Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
Hemo - You say: "So shouldn't be too much longer before we hear their findings and their (Disko) drilling plan for 2024."
I know for a fact JAY and KoBold were working on the Disko field program as late as the third week in February 2022 before the company announced the program in the third week of March 2022. So I am prepared to accept that the Disko update could come anytime in Q1 2024 and I am therefore not concerned at all at the moment that there hasn't been an update yet.
That was a helpful reply, Hemo, about Ajax Resources. One thing that puzzles me is why the company decided to list on the Main Market and not the AIM as there are some key differences between the two markets. Please see page 1 - http://tinyurl.com/2sjdwcwx
ChirpyCheep - You ask: "If Disko is so prospective why has it taken so long to get this far?
I would give these two as the primary reasons:
1. Too much focus on Dundas (money and effort).
2. Green transition and battery metals were not the talk of the town at the time when Dundas started its journey - so Disko got left behind.
The irony is, at the 2020 AGM, and I will quote him verbatim, Rod McIllree said: "In terms of potential and geological prospectivity, certainly Disko is the one, you know, I think is the most significant we have.”
Hindsight doesn't pay any dividends, speaking both metaphorically and literally.
Eric Sondergaard, the new Managing Director of Bluejay, is a Consultant Geologist with Ajax Resources, a company listed on the Main Market of the London Stock Exchange - http://tinyurl.com/42jdbv8e
Eric Sondergaard identified, negotiated and managed Bluejay's JV with KoBold Metals. He could therefore be regarded as the right person to provide a leading role in implementing JAY’s new strategy where progressing the Disko project will be the company’s sole focus.
Interestingly, JAY’s recently appointed Non-Executive Chairman Mike Hutchinson is Non-Executive Chairman of Ajax Resources.
Ajax Resources was listed in April 2022 and the Admission Document says: "Ajax aims to use its strong management experience and relationships to acquire interests in proven, low-risk development projects that hold significant undeveloped upside potential, as well as access to existing infrastructure." - http://tinyurl.com/3wyb63s9
I have not studied Ajax Resources in any detail but you can look it up by clicking on this link - https://www.ajaxresources.com
This promotional video by the Government of Greenland was released some four years ago where Eric Sondergaard makes a brief appearance - https://youtu.be/uB3FFqyN8mo
I have several unanswered questions about the new strategy and expect the update to cover them comprehensively.
Hemo/Grubber - Surely, they can't be that risk-averse. Look who they have married and please don't tell them I said so!
A Happy and Prosperous New Year.
If Ashton were to be a completely new potential investor, looking at JAY for the first time, how would he view investing in the company as things stand? Ashton would first ask himself these five questions and come up with his own answers:
(1) What are the chances of Disko making it big? (A) Very good.
(2) But why? (A) (a) Highly encouraging historical geological records of its prospectivity spanning many decades. (b) KoBold has confirmed the prospectivity. (c) Dr. Peter Lightfoot, Chief Geologist (Nickel) at KoBold Metals knows one or two things about Disko. He said: “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. After working on the Noril'sk mineral system and applying the ideas to help Falconbridge with their exploration work, it is exciting to see this work come to fruition." - Unquote RNS 9 August 2021. Dr. Lightfoot also knows one or two things about the Noril'sk mineral system. Take a look at this presentation material on Noril'sk that Dr Lightfoot produced for Vale (Ranked No.5 among leading mining companies worldwide based on revenue)- https://tinyurl.com/2p87tre4.
If it looks like a duck, swims like a duck, and quacks like a duck, what else could it be?
(3) What is the share price now? (A) Under 1p.
(4) At the current price is JAY a risky share to buy in terms of the risk-reward ratio? (A) That's a daft question.
(5) Why is Ashton not buying more shares at this price? (A) Ashton would like to remain happily married to his loving wife.
That's Ashton's JAY story, in short. Hope you like it!
I wish you good fortune with your investment.
PS: If you want to know more about Dr Peter Lightfoot, take a look at these:
https://www.koboldmetals.com/team
http://tinyurl.com/kx5fpm9w
From one JAY enthusiast to another, I thought of writing this note to you Hemo.
On 30 November 2023 at 16:29, I posted a note in which I raised these two questions and gave my answer: (Q) "If he (RE) doesn't (deliver), what then? Would his position become untenable? (A) That would depend on how major shareholders react."
On 14 December 2023 at 19:08, I posted a note in which I said: "As things stand, JAY is a HOPE share. My BIG HOPE is Disko (forget the other assets)."
On 20 December 2023, JAY informed the market of the Board change and said: "In due course, the new Board will update shareholders regarding the implementation of a new strategy that will focus SOLELY around developing the Disko magmatic massive sulphide project in Greenland."
Here's the takeaway (I haven't made them up. I never do):
1. Forget the other six assets as they will be disposed of.
2. Disko is on but there could be a twist in the tale.
3. No equity dilution near-term.
4. KoBold likes the new management.
Here is Ashton's story. He is up to his neck with the amount of money he has invested in JAY. He has a LARGE holding at an average price of around 9p and has been a shareholder since May 2020. His wife is also a shareholder, and so is his son, who lives in New York (JAY is listed there as well). Both the wife and son also have a shedload of shares. So, JAY has become a family business! Mad family, maybe not.
Correction:
Click on this link and read the 4th bullet point - http://tinyurl.com/mrz7k2e5
Click on this link and read the last page - http://tinyurl.com/47jr7seh
Hemo - You say: "Our resident expert Ashton can correct me if I'm wrong but I believe that was sold at around £4m in cash and shares, and led to the creation of Metals One which has a Mcap of £5.5m."
That's so kind of you to say so but I am no "resident expert", not even an expert. You are absolutely right, though, JAY received cash and shares (in Metals One) valued at more than £4m in exchange for the Black Shales projects, and what's more, this was as recently as this year. The exact figure was £4.125m. Click on this link and see the last page - http://tinyurl.com/mrz7k2e5
In coming up with my estimated total valuation of $103m or £81m for JAY's six assets that are now up for sale - which I posted on 29 December - I said: "Black Shales were sold for £4.1 (US$5m) in cash plus Metals One shares. Since Hammaslahti and Outokumpu are more valuable than Black Shales, I have given a 1.5 x Black Shales valuation for Hammaslahti and Outokumpu."
You are absolutely right, Black Shales projects were the least valuable assets in JAY's portfolio. I therefore regard Black Shales' sales figure of £4.1m as a good benchmark for assessing the other Finnish assets of that ilk (battery metals).
I think it is a reasonable thing to say none of the posters here (myself included) is qualified to give reliable valuation figures for the assets. That said, I am still interested to hear views from other posters.
KatAmnesia - You ask: "Did any geologist checked the GEUS surveys and publications since 1990's?"
I am sure Dr Peter Lightfoot, Chief Geologist (Nickel) at KoBold Metals would have checked Disko's historical geological records as part of his due diligence work for KoBold before the JV was agreed.
For my part, I have had a look at these two reports (among other stuff), both published after 1990. I am not a geologist, so I can't claim to have understood every bit of the information in the reports.
Published 2010 - http://tinyurl.com/5pjpvhbm
Published 2013 - http://tinyurl.com/3tn9rttt
I have not read any GEUS reports on JAY's assets other than Disko.
Hemo - You say: "Personally I think it highly unlikely a placing will be done at current levels, I'm sure that RM would not want to dilute his 79m holding any further. "
Spot on! New management are confident that there will not be a need for further dilution in the near term. Also believe they have some good ideas for the sale of assets. The proof is in the pudding. So, let's see what the next update says about how they intend to implement the new strategy.
Archie - Did you read my three posts?
In the RNS on 28 June 2023, Bluejay said because the company was in a close period it restricted Directors and senior management from trading in the Company's shares and therefore restricted them from participating until the release of the full year 2022 results, which were expected to be released on or before 30 June 2023. After the Results were released on 29 June 2023, the RNS on 31 July 2023 confirmed that Robert Edwards, Michael Hutchinson and Peter Waugh had bought shares. This is a recent example of a close period for JAY.
RM has been in this business for a long time and will know very well that flouting the law in this regard can have serious consequences. Please read below.
"The Criminal Justice Act 1993 provides that it is a criminal offense for an individual who has inside information, and has that information as an insider, to deal in securities on the LSE or another regulated market (which includes AIM), or through a professional intermediary. For an offense to be committed, the individual must know that the information is inside information and he/she must have knowingly acquired it from an inside source. There are also offenses of encouraging dealing and disclosure by persons who have inside information.
For these purposes, inside information is, broadly speaking, specific or precise unpublished information relating to a particular issuer or particular securities which, if made public, would have a significant effect on the price of any securities. It should be noted that a director who knowingly has inside information about their company, or any other company with which their company has dealings, would be an insider for the purposes of the insider dealing legislation.
The penalty for an offense under the Criminal Justice Act 1993 is an unlimited fine or imprisonment for a maximum of ten years. There are a number of defenses, but it should be noted that these are normally restrictively interpreted and the burden of proof lies with the defendant." - Unquote
Please click on this link and read 'Insider dealing'.
https://tinyurl.com/4bejvn9z
Torreaguas - Was the market right when it valued Bluejay shares at over 20p? Not that I am claiming my estimated valuation to be close to the truth!
Here is my not-so-skillfully estimated valuation for the six assets:
Dundas - US$22m
Kangerluarsuk - US$34m
Thunderstone - US$5
Enonkoski - US$27m
Hammaslahti - US$7.5m
Outokumpu - US$7.5m
Total Valuation - US$103m or £81m
Notes:
a) The research note dated January 2022 that is available on the company's website valued Dundas at US$219. I have valued it at 10% of $219.
b) Enonkoski's valuation of US$27m is based on Rio Tinto's JV expenditure terms.
c) Kangerluarsuk being a district-scale asset, I have valued it at 1.25x US$27m (Enonkoski's valuation)
d) Black shales were sold for £4.1 (US$5m) in cash plus Metals One's shares. Since Hammaslahti and Outokumpu are more valuable than Black Shales, I have given a 1.5 x Black Shales valuation for Hammaslahti and Outokumpu.
e) Exchange rate used £1 = US$1.27
I have noted with interest IvRoche's total valuation of US$16-$26m for the four assets excluding Kangerluarsuk and Thunderstone. Please see the post dated 28 December 2023 at 10:07.
Archie - You ask: "Is there a M-MLSA-337?"
The short answer to your question is " Yes", but it needs an explanation. I started a thread with the title "Nikkeli Greenland A/S Licences" and posted three items. Under this thread, I gave a running commentary on M-MLSA-337. Please take a look at these posts for the explanation:
10 August 2023 at 11:23
4 November 2023 at 11:32
21 November 2023 at 9:33
Hemo - You ask: "Isn't there also another licence application that's awaiting approval at Disko, or have you included that in the 5?".
Yes, there is a Mineral Exploration Licence Application M-MLSA-337 that is awaiting approval but I did NOT include it among the five as it has not been approved yet. On 21 September 2023, when JAY released the results of the Disko 2022 fieldwork RNS the company confirmed the M-MLSA-337 application and said: "An application for a new Mineral Exploration Licence ('MEL') totalling 116.6 square kilometres ('sq-km') has been submitted by Nikkeli to the MLSA."
For the sake of completion, I am listing below all of Nikkeli Greenland's current licences with expiry dates shown within brackets.
1. MEL2012-29 (31.12.2023) - Renewal application already submitted to the authorities
2. MEL2017-01 (31.12.2023) - Renewal application already submitted to the authorities
3. MEL2018-16 (31.12.2024)
4. MEL2019-116 (31.12.2025)
5. MEL2020-10 (31.12.2026)
In addition to the above five Mineral Exploration Licences, Nikkeli Greenland also has a Mineral Prospecting Licence MPL 2023-04 ( 31.12.2027).
Hats off to you, IvRoche, for coming up with valuation figures for JAY's assets. You have left out the figures for Kangerluarsuk and Thunderstone. Any chance you could assign some figures for them as well?
I ask because JAY's previous management have repeatedly expressed the view that Kangerluarsuk is a highly valuable asset and of district scale. Bluejay’s licence areas are acknowledged by the Geological Survey of Denmark and Greenland as the strongest cluster of stream sediment zinc anomalies in the whole of Greenland. The project is situated only 12 km north of the former Black Angel Zn-Pb-Ag mine and is acknowledged as Greenland’s most profitable mine to date.
Hemo - Thank you for starting this new thread with the title "The Future''. Talking about the future, you will be interested to know.
1. The new management intends to sell all six assets and focus solely on Disko.
2. KoBold have sprinkled holy water on the recent management change.
3. KoBold and JAY are currently engaged in planning for 2024.
4. Nikkeli Greenland A/S currently has five Mineral Exploration Licences, all of them for the Disko project. Two of the licences, MEL 2017-01 and MEL 2012- 29 will expire on 31 December 2023. Two weeks ago, applications were lodged with the Mineral Licence and Safety Authority, Government of Greenland to renew them.
I am so sorry to hear, ChirpyCheep, that you were shouted down and treated like an idiot. I am sure it was not me. It is an extremely important and valid question to ask. Please follow the conversation I am having with LWHL and you may well get the answer to your question.