Member Info for Dcat80

Sir Mick Davis knows a little about mining… Decent investment just made into Brazil REE project…

https://m.miningweekly.com/article/vision-blue-and-emg-put-150m-into-brazil-ree-developer-2023-01-12

Iron ore price been moving well in recent month and near 6mth highs. Obviously expect this to continue if China moves away from the zero Covid policy in Q1/Q2 as expected.Next year could be good time to be starting production. Hopefully all pieces are starting to fit together behind the scenes and we get a series of updates soon..https://www.mining.com/iron-ore-price-rises-on-china-property-support/

Sure they’ve had more than enough time to get the Tio2 stage to FS std, but we should all know economics change with local offtaker &/or tax incentives. Alternatively as you suggest being tied in with deal covering all financing. If any further benefication was going to be done then Brian did say most likely funding would be combination of offtake and industry partner.

BF - the licence in question appears to be circa 5km East of a small village called Lagoa do Mato. You’ll be able to find that on google maps if you want to see location relative to highways and Port Pecem.

I’ve not looked into too much. I don’t really prescribe value to a tenement we know very little about. As posted nearby tenements are quartzite which is a marble like stone. Would be very much a bulk style commodity in which logistics matter, but simple I expect to mine/quarry. Possibly more the simple low capex operation BOD gone for.

Uranium and phosphate also in the area. It’s not too far from the Itatala project which you can just google. I don’t think those commodities are likely to become or focus, however until we get details I wouldn’t discount anything..

Roadblocks have been cleared, Bolsonaro has said protests should be peaceful (saying we’re not violent like the left), he’s agreed to transition of power and his political Allies have conceded defeat. Outside Brazil - China, Russia, USA, EU and pretty much all other leaders accepted result within hours of result.

Brazilian Real is largely unchanged against the USD. That would not be the case if there was real concern.

They’ll be protests for a while, regardless of who won that’s to be expected with such different political views.

What I’m watching and waiting for now is the ministerial appointments. Meirelles as finance minister is largely expected and markets would see that favourable. Centre based views and pro-business.

Below post from the Senior editor of Bloomberg business with a tweet from the senior economist from the IFF worth a read. I refrained from posting it until it looked like there would be transfer of power..

https://twitter.com/johnauthers/status/1586903284861833217?s=21&t=LjPpvH9FgL07xcxWqvbBig

Small payday top up of 10,084 shares for me. Gets me to slightly more round number.

BF - iron is used on some batteries, however it’s such tiny amount compared to overall use I’d never call it one!!!

Jangada has to work within very limited financial means at the moment. Just like other companies a free cash flow generative asset provides further options. Drilling out further resource, adding additional plant, other projects and other investments all possible. Let’s see pitombieras at least funded first though before we go along those routes!!

BF - not sure on who’d be offtaker for the Tio2 product. Company RNSs does reference it now starting to be used in batteries as well as for the traditional paints/plastics industries. As such could be same outfit bres talking to. Just have to wait and see. Article below something I saw last year

https://tdma.info/could-titanium-dioxide-be-the-solution-to-the-battery-problem/

Or close to own funding on Pitombieras. Bres in talks with Chinese outfit as per their recent RNS, maybe we’ve also been in talks with them and this forms part of a wider strategy?

Either way still leaves Jangada with over £2m cash, value of our investments and whatever is happening with Pitombieras and the value that’ll be to to us

I didn’t write the article below myself, honest guv! Released about an hour after you posted though

https://www.mining.com/web/brazil-mining-group-sees-steady-investment-regardless-of-election-result/

Not overly worried. Senate and other chambers moved even more to the right. He’ll target clamping down mining in rain forest and indigenous lands.

Ceara the state Pitombieras is in has a left Governor. He’s pro mining as creates jobs, even supporting uranium mining. Lula will also want the jobs. Some talk of additional royalties on some high margin mines, however will still need to encourage new projects.

Taxes on high margin existing mines, keep incentives for new mines and focus battles with the senate and congress on rain forest/indigenous lands is my expectation.

Jangada haven’t factored in any tax incentives in current economics. Previously posted on Tombador getting theirs (circa 70% reduction to federal tax). South Atlantic gold (project also in ceara) also have MOU for circa $35m of government assistance. If anything expecting our numbers to get better…

Article on congress/senate results below
https://news.mongabay.com/2022/10/conservatives-tighten-grip-on-brazil-congress-hampering-environmental-agenda/

1) Local offtaker providing logistics savings (logistics being $11m of the $17m annual opex)
2) Government support, probs in form of tax incentives
3) Industry partner (referred to in June 21 interview as most likely funding of including Tio2)
4) Asset sale

Above are items I think could be working. Points 1&2 seriously improve economics, would make the mine profitable at much much lower commodity prices. Points 3&4 move towards monetizing asset.

Even with current economics are MC is less than 1 years free cash flow or 10% of the NPV.

Yep, £1.3m off the MC from £18k of sells.

Whatever views on Jangada is it clearly would have been better selling into the rise, when support and higher prices! Few idiots traders

Biggest volume day in long time was Monday with a vwap of 4.41p. PIs chasing it 20% lower 3 days later on no volume. If not tragic it’d be funny…

Mesb - something else of interest in the same sector as fodere. Hadn’t even considered the glaringly obvious - less use of energy on tech such as fodere = good ESG credentials.

After fair few updates they’ve been quiet last couple months. Wonder what next for them?

https://www.businesswire.com/news/home/20221011006018/en/Rio-Tinto-partners-with-Government-of-Canada-to-decarbonise-RTFT-and-boost-critical-minerals-processing

I don’t buy there’s been a leak, not had any before nor and most are aware the BOD aren’t very talkative! We are approaching 6mths since any form of operational update though so plenty news should be due.

Unless anything gets reported late I make it 882k buys today vs 593k sells.

VWAP (average price of transactions) 4.41p.

Last 2 sells below bid at 4.25P (4.3p bid at time) and then bid hit at 4.2p annoying, especially bearing in mind vwap and buys vs sell volume. All should know my thoughts on bid hitting/selling below by now!

Reason there is little available is because over the last couple weeks there’s been lot more buys than sells. If that continues we’ll get the outsized movements as mms.

Be nice to get to higher base before news lands, however I think it really needs news for big volume. Question is whether will keep moving up before that lands?

Another top up (25,334) had to get via fill and kill order at full ask.

Remember mms should fill any order at quoted ask for upto 30k shares

Little 22365 top up from me at 3.3p just now. Been more buys than sells below 3.3p and we’re approaching 6mths since last operational update. Been expecting something for sometime, can only be getting closer to news…

Nothing unexpected in report today. Still circa $3m cash plus investments.

Obviously it’s all an operational update we’re wanting to see.

Collapse in sterling since April technical report means NPV is now £91.6m vs £74m at the time. MC since then reduced from circa £26m at open of day if technical report to just £7.8m now. Very frustrating seeing that..

If you consider our market cap is circa £8.25m at the moment and we have cash and investments covering circa £3m of that then pitombieras is currently valued at just £5m.

Should we get a farm in/buy out at levels asiamet/Marianna managed then those buying or selling at current SP are effectively buying/selling at just 10% the fair value.

News when it lands could well be truly transformational. It’s an exciting time, although most just don’t understand that….