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Not sure were going to get 3rd quarter financials now. Think we will have to wait for the full year. Looks like just production numbers. But i am hoping you are right with the $5, that will make a lot of difference until Thutse 2 arrives in August.
Just a guess but the last jump was $13 quarter 1 to quarter2. Not expecting as big a rise this time but I would hope for another $5 rise in gross margin but don't hold me to it. We will find out when the 3rd quarter financials are published. You will be racing me to work it out.
Gray, indeed! We know the price of chrome has improved, so the margin has to improve as well. Its just a question of how much more?
Kalan/Mikie
Numbers I like. The first 6 months produced a combined gross margin of $5 mill for copper/pgms and it will likely be something similar for second half so around $10 mill gross for the year give or take a bit.
The second half for chrome is where it gets interesting first half $12.5 mill gross on 720k of sales.
From Mikie the second quarter margin per tonne of chrome was $23 (I checked it as well Mikie) not that I didn't believe you but I wanted to see how the margin changed in the 2nd quarter.
1st quarter revenue $90/ton, 2nd quarter $95/ton. Cost dropped from $75 to $73 per ton.
The second have of the year has already achieved 400k tonnes in the 3rd quarter. I expect the 4th quarter will be a little more considering March performance so around 820k tonnes in total for the second half. Even if the margin of $23 remains the same (which I expect it to improve) that is $18.8 million gross and increase of $6.3 mill in 6 months.
I like Chrome.
Totally agree NTD, although its looking like we could be swallowing up a load of small scale miners. @ Heroic, at this share price there is no real risk i can see. Gray has already illustrated how chrome more than covers the current share price. Chrome is well and truly proven and expanding rapidly. PGM’s can only improve. Very little risk here with chrome prices still in an upward trend. That means its essentially a free copper play. Not only is it a free copper play, its likely to be a rapidly expanding copper play. Chrome sets the president for this. So you can invest when all is proven on the copper front with 25k production and miss out on the multi multi bagger. I prefer to invest now and hold, knowing the concept has been proven with production on a small scale. The feed is now rapidly being secured and will arrive en mass shortly.
Heroric, I see the point you make, but I read the strategy as providing a refining service - not entering mining.
I also feel that focus and accountability/responsibility which you also raise, is where the CFO and the new country structure should become more of use. With clear lines of responsibility, the day to day on each element can be kept away from the new development ideas and as such hopefully not be a distraction - clear goals for farmers and hunters etc.
Personally I am very pleased from afar with the structural part and the increase in reporting. If the CFO is to be effective, he needs to drive these structures and the reporting within them - so far so good.
That all sounds wonderful on the face of it Mikie, but I want JLP focused on delivering what is presently in front of it, proving things up, stabilising and crucially building some cash/reserves making it a safer investment rather than a gamble. Mining is very high risk and very expensive which puts me off in this volitile climate. I fear it means stretching way to far, needing more money etc etc.What I want to see is a return on investment and strong foundations first. It cannot forever be jam tomorrow. I appreciate others may have differing views, but imo think they need to prove they can walk before trying to run.
Northern, looks like Jubilee could be getting into mining in quite a scaled way. With the option to buy M and the other 2 completed deals. Im guessing they are building the option into every contract. Think Leon said they were pursuing 50 small scale licences. He later said each small scale mine could produce 4000 tonnes of copper per year. It doesnt take a mathematician to work out what that produces. This is another part of the future, that wasnt even considered 3 or 4 years ago! So small scale mining on the agenda, waste rock piles and eventually tailings. Looks like Leon & team, have really got their work cut out for the next 5 years. Leon, Neal and Ricus, just how big can you make this? The challenge is on!
Interesting comments from Ricus Grimbeek on LinkedIn regarding small scale mining concluding with:
"Time to rethink the way we TALK about and ANALYZE Artisanal Mining and Small-Scale Mining. New thinking leads to new solutions"
Anyone would think there is a ready made solution being deployed...