Member Info for A-s-h-t-o-n

LWHL - You say: " I have to ask you, Ashton: You mention the latest view (presumably from the same source close to JAY, as the one you cited before) is that the mess left by the previous management team is the reason for a strategy update delay. If this is so, then how can Bo remain in the company in any capacity whatsoever?"

Best you ask JAY the question. But I am willing to give my uninformed answer. I suspect there were three reasons for retaining Bo Stensgaard as an employee:

1. Although he may not be management material, he is a long-experienced geologist, in particular to do with Greenland - http://tinyurl.com/bdsf47sh

2.I believe he is a Danish national and this matters.

3. He has been in the business for a long time and therefore has connections with both the GEUS and Greenland authorities.

I did NOT say I have decided to stop posting. What I said was: “I hope to RETURN TO THIS POST in due course.” And as IvRoche has correctly pointed out I was laying a marker with an intention to return to the subject in question to say I said you so. That did not mean no more posts from me in the meantime.

I have posted on Michael Walters’ chat board for several years and even met MW (the site is now closed). I used the same name Ashton there but never came across a single reader of my posts having had any problems comprehending what I wrote (and what's more, no one misinterpreted my posts either). I can’t help if enuff has enough trouble with comprehension. That’s his/her problem. I am here to talk about JAY.

PS: enuff, please go back and re-read my post.

IvRoche (3 November 2023): "Additionally: Kobold have committed to drill Disko which is the big one for us LTHs. If Kobold wanted an exit after they effectively take control (51%) then Anglo-American is the likely bidder as they own all licenses around us and could consolidate the entire area / jurisdiction."

An astute observation. The question for me is who is going to have the last laugh? Will it be the cynics, doomsayers, the sarcastic posters or those who can see the wood for trees? Only time will tell and I hope to return to this post in due course. In the meantime, thank you guys for the cheap entertainment, keep 'em coming!

On 22 December 2023 (under the thread "There Are More Questions Than Answers"), I said: "If you are wondering about the timing for the next update on the details of the next strategy, you will not have to wait too long. Look out for news in early 2024, probably in the first week of the new year or thereabouts."

That was the view then of a source close to JAY. Having now taken over the reigns of managing JAY, the latest view is that the previous management had left the place in a mess and that the new management is hard at work cleaning up the mess before releasing the update on the new strategy.

I agree 100% with Jimbolina's comment (see note posted on 10 January 2024): "Happy to wait if it means they get the message right first time" for releasing the update.

On 28 December 2023 (under the thread "The future"), I said: "KoBold and JAY are currently engaged in planning for 2024." I have not learned of anything new to change this position. Also, I steadfastly stand by my earlier comment that "There could be a twist in the tale" in this regard.

Nothing is confirmed until it is confirmed.

The Independent Auditor's Report (see pages 21 and 43) of the Annual Report and Financial Statements for the Year Ended 31 December 2022 gives a valuation of £31,850,128 for the intangible assets related to the Dundas project, Disko project and the Finnish projects, which, according to the report, represent approximately 83% of JAY's total assets as of 31 December 2022. I presume the remaining 17% refers to the Kangerluarsuk and Thunderstone projects.

http://tinyurl.com/3ewf5ffz

IvRoche and Hemo - Interesting comments.

On 20 December 2023, JAY announced the Board change and the new strategy of focusing solely on Disko. On 22 December 2023 at 16:19, I posted a note in which I said: “Under the terms of the current JV, the overall control of the project rests with KoBold (the majority owner of Nikkeli Greenland), thus the key decision maker, with JAY performing the role of field operations manager. This arrangement will change when a major miner joins the project. So, I will be keeping a lookout for any development on this front as well.”

I am of the strong opinion and have repeated a few times here that you will need to bring in a major miner at some point to take Disko through to production. So the question is not "if" but "when".

The legal work for KoBold Metals - Bluejay Mining JV was carried out by the prestigious global law firm Norton Rose Fulbright - https://www.nortonrosefulbright.com/en-gb/news/c61c672a/norton-rose-fulbright-advisebluejay-mining-plc-on-ground-breaking-jv-with-kobold-metals

This article by Norton Rose Fulbright on joint ventures says: "Structuring: A number of factors are likely to drive the selected structure of the joint venture, chief amongst these are often the tax and accounting treatment of the investment for its participants. However, a number of other points will be important to consider in selecting the most appropriate legal form of collaboration such as the legal liability for the joint venture’s owners, the extent of operating autonomy to be enjoyed by the vehicle and THE EXTENT TO WHICH THE PARTIES INTEND TO REALISE THEIR INVESTMENT BY A SALE TO A THIRD PARTY OR PERHAPS A LISTING OF THE VEHICLE'S SHARES. Our presentation describes structuring considerations including a brief discussion of structures available in different jurisdictions." - http://tinyurl.com/22k36fnb

I am inclined to assume that Norton Rose Fulbright would have structured the KoBold Metals - Bluejay Mining JV by including, inter alia, a provision in the Agreement for the sale of the investment of the two parties to a third party or listing of the incorporated JV company Nikkeli Greenland A/S.

My final point is when I said there could be a twist in the tale I was careful in choosing the word "could" which meant to convey nothing definitive but a possibility. That said, it is not in my nature to be reckless with my words.

The top three most senior positions of KoBold are held by the co-founders of the company: Kurt House (CEO); Josh Goldman (President) and Jeff Jurinak (Chief Operating Officer). What is significantly interesting for JAY shareholders is Kurt House and Jeff Jurinak are Board members of Nikkeli Greenland A/S. This means we have the presence of two of KoBold's most senior people on the Board of Nikkeli Greenland. Why did they appoint such senior people to the Board? Until Rob Edwards left JAY and Bo Stensgaard stepped down as CEO these two were JAY's representatives on the Board of Nikkeli Greenland. I am expecting Mike Hutchinson (Non-Executive Chairman) and Eric Sondergaard (MD) to take up the places ​of RE and BS on the Board shortly. Nikkeli Greenland A/S ​is registered with the Danish Business Authority and has a CVR No. The Danish Business Authority contributes to creating trust, transparency and equal terms for businesses in Denmark. - http://tinyurl.com/3wtw64xd

Any changes to the Board membership of Nikkeli Greenland will have to be formally notified to the Danish Business Authority which controls and supervises the compliance of business regulations. I ​am monitoring the Board ​change.

There are two ​other outstanding items regarding Disko:

1. The plan for 2024. There could be a twist in the tale here.

2. ​The approval of the new Mineral Exploration Licence application referred to in the RNS of 21 September 2023 (see bullet point 10) - http://tinyurl.com/yhf5afz3

Thank you, IvRoche, for digging out the figure, much appreciated.

Hemo - You ask: "One other question to you if you don't mind, am I right in saying Bluejay will receive around $1.1m in revenue from KoBolds Phase 2 commitment?"

The short answer to your question is I don't know. But I wonder whether any posters here with an accountancy background could check the company​'s Results to see whether this information could be extracted. ​It is important to note that for fulfilling the role of Field Operations Manager during the 2022 field program, JAY received:

1. A JV expenditure-based management fee.

2. Reimbursement of Bluejay employee's salaries.

3. Rental income from its purpose-built modular exploration camp at Qullissat, Disko Island.

"The first wave of junior companies in Greenland, hardly any of them have been naturally successful, and had the progression that you may expect a company to have in another jurisdiction where it is easier to explore in Africa or Western Australia or part of South America. Bluejay aims to be part of the second generation (second version) of companies active in Greenland, which actually delivers a project and takes it through to the highest point in the curve which it possibly can." - Rob Edwards - 28 September 2023 ( watch it from 6:30) - http://tinyurl.com/fmfb2ure

Second generation (version) Bluejay! Was that uncanny prescience on the part of RE of the future of Bluejay?

Hemo - You ask: "As an aside, do you think the new strategy will come out next week?"

I am expecting it either tomorrow (Friday, 5th) or next week.

Jimbolina - You ask: "i also wonder now with rod back and all change will he get his wish that disko gets put into a separate company and we all get the same number of shares we own in blue jay."

It's a reasonable question to ask and I am glad you have raised it. The question for me is how such a stock market listing actually work in practice, should it happen.

In the note I posted on 27 December 2023 at 16:40, I said: "After the sale of the six assets, if Bluejay remains listed as it is now (that's a big IF for me), what we will be having - for all intents and purposes - is 49% of Nikelli Greenland A/S being listed on the stock exchanges of London, Frankfurt and New York under the name of Bluejay. The new Bluejay management will not have much say in the overall management of Nikkeli Greenland. That will be down to KoBold Metals, as long as they retain majority control of Nikkeli Greenland. A strange arrangement to say the least. For these reasons, I am keenly waiting for the update on Bluejay's new strategy and how all this is going to work in practice."

The listing would of course not be that complicated - in fact, it would be straightforward - if KoBold were to agree to the whole of Nikkeli Greenland becoming a publicly quoted company. In which case, the Board membership of the newly listed company will have to reflect the current shared ownership of Nikkeli Greenland. A big plus of listing Nikkeli Greenland is that it would provide the opportunity to raise new capital to progress the Disko project beyond 2024.

PS; The Proposed Demerger RNS on 13 June 2022 said: "If approved, Bluejay shareholders will receive new shares in Disko proportionate to their Bluejay shareholding via a distributed capital reduction, which, subject to High Court and HMRC approval, is expected to have no tax consequence for Bluejay shareholders." - http://tinyurl.com/yvthswpa

Hemo - No problem. If this is the link you were after, hope this one works. London Stock Exchange website shows the share price up 4% closing at 0.65p.

http://tinyurl.com/565bdawe

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.