Member Info for charles432

I agree with Dorf, Pt which is a major contributor to PGM basket price is doing rather well. Jubilee also has one of the lowest costs to recover an oz. of PGM. Cr is holding up well, paying for costs at Inyoni, and ensuring a quality feed of PGM.

Hydrogen is certain to be part of the future energy mix as the world decarbonises. This ensures a future demand for PGM. But it is in Jubilee's interest that PGM prices remain moderate, thereby encouraging further usage of PGM. Sky high prices for PGM tend to choke off future demand, and alternatives are found where possible .

My understanding of Inyoni is its efficiency is now much improved. Historically most PGM plants only recovered about 57% of the feed input. Now instead of increasing plant throughput Inyoni raises recovery rate PGM to 62% by increased retention time in plant, then PGM output increases as costs fall per oz PGM recovered. The endless problem with Jubilee for PIs is lack of information. But I believe that eventually Jubilee will not only increase % PGM recovered but also increase throughput at Inyoni, and results of Inyoni will lead to a more efficient PGM plant on the Eastern PGM limb.
Of course with Cu and Co waiting in the wings all is more than great, the performance of Roan will be next technical input. I await details of Roan's performance, although LC would never have undertaken Mopani and waste dump expansion if Roan was under expectations.

Now Slater have a major stake in JLP I believe all I must do is to sit on my hands, only way to avoid silly mistakes. For the first time in my life an investment , JLP, will pay out long term as a major return. And I can remember Jim Slater, Mark Slater's father in the city, reminds myself just how old I have got.

Currently the market is driven by fear, collapse of a small property company in China. I sleep easier when the market is driven by greed, but the ups and downs make for move in my adrenaline.

Homeytheclown - a reason Leon in interview (with Katie) stated for take out of JV partners was to protect IP of process. And even in Zambia were total control of JV not achieved by JLP, sufficient ownership of JV was achieved such that JLP could dictate order in which tail dumps are processed, essential to obtain optimum metal recoveries of Cu and Co. PGM prices are holding up fairly well even though China is trying to depress prices. Also PGM price dependent on prill split which obviously varies with location, but a big plus is that Chrome ore prices have held up to date. And Chrome revenue bears most of the operating costs, plus Rhodium was only sky high for 8 months of past year. Without regular reports it is at times I admit very difficult to estimate JLP's cash position.

Mikie I quite agree the interviews of Leon by Katie are by far the most expressive and informative. Also agree there is more to come out of Zambia, plus PGMs in SA ready for the Hydrogen revolution. When Leon does get to Cyprus I have no doubt he will hover up all the most suitable dumps for benefit of Jubilee. He is a man on a mission to take Jubilee to the top.

JLP (with placing) has secured additional Cu/Co tails at Mufulira, currently being sampled to determine quality and quantity, these will form part of resource for project Elephant. I hope the BOD will let Pv.Is. know the results of sampling at Mulufira. I have no doubt details of Mulufira will reach In.Is. at month end report. JLP is a great share but please will the BOD treat all parties equally.

Never believe anything CB utters, he is a well worn liar. The crucial fact for Jubilee will be who purchases the new shares, will they be a genuine long term holder, or will it be another share over hang continually leaking to the market, when share price rises ? I have a big struggle to know who owns what in Zambia, but Mopani needs cash for ZCCM to pay of its Glencore loan. Thus I suspect with a new President in Zambia, who is taking charge to a large degree at Mopani, the opportunity for Jubilee was too much to miss. Happy at 16p a share, but why are long term private investors ignored. Bet CB made a bit on the side.

The latest post by Caerus appears to be waking the market up to the fact that JLP is in Cu. But reading the details, there is still considerable further deeper depth drilling required, which will take time. Meanwhile JLP gains further experience towards the design of Cu recovery plants in Zambia. No rush even if Cyprus is pushed by CB and his cronies.

My understanding of Tjate is that a PGM grade of 6g/ton is good to excellent. But a possible mine is so deep as to be almost impossible as a stand alone entity, it will have to be developed in conjunction with a neighbouring mine. JLPs answer to Tjate is to sell it on and have a contract for the tails.

JLP's policy of recovering a multi metal stream is the only answer to metal price fluctuations. Also, China as the world's largest metal importer, dumps metals for sale by auction at intervals, in order to restrain metal price increases. The latest Chinese auction was Wed. 01/09/2021.
PGM earnings have been the backbone of JLP's expansion into Zambia. The Inyoni plant is proven technology, it takes ROM Cr ore, processes it on contract for benefit of mine owner and scavenges the tails to produce PGMs. But currently JLP's Cr recovery plants are maxed out.
The South African Government, via its Competition Commission denying Cheetah permission to export unprocessed Cr ore from the old DCM mine, indicates that it wishes to stop the export of unrefined Cr ore. Now JLP as one of the largest and most efficient processors of Cr ore is very effective at agreeing contracts with Cr mines. Further as JLP recovers PGMs as the end stage, so it can offer Cr mines a share of PGM profits going forward.
The demand for a second Inyoni on the Eastern limb of the South African Cr/PGM Bushveld complex continues to grow. A second Inyoni producing 50000 PGM ozs/yr, with Pt @$800/oz, Pd @$2000/oz, Rh @$14000/oz , with PGM recovery costs of $750/oz would generate an estimated annual earnings of £57m.
Furthermore a second Inyoni plant on the Eastern limb of the Bushveld complex, totally supports the S.A. Governments' policy of ending the export of unprocessed Cr ore.

An initial reaction to the new JLP web site is that it is Long on Talk the Talk but Short on how to Walk the Walk. But the link up with Mopani is very much Win/Win situation, JLP gets access to the mothballed Mopani refinery, which it can refurbish and re engineer to meet its needs , accepting first Lechwe then Elephant tails to give the company an annual output of 31000 tons Cu. Historically to upgrade Sable to 25000 tons Cu was estimated to cost $17m, now with the Mopani deal JLP gets in excess of 25000 tons Cu for less than $17m . Furthermore as the Mopani refinery comes back into action so ZCCM, its owner gains an income stream. This income stream is further enhanced once Elephant comes on stream, where ZCCM has a beneficial interest in the Kitwe tails. The above enables ZCCM to start repaying its Glencore loan.
For months JLP has stated that the Zn circuit at Sable will come online Q4 2021. But the new Web page states that the recovery circuits for Zn, Pb and V at Sable are under revue. But as Sable is now supplied only by Roan and private Contracts utilising 12000 Cu tons refining capacity/yr , there is a surplus of refining capacity at Sable of 2000 tons/yr to handle Zn, Pb, V. If Kabwe, one of the most polluted Cities on Earth, is to be cleaned up back to a Habitable situation then Zn circuit needs to be first online. Until Kabwe is cleaned up JLP's ESG credentials are open to question.
Thankfully the Cyprus venture is low key in new Web page. The IP for JLP is invested in the team and their close associates, all of whom live in Southern Africa. Currently with two Cu projects on the go in Zambia and the strong probability of a second Inyoni plant to be constructed on the Cr/PGM rich East limb of the South African Bushveld complex, the team has no need to venture far afield. The Cyprus venture, although in the same time zone, is 16 hours or more North by air, min., there are no direct flights and thus currently a no/no. Also JLP needs to grab the current advantages of Zambia, a new President who understands the importance of industry and inward investment, a well educated population with mining process skills and hence no need to import skilled ex-pats. Whereas Cyprus is a tourist destination with limited persons skilled in mining process operations.
When JLP was Jubilee Platinum under CB direction, it was a nightmare. I regard CB as a grey to dark zone who needs to retire. In Zambia there appears to be a royalty payable to BMR, but for BMR read Hendricks, and for Hendricks read CB. Also the tails at Lechwe may in part be belong to BMR/Hendricks. Major problem with BMR is that nobody reveals the truth. The ownership of tails in Cyprus is further clouded by CB's link to numerous companies in Cyprus.
JLP needs the self discipline of issuing regular, up to date, accurate and informative Quarterly reports. Thus allowing SH to track returns as the company invests ever increasing earnings into future income.

Mikiesunday I agree with your calc. regarding increase in Op. Earnings now Windsor PGM/Eland J V is terminated.
The Op. Earnings estimate for 21/22 shows that for the next 2/3 years PGMs remain Jubilee's major source of Earnings. Although Cu Earnings will become large(very large) to date Jubilee has only posted proof of concept in Zambia. Info on construction at Roan and Cu output at Sable remains minimal. Hence having perfected Inyoni on the Western Limb of the SA PGM Bushveld complex. Priority must now be given to Inyoni 1 on the Eastern Limb of the SA PGM Bushveld complex. The Jubilee way of having a large centralised process and recovery operation for Cr and PGMs has proven itself. Here costs are lower with a greater % of PGMs recovered and Jubilee controlling feed quality and flow rate through the plant. The alternate approach is to have multiple small plants located at mine locations. But here feed quality and flow rate of material through the plant is largely determined by the mine on site. This decentralised model with small plants is the SLP model.
Next a Solar Panel farm needs to be built adjacent to Inyoni incorporating a Large Battery Storage System. The highveld bush region of SA is ideal for Solar Power production. The Solar Energy plant will ensure Inyoni has a constant source of cheap Electricity , with any surplus trickle fed to the National Grid. Electricity is a major cost factor for a plant of Inyoni type, also for certain electricity prices will continue to escalate in SA
The combination of a Solar Energy plant with Inyoni will further enhance Jubilee's green credentials.

Increased operational earnings b.t. will accrue from four areas.

(1) Enlarged modern central efficient processing plant constructed at Inyoni, with Cr, Fine Cr and Ultra fine Cr recovered down to <2% Chromic Oxide in initial feed to PGM recovery plant. For PGM recovery at SLP dump operations a rate of 52% is achieved.
For Jubilee's current Inyoni plant a recovery rate of 57% PGMs is within reach rising to 62% as Engineers tweak plant operations. Jubilee is not a mine it is a metals process and recovery operation.
For year one at Inyoni recovery capacity is 57000 PGM ozs giving earnings of:
(57 X 63)/50 = £71.8 m for 2021/2022.
N.B. As new contract for LG6 ore supply from Eastern Limb kicks in so feed gains in Rhodium.
(2)Increased Cr production at higher contract prices resulting in Earnings of £10 m per yr.
N.B. Cr revenue pays for quality PGM feed to the PGM recovery plant.
(3) Termination of JV between Windsor and Eland which produced 25000 PGM ozs in 2020/2021, but at a cost to Jubilee, estimated conservatively at £0.5 m per month or £6 m per yr.
(4) As Roan comes on stream in Zambia so the conc. of Cu in material delivered to Sable increases exponentially, easily leading to earnings of £10 m in 2021/2022.

Total Earnings b.t.= £71.8 m + £6 m + £6 m + £10 m = £93.8 m an increase in operational earnings of 34% over 2020/2021.
Jubilee has achieved an increase in Operational Earnings b.t. of 39% for the last three years, thus figures above look very reasonable.

The WHI report of Mar. 2020 states Jubilee trucking PGM rich tails from DCM to Inyoni, I conclude all is well in the land of Jubilee and DCM mine, but apparently not true. Thanks to link provided by JLPpositive to a case in the Pretoria High Court concerning same I conclued the following (but legal jargon is not my strong point).

1). DCM ends Cr mining Oct. 2015 and is placed in Business Rescue on Mar. 2016, on same date Jubilee and DCM sign a framework agreement for processing PGM rich tails from DCM.

2). Framework agreement updated 2017 to include the processing and benefication of tails. PGMs recovered for the benefit of Jubilee, Cr recovered revenue to be split between DCM and Jubilee.

3). 18 Jy 2018, Cheetah a Chinese Co. agrees to purchase DCM mine for a total of R190m.

4). DCM cancels sale of DCM mine to Cheetah 17 Aug 2020 and agrees to sell PGM tails to Jubilee, sale finalised 23/24 Sept 2020.

5). 12 Oct 2020 and there is a case heard in the Pretoria High Court concerning the PGM rich tails located at DCM as to ownership of tails. The case concerns (1) the original owners of DCM living in Burgersfort (2) the DCM mine (3) Cheetah and
=====(4) Jubilee a mineral processing Co.

6). Cheetah reads about sale of tails in Newspaper on 24 Aug 2020 and requests Pretoria High Court , as a matter of urgency to bring forward the case concerning the ownership of tails at DCM. Jubilee becomes aware of impending case on same date.

7). The Pretoria High Court decides case urgent on 19 Oct. 2020 and allocates time for the case to be heard (remotely due to Covid-19) on 10/11 of Nov 2020.

8). Cheetah becomes upset because Jubilee has Earth Moving Equipment at DCM mine on 23/24 Sept 2020 removing PGM rich tails after the Urgency request listed in 6). above dated 24 Aug 2020.

9). However Jubilee had removed all its earth Moving Equipment from DCM mine site by 10 Nov 2020 without a court order, this being date on which court proceedings begun regarding ownership of PGM tails at DCM. Therefore the Judge refused to grant Cheetah punitive damages against Jubilee. But the tails are surrounded by a dam, hence the Judge deemed them to be fixed assets and as such were sold by DCM to Cheetah.

10). The cash cost of the case the Judge determined should be settle by all the parties involved in the case, with details settled by the Sheriff.

The take over of the old DCM mine by Cheetah is referred to the South African Competition Commission.

Historically Inyoni Cr processed 70000 tons Cr tails per month arising from, dump,ROM, slime dams etc sources. This feed produced 2500-3000 PGM ozs. per.month, depending on quality. ROM best quality, old tail dumps, slime dams etc poor quality, due to large amount of oxidised material present. Also if tails originated from open pit mining , then head grade lower.
Ideally a PGM plant will run with 85% quality feed and 15% historic tails. The tail resource enables management to buffer the treatment plant , such that it runs continuously at full capacity.
The enlarged Inyoni PGM plant treats 75000 tons per month producing 4500 PGM ozs. per month or 54000 PGM ozs. per. yr.

Windsor Cr processes 70000 tons ROM ore per month.
Windsor 8 Cr " 30000 tons " " .
Enlarged Inyoni Cr " 115000 tons " " , also
Enlarged Inyoni Cr " 35000 tons Historic Tails per month.

Total Cr processed per month 250000 tons by Jubilee.

But with the newly signed contract for LG6 material from Eastern limb, there is 16500 tons ROM available for treatment.
Thus the enlarged Inyoni plant will only treat 35000 - 16500 = 18500 tons historic tails per month.

Financially the PGM ozs. from the enlarged Inyoni plant will considerably increase Jubilee's earnings. The JV project between Windsor and Eland is terminated, with all JV material brought in house. The LG6 material is heavy in Rhodium.

Jubilee has a large dump of historic enriched tails located at DCM on the Eastern limb. Obviously the next step within South Africa is to build Inyoni 2 on the old DCM site.