Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Helpful post, Jammer 15.04. We have all been expecting to run out the fine chrome at Windsor, but this is the first time I have seen it explicitly mentioned and, as you say, it seems to be some way down the line already. If the placing results in the anticipated 21% increased recovery of chrome at Windsor and Inyoni by the end of Q1 2020, then it will have been a good deal, though we have to accept that Inyoni won't last for too long and we will be touting for new sources of material there within three or four years. All looks good in the medium to long term, but as time passes and the grim reaper whets his blade I am becoming increasingly interested in the short term!
If the volume holds up, any forward selling shouldn't take too long to clear either.
I am pleased the cash funding hole that was becoming clearer has now been plugged. At least the placing does not appear to have come along with additional warrants, and hopefully will put a new floor under the share price in the short term until the rapidly improving operational earnings come clear in the first quarter of 2020.
Jubilee are certainly backing an improving chrome price in the near time. Hope they are right. The fine chrome build appears to have already started at Windsor as in the report and accounts it states Jubilee is implementing a recapitalisation programme to expand and upgrade process efficiencies, including Jubilee's fine chrome process targetting completion in Q1 2020. They might need this facility to help keep the local third party chrome ore suppliers solvent, by offering little if any additional cost of processing, enhancing their chrome recoveries by around 20% and in exchange keeping their tailings for Windsor PGM. I also presume the latest 1m tonnes purchased in the Inyoni deal will be going through the fine chrome processing.
The operational earnings figure is much lower than I expected but again no explanations. Maybe some clues would come from a detailed operational update, which is now well overdue. Can we hope for one next week? My best guess is we might just about have positive operational earnings from both the DCM chrome and Windsor chrome operations at the moment, and in the 3rd quarter 2019 their was next to no positive earnings from Windsor PGMs as the presumed positive earnings in September were offset by the probable negative earnings during commissioning and ramp up through July and August. But we should not have to guess? The over 5000 PGMs ozs figure looks remarkable, but what does it include? Is that all for the joint venture, or is a significant part of it from the tailings already at Eland and owned by Northam? Come on Jubilee turn the corner please and stop offering what look like great tit bits without any explanation.
Like the placing for platcro/Windsor, this one generates immediate returns. Not great that they’ve done it this way, and just when we’ve announced a profit, along with progress on the sp starting to take hold. But not a disaster, and not really that much of an issue long term.
It’s profits that count now, and they’re increasing all the time.
Agreed raypointer - it will pay for itself. It would also have paid for itself if they had tapped into the loan and in that case the share price momentum could have continued - we know what happens to sentiment when they do this and we know what sentiment does to share prices. the placement for the purchase at Windsor (Platcro) was a really good investment and so will this placement be. However, look what the placement for Platcro did for existing shareholders at the time.
I'm fine with dilution as long as it fuels growth of more than the dilution.
IMO, this is the case here.
Yeah - looks to me as though they erred on the side of caution with the placing price - if it's been significantly oversubscribed that suggests to me they could have raised the funds at 4.5p - anyway the price seems to be holding up reasonably well so far.
they just cant help themselves even when the goings good. no wonder the price is always held back
Naughty...