Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
Kat - You say: "Disko is a hope. Hope don’t feed the people but…"
Until they are drill-tested all of JAY's assets are hope assets. That's the nature of the beast.
You also say: "The other assets are just a joke."
Really! Have you brushed up on Kangerluarsuk, the district-scale asset? - http://tinyurl.com/46kdcxuy
Hemo - You say: " I may be wrong but I don't think tomorrow's interview (23 January) will tell us anything we don't already know."
There is a fundamental issue that JAY will have to explain. If the company can get one Mineral Resource Estimate (MRE) wrong, how can investors/potential trust future MREs? This goes to the heart of trusting the value of the company. In that sense, it is a hugely significant issue.
Hemo - Please allow me to expand my thinking further.
RNS 21 September 2023 (Previous Management): "It has consequently been concluded that it is not in the interests of the Company and its shareholders to progress the Dundas Project as a sole developer. The Company will therefore not be proceeding with any further cash commitments to the Project whilst it considers strategic and commercial alternatives."
RNS 16 January 2024 (New Management): "Bluejay also owns 100% of the fully permitted Dundas Ilmenite Project through its subsidiary Dundas Titanium A/S in northwest Greenland for which it will seek strategic alternatives."
It looks as though strategic alternatives for Dundas (apart from selling it off) is under serious consideration by the new management. One option could be for JAY to transfer the ownership of Dundas to a partner (a mining company) outright and in return receive from the partner an immediate up-front cash payment plus a royalty payment when production commences. By this way JAY would not be required to provide any funding whatsoever for the development and operation of the working mining or its management. Take a look at this article by the law firm Norton Rose Fulbright. - http://tinyurl.com/h2wspmwa
Norton Rose Fulbright is not new JAY - http://tinyurl.com/muvbp4yc
What might he (RM) say of the future of the Dundas project in his interview next week?
Some of the key findings of the Dundas strategic review by ex-Chairman Rob Edwards released on 21.09.23 can be summarised as follows:
1. The drilling activities carried out in 2022 came up with a MRE 2023 for the Moriusaq West part of the overall resource deposit which showed 29.7 million tonnes at an in situ TiO2 grade of 1.99%, whereas previously the MRE 2019 for the same part showed a deposit of 59.3 million tonnes at a grade of 3.26% in situ TiO2.
My comment: Disappointingly, the review did not provide an explanation for why MRE2023 is more reliable than MRE2019. After all, MRE2019 was signed off as JORC compliant by Dr. Armitage, a full-time employee of SRK Consulting (UK) Ltd who was regarded as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (the JORC Code) and for the purposes of the AIM Rules.
2. No drilling activities were carried out as part of the fieldwork in 2022 at the 'Moriusaq East', 'Iterlak East' and 'Iterlak West' areas due to time constraints.
My comment: Dundas was put into cold storage without validating the MREs for these areas.
3. Extensive mineralogical and metallurgical test work on the Ilmenite carried out by MinSol Engineering Pty Ltd in Perth following the fieldwork in 2022. It confirmed the consistent Ilmenite mineralogy and processing characteristics across the entire deposit. The low level of deleterious elements in the final Ilmenite product would make the Dundas Ilmenite an ideal blending material for the global pigment plant feedstock market. This has been verified through market discussions and through the Master Distribution Partner on the project.
My comment: Even according to the MRE2023, Dundas ilmenite is still suitable for the global pigment market.
4. The company won't be proceeding with any further cash commitments to the project whilst it considers strategic and commercial alternatives. The company has commenced the process of investigating these alternatives, which may include partnership, disposal or a combination thereof. The revised concept and design for Dundas is significant for discussions related to these alternatives.
My comment: Dundas is not a dead duck, not even a lame duck. How will the market react if the company manages to secure a decent strategic alternative? Dundas was RM’s baby and he staked his personal reputation on this asset with numerous upbeat statements, including this one (RNS 09.08.17): "We have already proven that Pituffik is the highest-grade mineral sand ilmenite project globally. Now we are focussed on demonstrating the significant size of the asset, securing an off-take partner and defining a viable logistics solution to ship our premium quality ilmenite product, as we remain on track to commence commercial production in 2018." I am sure RM will want to redeem his bruised reputation. What might he say of the future of the Dundas project in his i
Beardozer - You ask: “ In future, how about investing in 3 different companies? For a start, it would make it more interesting and you'd also be spreading your risk.“
This may come as a surprise but I'm generally not a fan of AIM stocks because of the higher level of risk associated with them compared to the ones on the main market. I became a JAY shareholder in 2020 and in the last four years or so I have indulged myself in only three AIM stocks: Verditek; Pure Gold and of course Bluejay. I was awfully lucky with VDTK - sold it near its peak at around 18p for a decent profit; sold PUR for a modest profit by applying stop loss (since then PUR got acquired, I think). By and large, my portfolio was made up of single value stocks (e.g. GSK, Shell, Marks & Spencer, Flutter Entertainment, etc) plus a good selection of Investment Trusts and ETFs. I liquidated a large portion of my portfolio in the last couple of years when I started to get nervous about the general market conditions. I am now left with just three stocks: Shell, M&S and JAY. The first two are in decent profit and as for JAY, what can I say - a large holding at around 9p!
My wife and I have put the money from the sale of the equities into cash ISAs and instant access savings accounts (best of the bunch being Santander at 5.2%). We will stay that way for the foreseeable future, especially with the situation in the Middle East being volatile and the Ukraine-Russia war going nowhere.
I bought into JAY for three main reasons: (a) Great critical minerals assets (b) Stable jurisdiction and (c) Management with skin in the game. Big mistake, not applying stop loss. Oh well, you live and learn!
I have always had this unflinchingly high expectations of Disko and still do and it's not based on wishful thinking. It simply comes down to probability. How can 30 years of historical data including that from KoBold confirming targets go wrong?
PS: Enuff, some time ago you asked why I post only on JAY. You now know why.
Thank you CC and Hemo
Andy Blowster says: “ I expect a big PR push and tangible newsflow to start next week. We have management presentation on Tuesday for starters.”
Although Disko is the big ticket, I am hoping RM will talk about Dundas and its future. I just could not understand for the life of me how Dundas was deemed as a dead duck (not a viable commercial development opportunity for JAY alone).
I was saddened to read a note here two days ago where the authour came across to me as highly agitated, frustrated and angry with the whole situation to do with JAY. There are lessons for all of us from the JAY story so far. With that in mind I thought of sharing this video and hope you will find it helpful - https://youtu.be/yrhgeTXvmow?t=13
PS: Myself, my wife and our son have all invested heavily in JAY. So, we too are collectively nursing huge albeit paper losses but thankfully we have not invested money that we cannot afford to lose. Also, since we are a close-knit family we talk about the trials and tribulations of the JAY story without getting too agitated by the whole situation. We can only but hope that the JAY story will have a happy ending.
Yes, I did say interview today (Thursday, 18th) and do not know why it did not happen. There must have been a good reason. Hope it appears soon.
It will be the first interview by the new management of a new company and therefore highly significant in many respects. Let’s see what they have to say.
Are you there?
Hemo - Thank you for taking the trouble to reply to each of my points. Let me first start with the big picture.
For all intents and purposes we now have a new company with its sole mining focus being the Disko project. I would name the company NG49 (meaning Nikkeli Greenland 49% ownership). So we have a new management and a new company. Things cannot remain the same as before because of the change in circumstances plus the fact that KoBold is in the driving seat of NG51. New management has to therefore up its game with better planning and delivery going forward. l will now offer some comments as a response to your reply.
1. The overall plan for progressing the Disko project in 2024 including details of the work programmes as stated in the RNS on 17 January 2024. Also an estimated timescale for releasing the information.
Comments: JAY will soon have to come up with a timescale for placing orders with contractors for the drilling equipment etc and also to notify the authorities to obtain field activity licences. JAY could use this timescale for notifying shareholders.
2. The plan for the sale of the 6 assets and an estimate of the total revenue expected from the sales. Also, an estimated timescale for achieving the sales.
Comments: The capital raised this month will possibly last around 12 months. New money will be needed for supporting Disko beyond 31 December 2024 plus G&A expenses. A plan, including a timescale, for the sale of assets will have to be therefore in place urgently. Use the timescale in the company's plan for notifying shareholders.
3. How the company intends to use the proceeds from the sales (in terms of priorities).
Comments: Surely a plan has to be in place soon for how JAY intends to spend the money to be raised from the sales of assets. I am talking here of a plan not of a timescale.
4. The RNS yesterday talked about seeking strategic alternatives for Dundas. An explanation of these possible alternatives should be provided. Also an estimated timescale for achieving this goal.
Comments: There has to be a plan here for two options: (a) Outright sale (b) Strategic alternative. Share this information with shareholders.
5. Current cash position and G&A burn rate.
Comments: This information should already be available.
My final point is I did not say I want all this information now. I said: "....the Board must spell out its plans to shareholders without undue delay."
Let's see how well the first interview from the new management goes today.
LWHL - You said: “You should IMO be lobbying the BOD for specifics on all the other stuff though, should the wait be much longer.”
Agree. I contacted JAY today and told them that as a shareholder I am expecting the company to provide further information covering these areas:
1. The overall plan for progressing the Disko project in 2024 including details of the work programmes as stated in the RNS on 17 January 2024. Also an estimated timescale for releasing the information.
2. The plan for the sale of the 6 assets and an estimate of the total revenue expected from the sales. Also, an estimated timescale for achieving the sales.
3. How the company intends to use the proceeds from the sales (in terms of priorities).
4. The RNS yesterday talked about seeking strategic alternatives for Dundas. An explanation of these possible alternatives should be provided. Also an estimated timescale for achieving this goal.
5. Current cash position and G&A burn rate.
I have also emphasised the point that since the company has raised the necessary capital, the Board must spell out its plans to shareholders without undue delay.
LWHL - You ask: "And who was to blame for that?" Meaning, for the disastrous management of Dundas.
My answer is JAY management.
Now that I have answered your question, I have two questions for you:
1. Who had OVERALL control over the management of the Dundas project before it was put into retirement?
2. Who has OVERALL control over the Disko project until 31 December 2024, according to the terms of the current JV?
"The Disko-Nuussuaq Property is centred in a region of extensive contaminated and metal-depleted volcanic centres where there is clear evidence for the equilibration of flood basalt magma with crustal sulfur with potential for the concentration of magmatic sulphides in shallow sub-volcanic intrusions. The rich inventory of government and exploration data provides an excellent starting point for KoBold to utilize proprietary technology to support exploration." - Dr. Peter Lightfoot, Chief Geologist (Nickel), KoBold Metals
"Our joint exploration campaign on Disko Island this summer (2022) was a significant step forward. We've identified many novel targets and significantly updated our exploration hypotheses. We are looking for what we think could be the most significant nickel and cobalt discoveries in 100 years." - Kurt House, CEO of KoBold Metals
"We are looking for a discovery that will be one of the largest, most significant nickel and cobalt deposits in the world, potentially capable of powering 100 million EVs." - Kurt House, CEO of KoBold Metals
"The two largest conductive targets are extraordinary in scale, the largest being more than 10.0 kilometres ('km') long and around 2.0 km wide and another being around 4.8 km long and 800 metres ('m') wide; both comparable in footprint to the world-class Noril'sk-Talnakh ore bodies in Siberia." - RNS 1 February 2022.
"The West Greenland Flood Basalt Province (WGFBP) constituted the last tracts, tracts C10 and C11, that are directly related to known flood basalt regimes in Greenland. WGFBP is considered to be an analogue of the Siberian Traps in Russia to which the giant Norilsk nickel deposit is related." - Geological Survey of Denmark and Greenland (GEUS)
LWHL - You say: "Well, it is a good story, Ashton. But the actions taken over the years have led to a share price and explosion of shares in issue, that tell a less enjoyable tale."
True, I agree 100%. However, that's because the actions over the past long years were, unfortunately, focused on the wrong duck - the Dundas Duck, If only...........
Thankfully, the sole focus from now will be the Disko Duck.
A mother duck laid an egg in 2021 (a new JV). Everyone was thrilled (share price hits 15p). The egg hatched and a duckling was born some time later. In 2022, the duckling started to walk, swim and quack and became outstandingly energetic (extensive fieldwork and overspend). This impressed everyone to no end. For its own good reasons, the duckling then went out of sight in 2023 (no fieldwork). Some people started to get worried - even speculated that the duckling would never return. In the meantime, the duckling grew and became a fully-grown adult duck (post-2022 fieldwork analysis). In 2024, the new adult duck became a mother herself and started to lay golden eggs to the delight of everyone (extensive drilling, followed by outstanding assay results and the share price rising significantly). Everyone lived happily thereafter.
Wealth Warning: I won't be offended if you tell me that my story is as mythical as the golden goose eggs. That said, I hope to return my story later in 2024!
LWHL - You said: "After Ashton's post last night, I was kind of expecting an RNS today with Disko news. Instead, the market is still awaiting an update on the specifics of the strategy."
I am not sure whether you meant here, among other things, the specifics relating to the 2024 work programmes for Disko. I am not expecting details of the work programmes to come out before 5 February 2024 at the earliest and March 2024 at the latest.. The details of the 2022 work programmes were announced in March of that year.
You might ask why 5 February 2024. The allotment and issue of the Second Placing Shares is conditional, inter alia, upon the passing, without amendment, of the Resolutions, at the General Meeting on this date. I think KoBold will want to be satisfied that JAY's Board has the backing of its shareholders for funding the company. That's how I see it.
Look out for it!
Correction - PS: “value enhancing work programmes”. I don’t need to spell out what this actually means in terms of field activities. I think you both are smart enough to work it out for yourselves.
IvRoche and LWHL - Yesterday I said I would return to the subject of KoBold Metals to talk to you both today and here I am. I will post further comments later today. I also have a short fun story to share. In the meantime, take a look at this:
"RENEWED FOCUS ON THE DISKO-NUUSSUAQ PROJECT: " Bluejay remains dedicated to its primary focus, the 2,776 square kilometre Disko-Nuussuaq Magmatic Massive Sulphide nickel-copper-platinum-cobalt project ('Disko'), located on the west coast of Greenland. The Company has a joint venture with KoBold Metals and is working to agree value enhancing work programmes for 2024. Disko has the potential to host a truly world-class nickel-copper-cobalt deposit." - https://www.londonstockexchange.com/news-article/JAY/bluejay-raises-ps1-2-million/16291660
PS: “value enhancing programmes”. I don’t need to spell out what this acutely means in terms of field activities. I think you both are smart enough to work it out for yourselves.