Member Info for Gray1

Anyone else spotted this anomaly:

240 tonnes copper per month from 35k tonnes material

360 tonnes copper per month from 40k tonnes material

A 14% increase in processed material gives 50% increase in copper seems a significant increase. If 240 is right then realistically can we only expect around 300 tonnes per month from Roan?

The sale is up to $90 mill. Looks like they will retain the $40 mill debt.

They don't receive all the cash at once and if they have to repay the debt it doesn't leave that much to invest in the copper side of the business immediately unless it retains some of the debt freeing up some cash. They still have $11.75 mill to pay for the OB1 which the sale for $12.75 mill can pay for.

Struggling to see where a fair amount of cash is available for investing in Zambia although Leon has told us we don't need much anyway. Looking more like a distressed sale the more information comes out but will just have to wait for the much vaunted circular. Meanwhile the sp keeps dropping.

That is a bold statement Shuvlin:)

Had it not been for a $2.4 million tax rebate for copper and we don't know when that is repaid copper for the first 6 months FCF would have been minus $1.5 million so they would have to borrow to maintain working capital. The non production at Roan has had quite a detrimental effect on the copper side of the business.

The second half will have also been a struggle as Roan wasn't running at the start of the year then spent a considerable part of it running trials. Project G not sending anything to Sable. No idea how much Project M has sent. Roan now running so the copper production will start improving from a pretty low base.

There has been stress on cash produced in the copper business and the Roan delays look as though the impact on cash flow would have extended to Jan 26 had they not put back Sable upgrade and also made the 2 sales as this cash won't have much material affect until next financial year. This will tide them over until copper production gets up to 500 tonnes per month by October. Credit the FD for seeing this and putting plans to offset this.

The sale of the SA operations in my opinion is to help fast track copper as the current set up won't generate enough cash and profitability to do this. In summary they were cash light for this years production of copper and the first 6 months next year but the FD has put in plans to rectify this until the copper production can be brought into a more cash generative process and profitability.

I would be happy with that Shuvlin and rescind the 1p ones as an act of good faith.

He talks a good game but then he always has. When he delivers then I will believe him until then it is just words. See if he can start to hit his targets that will help for a start.

Would anybody but Tjate? The cost to bring it into operation would be huge even though pgms have gone up how viable would be?

Never had that bottomsup. Mine just stops typing sometimes. Have you reported it?

They did say up to $90 mill maybe a higher platinum price gets us closer to that if it gets accepted the circular should set out the terms of the deal.

Had the same bottomsup you look up after typing and half of it is missing:)

I agree Tiverton it is about time some on here stopped throwing out insults and accusations and stuck to the pros and cons of JLP.

You have been reported also pizzagate for making defamatory statements. I have asked the moderators to investigate this and also to confirm that this id is my only one and I have no others.

Good

That old chestnut report it then.

I think somebody stood on his stuffed crust:)

Who is Gary?

Nobody has to try and lower the sp here bottomsup. JLP are quite capable of doing that themselves:)

If he had options available to him then if he has left the company he will lose them unless he has negotiated a package to keep them.

Northern,

Who said I want a steady earning company? (I have them anyway). Aim is my gambling den unfortunately at the moment I have picked a dud with JLP (wouldn't be the first one either).

This may well come good but you cannot just dismiss past performance. 6 years Northern of continuous failure, missed deadlines, obfuscation so forgive me if I am a little sceptical. I am now in the believe it when I see it corner. What Leon says and does has been two different things. Hopefully they get it right but hope is all that is left just as in Pandoras' box:)

You still don't get it Northern. Gross profit doesn't make a business profit making and as for creative accountancy they have to follow rules don't forget these accounts will be audited and if the auditors do their job properly they will question these and the figures would be changed. By the way I don't dispute their accounting procedures as I don't audit them I have to trust the ones that do have done the job correctly. I used to be an auditor Northern for one of the largest companies in the FSTE 100 so I do know something about balance sheets etc.

As for what they do in the future at the moment we are putting our faith in Leon's figures. October before they start hitting 500 tons a month and then project G should come on line. We have to wait for them to achieve this. We don't know the cathode/concentrate split or the gross margin. The lower the gross margin the more impact on the net margin.

Whilst I thought the sale of 10 mill of waste from OB1 was a good thing you can't rely on selling assets to uplift your bottom line to a creditable level your assets have to work for you and do that eventually.

I am not saying they won't achieve any of this just that after past performance I don't take it for granted that they will.