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Funny!

The CLNs being renewed is good news for the CLN holders and RRR. If RRR had no use for the money it would have repaid the CLNs.

Think about it.

DYOR

Up 9.32%.

Somebody thinks that they know something! Has Schlumberger come out with something re Patardzueli? I have looked, I can't see anything.

JMS

https://www.jupitermines.com/cproot/858/3/20181026%20Jupiter%20Mines%20Half%20Year%20Results%20-%20Appendix%204D%20and%20Interim%20Financial%20Report.pdf

You could have met the CEO when he was in London a few weeks back if you wanted. He was a nice chap and went through in detail the Tshipi operation. He is certainly a man committed to his job and he is totally immersed in the details.

1. The only acquisitions they will be doing will be opportunistic Manganese ones in the immediate vicinity
2. Output is limited by the rail capacity, Some more capacity may come free in about two years.
3. A new port is being built which might increase capacity
4. If they had the rail and port capacity they could do twice as much as they are doing now with a small increase in the workforce
5. Nothing is going to happen at Mt Ida or Mt Mason unless someone else comes along and wants to take the project forward.
6. The only growth at JMS will be growth in income.
7. As AB has indicated he has no interest in selling JMS, he wants to receive the income. Full year dividend should be of the order of 20%+. He can't get that income elsewhere, so why sell?
8. It being in escrow till March time is not an issue, we still get our dividends and AB has no need or intention to sell
9. JMS will not be doing anything except concentrating on maximising the income and the dividend distribution.

DYOR

*fund

Anything anyone feels the need to disclose about Guardian LLC?

Trueish.

If they do nothing they have lots cash but that will soon change if AB gets all the deals he wants in DRC. In the short term he will need working capital to get them going: even if only to find JORC reports on the assets.

Three things matter in the short term:

1. PQE license
2. Court hearing on FH
3. The review

Everything else is secondary.

DYOR

It comes down to opportunity cost: repaying the CLNs gives the company a certain return of 10% but what does it generate by using the CLN money as wc elsewhere? If the copper and cobalt deals are are really good perhaps the company will benefit from rolling the CLNs. £3.5mil doesn't go far as wc if the company has multiple copper and cobalt deals.

DYOR

*cui bono.

He has a choice: he either repays or he agrees terms to roll the CLNs. Ideally, he comes out with news that drives the SP up and we convert the CLNs. Next week might be interesting!

PQE's price now becomes more relevant now that Mayan holds the stock directly and can trade them (as confirmed in the RNS).

https://www.bloomberg.com/quote/PQE:CN

Up 2.30% after two weeks of trending down!!

DYOR

Something else for you to vent about.

https://twitter.com/AndrewBRRR/status/1055455190143385600

https://twitter.com/zenithenergyltd/status/1055397862178217986

Looks like they are ready to start; any educated guesses on how long it should take? Maybe ten days?

In my view, the RNS was explicit as it could be about the PQE permitting process. If there were still issues around emissions then they wouldn't be waiting on the business permit being issued, they would be at an earlier stage.

These are the people. https://deq.utah.gov/division-air-quality

That PQE is now at the stage of waiting on the business license to be issued means that they have made it through DAQ's audit process.

No doubt if someone rang up pretending to be a greenie with "concerns" they could find out a lot about the application and where it is in the process.

DYOR

The warrants can also be sold.

Just been looking at MXO in depth. It occurs to me that MXO is a good comparator for PQE.

If you look at the recent update you will see that they are getting excited about oil & gas that will cost about $1.1bn to develop in offshore Nigeria. The return will be about 50mil barrels of oil recoverable plus gas.

Think about the engineering and finance risk compared to PQE and PQE has 93mil barrels of recoverable plus a 5,000 bopd plant will cost about $10mil.

Why would anyone want to fund $1.1bn of project finance when you can a similar result for circa $10/$20mil, no offshore risk, little engineering risk, a recovery rate of near 100% and no transport issues?

Currently, the oil at Aje costs about $40 a barrel to produce. Gerry Bailey reckoned it was around $25 barrel at Asphalt Ridge.

Madness! MXO should flog its OML 113 asset and get into some lower risk O&G assets with near term cashflow.

DYOR

FYI

https://assets.kpmg.com/content/dam/kpmg/ke/pdf/kpmg-mining-act-2016-analysis.pdf

They have been doing the preparatory work for the workovers. I suspect that they will actually start the workovers this week. They don't appear to be big jobs but they are using them as a training exercise to get team used to working with the rig before the move on to bigger jobs.

http://kenyalaw.org/lex/actview.xql?actid=No.%2012%20of%202016