Member Info for Gray1

Jonah,

$4K gross margin per ton may be a little high at the moment.

The first 6 months revenue was $6.7k per ton and costs were $4.5k per ton so gross margin was only $2.2k per ton back then. Copper average price was around $8.4k per ton at the time.

Yes copper price has increased but costs are expected to increase. JLPs revenue per ton reported is $1.7k per ton less than the price of copper at the time if that continues to be the same then a gross margin of $3K maybe nearer the mark.

As Roan builds up speed we will get a better idea of revenue and costs and copper price increasing can only help all looks good though.

Good morning everyone.

Heroric it is incorrect to say they aren't producing any copper.

At some points they wont be at other points they will be but overall they are at a consistent volume of around 300 tons per month no it isn't high production yet and it may be a couple of months before they hit those higher targets but that is what we are all waiting for.

Happydays

Being in South Africa I would suggest sustainable and viable power supplies and increasing power supply costs would be a big factor but the article isn't in great detail on it.

Congratulations Seisnav I don't have any premium bonds but have diversified into preference shares and blue chip dividend paying stock.

The wife is even better at diversifying our money:)

Good morning everyone.

Hope so Chester.

Yes you are right Gotreal. I used the wrong term payback I was just looking at it purely from a project point of view and didn't articulate that correctly. I didn't mean to misrepresent it. There is no actual money to payback apart from their portion of the shareholders loan and as you say the timescale is irrelevant.

Fair comment guys I was just using a normal payback synopsis for capital outlay. The IRH agreement is different to this as you say there will be shareholders loan to payback and how long that takes is yet to be determined.

Quote from Dec 12 JLP RNS:

The waste rock resource was formed over 60 years' of mining where the overburden material and ore regarded as too low grade at the time, was discarded onto the waste rock dump in favour of processing higher grade copper ore.

Quote from their site:

he OB1 site is a significant tailings dump accumulated from 60 years of spoil from the Nchanga Open pit ( NOP) of Konkola Copper Mines (KCM) measuring approximately 4Km X 2Km X 80m (640m sqm) KCM is one of the top three Copper producers in Zambia.

I was reading that yesterday and thought it was vague myself Seisnav. You are right without more detail difficult to draw any conclusions regarding repayments.

The repayments may qualify for tax relief but just guessing without more info.

I know gotreal and I take your point but until they start doing it I will stick to my conservative 1%. If they beat it no one will be more pleased than I am. The payback is still very good even at 1%. My old boss was delighted if we got it to 18 months

There is a huge pile of material and the percentage will vary. Saying 1.5% (even though they have tested some of it) and doing it consistently are two different things when it comes to JLP and copper. Look how pgms varies.

Not being negative I am happy with what I posted.

underpromise/overdeliver

However in a previous RNS JLP said they could get all 4 modules done in 12months. Whether Leon was in one of his more optimistic moods when that was stated I don't know.

Payback time Mikie rough calculation:

50k/month module at 1 % of copper in rocks processed with a gross margin @ $4k is $2 mill 30% to JLP is $0.6 mill per month net of around $0.5 mill/ month ish (my 1% is conservative).

Depending how you want to work it out on gross profit just over 10 months, net profit just over 12 months.

Any payback of capital 2 yrs is usually the benchmark. That was the criteria I always worked on. The above payback is very good and could be quicker (or slower) depending on margins and what the percentage of copper in the rocks being processed turns out to be.

Also with economies of scale they believe they can get costs down to under $4K/ton with the IRH modules.

I think we nailed it between us Seisnav:)

Any modules built to process artisan miner material will have different costs as they have to pay the miners a fee and thereby increasing costs to a max of $6k/ton.

My understanding of it Hoke is:

1 50k/month processing capacity about $6mill, 20k/month cheaper.

2. Delivery period to production about 6 months.

3 Will depend on grade of copper 1% will deliver 500 tons/month. 4 modules 20k/annum with the IRH modules at 30% gross margin after costs to JLP.

That is how I understand it Hoke this is purely for the modules build with IRH.

Good morning everyone,

Yes nice start. Early days but looks like you have called it right Kalan.

Kalan,

Good to hear your dad is still going. White asbestos was used in artex which wasn't as bad as brown asbestos different fibre size. White more easily expelled from the lungs and was harder to attach to them. Still toxic though but needed more exposure to it dipping hands into it would do it though. That was the industry norm then though. How times change.

Thanks for the chart indicators Kalan much appreciated.

Keep posting Frogkid all opinions have merit even if we don't all agree.

Jonah I feel you still wake up screaming when I think about Chariot oil and gas. No I have got over it really. Well I am on reduced medication anyway:)

Gotreal wasn't having a go at you the article you posted about copper going up does have some merit just the numpty with his 50k prediction.

Thank you Shuvlin I appreciate that hope so too.

Just an aside Shuvlin many years ago I started life as an analytical research chemist and worked on a product called Meta-Bis Ortho Chloro Aniline it was a curing agent for plastics.

Highly cancerous I am still tested every year even now and it was 40 years ago when I worked on it. A number of people I worked with have caught cancer and some have died from it.

I am one of the lucky ones at the moment but didn't have as much exposure as they did even though there were stringent safety precautions involved.

Agree Shuvlin about plastics but they are everywhere anyway do we replace all plastics? Gotreal asked for alternatives I provided some there are more manufacturers can be quite nimble when they have to be.

I firmly believe plastic is far more of a problem in society than climate change ever will be but that's a discussion for elsewhere.

Agree Cygnus advantages and disadvantages. The point I was making is beware people claiming obscene prices like 50k per ton.