Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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There will be a time lag in spending working capital to process the rocks to turn it into copper before they realise any cash coming in from that process.
Jlp realised there may be a short term cash flow problem so raised extra for working capital therefore the cash flow in the business at the time probably wasn't enough to offset this position so would have been temporarily negative.
They have covered this good business decision nothing wrong in accepting this JLP have. Chrome cashflow will improve this.
Depends on what you mean by General working capital, obviously the new equipment will have working capital needs as it is prepared for operation so that is over and above what is required for current operations. You are jumping to conclusions which fit your agenda perhaps?
An increasing requirement for working capital to fuel growth is synonymous with an expanding company; it signifies nothing. But as Northern rightly states, in terms of current operations the company is cashflow positive..
· For general working capital purposes.
Taken from the last placing RNS so some of that money was expected to be used as they anticipated a potential cash flow issue.
This would suggest there was a potential short term cash flow issue which Kalan highlighted and according to JLP there was whilst they advanced the module process which they also raised money for.
There was a temporary working capital cash flow issue JLP said so why deny it? Hopefully we have seen the last of it and cash from the chrome process will offset any possible further short term issues whilst we wait for the Copper ramp up.
Thanks for highlighting it, Northern. Its the same basis on which BT used to claim that profit re-invested is not a profit because it isn't sitting in the bank or being distributed to shareholders.
Kalan,
I am one for balance in views up and down. I think the challenge some people have is how language is used.
For example you talk about cash flow and "in the medium term turn truly cash flow positive".
Lets be clear on an operational level JLP is cash flow positive. JLP is currently choosing to invest in capital expenditure to further develop the business. The FD has a view on the timings of cashflows and also the facilities available to the company and will manage this accordingly. Your use of language may lead the uninitiated to believe JLP can't pay their bills which is incorrect.
ATB
Northern
Quoting WHI: "In Zambia at the upgraded Roan concentrator Jubilee is still frustratingly waiting for the electrical
installation to be complete – now delaying start-up of the new full new front-end until May. Once commissioned Roan should be in a position to supply 13kt/yr of copper in concentrates. That said, in the quarter JUBILEE INKED THE CONTRACT WITH IRH (Abu Dhabi based) to develop the ‘waste rock’ project. This ground-breaking project should see the JV
(30% Jubilee) process 2.4Mt/yr to produce ~20kt of copper within 2 years from four modules processing a part of the 260Mt of copper-bearing material at surface identified. A resource drilling program will define fully the parameters of the plants and their optimal location."
P.s. can't see IRH signing on the bottom line until it's proven to work at Roan, but then I don't know them like I know JLP so could easily be wrong.
The long term prospects are excellent. the medium term should see JLP turn truly cash flow positive. The short term continues to be problematic. I and others have flagged up everything that has happened in advance of it happening. Looking at JLP through a clear lens allows you to read between the lines, focus on the unsaid. Serious question - when will Roan be fully up and running to nameplate. Not the end of March (that was never promised - just start up), not the end of April (this was promised but surely we all knew the electrical components weren't going to magic out of thin air). So when will it be (no date promised this time) - best estimates please. We'll leave will it work to another time.
Ardbeggar yes they have a binding agreement. We don't know the exact terms of that agreement and any good company will have a get out of jail clause in it if the terms turn out not to their satisfaction it's just good business sense. It is nice to have though. Until they physically but some money in only then will that be a green light for me and all systems are go.
I'll take your word for it Kalan and can understand the cautiousness of those who have been in the stock for many years. I do however think that that leads you to be overcritical of present events. I've been here for just over three years and jlp have disappointed me as well. We shall see what turns up in the next couple of months but whatever it is the sp is still ridiculous.
Frog…..you need to get out of the greenhouse before you throw stones
Yes gotreal, nasty little keyboard bullies who are not prepared to listen to reasoned argument that contradicts their own biased views.
"Vicious little trolls...." That's one to tuck away......
Full ask paid.
Good morning Mr Gray. I, for one, appreciate views that are not blindly optimistic as it provokes sensible questioning of our investment decisions. I have a lot of money tied up in this stock as I do believe in the story, and I trust Mr Slater who has a better understanding than I. I regularly get castigated when i blow my stack, usually following an RNS that has divulged disappointing news that we previously assumed not to be a problem. It has happened too many times which is why we are still in single figures. If the Roan upgrade gets sorted out then we will be well on our way, if we can stay independent long enough.
There are too many vicious little trolls on here that cannot bear to see their precious rose tinted views to be tainted with a reality check from time to time. Mistakes get made and the board must be held to account. The alternative is a blind death cult!
Have IRH actually put any money into this or do you think they are waiting to see what the figures are when this gets up and running?
Well, they entered into a binding agreement framework then chose to exercise their contractual right to crack on after due diligence was completed, so regardless of if they have put up any money yet or not, they have to. It's going ahead and that's it.
That's not strictly true Shuvlin they poured a ton of money into the tailings process and that hasn't really worked.
Have IRH actually put any money into this or do you think they are waiting to see what the figures are when this gets up and running?
The difference between you and others like you are absolutely certain this will work and that is your opinion and it is fine. Whereas I and some others because of JLP past history on Copper output want to see the proof of the concept turned into actual production numbers. What is wrong with that?
I have 1 million shares here at an average of 8.2p my biggest regret is I didn't sell half at 21p but I believed the copper tailings strategy and greed played a part. Having said that if I had sold half I would have bought them all back when they were at 5p purely on the Chrome success and would then hope the new Copper strategy would be successful to give me an even better return.
There is no conspiracy here on my part Shuvlin. I have also worked out what I think the chrome and pgms financials will look like next year to support what I believe will underpin the sp if anyone is interested.
They wouldn't be pouring so much money into new facilities if they didn't work. Anyone else sowing doubt on that here is indulging in sophistry.
"Don't be so hard on yourself Kalan"
Nice one Busby - I know when I'm beaten - knocking the king over as I type.
No reason at all Dorfan - as you've said before - it's all about time frame - LTHs hold. New investors wait for proof or speculatively buy - everyone has a choice.
Prof
With the copper price so high and running the only decision you need to make as to whether you buy the share or not is can Jubilee produce the copper as promised.IT IS THAT SIMPLE
My belief is that they can after all it is not that they haven't produced copper.They have but not produced the quantities promised.
I have NO reason to distrust Leon when he says it is a matter of time, and if Slater and Jubilee's new J/V partners agree why should I be pessimistic . I
Don't be so hard on yourself Kalan. :)
Arguing with some people is like playing chess with a pigeon. The pigeon is check mated in 4 moves, and then, onlivious to it's overwhelming defeat, stomps around the board as if it's won.
Interesting that we have fairly suddenly aquired a self admiring coterie of so called investors on here who seek to be trying very hard to damn jlp with faint praise. Methinks they protest rather too much and need to be treated with the utmost suspicion.
The last one is just your personal fantasy Jolly1