Member Info for Gray1

Gotreal I didn't say why they left just that they don't seem to stay too long. You interpret it how you want. Seem to remember a few on here were highly delighted when RBC came on board. I didn't suggest anything sinister just that they may have not been happy to follow the party line on the other hand maybe they were ineffective as you suggest so JLP go rid both are plausible.

We will never know as JLP won't want to say they were ineffective and RBC aren't going to say they disagreed with the direction JLP are going.

Just more bad luck management keep leaving and they have to change brokers at an pivotal point for the business. Leon must be the unluckiest bloke in the world.

Well we wait for the circular Edzi after the way the last RNS was worded I don't hold out much hope for impartiality in it or will it just be the usual more questions than answers. Won't be long now.

What is also worrying is the number of management personnel that don't stay too long and leave. Also why did they drop RBC and replace them with Shard weren't RBC singing from the same hymn sheet. There was a lot of positivity about RBC when they came on board by our more optimistic posters.

Yes Chat but we have had a lot of bad luck and too many negative comments on the discussion board since then which has destroyed shareholder value.

Module just needed painting and ready to go: someone nicked the paint brush causing further delay

Electrical part imminent: kept getting lost

Water shortage: someone took the plug out of the reservoir

Electric sorted: someone forgot to switch it on.

How unlucky can you get. Leon must have walked under a ladder, broken a mirror and had his path crossed by a black cat all at the same time:)

Don't mention painting Edzi we once had a module that just needed that and then was ready to go:)

At the moment you can't extrapolate that value for the waste product at OB1 just because a third party paid that once. You need to know input percentage of copper, output percentage whether it is oxide or sulphide or a mix and the cost and overheads to process it.

Until you know all that no-one knows what the stockpile is worth. If the third party make very little money out of it then it is almost worthless then again if they make a ton of money out of it then the value will increase. We will have to wait and see at the moment I think the market attributes little value to it in the sp.

Your 25 tons was closer to the actual production than 25k:)

Shuvlin you are right you can't go by EBITDA. There is significant interest payable on the revolving credit to finance the ROM chrome bought in.

You have to look at cash generated so add depreciation onto net profit and that is the amount of cash available for JLP to reinvest. Still a reasonable cash sum though for JLP to play with. I would expect it to still be around $20 mill give or take a bit at current prices with depreciation added back to net profit.

The company who purchase don't have to pay for ROM so they benefit from that and also less finance costs that JLP have as they don't have to finance it. We don't have that benefit so you can't currently include it by saying EBITDA is $40 mill and therefore the third party are covering their cost of purchase in two years. They may well do that but we don't have that luxury.

Having said that I still think at the moment it is a bad deal. My worry is they are having to trial the pgms stockpile to see what they can recover will that turn out as well as Leon anticipates another one we don't know.

I think with copper they have pushed it back to August so they will have July's production figures as well which makes me think June didn't go as well as they expected otherwise they would have been singing it from the rooftops to further their agenda.

Sill waiting for any news on the OB1 third party processing another unknown. At the moment copper is almost totally reliant on bought in ROM until M & G start delivering in decent quantities. I not so sure there is much profit in the tailings at 0.7% presently it is why they have switched strategy to bought in ROM and buying mines for a higher copper percentage. Even then production from Roan is half what Leon originally alluded to.

The sale would be more palatable if copper was producing 7k tonnes/year now instead of waiting another 12 months to get to that figure which isn't guaranteed at present. A good deal for the waste rock project would also help hopefully they are negotiating one to add fuel to their circular.

Agree Shuvlin I think we will get copper figures before we can vote but they stated they won't be out until August so not much point in putting out the circular before we get the copper figures would you agree?

Dropping the 450k of toll processing will make little difference to the bottom line.

at $4/ton is $1.8mill at $5/ton it is $2.25 mill gross profit strip out its share of overheads plus a proportion of corporate overheads etc and there isn't much net profit in there.

The RNS is geared for the sale especially with no copper figures as they will probably be worse than last year. The June copper production is the main number if it isn't in the 250 to 300 tonnes range that won't be good and they will know these numbers now so why wait if the offer is so good and how it will enhance copper to make us all richer instead of poorer.

Also if the copper numbers aren't ready until August then I suppose war and peace is unlikely to be at the end of July but we live in hope about all that is left until JLP get their finger out and produce some shareholder value.

If they know what the SA operations have done why don't they know now what Zambia has done and why not publish the figures? Are they that bad?

Meanwhile we wait for war and peace to be published:)

Fair enough Seis:)

How do you know there is an insti selling Seis? Just seems to be drifting downwards on little volume to me whilst we await the unveiling of the magna carta.

Give it a rest Shuvlin. The sp is where it is mainly because of management failures their poor communication and their shoddy copper performance. What Papali says on here doesn't make an iota of difference.

Regards the circular first it was a few weeks now it is two months if they issue it at the end of July and that isn't a given.

The market just loves uncertainty and JLP give them that in spades.

Meanwhile we wait for the circular.

I don't know why they keep saying copper doesn't need much more CAPEX that doesn't appear right buying more artisan mines and upgrading them with infrastructure etc will cost a fair amount of capital. Look how much time and money it has cost for Projects M & G. Add in Sable upgrade, the leaching process, two more concentrators possibly more water, electricity, needed paying for higher grade waste this won't be just a few million it will be tens of millions.

In my opinion that is why they need this sale otherwise why would they sell a profitable part of the business. It doesn't make sense if they don't need much capital for copper. Might as well give us it all as a dividend.

As it stand Moneyman I agree I don't think the sale is good value but unfortunately it will come down to whether Leon and the team can convince the insti's that it is.

The "increase shareholder value" is laughable at present tebbster01.

Maybe with the pgms rise they have negotiated a better deal in the last few weeks that is why the circular is taking longer who knows maybe they haven't we will soon find out.

The FD is part of the management team wanting this to go through so I expect Slater will vote for it.

The deal isn't done. The final details are being worked on to include in the circular for the shareholders to vote on.

Having said that it looks like the management want this sale to go through. We just have to keep waiting for the circular.

It's the Jubilee way:)