The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Take a look at the note I posted on 6 Feb 2024 at 13:53 where I commented on asset sales. I suggested a buyer for the Finnish assets could come from farther afield. These things can take time but please do your own research. I am in no hurry.
On 31 Jan 2024, I posted a note under this thread and said I was happy to wait patiently for the following two key events to play out and then take stock again:
1. Announcement before the end of March 2024 of a fieldwork program including a drilling campaign this summer. I based my expectation purely on the fact the 2022 fieldwork program was announced on 24 March of that year (with hindsight it was wrong to have placed too much reliance on the past timetable).
2. Announcement before the end of 2024 of the assay results following the drilling campaign.
Moreover, I gave an undertaking to return to the post before the end of this month and then again before the end of 2024. So, here I am as promised after the market closed on the last trading day of March (IvRoche - You can now see why I could not post this note any sooner and that I wasn't being cryptic in my earlier post for the sake of it.).
I attended the General Meeting in London on 5 February 2024 and posted a note on the same day. I also posted a note a few weeks ago on March 13th. Based on my research, I intimated in the two notes that it was unlikely we would have the Disko update in March. I am therefore not surprised at all that there has been no update this month.
I continually review my views in light of my ongoing research findings on JAY. Consequently, I have changed my view that the Disko 2024 fieldwork program update is now likely to come next month (April) - if not, then sometime in May (Yes, I repeat, it could even be May). The Disko 2022 fieldwork started in May and ended in September. So even if the JV decides to carry out the 2024 drilling activities as late as August/September that would give the JV some four/five months to complete the plan for the fieldwork program and get everything ready for the groundwork. I was told at the General Meeting that drilling rigs were already in place in Greenland and could therefore be moved to the drilling locations swiftly. I suppose if additional rigs are required they will have to be brought in but I did not check this. I must add that it is possible to carry out drilling activities even as late as October in Greenland. That’s exactly what Eclipse Metals Ltd did in 2022, albeit with their project located much further south of Disko - https://tinyurl.com/5c28ndv5
Moving away from the subject of fieldwork, I am of the view that the current JV would most likely be revised (> 90% chance). Furthermore, I will not rule out the possibility of a major miner joining as a partner sooner rather than later (at least a 50% chance). Whatever JAY is working on at the moment cannot be hurried just because shareholders are impatient. Moreover, I am sure no shareholder wants to see another aborted maiden drilling debacle like what happened in 2022 by rushing things unnecessarily.
Interesting times could be ahead at last!
"The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty".
“Yesterday is but today’s memory, and tomorrow is today’s dream.”
My apologies, IvRoche, for being cryptic with my post. Hopefully, you will understand and accept the explanation in the note I intend to post on the last trading day of this month, Thursday 28th. That said, I would be over the moon if we get a positive update on the Disko 2024 fieldwork program in the meantime but I somehow doubt it very much.
IvRoche - You say: “Will we get a RNS next week before Easter or after... Timing stinks a little, imo, if not next week probably week commencing the 8th of April ”
The two outstanding news items to do with Disko are:
1. 2024 fieldwork program.
2. Outcome of the new Mineral Exploration Licence application referred to in the RNS on 21 September 2023.
As for item 1, I have been recently and repeatedly saying that I was not expecting an update on the 2024 fieldwork program this month (March). I intend to post a note on this subject next Thursday 28th (the last trading day next week) as to when I am expecting the update.
Redknight1 - You say:
"So I believe that even Kobold will need the help of a major miner with experience of drilling and mining in remote locations..."
"Obviously he (Eric) cannot say anything but they are pursuing initiatives to bring new energy to the company..."
I agree!
IvRoche - I had a figure of circa US$500 per meter in my head for diamond drilling but, interestingly, you have identified a figure of US$850 per metre. I drew my figure from JAY's RNS on 24 July 2023 which stated that the total exploration expenditure for Enonkoski by Rio Tinto amounted to US$4.65 million for 9,667 metres of diamond drilling. This worked out at US$480 per metre. See bullet points 1 & 2 of the RNS - https://tinyurl.com/2vy433p9
I understand the cost of diamond drilling can vary depending on the size of the holes required, the material drilling through and the depth of the material. This might mean the figure of US$480 for Enonkoski may not necessarily apply to Disko. Also, I understand if the drilling equipment included Blowout Preventers (BOPs) that would add to the costs as well. Moreover, Enonkoski's drilling programme spanned a period from 2021, which means one would have to allow for inflation to bring the cost in line in line with today's prices.
FollowTheVein - Thank you for posting this interesting link.
Interesting and encouraging to note Rod McIllree's comment: "We are looking at drilling options at the moment."
I am no expert on this subject but from what I have learned as a layperson, anything around 500m deep for drilling is regarded as shallow. The copper-nickel-platinum group metal deposits at Noril'sk are located at a depth of 500m to 1,500m beneath the surface. Assuming the same might apply to Disko, and taking into account the terms of the JV with KoBold, I have been asking myself these two questions about the potential drilling campaign at Disko.
1. How many holes will be drilled?
2. To what depths will the holes be drilled?
As a general rule, the cost of drilling correlates with the depth of drilling. According to the terms of the JV, KoBold will have to spend at least US$11.6 million on drilling in 2024 (or 15 pre-agreed drill holes) to maintain its majority control of Disko. Since there are gas pockets at Disko, will the JV decide to focus initially on the most promising but shallow-depth targets in the maiden drilling campaign this year and then take on the more challenging targets in later years? Could this be one of the factors in considering the drilling options (ref RM's comment)? Assuming of course we have an RNS confirmation from JAY of drilling in 2024.
RNS 21 September 2023 - https://tinyurl.com/yhf5afz3
IvRoche - You say: “ … waiting to hear if Kobold are drilling this year... Shouldn't be long now, probably end of this month, early April latest to find out.“
Disko 2022 fieldwork was announced on 24 March of that year. In my view, it is most unlikely we will have an update on the Disko 2024 fieldwork this month (March). My take is we should hear before the Field Activities Licence (FAL) for the 2024 fieldwork is posted on the MLSA, Government of Greenland website. A company that wants to carry out field activities under a licence is required to submit its FAL application by May 1st, although the MLSA can extend this timeline if needed.
Changing the subject slightly, I am glad you have posted the RNS released on 21 September 2023 - https://tinyurl.com/yhf5afz3 . The bullet point 10 in the RNS refers to a new Mineral Exploration Licence (MEL) totalling 116.6km² that was submitted by Nikkeli Greenland to the MLSA, Government of Greenland. When I started this thread on 9 March, I said one of the priority tasks of the new management was to go through and clear the legacy issues left behind by the previous management. This new Mineral Exploration Licence application is one such example of the legacy issues. The application was submitted on 5 September 2022 but Rob Edwards & Co. failed to progress the application with the MLSA in a timely manner. In February 2024, the new management took it upon themselves and got the application moving again with the MLSA. Unfortunately, the failure by Rob Edwards & Co. to keep on top of the application has resulted in the application having to be treated under the new Mining Act which came into force on 1 January 2024. This essentially meant the application had to go through a 3-week public consultation period before the licence application was accepted. The 3-week process should conclude soon. See page 12, Section 35 - https://tinyurl.com/22vcfeb3
I suppose Rob Edwards and Co’s tenure was mainly an excursion into inaction rather than action in managing JAY’s affairs and producing positive outcomes for shareholders. What did RE actually achieve from giving so many interviews?
Rhetoric is just words. Reality is about facts!
Disko drilling RNS 24 March 2022 - https://tinyurl.com/yc6u5hfw
Disko drilling cancelled RNS 11 April 2022 - https://tinyurl.com/3ufemekd
NB: I continue to remain hopeful for the Disko project in 2024 and beyond.
The share price is heavily influenced by the trust and confidence shareholders have in management. You destroy that and shareholders will sell up and walk away in droves and that will destroy the share price. That is what has happened to JAY. But what do trust and confidence mean in this context? Simply put, it means the management fulfil, in a timely manner, the expectations they have raised. Effective shareholder communication should also be given importance.
Rob Edwards failed miserably to garner the trust and confidence of shareholders with an “over promise, under deliver” mentality (or should I say "non-delivery"?). As a result, the share price has sunk to a horrendously low level. To quote some of the statements by RE:
"Bluejay's portfolio of assets will change shape and move up the value curve in 2023." - Maiden Video Interview 5 December 2022
"The review which I carried out with the support of the entire Bluejay team, led by our CEO, Bo Stensgaard, was done to ensure that the firmest plan is in place on how best to move each project higher up the value curve so that we are best placed to maximise value for our shareholders." - Chairman's Strategic Review RNS 14 February 2023
"I am determined the Company should pursue more confidently in the future. This would be done to retain as much value for Bluejay shareholders, not only through considered exploration success but also through the monetisation of projects on commercially attractive terms, having advanced them to an optimal stage." - Chairman's Strategic Review RNS 14 February 2023
"Both parties (KoBolds and Bluejay) are committed to developing the best and most effective programme possible for 2023 and beyond." - Chairman's Strategic Review RNS 14 February 2023
"We expect some positive news I would think in the short to medium term, that is, CERTAINLY sewn up by Christmas (2023) one or two strategic investors to help us really lift the value of this portfolio to levels which we have not seen for many years." - Video Interview 21 September 2023
Okay, previous management is history but what can we expect from the present management? Eric Sondergaard (MD) is determined to "inverse" the “over promise, under deliver” mentality adopted by the previous management. ES will therefore be more calculated about the nature and content of future announcements, unlike the previous management (as demonstrated by the examples I have presented above). ES is currently engaged in meeting with everyone relevant to the long-term future of Bluejay. I am therefore willing to give ES the time and space so that he can first work through and clear all the legacy issues left by the previous management, engage with the relevant parties that matter for the long-term future of JAY, and when ready provide updates to shareholders. The three burning issues are: (a) Disko 2024 fieldwork (b) Asset sales and (c) JAY's cash position.
NB: I continue to remain hopeful for the Disko project in
KatAmnesia - You say: "BOD is present in this group. No need to share. Besides...if they don't reply to mails relate with lawsuits...would they reply to a no-body email asking for...common sense issues?"
Even if BOD reads this chat board, they will not be able to exercise their right to reply. You are therefore having a one-way conversation here if that's what you want. Also, until you try, you will not know whether or not you will get a reply from management. Don't get me wrong. I am not saying everything is hunky-dory with JAY management. But when I have something to say I communicate with management and when necessary express my displeasure over matters of concern. You have claimed to have a position in JAY with some million shares. I am therefore at a loss to understand why, as a heavily invested shareholder, you don't want to even attempt to communicate with management.
Complaining continually here about management can help vent one's frustration (I am also frustrated!), but I would rather have two-way communication than one-way communication. I also believe in talking to the BoD in person and that's why I attended the recent General Meeting and intend to attend the AGM in June. I accept not everyone can attend meetings.
Please take what I have said in this note in the helpful spirit it is meant.
Thanks for the list. Have you shared it with JAY management? If so, what was the response?
KatAmnesia - I can assure you that my intention is not to try and shut you up but to challenge you robustly if and when you claim non-facts as facts. I have already cited three occasions when you have done so. As I have already said, I have no problems with the expression of opinions because they are just that.
In the note you posted on 27 Feb 2024 at 19:51, you said: "Even is JV proceed to drilling…what is the impact? It’s not producing any revenue, it’s just prospecting the soil, so then samples to be processed, more 6-12 months and we will be 2 decades old and finally…"
Fair enough, and I have noted your comments. But I have a question. What is your exit plan? In other words, what OUTCOME(S) do you want JAY management to achieve that you think is likely to raise the share price to a level that would make it worthwhile for you to consider cashing in your shares (in full or in part)?
You appear to doubt that even if drilling took place at Disko the share price may not move up significantly. You also think that any revenue from Disko is several years away. Fair enough, but under JAY's new strategy, Disko is the only show in town in terms of project generation. So, I ask what OUTCOME(S) you want management to achieve so that you can consider executing your exit plan? No need for a long reply, just a brief bucket list of the OUTCOME(S) will do.
PS: In my opinion, even if all goes well with Disko, income from the project is at least 5 years away, more likely circa 7 years.
KatAmnesia - You say: " I salute people that have time to go back in posts and check for inconsistencies".
I don't have to trawl that far back for inconsistencies. Your post today has an inconsistency. You say: "Do I have hope for JAY? Still yes because it's Greenland."
So, you are hopeful for JAY because of Greenland's geology but then at the same time you mock the geological fact that Disko has similarities to the Norilsk system by saying "Norilsk Disko blabla is just blabla..."
KatAmnesia - You ask: " Falsehoods. Did I compare Disko and Norilsk?"
Yes. This is what you have said:
12 Dec 2023 at 15:19: "People are still believing in Norilsk…but honestly…"
27 Dec 2023 at 15:01: "Norilsk Disko blabla is just blabla..."
27 Dec 2023 at 23:00: "Unspoken truth is that I feel Norilsk cheap talk made many to embrace a foggy project."
You say you respect everyone's opinion but have the right to disagree and all within respectful boundaries. For my part, I too am receptive to opinions on JAY, both negative and positive. I also have boundaries and regard anyone claiming non-facts as facts as crossing an unacceptable boundary.
Troajan - Much of what you posted in your note on 3 Mar 2024 at 19:33 resonated with my thinking. By the way, have you heard of the phrase: "An Amarok in sheep's clothing"? I don't think you have because I have just made it up. I think we may well have an Amarok in the sheep's clothing roaming around here.
In case you didn't know, an Amarok (or Amaroq) means a wolf. It comes from the language of the Inuits (Eskimos), who live in northern Canada and Greenland. The Inuits consider the wolf as the king of nature, an impressive figure for its strength, robustness, resistance and superiority. An Amarok is a gigantic wolf in the Inuit religion. It is said that they stalk and devour anyone foolish enough to hunt alone at night. Unlike the wolves that hunt in packs, Amaroks hunt alone.
KatAmnesia - You are becoming a serial falsehood spreader. I am justified in claiming you are so because I have already challenged you on two issues where you have gone and claimed them to be facts when they were not. You have not countered my assertion. What does that say? Now you go and say in the note you posted on 3 Mar 2024 at 19:19: "Please Ashton…don’t ask for proofs of what I am saying. Ask BOD." Come on - please be reasonable - how can I ask the BoD on matters that are not facts?
Sadly, you go and do it again. That is, spreading falsehood. You now claim and I quote you: "Geological surveys don’t support any Norilsk what ever."
Did you know that the Geological Survey of Denmark and Greenland (GEUS) has released its latest issue of “Geology and Ore”? Please click on the link below to access the publication. It says, and I quote:
"The West Greenland Palaeogene Province SHARES SIMILARITIES WITH THE NORILSK SYSTEM; however, in the West Greenland system, sulfde saturation occurred at a shallower level in the Earth’s crust." (Page 10). A significant potential for undiscovered Ni, Cu, Co and PGM in magmatic deposits is expected in West Greenland..." (Page 11). - Unquote
Do you think GEUS is in the business of spreading falsehoods? Can I politely suggest you make a greater effort with your homework before uttering some of the nonsense you spew out?
You say to me in the note you posted on 3 Mar 2024 at 19:19: "If you are knee deep on this trashy company just don’t ask the wrong guys. I never travelled to Dundas, never visited Finland mining areas."
I found this comment quite amusing because in the note you posted on 12 Dec 2023 at 15:19, and referring to yourself, you said: "I have a position with some million shares…it a joke because I’m at 50% loss…I could buy some million more but…and I don’t sell because it also doesn’t make a huge difference in my portfolio." I am wondering whether this is a fact or fiction!
Anyway, and in any case, what do these two statements say? We both are knee-deep in this trashy company. That said, a big difference between us is I don't spew out falsehoods but you do.
I have no problem whatsoever with posters expressing negative opinions about JAY. But I despise when people like you spread falsehoods and I will not hesitate to challenge them.
https://tinyurl.com/468p7rbh