Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Have they ever split out the EL Oz from the WL oz. Have we ever known what we get from the EL? It's always been wrapped up in the PGM numbers so no difference there as far as I can see.
How do they account for it? We must disclose the revenue after the JV have take their share. This would result in a lower PGM basket price so have we seen a significant drop in the basket price since the EL agreement was signed?
DRB83
I think you are confusing the Northam JV at Eland with the JV for the Eastern limb tailings. The tonnes for the Eastern limb tailings are not small.
I also noted this sentence from a recent RNS:
The chrome operations operate on a fixed margin contract of approximately 11% and is the facilitator to the production of increased PGM rich discard that is processed by the newly expanded Inyoni Facility.
Leon is labelling Chrome as a facilitator to PGM hence the move to by product.
The 6 month operations update was a heads up. When you compare to the interims which came out a few weeks later most of the numbers changed. Overall they got better. It looks like they reallocated some of the earnings from PGM to Chrome which boosted Chrome's numbers.
The JV is playing a smaller and smaller role as a % in our production so maybe they have decided that now is the time to move away from splitting it out and just report the relevant numbers relating to JLP. I can see the tonnes going through the JV and know it's small so what they are earning isn't something I'm too fussed about. I wouldn't jump to the conclusion that Leon is hiding something.
As for reserves, I'd like to think if he's spending £10's of millions improving Inyoni that it's because he knows he has access to sufficient tonnes of reserves. But yes, a good question that should be asked.
DRB83
The information you provided is not the same as the attributable earnings to JLP. Look at the previous 6-monthly update and you will see in the PGM earnings table, columns for Project earnings and Attributable earnings.
In the interims they gave attributable information for Chrome which basically consisted of
Revenue 41,487
Earnings 4,385
Tonnes 619,900
In the last RNS they also gave this information for Chrome
Revenue 52,883
Earnings 7,882
Tonnes 602,552
It's all there, in a slightly different format but we have to get used to the fact that reporting develops over time.
Tobin
It is an excellent question and of great significance when attempting to estimate long term earnings. Unfortunately, JLP's reporting doesn't include these figures and I doubt the market can figure it out. Back in the good old days, i.e. just 6 months ago, JLP was reporting attributable earnings and project earnings, allowing investors to get a glimpse into the profit share with JV partners. For some reason JLP discontinued attributable earnings in this week's RNS. You can still attempt to derive a rough approximation of attributable earnings by looking at the gap between average PGM basket price and PGM earnings per ounce (allowing for smelting costs). Prior to CY H1-2021, it was under $500. In the most recent results, it has doubled to at least $1,000.
Going forward, investors should remember that even though the expanded Inyoni reduces the reliance on the Eland JV, a higher portion of the material being processed is not owned by JLP and thus attributable PGM earnings should be estimated accordingly.
Tobin, the reason for changing Inyoni was to be able to accept feed sources from many different places, so not struggling for feed in the short term especially as they make it more profitable for the suppliers. Also taking higher RH feed from Eastern Limb but comes with a transport cost.
A lot of negativity and I understand some of it. Constantly changing metrics makes it hard for an accountant like me to track which brings the inevitable “are they trying to manipulate the numbers” (who doesn’t).
What I would say is look at the operational pictures on the website and see what they have built. They are huge operations!
Long and strong for me despite the bumps in the road. All metals needed to move to a low carbon future and only starting in Africa let alone anywhere else!
ATB
Northern
Do we know how much PGM/chrome reserves JLP has access too? It must be churning through a lot of tailings to produce nearly 2millin tons of chrome a year