a roller coaster ride in the meantime!
True none of us know what is going on here which adds to the drama of this board.
To your point on drilling 2024, we have the Eric comment and we also have the RMc comment from the LinkedIn post around looking at drilling options at Disko - that's what makes me think we are drilling this year. If we don't drill and get an adequate strategy with actual milestones - whatever is left of my miniscule amount of faith in management will disappear and this one is in the bottom drawer.
The recent departure of operational/logistical staff such as Hans Jensen and Thomas Levin is being interpreted by some posters here as not good signs for a 2024 field programme at Disko. There is another way of looking at it. Maybe if a major miner becomes a partner they would provide such expertise. No one here knows for sure how this is going to play out and it would be unwise to rule out one option at the expense of another.
In the note I posted on 28 Mar 2024 at 19:37, I said: "I will not rule out the possibility of a major miner joining as a partner sooner rather than later (at least a 50% chance)." I did NOT say this on a whim.
IvRoche - You say your preferred option is a major miner (e.g. Anglo American) takes out a chunk of KoBold's 51% in Disko or even the whole of 51% (i.e. KoBold exiting completely) and also a chunk of JAY's 49% (e.g. take out 24% leaving JAY with 25%) with no further dilution and no additional financial commitment/obligations on the part of JAY. Who can discount your option (or some variation of it) since none of us here know for sure what’s being negotiated behind the screens until JAY makes an announcement. I have been advised to be patient.
You say: "I still believe it (drilling) will happen this year - but they should get on with it." What makes you feel so confident about drilling in 2024?
The recent RNS on 12 February 2024 said: "Amidst these cost reduction measures, Bluejay is focussed on its commitment to deliver critical work programmes at the Disko Nuussuaq project, where it has an ongoing joint venture with KoBold Metals. As we progress, our PRIMARY AIM is to deliver on our critical work programmes, creating substantial and enduring value for our shareholders.'' - https://tinyurl.com/3sukv2uw
Eric Sondergaard (MD) has nailed his colours to the mast with the above statement. We now await to see whether he delivers on it. April/May is when I am expecting an announcement.
And therein lies the difference between the two options. "Funds could support" - realistically Disko wouldn't be fully permitted for atleast 8/9 years - I don't have the figures to hand but between drilling to prove up the resource, PEA, PFS, FS, Permitting etc etc it would cost mid to late 10s of millions -> Any stake Jay retained would be diluted and diluted over and over. I'm addition, while you put down your preferences for management -> we could very well end up with an analogue of current Jay management.
Re: My option is more akin to a Turquoise Hill type option. A major, i.e. Anglo, takes out Kobold and a chunk of our slice (no further dilution and no additional financial commitment / obligations for Jay). Plus to your point: the major would then be answerable to actual shareholders and would be seasoned at taking projects forward.
IvRoche - It is always good to look at alternative scenarios, so thank you for that. I am enjoying this meaningful conversation so let's develop it further. For ease of reference let's call the two scenarios Option 1 (Listing) and Option 2 (Non-Listing). Also, let's name the company to be newly listed as Greenland Nickel.
Option 1 (Listing) - which is what I have suggested - would provide several advantages. Depending on how much capital is raised via the IPO of Greenland Nickel, the funds could support the development of the Disko project for many years without the need for KoBold or Bluejay to inject their own money into the project. Senior managers of KoBold Metals would join the Board of Directors of Greenland Nickel. For example, either Kurt House (Chief Executive of KoBold) or Jeff Jurinak (Chief Operating Officer) could become Executive Chairman of the Board with Eric Sondergaard as Executive Managing Director [Note: The two KoBold managers are already on the Board of Nikkeli Greenland A/S - see below for details of the full membership of the Board]. This would bring much-needed management credibility and strength to the newly listed Greenland Nickel. This should in turn attract new investors in greater numbers to the company pushing up its share price. Since Bluejay shareholders would have received new shares in Greenland Nickel proportionate to their Bluejay shareholding, their investment value would rise correspondingly. One of the biggest advantages of Option 1 (as I see it) is KoBold would be more fully committed to the success of Greenland Nickel (its subsidiary company) since they would be answerable directly to the shareholders of Greenland Nickel - unlike under the present situation where KoBold is not answerable to Bluejay shareholders. Moreover, under Option 1, I would also expect Greenland Nickel to have more ready access to the resources of KoBold (e.g. Geologists, Data Scientists, etc). Finally, Greenland Nickel will not have the legacy baggage of Bluejay as it would be a fresh company on the stock market(s).
I don't see Option 2 (Non-Listing) providing all of the above advantages.
Current Board of Nikkeli Greenland A/S: Kurt House (Chairman); Eric Sondergaard; Jeff Jurinak and Rod McIllree
NB: As I have already stated before, I would not expect Greenland Nickel to be listed until both drilling and assay results have been successfully completed at the Disko project.
A listing of Nikkeli Greenland A/S in my opinion is a huge huge stretch - unless the maiden drill program at Disko yields something off the ritcher scale. However, we are not there yet on confirmation of a drill program, I still believe it will happen this year - but the should get on with it.
Back to the huge stretch listing of Nikkeli Greenland A/S. Jay management have stated they are a single asset company and are disposing if other assets - so Jay would only have 49% of Nikkeli (Disko) and no other assets and then would list Nikkeli - Jay shareholders would get even more completely shafted than we are at present - holding shares of Jay with zero assets and a diluted shareholding (due to listing) in Nikkeli (Disko).
Best scenario, from my perspective which is also a stretch but probably better for shareholders, maiden drill program in 2024 and potential program in 2025, assuming assays are good (grade and tonnage) - Nikkeli (Disko) asset valuation is substantially increased - Jay dispose of a proportion of their holding i.e. 24% (leaving them with 25% and agreement of no ongoing financial commitment) and Kobold do something similar or just exit completely.
This means Jay retain interest and exposure in Disko with no financial obligations, have enough capital to develop an asset within whatever is left of the retained portfolio.
Section 4.02.02 of the document you have shared says; "For approval of drilling operations the application form in enclosure 4.01 shall be forwarded to BMP, filled in for all sections, IF POSSIBLE not later than 1 month before the drilling operations are commenced." - https://tinyurl.com/4kejpbmz
As you can see there is some flexibility over the 1 month notice period. That said, the one that I will be keenly monitoring is applications to perform field activities under a licence. Such an application must be submitted to the MLSA for approval by no later than 1st May of the year in question, although the authorities can extend this timeline if needed. So again, there is some flexibility here. I am expecting a Field Activity Approval Licence to show up in April/May.
There is something else I want to share with you in response to your comments to LWHL: "Fair point on cash runaway, but based on last cap raise and sacking a tonne of people - safe to say we have about 9-12mths runway."
I won’t be surprised if we have an announcement of a proposal to list Disko (to be precise Nikkeli Greenland A/S) on the stock market. Obviously, KoBold will have to consent to such a proposal as it owns 51% of Nikkeli. The fact that KoBold themselves have recently disclosed that they are prepared to consider listing their own shares in three to four years bodes well for them giving consent to the listing of Nikkeli so that when they list they will have an asset on their books (among their other assets), a listed subsidiary company, namely Nikkeli Greenland A/S, with an established market cap. All that said, I am not expecting the Nikkeli listing announcement to happen not until after the 2024 maiden drilling campaign and the follow-up assay results have been successfully completed, assuming of course JAY confirms the two events.
How will the share price react to the news of (a) Drilling in 2024 (b) A major miner joining in as a partner for the Disko project and (c) Listing of Nikkeli Greenland A/S on the AIM, Toronto and US markets.
"Dream on", a pessimist might say!
https://tinyurl.com/yvthswpa
LWHL - Ref your question to me, "Fair enough, but what are your thoughts on the lack of news on the sale of all the other assets? Been some time now, surely?", IvRoche has responded with a reference to an interview with Rod McIllree. I presume you have not seen the interview since the answer to your question actually lies in that interview. That is, RM was expecting the Finnish assets to be sold (hopefully) by mid-summer 2024. Forward wind the video to 16:00 mins - https://tinyurl.com/yc8xfhf9
Apart from the Finnish assets, I am not overlooking the sale of the Thunderstone asset. There is the danger that too much pessimism can blind people to overlook the potentials of JAY. Please see my next post.
Lol...Jeez LWHL - it's pretty safe to say none of us are satisfied but no point selling.
Fair point on cash runaway, but based on last cap raise and sacking a tonne of people - safe to say we have about 9-12mths runway.
Have a good Easter.
Fair enough, although I still think the lack of detail concerning the cash runway at the very least, is not particularly shareholder-friendly. No updates on salary reductions etc, unless I missed it.
Ah well. If you guys are satisfied, then all good. Have a good Easter all.