focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Lithium and Spod Spot Prices...
https://x.com/LithiumPriceBot?t=HlfQWnbhVP2XEvfdBNscIw&s=09
What he is accused of doing is pretty bad in using proprietary information for personal gain and a lot of future prospective employers will take a very dim view of it.
On the other side of the equation, they Kitchen sinked / mothballed Dundas, if Jay knew that adjoining areas were highly prospective / additive to Dundas why didn't they secure the licenses themselves?
What are we missing here?
Released today
https://www.brrmedia.co.uk/broadcasts/65c132c53fb3f51bf67d2c24/kodal-minerals-company-update/
Ashton, you wrote: "If that's the case, there is a risk of local media getting hold of the news and reporting on it before shareholders are informed by the company."
Has anyone got the co-ordinates (Long Lat) for Kangarluarsuk? Satellite imagery may prove useful ;-)
Ashton: You wrote
"1) JAY is expecting to know of KoBold’s decision regarding the fieldwork before the end of March 2024
2) JAY may decide not to announce the details of the fieldwork to the market until the work has actually started, assuming that’s the way forward (My comment: I suspect the reason for this could be it is better to inform the market that work has actually started rather than say work is to start, given the bitter lessons learned from the 2022 premature drilling announcement debacle)
3) Terms of the current JV may be tweaked as appropriate, if necessary"
Re: Point 1 above, that makes sense and is in line with prior RNS announcements around March for previous, what's peaked my interest are a number of other aspects specifically...
Point 2: Announcement until work has actually started, that's a double edged sword - we know there is a relatively short drilling window in Greenland (May/June to Sep or so) - so it depends on the definition of when fieldwork commences it could be May for example. Either way, given logistics, planning and spinning up teams of people to support drilling etc feels like it's cutting it a bit fine (esp given Jay's Cost cutting and irrespective of drill rigs). Long and short, we may be waiting till May for an RNS...
Point 3: Tweaking the JV, hmmm. Sounds a bit strange at this stage as that could literally go anywhere -> anything from the meeting to provide a little more context?
I don't see it as poor form from Hemp, it's speculation - which is what most people post on here...
My own speculation on that is Kobolds reputation would take a big hit if they did that, remember Bluejay are not Kobolds only partners and a move like that would make others skeptical of doing business with them.
Not only would reputation (trustworthiness) take a hit but also would call into question their tech, they spend all that money all, identify large targets in Disko and pump out statements like most significant Nickel discovery in 100 years and they don't follow it up...
Add on to that, Norilisk Nickel is Russian and are so large a player they almost set the prices for Nickel concentrate plus Nickel is on the Americans critical minerals strategy - American strategy would love if Kobold can unearth High grade Nickel in a safe jurisdiction...
I remain 70/80% confident that they will drill this year.
I wasn't expecting price sensitive information to be disclosed... but there are different ways of delivering messages while also maintaining confidentiality. End of the day it's Kobolds decision to make and I am 70/80% positive that Kobold will decide to drill. After all, all you need is a couple of holes drilled to prove the geological model.
Didn't quite get the same vibes as you in that one InvestingG... People complained about RE being a bit shifty in his interviews, same could be said of RM.
Takeaways:
1.) "Deep appreciation" within Kobold for Disko, however evasive / unsure re: Kobold committing to fulfilling it's 2024 committments.
Not saying they won't drill but guess we will have to wait for Eric S to give his interview to find out more. Time is not on our side but atleast we have drill rigs at Kangerluarsuk that can be easily redeployed to support Disko drilling.
2.) Divestment of the Finnish Asset portfolio, looks to be an re-imagining of the previous strategy to split the company into Greenland vs Finland assets. There is interest in the Finnish portfolio and should know more in 6mths. Atleast we know the focus is Greenland.
3.) Board, at least we know the rationale for why he left previously, they didn't follow his previous strategy so he took away his toys and ran off but now is back to say I told you so.
Am sure there will be different takes on the interview but vagueness, uncertainty and evasiveness on anything tangible around Kobold for our sole focus Disko is a big gamble.
Happy to be corrected on this but my working assumption for the Dundas dumpster fire was the fact that as part of the BFS work costing millions (still want to see the BFS btw) they conducted top up / in-fill drilling. They changed methods from sonic to dh drilling (DH drilling basically washes away material which would go someway to explaining the differences)... The dh drilling came up with different results which they then applied across the MRE (for both new and historical drilling).
Not sure you can claim a tax loss on something unless you divest it (although not up to speed on American tax rules)
Re: Book Value that's the carrying amount on the Balance Sheet so it absolutely does have a value until such time they decide to pull the plug on development spending.
Book value of Disko is about ~9m (~5m for Kobold, ~4m for Jay).
The amount invested so far by Kobold reflects the Phase 1 - exploration spend which equals the book value - in effect Kobold are already 4m down on their 9m GBP investment (because Jay benefits from their work). If they invest about 10m GBP for phase II book value will be 19m (Roughly 10 Kobold and 9 Jay).
They would need to find a buyer willing to spend a minimum of 20m to recoup their investment outlay not to mention time and effort costs analysing etc.
The question then becomes do they really believe in their tech and the value of Disko to pull the trigger on Phase II or do they just cut and run with 49% of Disko....
Kangerlaursuk is massive there are no disagreements there and yes needs to be drilled (at some point) but the problem is that Zinc supply demand fundamentals (and spot) are not where they need to be at the moment to drive investment - basically Zinc ain't sexy.
If they found Germanium along with the Zinc then that would be interesting, however - please see prior point, Zinc ain't sexy enough to drill on that hope.
From Twitter:
"$JAY has completed a strategic review of existing operations, implemented cost reductions across the entire organisation and has renewed focus on the Disko-Nuussuaq project in #Greenland. We are working to agree value enhancing work programmes for 2024 with @KoBold_Metals"