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Kodal plant Capex $150m
Yearly production of SC6 238kt
Total cost including transport $474/t
SC6 price $1060/t
NPV $760m
Total life of mine revenue $2.145b
Share price today £88m
51% of their shares owned by a chineese investor
Plant due online Q4 (2024 but nobody expects this target to be met).
Does anyone know if Kodal has to repay any debts, do they keep 100% of the offtake?
Maru
Capex $5m
Yearly production 90kt SC6 equivalent(60kt Li2O+tantalum+coltan)
Total cost including transport $450/t
SC6 price $1060/t
NPV ? Based on a 10 year mine life, $500m+ is possible
Total life of mine revenue $900m
Share price today £20m
Modular plant which could be expanded in size as the resource is further defined. Also graphite and copper assets due to come online this year and current debts only a few million $.
The new plant actually has three containers. See photos of before and after comissioning.
https://twitter.com/AndrewMathieso3/status/1770246293190762579?t=QECC2nz6Kgc07wNPgmcEuw&s=19
Daz, that small portacabin and rig currently capable of 2000t a month was delivered and commissioned over a weekend. It is modular and can be re-located if and when required.
There is an additional unit on the way to increase the capacity to 5000T/month.
This is a dry direct ore sorting so no chemicals, hardeners, PH sensors required. There is no delay in bringing the plant online, no commissioning issues which can happen with a wet concentrate plant with impurities.
AISC is $400/t including transportation. The product being sold is SC5.5-6.6 which should average over $1000/t plus $500 byproducts. So $1500 minus AISC = $1100 x 5000t near term capacity = $5,500,000 a month profit.
Total Capex for all plant and mining equipment plus exploration budget so far is under $5m
The company have told us that the initial exploration (results pending) supports an operation for 10 years.
So in 18 months and for $5m the company are on track to make over $50m profit a year.
Oh, and they keep 100% of the profits and will share those profits with shareholders as Q global who provided the financing in return for 100m shares wants to get repaid with dividends (starting as early as 2H of this year)
Daz, here's the source
https://ibb.co/1dYQrTq
11. any debt accrued to q global or subsidiaries can be waived in exchange for shares?!?!?! this is for up to 6.25p per share? so over 50% discount to the current price? this can happen at any point between now and 31st december 2026? aggregate consideration for 147,800,000 shares is: £8,530,000. take away £1 million for drilling, £750,000 for one of the ore sorters, plus other potential costs leaves a total of: £6,780,000 minus any debts for services rendered to q global.
incorrect again – it only falls into the final discretionary tranche of funding converts at 10p, which at the time of agreeing the additional tranche was where we were trading – hence why it was agreed to.
and show me a junior mining company with anywhere near access to that £6.8 million of available funding.
12. i didn't factor in the tanzanian budget which is on the next chapter. leaves a total of £4.68 million less any costs for services rendered by q global.
yes and we have that tanzanian budget fully approved and funded across the graphite and copper projects.
again show me much at least a number of other junior mining companies that are also fully funded into this.
13. if q global get to 51%, they effectively have the right to never own less than 51%. they will be at 46.3% of the fully enlarged capital. that also doesn't include what they can charge marula for services rendered. going of previous history and acquisition of projects, a lot of the considering has been both cash and shares. i would expect some of those services rendered to be paid back in cash as well as shares.
not sure you’re opinion or expectations carry much weight and are close to reality or what is likely to happen given how wrong you have been on a lot of your so called research!
14. takeover panel rules are an absolutely nightmare to navigate. i have no idea how holding over 50% will further impact on marula from a takeover panel standpoint.
if you are going to make such a broad based comment on this then i suggest you at least do some research – oh i forgot , based on the above you are actually not too good at that are you.
15. how much are these total debts/services rendered going to be exactly? what mechanism is in place to regulate it? can q global bill whatever they like?
it depends entirely on what services are provided. but there are board structures and independent directors on the board which opine on this.
it also comes down to whether we need any services from them and as it stands at the moment and going forward, i’d suggest that is not really the case and that is despite them possessing some great mining, processing and logistics professionals as well as financing capabilities too.
*****on will be just one of 6 board directors and to suggest that they can bill ‘whatever they like” really is disingenuous to the board structures, the other directors and somewhat insulting.
Deal with Southern Jade was done when Marula share price under 2p and we used the cash to buy out other shareholders in Blesberg and commence operations. We then ‘repaid’ the cash by issuing shares at 14p – which I believe was a very smart move and at at least 1/7th of the dilution that would have occurred if we raised equity then shares to to buy out other shareholders in Blesberg and commence operations
Fujax was one of those European trading houses – headquartered in UK and offices in Switzerland and elsewhere too.
RNS of 31 August 2023 is clear in that:
“The Company is also in the process of concluding its negotiations with a number of European based global commodity trading groups in respect to a long-term offtake agreement over spodumene and lithium products produced from the stockpiles at Blesberg and from the Company’s broader development plans for the proposed Blesberg open pit mining operations”
Fujax was one of those European based global trading groups.
8. Why was this Jade Resources terminated, if the deal was only for an initial 27.5 tonnes? Why not just deliver the shipment, and why just pay them shares?
Again wrong.
As disclosed in a number of RNSs the transaction with Southern Jade was terminated to allow for a more attractive and longer term offtake agreement/
9. Kinusi - "Small-Scale Copper Mining". What is the definition of small-scale?
There is no definition as you well know.
But it certainly is not of the commercial scale that we are intending to achieve.
But we have disclosed the size of the initial processing plant and it can be derived from that.
10. 10-15 Million Tonne deposit target, potential of up to 50 Million based on phase one exploration activities - Is there a report produced from Geofields for us to view? I can't find it anywhere. Surely a publicly listed company should be sharing the geo-reports?
The summary finings of that report have been disclosed in the RNSs.
Show me a mining company that discloses all of its geological reports.
The key findings of the Geofields report forms the basis of the MSA Competent Persons Report that will be published as part of the Main Board Listing.
Screen shots of the report have also been published
Southern Jade is a South African incorporated company and subsidiary of Traxys
7. This was terminated 1 month later, with the aim of shifting focus to European Trading Houses. This was due early Q1 2024, and was the reason for terminating the original off-take agreement, and then paying Jade Resources in shares? This means Jade Resources was terminated for discussions with Q Global's trading partner, which didn't happen, and then led to the deal with Fujax
Again such poor research by you and wrong on so many fronts and you have both your parties and dates wrong.
Southern Jade was terminated so we could do a long-term arrangement – this original deal was only for two deliveries maximum.
Deal with Southern Jade was done when Marula share price
Hi Dee. These questions were passed on to Jason the CEO and he answered them all fully today:
1. Blesberg Project If they announced 100% purchase on 25th November 2022, and still not received regulatory approval... Don't they need this in order to make commercial sales?
No we do not. Approval process is underway and due shortly.
2. The preliminary assay results from the stockpile came in at 5%-6.53%. This was based on only a 1 tonne sample. The follow-up was done independently, but it doesn't state whether this was also a 1 tonne sample, or a different amount?
Incorrect and very poor research by you.
Multiple samples have been taken and reported in RNSs.
The RNS of 7 August 2023 is one such,
“Stockpile sampling and analysis of a 30 tonne (`t") batch sample was completed at Blesberg by CI Group Limited ("CIG")
CIG are a specialised independent inspection group for the metals and minerals sector based in Johannesburg, South Africa
Sampling was completed on the +50mm processed product at Blesberg with samples drawn from the stockpile, labelled, marked, and sealed upon completion of the sampling process using ISO stipulated methods.
The representative sample for the stockpile was transported for further preparation at CIG's ISO/IEC 17025 accredited laboratory where a reduced sample was composed after all particles were broken down in physical size for assay purposes
The assay report now received by the Company has confirmed a high-grade result of 6.50% Li2O for the +50mm processed spodumene material currently stockpiled at Blesberg”
3. $1.35 Million from the Subscription will immediately be paid back to fund the drilling costs?
Correct – equity being issued to AUO in satisfaction of this funding.
4. Drilling was completed on 6th December 2023. We should have assays soon? Why the delay?
No delays being incorporated into Competent Person Report and being signed off for formal release.
5. Ore Sorter cost is £750,000, which will also be deducted from the subscription cost.
Correct.
6. If only 1 tonne has been sampled, there's a risk of the first shipment to Southern Jase Resources Pty Ltd being 26.5 Tonnes short due to lack of sampling?
No this in incorrect.
Poor research by you again!
More than 1 tonne was sampled – refer to released RNSs
It was 27.5t and not 26.5t.
The trial shipment was disclosed in RNS of 31 August 2023:
“ of high-grade lithium ore from the Blesberg Lithium and Tantalum Mine with a Chinese importer and exporter of metalliferous ores”
It was never to Southern Jade Resources – it was to a Chinese based group as disclosed in the RNS.
$50m revenue a year once they hit 50k a year capacity. Possibly $75m once the tantalite byproducts sales start.
$10m/year from the manganese mine once its up to speed.
Copper and graphite still to come (this year) too
♣ In addition to the drill program, airborne geophysics and multispectral satellite imaging work, exploration trenching program, geological modelling, open pit mine design study and an initial mining works program, slope stability, groundwater and geohydrology studies, environmental management studies and discounted cashflow analyses and competent person reports are to be completed.
♣ Last quarter the 2-phase drilling program was expanded to include a further 3-holes, and we completed the expanded 21-hole Phase 1 drilling program had been completed for a total of 1,026.37m on a 25m x 50m drill spacing pattern last quarter and commenced work on the Phase 2 drilling program, which is being completed on a 25m x 25m drill spacing pattern, with the program to be completed in the next 3 weeks or so
♣ Subsequent RNS have also clarified this – the processing plant and equipment purchases for example confirmed that this fell under the Q Global funding
Here was the shopping list, all on site apart from the final sorter which is overdue
6th April
new mobile mining equipment for the Blesberg Lithium Mine forZAR20 million(approxUS$1.2M) throughQ Global Commodities (Q Global") existing relationship with one of its principal equipment suppliers, Bell Equipment Limited.
The new mining equipment comprised a Kobelco SK380XDLC excavator, a JCB 3CXbackhoe loader, two new JCB 456ZX wheel loaders, and two new Bell B25E dump trucks.
1) When do you think that economic assessment will be completed?
♣ As above we know the numbers and is being independently verified so I can release it – believe me that day cannot come soon enough
♣ Again we have invested over the past few months over US$3.5m in new mining and processing equipment
♣ The brand new mining equipment secured last quarter included a JCB 456ZX wheel loader and a JCB JS305 tracked excavator and this was in addition to the Kobelco SK380XDLC excavator, a JCB 3CX backhoe loader, two new JCB 456ZX wheel loaders, and two new Bell B25E articulated dump trucks, that were secured and delivered to the Blesberg mine site in early Q2 2023
♣ Two sensor-based, XRF ore sorting plants (“XRF Ore Sorters”) were also secured last quarter for total consideration of approx. ZAR 40.6 million (£1.7 million)
♣ The XRF Ore Sorters have been purchased as part of the proposed expanded processing facilities that are to be installed at Blesberg and will initially include a new and expanded crushing and screening circuit, a mica removal vacuum screen and the XRF Ore Sorters.
♣
♣ The expanded processing plant is capable of producing up to 5,000 tonnes per month of a +20mm saleable high-grade lithium spodumene product from both the current stockpiled material from the historic mining activities and from the broader development plans of a large scale hard rock open pit mining operation.
♣ The XRF Ore Sorters purchased comprise a Rados SRF100-8 ore sorter with a 30 tonnes per hour (“TPH”) capacity, which has been acquired from Rados International Technologies (Malta) Limited (“Rados”) for ZAR23M (£990,000); and a Tomra COM XRT 1200 ore sorter with a 120 TPH capacity, which has been acquired for ZAR17.6M (£750,000) from Q Global Mining (Pty) Ltd, a subsidiary of Q Global Commodities.
2) How much drilling is required to be able to confirm a robust feasibility study on the asset and therefore the economics of the grade? Or are you focusing on a core element of the asset first?
♣ We commenced a ZAR26M (approx. US$1.35M) resource drilling exploration and mine planning program at Blesberg last quarter
♣ The Program was aimed at defining a maiden JORC Code 2012 compliant Mineral Resource Estimate solely on the immediate Blesberg pegmatite and which was considered sufficient to support a larger and longer-term hard rock open pit mining operation of +10 years.
Todays lithium offtake is just the beginning
https://twitter.com/JB_MiningAfrica/status/1770000367201247447?t=Jgl2OoOJP_K9RJ2mtQEIoA&s=19
There is tantalite as a byproduct, manganese revenue due as early as this month, copper in Q2 and Graphite in 2H of 2024. Still talk of paying a dividend this year
RNS's due in March:
To flow and to cover all the key ones expected and a few from Kevin’s list just to catch up. Including
1. Offtake Blesberg - (DONE)
2. Permits issued at Blesberg
3. Initial Exploration results from Phase 1 at Nyorinyori
4. Kinusi update and including recommendations from new GM Jana on copper cement / cathode production
5. Tomra Unit to site and installation
6. Manganese offtake and initial sales and trial shipments
7. Lithium, tantalum and tungsten expansion Northern Cape
8. Listing updates - meeting NSE tomorrow and Michelle advancing SA listing too whilst we also cover Main Board
9. QGC shareholding
Think that’s enough for next few weeks.
$1050/t but some will be 5.5% so let's say $950 minus AISC of $400 = $550 x 50k = $9.16m profit per year at the lower rates of 1.4kt/month.
This will raise once byproducts start being sold and once production ramps up towards 5kt/month
Didn't go into much detail on expected near term explosion of revenue.
Here are some recent videos from the CEO
Jason Brewer middle of Feb
https://youtu.be/AQZCprmVBB8?si=Ap3Fa_AthnEJFzhq
Jason explaining the delay with the offtake
https://www.share-talk.com/marula-mining-plc-video-update-on-blesberg-lithium-mine-spodumene-ore-offtake-agreement/
The billionaire investor (Expecting a holdings RNS tomorrow)
https://www.youtube.com/watch?v=j5VOfPzrxCo&t=1758s
Interesting to see a copper miner Myles Mcnulty liķes the look of.
https://twitter.com/MylesMcNulty/status/1768548686538149956?t=m8S2fk3AR5aGpp7NLbZ2Fw&s=19
$197m revenue and $300m market cap
$51m profit
Dividend paying
No growth forecast over the next 2 years
P/E ratio of 8x
With better margins and much faster growth curve, Marula could really do well once revenue starts.