Member Info for ChesterGreen

the 'storm' of information we will get in the next few weeks.

at my count, here are the items where we expect news:

1. roan / sable upgrades

2. munkoyo module and open pit

3. wrp with irh – 4 modules

4. mufulira **** project with mopani copper mines (mcm)

5. project elephant tailings – concentrator at kitwe and refining at mcm kitwe?

6. copper refining capacity – chambishi or mcm kitwe?

7. new copper projects – similar to munkoyo

8. 2 x 50000tpm chrome modules at thutse (= 600000t chrome + 30000oz pgm?)

9. brownfield pgm processing capacity or jv with northam or stockpile

10. new lom chrome deal – module(s) deployed

11. eastern limb expansion – chrome module and possible pgm expansion

12. refinance revolving credit facilities (sa -$13m; zambia $5m) – april 2024

13. longer term debt – funding expansion / transfer liabilities from current to non-current

obviously, some of these overlap. if we get news (end april) of the spv and jv with mopani copper mines (mcm), i think the tailings will be rolled up in that. if mcm inject the refinery at kitwe (currently on care and maintenance) into the jv, i can see a case for expanding the jv to include all of what was project elephant into it too.

firstly though, lets get the irh project started!

cg

everopeful

i sympathise with you concerning sable. there are unknowns currently - hopefully they will be clarified by multiple rnss shortly.

i think additional refining capacity will be needed by jubilee in the next 12 months because:

the roan 6 year deal to be delivered via the 50000t/month upgrade is scheduled to be refined by sable. as you say, it is about 13000t / year when running at full tilt. i hadn't picked up an 8000/5000 sulphide/oxide split but i'm happy to go with your numbers;

the monkoyo project is due to get a 25000t/month module. i thought this was graded at 1.5 - 3% and on-surface discarded material. the rns (8/2/24) mentions the deeper pit providing 25000t/m ore. is this additional to the waste rock at monkoyo? (that was one of my questions at the cancelled investor presentation.) taking only 25000t/m @ 1.5% copper, i make that 375 tonnes per month or 4200t /year. i haven't seen a sulhide/oxide split yet,but i assume this is why sable is getting the 2000t / year sulphide circuit upgrade;

so far, so good.

but, the waste rock project also mentioned refining its'output a sable - up to 12000 tonnes, i think (in a full year of operation, not all attributable to jubilee). this may not be until 2026 but a some will be available in 2025. the wh ireland not gave a 60/40 oxide/sulphide split.

mufulira **** will be processed at mopani copper mines kitwe facility we assume as part of the jv with them. where will the other tailings be refined? are they all sulphides (with or without cobalt)?

there are small scale miners that currently feed sable. the 2023 annual report states this feed is 1.87% copper and we were given the figure of 130t / month in an rns about this time last year. is this to be redirected to mcm kitwe?

as i say, hopefully we'll get specifics soon.

SeisNav agreed.

To further your point, one new 50,000t / month module at Thutse is larger than the existing 35,000t/ month - so instead of producing 15000t chrome concentrate each month it would produce nearer 25000t/month. Let alone the RNS mentions TWO extra modules at Thutse.

JLP Positive / Bushytailed,

The footnote to the table on the front page of the WH Ireland note that shows net cash for 2024 as (£36.4m) explains that this figure is calculated as cash and cash equivalents less current liabilities. Page 22 of the same note gives 2024E cash as £32.9m (as Seis says) and current liabilities of £67.5m.This gives a figure of (34.6), so not the same as the figure quoted on the front page. Is this a case of the last 2 digits being reversed?

It might be helpful to look at the figures given for 2023 in the same tables. The actual net cash as at 30th June 2023 is given as (£65.3m). Again, the table on pg 22 of the note gives cash + equivalents as £12.6m and current liabilities of £77.9m. This gives the expected figure of (£65.3m). These figures also correspond with the 2023 Annual Report.

All of the above is a long-winded way of explaining that on the mesurement of net cash as used by WHI (cash+ equivalents - current liabilities) - 2024 is expected to show an improvement from the minus £65.3m in 2023 to minus £36.4m. That's £28.9m improvement - in itself not consistent with negative cash flow.

Further evidence is provided by the cash flow summary also shown on page 22 of the WHI note. It forecasts cashflow from operating activities as £25.3m, inflow from financing £11m less the outflow of £16m for investing activity.

25.3 + 11 - 16 = 20.3

which is the increase in cash and cash equivalents. Note that the £11m from financing activity is the result of the recent placing of £13m less what looks like an expected £1.5m repayment of the Revolving Credit Facility (to be repeated in 2025 and 2026).

None of which points to the likely need for any placing to raise cash this year. Further investments (e.g. copper resources)

MIGHT change that.

Incidentally, the timing of the note is interesting. Wouldn't it have been better for WHI to wait a few weeks when more detail of the Waste Rock Project is likely to be in the public domain?

CG

@Gotreal

OK- point taken!

I also think you're right about there being more than one person behind the Bushytailed i.d.

There is some kind of scam going on. No genuine private investor would post in the the way 'they' do.

The same happened this time last year with similar claims and - guess what - JPL is still here!

CG

I also found this article interesting:

https://www.miningweekly.com/article/dfc-announces-new-financing-for-lobito-corridor-2024-02-09

It is primarily talking about the expansion of the rail corrdor to Lobito,the port in Angola on the Atlantic Ocean. The bit that I find interesting is that it mentions:

"The AFC (Africa Finance Corporation) has also signed an expression of interest with Kobaloni Energy to provide $100-million in financing for a cobalt refinery in Chingola, Zambia, with the objective of building the first electric vehicle battery grade cobalt sulphate plant on the African continent."

$100m for a cobalt refinery to the NW of Mufulira. What effect will that have on whether or not JPL produces cobalt?

To my previous post...

I forgot to say that an RNS, quoting a legal document (tha "Placing Agreement"), will always be more credible than someone finding a definition on the internet. Especially if the definition is for the wrong corporate event.

Also, showing my age, I thought Pre-emption Rights were covered by the Companies Act 1986, but it turns out to be the Companies Act 2006. It is not a new right, but the definitions are updated regularly to keep pace with technology,for example.

Bushy is up to lie #4 since 24th January, I notice...

The idiot formerly known as Bushytailed is confusing a private placement with a placing.

A private placement is where an unlisted company seeks to raise money from capital markets without going through an Initial Public Offering (IPO), although they may eventually do so. This is the definition Bt posted yesterday,incorrectly thinking applied to JLP.

This is because an unlisted company has no share price to use as a reference. The price must be 'discovered' by the bookbuild, compiling a list of what price investors are willing to pay. Think of so-called unicorns in the US, where private equity houses are willing to invest in early stage companies.

This process is completely different from a placing of shares in a company listed on an Exchange.The current share price is known and the company can decide to offer new shares at a premium (above the current price) or a discount (below the sp). This choice depends on a number of factors, too many to list here. What I will say is that in my opinion, the price was set too low at 5.5p because the demand for the new shares turned out to be strong.

Listed companies have to offer new shares to their existing shareholders, that's English Law. This shareholder right of first refusal of the new shares is known as a Pre-emption Right.

Companies routinely get around this by proposing a resolution at the Annual General Meeting asking for permission to dis-apply this right for a certain number of shares (usually 10% of the issued share capital). Such resolutions are always passed because institutions like to be able to buy large volumes of shares cheaply (without the bother of buying in the market AND at a discount). They therefore vote in favour of the resolution. For small shareholders, this is against our interests (I always vote against but I know it will only be a symbolic protest) but we rarely have sufficient votes to make a difference.

CG

Keep going Bushytailed - you are proving your ignorance.

"4. Bookbuilding: The underwriting bank collects orders from investors during the bookbuilding process. The bookbuilding process is used to determine the demand for the shares and to set the price for the offering. The underwriting bank then allocates the shares to the investors based on their orders.

What is being described in the above paragraph is not what happened in the placing fror Jubilee.

In the RNS of December 15th 2023, it defines the bookbuild in the following way:

The Placing is being conducted by WH Ireland and Joh. Berenberg, Gossler & Co. KG, London Branch ("Berenberg") as joint brokers and joint bookrunners in relation to the Placing (the "Joint Brokers"). A placing agreement has been entered into between the Company and the Joint Brokers in connection with the Placing (the "Placing Agreement").

The Placing Shares are being offered by way of an accelerated bookbuild (the "Bookbuild"), which will open with immediate effect following the release of this Announcement..."

There were no "underwriting bank" involved.

These are legal terms in the Placing Agreement signed by the Jubilee and the brokers, and as such are understood by professionals.

Incidentally, you portrayed the placing as some kind of emergency fundraising when it was announced - whereas the definition you have posted describes it as a common way of raising finance. That's lie #2

Bushytailed,

That response proves you don't know what you're talking about.

The brokers in the placing were NOT acting as "underwriters" of the placing because if there had been no buyers for the new shares theyy were under no obligation to buy them from Jubilee. Read the actual RNS announcing the placing properly.

It takes more than looking up financiaal terminology on the internet to be a sophisticated investor - which you are clearly not.

08:13 24th January

Bushytailed "it was an underwritten placing".

No, it wasn't.

Bye bye.

the grade of feed is an old chestnut for detractors of jubilee to bring up.

for clarification, taken from the company website / rnss / presentations:

waste rock project (jv with irh) = 1.5% copper

project m = 2% copper (average, lom)

waste rock feed to roan = 2% copper (6 years)

in addition,

mufulira **** project 0.7% cu (89000 tonnes total) and

tailings various 0.3% cu (300m tonnes gross = 100000t cu)

enough to be going on with?

Gotreal,

I agree with you.

To emphasise your point, the RNS from 15th Dec announcing the placing stated:

"The Placing Shares are being offered by way of an accelerated bookbuild (the "Bookbuild"), which will open with immediate effect following the release of this Announcement, in accordance with the terms and conditions set out in Appendix III to this Announcement.

A further announcement confirming the closing of the Bookbuild and the number of Placing Shares to be issued pursuant to the Placing is expected to be made in due course.

The Placing is not being underwritten".

Accelerated does not mean emergency in this instance. It merely is the most efficient (cheapest) way of organising the placing. For Bushy to suggest otherwise is mendacious.

There were no underwriters. If nobody wanted the new shares, the company wouldn't have got the money for them.

As you say, the placing was oversubscribed anyway - meaning that they recceived more offers to buy the new shares than they needed.

Leon C. said in an interview that ESG funds wanted to buy in but were turned away.

CG

Quite rightly, there has been a lot of talk on here about copper.

I will be interested to get more detail on the Chrome/PGM joint venture mentioned in recent company communications.

As was mentioned at the time, the introduction of the 1st new module at Thutse will increase the amount of PGM feedstock to a point where Inyoni can't process all of it. I'd assumed (!) that the existing JV with Northam willbe used later in FY24.This would hopefully mean that the 42000oz guidance would be comfortably exceeded.

The 2nd module at Thutse (when/if that happens) would create even more PGM feed. There may still be a new ROM deal with another supplier lurking in the background too (the "600,000t project"). The Eastern Limb chrome/PGM expansion we have been told is "under review". All of these would take Jubilee to its' target of 2m tonnes per annum of chrome concentrate.

Is there some underused capacity that Jubilee could form a JV with in the short term?

Apologies for being "greedy" but I would like to hear the company update us on the situation, possible at the Q2 update due in the 1st week of February. Leon has got his plate full with Zambia but a benefit of the new "Stratco" should be that the SA operations are making progress too.

CG.

a thread about a competitor in the drc is not timely, in my view.

i would think that moving into the drc is at least 4 - 5 years in the future. i can almost hear bushytailed's head explode at the thought of talking about such a long time period! a lot could happen in that time.

let's concentrate on zambia for now - where we've hardly scratched the surface (no pun intended). i think the waste rock project and mufulira **** jv are very interesting - enough to turn jubilee into at least a billion $ company - if not more. we don't know anywhere near enough detail (indeed, they're probably still being negotiated) but i am optimistic.

chrome, the other tailings assets (td52,etc), cobalt and pgms is enough to be going on with.

who knows, with the backing of ihc - jubilee might buy erg africa and all the assets you mention, one day!

Buttermilk,

ERG Africa own the Chambishi refinery which has been talked about extensively on this board as a potential asset JLP would be interested in. The reason for this is that it is currently on care and maintenance due to a (previous) Zambian government decision not to allow Copper / Cobalt from the DRC into Zambia through charging extra taxes on businesses doing so. Therefore, your information on ERG and Metakol is not new, nor is it particularly relevant.

Each business tries to set out its own Unique Selling Point (USP) to establish why it worth doing business with or investing in. Think of Ford Motor Company, it doesn't spend its time and money promoting cars made by Nissan or Fiat - Ford cars are better (it thinks).

The same with Jubilee, other companies may extract metals from tailings but the way Jubilee do it they think is better. Jubilee's USP is that it recovers metal from what would otherwise be considered as waste and with the benefit of increasingly positive environmental credentials. Why would you expect Jubilee to say otherwise?

ESG is not something I associate with DRC mining but I stand to be corrected on that.

I'm not really sure why you think a thread concerning a competitor to Jubilee is necessary.

CG

Jubilee have raised $50m from a new source - a well-backed UAE company.

A further $16m from shareholders, new or old.

If we were looking to borrow $100m+ from banks to buy a refinery, for example, not a bad way to start the conversation.

CG

Palladium up to $1149;

Platinum up to $976

And

Copper back over $8500.

Short term - long term?

To use a chess analogy - "see the whole board".

(President Bartlett in The West Wing as played by Martin Sheen).

CG

@mph001

I am sorry.

I was completely taken in by the fake notice of the general meeting.

In my defence, it came through my account broker - interactive investor- using their 'voting mailbox' feature.

NOT a general email.

I did notice that the response had 25/12/23 as the deadline.

Sorry if I misled you or anyone else reading my post.

CG