Member Info for Dcat80

It very much looks like the 3rd parties want the bigger operation. Bringing in the Tio2 and with the comment being linked increasingly to battery sector, DSO route only gives 25% credit for the vanadium in concentrate form. A wider operation producing finalized product 100%.

The resource against product prices below demonstrates

Jangada resource estimate
Commodity Tonnes Price Value
Iron 3,781,220 $100 $378m
Vanadium 37,168 $15000 $558m
Tio2 as Ilmenite * 1,481,710 $380 $563m
Tio2 as pigment 740,855 $3300 $2.44b
*based on Ilmenite 50% Tio2 content

Agreed, iron is more about finding it’s settled range after things get back to normality with the Chinese mills commencing production again.

I suspect the 62% benchmark range will average between $100-$120 next year. The premium for 65% varies, averaging circa 25%, but ranging between 10%-40% premium.

Tio2 is already at decent prices at the moment, however demand is set to increase and supply of anything is reducing. Not sure we’ll see large increases next year, but should retain current levels and hopefully see some increases.

Vanadium is the commodity we have I suspect will have the large rises. The markets quite tight as is, steel stockpiles are at lows and the use in battery storage will be increasing significantly. Last time there was significant shock to demand/supply ratio was 2018 in which prices trebled to circa $30 per lb. I don’t necessarily think we’ll see those highs again, however I’m expecting significantly higher than the $6.3 per lb used in PEA (which provided circa $32 of credit per tonne of saleable concentrate in the PEA).

The expected increases in vanadium price is part of the reason I think a wider operation might be part of current talks. The DSO operation gives us 25% credit for vanadium, they’ll certainly be better money selling finalized product if partners stumped up the capex required for it.

Interesting numbers. We know the steel mills need to restock iron ore, but looks like will also need to add to finalized product stockpiles.

There is iron ore stockpiles at ports do not expecting to much of an increase on iron ore, but what about vanadium that’s used to strengthen steel? 2022 is expecting increase demand from energy storage sector (batteries) at the same time steel mills need to restock.

Vanadium is one of the commodities I’m expecting to have a strong 2022. The $6.3per lb used in PEA looks very cheap comparable to prices I expect to see….

https://twitter.com/mysteelglobal/status/1471856013603373063?s=21

There’s been a few signs they’ve been experimenting/changing comm channels, hopefully with the view something more substantial required as we approach our next stages. Saw $jan not #jan used on Twitter, ukinvestor interview earlier in the year and Brian did his first interview with proactive in I think years. Whilst Jan PR been quiet it’s ramped up at the BODs other company also suggestive of some changes.

I emailed the info address the other day just asking if there has been a change as David Burton has ignored a message sent asking for a working link to the TMS interview from June, I don’t want to waste any time with him if can be avoided…

Joeman - thanks, it’s just a list of those I could easily come up with from past discussions/research rather than an exhaustive list of those who may be interested. Obviously with the economics in play there could be other interested parties including financiers, but that list covers those who either have a need (not just want) for our commodities.

Gallmat - to give you an idea of concentration of stock circa 35m is owned by 8 long term holders I’m in regular contact with, the majority accrued at lower prices, however 7m of it added this year. There are other holders such as blackfisk and I believe those that took the 9p placing who also hold decent sized positions that I’m not in contact with.

I appreciate there’s frustration and nerves with SP being where it is, naturally that causes some angst and desire for more comms. However at this time we know the BOD are in the midst of sensitive discussions and pulling together material updates, we can not expect regular commentary at this time. Demanding it is unlikely to lead anything of use and would risk putting a wedge between ourselves and the BOD.

Back in February 2020 one of the larger holders managed to pout together some questions which the BOD then answered via a Q&A RNS. Once we receive the updates we are all eagerly awaiting i’d be happy to attempt this again to seek clarity on any points we may have. That way all shareholders regardless of position size can see any response.

They’ve been working on things for some time now including the 3rd party discussions, one would hope they are as Swizz put it close to dotting then Is and crossing the Ts. Then hopefully we’ll get a whole new level of PR, much better than we’ve seen of date at anytime with Jangada…

The below is just the obvious that come to mind. There are undoubtedly other possibilities including companies Jangada team have existing relationships with.

Whilst I think pitombieras hasn’t the scale to attract Vale, with the connections of senior management they can’t be entirely discounted.
Likewise with BODs connection to nearby OZ minerals (who bought one of the BODs previous companies) they again can’t be entirely discounted, however as focus for Oz is copper I think unlikely

Largo Resources.
Commented a lot previously on signs Largo might be a good fit. As well as being in-country with sane type deposit/minerals we’ve following
Jangada are reporting to NI43-101, this is a Canadian stock exchange not UK or Brazilian.
Jangada changed account dates and these now fall in line with Largos
Largo are very excited on Tio2, we’ve far higher grade
Largo have stated the biggest risk to their battery division plans is lack of vanadium, tying in future supply derisks that

Glencore
Jangada have stated been in talks with commodity traders since start of year. Glencore are heavily involved in both Iron and vanadium plus have a strong presence in Brazil.
Glencore were involved with Largo when they started producing. A more recent example would be voyager metals.
http://voyagermetals.com/news/2021/VONE-NR-GC.pdf
Glencore will be very aware of the supply limitations on vanadium and demand growth for battery storage.

Trafigura
Another commodity trader including iron.
Recent Brazil offtakes includes for Tombador Iron
https://m.marketscreener.com/quote/stock/TOMBADOR-IRON-LIMITED-119075289/news/Tombador-Iron-Limited-Announces-Offtake-Agreement-Executed-with-Trafigura-33536595/
Not aware of involvement in vanadium so think glencore more likely

Local Steel mills
There are a number of steel mills at the Port Pecem 350km away from Pitombeiras
With the amount of investment into Green Hydrogen at Port Pecem it’s highly likely steel production will increase further
Our ore is not only highly sought after high fe content ore, but also contains vanadium which can be further treated & used to strengthen steel
Sourcing local iron ore would further strengthen the green credentials of these companies. You couldn’t get greener than iron ore produced using power from renewables (such as HMI recently completed, ore transported via green hydrogen fueled haulers 350km to steel mills who then use readily available green hydrogen to make green steel!

One if Brazil largest steel producers (Brazilian Compania Siderúrgica Nacional) recently announced they’ll be spending $2b in their iron ore mining arm along with investment in their mills.

https://www.bnamericas.com/en/news/csn-mining-unit-unveils-us217bn-investment-plan

They’re commitment to low carbon also worth checking on their website..

Tronox
Tronox are Tio2 pigment producers with the only current such plant in Brazil.
https://www.tronox.com/tronoxs-bahia-brazil-plant-celebrates-five-decades-of-tio%E2%82%82-production/
The Brazil plant currently sourced ore from Tronox owned Pariaba mine near the pigment plant, however this mine is now depleted and Ilmenite will need sourcing from elsewhere.

A recent example of pigment producer signing MOU for feedstock is Hyperion metals, this actually highlights the benefits of local sourced material to

https://app.sharelinktechnologies.com/announcement/asx/f863f644b289c37e17cdf1920a7e07a0

Not just more time for his other companies, but also removes any potential conflict of interest should AFP, BZT, GLR or XTR look to JLP as an offtaker and partner next year on any of their respective Zambia projects.

Swizz - great to see you’re of same view
Mseb - been few signs changes in PR happening, let’s hope that’s the case
Rio - perhaps I’ll pull together list of 3rd parties I think could be interested/involved in project and reasoning behind each, will see how time goes today

Since beginning of the year Jangada have been in discussions with commodity traders and these have intensified since the completion of the MET tests. This is in the Q1 presentation and been confirmed in RNSs.

We’ve too much focus on a date that a FS gets released. If people has shy sense they’d be excited about being at a table entering final discussions with entities such as Glencore who were key in financing largo at start up. These commodity traders are not minnows and options on how to monetize the asset to provide best returns are quite clearly on the agenda.

This is the time to be excited, upside is much much higher than a downside when we hold over £4m in cash and Valore shares to a sub £14m MC. Those selling now are as clueless as those that sold us down to 1p levels in 2019, probably more so as it’s been spelt out now just how exciting the project is…

Nt for over 25k shares at 5.5p to buy now….

According to the annual report document a chunk of the 1.25p warrants expired Sunday, another lot will on 24th December. Can only guess was different dates for different brokers involved, either way won’t have them acting as a ball and chain when buying in volume eventually comes our way…

ODR - clearly Covid is just a standard excuse nowadays, it might have played some part but not to the extend we’ve had for the work expected. It’s the additional workstreams referred to that are unknown, we don’t know how long they’d take so when this quarter to expect the update.

It’s frustrating, especially as we’ve been sold down circa 30% since end Q3, however it’s extremely likely the additional work adds value or why bother with them. Fingers crossed what they are working on is so substantial that when released market can’t ignore it, in meantime we’ve had some selling at a £14m MC when we have over £4m in cash and Valore shares.

I doubt it’s the companies quoting us capex and opex that are holding things up, they’d get no business from anyone if it took them that long just to provide quotes!! That leaves us the offtaker agreements or something bigger/wider being worked on.

Vanadium prices look to be making moves up again now after holding the November gains, plus few articles today on China stimulus expected in the New Year along with steel mills over there starting up again which will both be helpful for iron prices.. Some Tio2 producers also increasing prices from January as well.

Think current efforts aren’t on PI attention, but getting the 3rd parties interested.

I’d like to think as a minimum news when it lands sonic include the FS, offtake agreements, MOU with state complete then conversion of 8p options.

If larger operation being sought then I’d expect economic report to cover more than the DSO and more importantly a partner to be coming on board as any wider operation would be outside our means to go alone..

Been nothing new from the company. The below from the met results RNS in August (over 4mths ago now) advised at that time they’d already been working on getting quotes for the plant (capex) and contractors (opex), plus had already been in discussions with offtakers.

These metallurgical test results, along with recently reported upsized mineral resources estimates, are now being incorporated into the ongoing Definitive Feasibility Study; meanwhile, the team has been working on quoting capex and opex with already identified suppliers. The favourable results also provide us with the necessary information to further advance the negotiations with potential traders and possible local buyers. It has been a busy time at Jangada and we are very excited to share developments as they unfold."

Outside Jangada specifically we’ve seen Brazil start to award strategic project status to projects whose commodities are on the Brazil strategic commodities list (iron, Tio2 and vanadium are on this list), Brazil debating amendments to their mining law (largely designed to help mines get into production), further investment into port of pecem as green hydrogen hub, largo who use same mining consultants finally provide plans on their Tio2 development, some significant M&A activity into Brazilian mines.

We know from the PEA we’ve a highly economical and attractive project which has subsequently had resource upgrade from 5.5mt to 8.3mt tonnes, met test confirming high fe content which commands premium price and more importantly the PEA didn’t include any credit for the Tio2 which we know adds huge upside.

There is real possibility much bigger things are being worked on than just a DFS at the moment, quite possibly explaining the radio silence with confidentiality agreements in place…

As you say depends what’s in their tailings, could just be unrecovered iron or it could be other minerals and been in discussion with companies such as fodere on tech technology that can now monetize that whilst helping reduce the size of their tailing dams and the cost of maintaining them

Also worth remembering when Nt that the MMs have to fill the market size at the quoted ask if you put an order in.. You can see the market size on lse on the share price page of each stock (75k shares for GLR).

Mining arm of one of Brazil largest steel manufacturers to invest over $2b, use green hydrogen at plants and electric vehicles for transport.

Can’t get greener than a high grade iron ore project, 350km away from port pecem (green hydrogen hub for Brazil), which includes vanadium which has green credentials in strengthening steel.

We know Jangada been talking to potential offtakers and it’s highly likely potential partners. It’s certainly the case pitombeiras is in the right location at the right time….

https://www.bnamericas.com/en/news/brazilian-mining-firm-csn-to-invest-us217bn