Member Info for Gray1

He states all what Happydays has posted and then says not much money is needed for Zambia.

I think what he meant was not much of his money needed but plenty of ours. How on earth do those two things stack up.

2 concentrators, 8 more project Ms and a refinery that isn't chump change not including OB1.

The 10 to 15 years doesn't appear to stack up either. Is he living in a parallel universe?

Can't wait for this circular.

I won't vote for it if the buyer doesn't take responsibility for the debt on it as the assets will still have a sizeable depreciation on them which they will be getting the benefit of.

Ok Gotreal

Again the abuse. It makes $6mill net profit. I will see if I can find a bridge to sell you:)

No way this side of christmas is the chrome and pgms worth anywhere near $240 mill!!

Same valuations apply not saying it is a good offer need to know more.

Just quoting what has been spent over the last 3 years doesn't value a company much more to it than that is what I am trying to explain to you.

If I had gone to my FD and told her they have spent 100 mill in the last 3 years so we should pay 100 mill for it she would have sacked me.

Doesn't apply JLPositive what has been spent. I could buy a brand new car for 50k to use as a taxi which produces a profit but it won't be worth 50k in three years time even though I still make the same profit. Assets depreciate need repairs etc.

Not saying the valuation is good or bad it is what has been offered and accepted we need more information to make an informed decision on whether to vote yea or nay. Without that info it is nay from me only because I can't vote for something I know little about.

We always worked on an EBITDA of 2 to 4 with other factors determining whether a company was valued between 2 or 4 such as saleable assets, condition of assets, spares inventory, net profit, long term debt, creditors, debtors etc. Lots to take into account to arrive at a final price. As you can appreciate it is not as simple as just using EBITDA and multiplying it by an appropriate number to arrive at a valuation.

Absolutely it is less Shuvlin interest and taxation will remove a big chunk from EBITDA. I was just pointing out there is a little more cash available than just the bottom line that's all.

You can add depreciation back Shuvlin as that is just an accounting procedure for offsetting capital spend against tax so a little more actual cash available depending how much depreciation there is.

The money is still owed though Gotreal that is why it would be good that the debt goes with the sale. Otherwise most of the money will go on repaying the debt even if the facility isn't needed anymore.

The sale is up to $90 mill it could be $60 mill and it is staggered who knows. They owe $40 mil approx doesn't leave much for dividends and investing in the copper process but it is just speculation until we know more. just another day in the life of JLP.

Apart from retaining Tjate they didn't say a great deal in the RNS about the mechanics of the deal so we don't know. Someone posted something from Zeus about the structured payment but I didn't see that in the RNS which if Zeus knew then it should have been as far as I am concerned

To be fair Happydays does have a point how the repayment is allegedly structured. If it includes the debt attributable to the process (which it should in my opinion) it does become much more attractive. We will have to wait for the circular Happydays then we will know more.

It would thanks Kalan.

Dividends will be a while yet just trying to put a sweetener in.

Tjate worthless about as much chance Jlp have of developing it even with a possible partner as I have of going to the moon.

Did he mention whether the debt with the chrome/pgms operation goes with it?

Well it has certainly made the chat board interesting if nothing else.

We don't know all the details. If the debt goes with the sale then it becomes more palatable from first impressions it doesn't look a good deal overall but we will just have to wait and see.

Seems most are against as I said previously I would be a lot more comfortable if we were 12 months down the line and copper was ramping up from an 8-10k level but at the moment it is still bumping around 2.5 to 3k. A no from me as well unless like Seis says something else significant adds to the copper part of the business. I don't get why they seem to be in such a rush to sell.

OB1 is the interesting one at the moment and could be the company's saving grace The third party has made the first payment and are paying every 2 weeks. Results will start to be coming through and JLP are privy to these we as yet are not. If they go down the joint venture route with more comprehensive results and they joint venture on better terms as they are suggesting then we could yet get a result out of this with money in the bank. It will take time though.