Member Info for Dcat80

Tom - before the Q2 PEA we need an updated resource report. The current drill programme will continue to provide assays and we seem to get those roughly once a month.

In addition to the drilling at pitombeiras we have some additional exploration work being done at the separate Mocidade licence for which news is also expected.

In addition segments of the Q2 PEA such as an amended logistics report and more metallurgical test results should be provided.

We might also find out about mineralization within the mafic and ultra mafic rock. In the area this often includes nickel, cobalt, copper, PGMs. If you check the old RNSs on the Pedra Branca project that could give you steer to what might be there, whether in commercial quantities or not though I can’t say.

We may also see an application has been submitted for trial mining. If we hope to produce as early as Q1 2022 this might be put in soon or when the revised metallurgy test is received.

There are other potential items such as clues to a partner, financing, offtakers etc that could land now or after the Q2 PEA.

Certainly plenty to remind market of us leading up to PEA

Mentioned the other day plenty of ways to look at numbers.

The PEA released envisaged 1m tonne PA processing. 40% is non magnetic containing the Tio2.

Largo have grade of 13%. We have grade of 33.75%. Even if largo were processing for nil profit )hardly likely bearing in mind their previous comments) then we’d still have 20.75% of our grade as free cash flow.

400k non magnetic ore at 20.75% would produce 83k of pigment grade product.

Price range in last year $2500-$3000 per tonne. Let’s stick with being conservative and use the $2500.

83k tonnes at $2500 = $207.5m free cash flow for the Tio2. That’s on top of the numbers for iron and vanadium included in current PEA.

Just remember the PEA work done and continuing to being done is by GE21 consultants who are one of the most eminent Geological Technical advisers in the world. They have plenty of experience in Brazil and are the consultants that Largo resources have used for their VTM deposit, also no doubt with their Tio2 plans.

Their input on how to best monetize our asset will be invaluable and we all know the quality of our Tio2 grades and what largo plan to do to maximise their mine..

Have no doubt the Q2 PEA will make the one we’ve seen to date look insignificant in comparison!

Well this article helps explains the VTM deposits and the magnetic/non-magnetic particles within.

https://smallcaps.com.au/investors-guide-understanding-vanadium-deposits/

The last 2 minutes of this interview by largo who operate the highest grade vanadium mine in the world on the importance of Tio2 to them (13% grade on tailings, whereas ours is 33.75%) helps quickly explain my excitement in this area

https://www.youtube.com/watch?v=48FqpJF5tlY

Joeman- if thoroughly recommend looking into the Tio2 aspect more. This is the main area I foresee Jangada economics excelling and this wasn’t converted at all in the recent PEA. The non iron/vanadium ore is basically an ilmenite concentrate with 33.75% Tio2 content. This can be processed by chemical plant into a pigment grade product which sells for circa $2500-$3000 per tonne (against 33.75% each tonne ore then worth circa $900). Peers economic studies have costs circa $150 per tonne. Will need to see the Q2 PEA, however this is where the money is.

For those in Arcm that listened to the recent investor conference call the CFO mentioned CAPEX of between $5m-$10m. They’ll also be looking to process circa 1m tonne PA ore to meet the revenue guidance or John Meyers recent comment of 10k copper per annum. Arcm also looking at froth flotation devise for their processing with a scoping study (lower level than PEA) due soon.

The CFO in that all referenced he expects all Capex to be funded by debt from offtakers in view of the quick lay back time expected.

Not sure how or where future Capex savings could be found, whether it’s feasible that a dry magnetic separation unit which is the more expensive part of our plant could be hired for example. It’s only extra 4monty until we get the updated PEA incorporating the revised logistics report, updated MET, resource and more importantly the Tio2 aspect. The chemical plant will undoubtedly cost a lot more than current CAPEX levels and if this was expedited where a partner might come in. Obviously we’ve discussed Largo before due to their keenness to produce a pigment grade product from their tailings and our grade (33.75% is much higher than theirs of 13%.

The Q2 PEA will be the real dynamite and might include revisions as GE21 the consultants do more work on finding offtakers.

I think there are a number of ways we can look at he numbers in today’s PEA. One of them is Capex is $9.5m and post tax pay back period is 3months. So post tax we’re expecting $38m profit PA. Current mine life 6 years, but current drill programme expected to almost treble that so let’s say 18years mine life. Obviously further drilling further expands the resource.

There will be company overheads not covered with PEA. This will include continued costs to move towards full mining licence etc plus BOD might take salaries (can’t begrudge them that). Best guess £25m profit PA, apply whatever prove to earnings you like and that’ll get you to target price when producing Q1 2022.

Obviously though we expect that number to increase with the Tio2. Whether you believe my research on the Tio2 being main revenue and profit driver or not we can all at least agree it’ll add to the £25m per annum.

I commented recently eyes should be on triple digit SP. I really believe it’ll become clear at next PEA this is the case. I’ve also no doubt with the economics they’ll be plenty of interested parties to partner with us or even try to take us out.

Certainly $9.5m and 3month pay back is within region we could expect an offtaker to advance us the CAPEX.

Very excited with today’s news and what lays ahead.

I’d also add I also suspect that’s release was largely as drilling is behind. As opposed to giving us a pea delayed to Q2 the BOD decided to give us a here is where we currently are holder PEA. We might moan about shareholder engagement at times, sometimes tongue in cheek, however I think it’s a great move by BOD. Gives us our first real confirmation of project viability early, plenty for us to be excited about, think further on and discuss . I’m certainly very happy with this approach and to me it’s far better than a rampy interview!

I think it’s related to Etoro or the other new commission free trading apps. Always at full ask or bid, all print when an MM moves quoted BID or ASK

We have 16.5m Valore shares (as per yesterday’s RNS) at current c$0.385 = £3,747,975.

Expect the fuller PEA due now Q2 is funded, however as above there is options for any short fall in funding until project financing/partner bought on board of need be. We know the BOD with their 44% ownership are adverse to dilution via placings, however can never fully discount. Simple solution for newbies is buying in tranches over weeks. If just in for a quick trade find another share as Jangada is usually too illiquid for traders anyway!

Another point worth remembering.

Today’s PEA is based on just the 5.3mt Maiden resource.

The current drill programme aims to increase this to 15mt.

The JORC target for pitombieras was initially 40mt-60mt covering all targets in the licence, actually looks like will exceed that.

In addition to pitombieras we now have the Mocidade tenement just 3km away. This will add even more resource.

Whilst today’s PEA is on just 5.3mt it’s feasible our total resource will end up being proven at nearer 100mt. Think about that fur a minute, then consider current PEA doesn’t include the Tio2 which I’ve spent the last 12momths saying is where the majority of the income comes from.

Then after you get back of the floor. This covers just the VTM deposits. We knkw otter rock is mafic/ultra mafic which in the area contains nickel, cobalt, PGMs, chrome etc (see Pedra Branca old RNS’s) it’s highly likely we’ve other minerals not even commented on yet!!!

MM - on lse if you click on the Jan share price icon it’ll come up with some of the numbers including market cap etc. within that tab it shows the market size as 30k.

Joeman- thanks for the kind words and glad you found Jangada as well, must be shaping up for a good year for you!

Just to add. For those that saw my numbers (pasted below) I envisaged tio2 producing 75% of the revenue and thats not included in today’s PEA! Plus of course current drill programme looks to expand resource from 5.3mt to 15mt. The PEA in Q2 will blow today’s excellent one out of the water!!!

300kt trial mining
60% magnetic (180k)
40% non magnetic (120k)
Mining costs + transport costs $60pt
Additional tio2 processing to pigment grade
300k @ $60 = $18m
120k @ $100= $12m
$30m OPEX

Magnetic 180k
Iron ore $100 = $18m (iron currently over $150, but expect to fall back)
Vanadium ($15k per tonne/1.2%) = $32.4m. However only expect 50% offtaker price $16.2m

$34.2m revenue from magnetic ore

Non magnetic ore
120k at 33.75% tio2
$2500 per tonne price

$101.25m revenue from non magnetic ore
Estimate add

Total revenue $135.45m

Free cash flow pre tax = $105.45m PA

These numbers double at 600k/t PA...

Incredible numbers and based on just the 5.3mt resource whereas current drilling expected to expand to 15mt plus more importantly it doesn’t even cover the Tio2 which is where the real money will come from!! Very chuffed

Never seen so many likes for someone posting on twitter about Valore. Imagine they’ll be a few in the placing pumping as well which isn’t a bad thing if they’re sticky and getting message out. Really should be multiples of current MC, just needs to clear through the stale holders

Remember when NT if you put in a full and kill of upto the Market size (30k shares for Jangada) then it must be filled by MMs at the quoted ask at the time.

It’s the treble digits those of us that knkw the fundamentals are really looking for ;) certainly hopeful by year end

Still have to get to double figures first and psychological good to see

Swiss and I both thought on Friday that we could see double figures this week. Let’s see, I don’t like short term SP predictions as largely out of control but book is certainly shaping up for another big move..

Agreed. Friday afternoon sells basically countered the morning buys, before that we had for a 1.5m buys vs 500k sells over Wednesday/Thursday. Now circa 500k buys this morning. Must be getting very close to popping up again with MMs low on stock/short..

There’s only 60m free float remember (lots of that held sticky) yet over last 2 days circa 1.5m buys verses 500k sells (both approximately). MMs will be getting short if not already and suspect we will see the usually shenanigans of them making it Nt to buy for long periods, however break through that and we should be due another night move.