Member Info for Jammer1

The detailed explanation of the company’s financial workings was very helpful. But surprised the chairman’s report included it. Isn’t that the job of the CFO? I thought the chairman wasn’t meant to set out a vision for the future, but struggled to find that. Yes a well run company with the existing producing assets, but they are not going to last forever. The January report on the development assets is going to be interesting, and in the meantime let’s hope the rhodium and palladium prices stay strong to boost that special dividend next year.

The shareholders savings acccount I.e the growing cash balance is in rands! Fine if it is going to be used for CAPEX denominated in rands, but otherwise as a UK shareholder I wouldn’t want my savings in rands.By the way didn’t it lead to a big currency loss in the last financial year when reporting in dollars. Surprised that wasn’t asked about.Of course

CB was never asked about a possible placing, very conveniently. He was never asked about the cash shortfall Xtract clearly has in order to fund the projects over the next few months. Well he wouldn’t be as it was a paid for promotion interview. So he did not have to actually deny a placing was about to happen or would happen shortly. Listen to the interview carefully. He just reiterated why he thought the shares were good value and indicated nothing negative had happened so on that specific basis alone he was suggesting no reason for the share price fall.

As far as the exploration assets strategy is concerned it seems to me that little thought had been given to this whilst the previous CEO was winding down and handing over. At the moment there is a gaping hole about what is planned for the medium/long term, and what is going to be done with the cash pile. It is almost as though the issue has crept up on them! Not impressed. They have bought another 3 months of time to come up with not only a special dividend strategy for windfall commodity prices but more important a believable strategy of how the business is going to develop in the medium to longer term. January will be the real test for the new CEO.

Yes good looking projects. But over the next few months at least there is a funding issue. Be realistic. Where is the money coming from to continue the development of all the projects before the gold project properly comes on stream?

TBTT, Lets say we are at North and South Pole re Jubilee. Do you think Samancor would have done the last two big deals with Jubilee, the type SLP would have loved to have had, if they thought they were going bust?

But I wish it was being shared then. All I see is reducing production this and next year with increased costs due to the loss of ROM from the host mines. The definitive developments as far as I am concerned are things any decent management should do and in the category of BAU as far as I am concerned. There appears to be a gaping hole in their development plans and until filled convincingly this company is staring at a steady decline in its 10 year life of mine. They are fortunate to have such wonderful rhodium and palladium percentages in their PGM basket, but that is what this company is at the moment, just a play on the prices of these two commodities.if the management can’t use the cash pile for good profitable developments, and they seem to be losing out to JUBIlee, then should be released to the shareholders.

Otho if you have an interest in Jubilee Metals, I would be more than interested to read your views on this rapidly expanding metals processing gro

Otho you keep delivering. Excellent further analysis and balanced pragmatic assessment of the board.

Otho, an excellent analysis and thank you for sharing. In general I have found reading most bulletin boards a waste of time. But occasionally the odd gem contribution appears and your comments on the interims is one of them.

Total Trader, The WHI house broker note, also indicated the zinc circuit would not be commissioned until the latter part of 2021, and yes it could be pushed back a little further if the Zambian authorities are prepared to accept any further delay. I cannot see Leon mentioning anything about the zinc circuit though until the border restrictions are lifted and perhaps even until the issues highlighted below are resolved.
The quoted statements are from Leon in the Q&A after his presentation at the Mineprohets show in July 2020.
"The US$ 11 million for the zinc circuit includes the recovery and precipitation circuit to produce a zinc salt plus a new tailings storage facility that ensures all effluent is captured and sealed unlike the past." So you are right about the tailings dam. But also "In Zambia we have received praise from both the government and the world bank for our engineering solutions addressing pollution. We have and continue to invest in a new water capturing facility that secures all water that drains from or runs off the tailings. This liquid contains heavy metals and are now captured, neutralised and re-used in our refinery."
Leon wants to cut the link with BMR as well and that has regulatory implications. I am sure he wants to tidy all remaining issues before finally processing the tailings.
"Once the transfer is complete of all rights to Jubilee from BMR we will retain a nominal holding in BMR. We plan to use this holding ultimately to negotiate a complete exit from BMR. the details of which we will discuss as soon as we have clearer sight of the time lines". The transfer is of the BMR subsidiary which holds the small scale licence for the Kabwe tailings. It also holds the large scale licence which Galileo has an interest in and Jubilee does not want.
With copper obviously a much higher priority from Jubilee's perspective, together with the BMR and licence issues it is of no surprise the zinc circuit appears to be pushed back into late 2021.

Headlined "one of the largest chrome ore processors in the world" a new interview can be found on Directors Talk. Just go to Directors Talk's home page and you will find it. From nothing to this position in just over 3 years is impressive.

Absolutely Moneyhawk. And the capital outlay for the last two significant chrome RNSs has been less than a month’s earnings from the PGMs.

There will be no buy back or dividend distribution in the next 18 months to 2 years. Leon has indicated a dividend is on the cards after that period if everything goes as expected on what has already been announced. This company is all about growth though whilst they have a lead on the competition. There is a lot more to happen in Zambia over the next two years. And maybe Botswana could be just around the corner in 12 to 18 months time! There has been significant growth over the last 18 months, but this has only laid the foundations for the massive growth about to come. The middle and senior management team has been carefully built over the last two years to take on the multiple projects they already have on their hands, and that team will quickly unravel if the growth does not happen.. The banks seem to want to support them, hopefully on far more competitive terms than in the past. And it would not surprise me if in the near future there was a significant fund raise from larger institutional investors, hopefully not discounted, to support the next large phase of growth outside of that already announced. Now come on politicians and commodity prices behave yourselves.

I really like the way the South African chrome and PGM strategy is beginning to shape up. At a minimum medium term secured feeds of chrome ore, where Jubilee completely manages and in some cases owns the chrome processing. The chrome processing financial risk is being significantly reduced with respect to chrome price volatility through either hedging or a fixed price tolling agreement. This leaves the risk to a large extent on the operational side and hence under Jubilee's control. Medium term secured resources for fine chrome extraction with an expanded plant about to be reinstalled at Inyoni to maximise margins. And most important secure feed over the medium term for the PGM processing, with the expansion at Inyoni likely to be brought forward before the Northam plant is not available to Jubilee, assuming that to be the case. Provided PGM commodity prices behave themselves, and no further black swan events like pandemics or unexpected political developments in South Africa, the PGM cash cow to provide a substantial part of the funding for the future growth outside of South Africa over the medium term is now coming into place, secured whilst the chrome industry is in dire straights and on presumably excellent project financial terms.

This seems to be about right Sumoskier, although the RNS was lacking in detail. There seems to be quite a few things potentially going on at Inyoni, which I am sure will come a lot clearer fairly soon. I am assuming the reconditioned plant presumably owned by Samancor, will not include any fine chrome facility. So will the remaining tails be fed into the reassembled "expanded" fine chrome plant? We do not know what capacity the expanded fine chrome plant will be and what feed source(s) exactly it will be using? Further we thought Inyoni PGM capacity would only be expanded in about 2 to 3 years time when Northam's processing would cease to be available to Jubilee as it would all presumably be needed for Northam's own mine development. Any way good news as the PGM capacity expansion is by the looks of things being brought forward. And then on top of this, if DCM tails are going to be brought to Inyoni, how will that fit in?

No real idea what liabilities are left in BMR. I think they had a VAT issue but that was a while ago so that should be resolved by now. Some liabilities may well come with the licences but they would transfer presumably to Jubilee and Galileo. No doubt the hard working! directors and CEO will want Their pound of flesh. But it would come down to the economics as to what a willing buyer of the royalty would be prepared to pay. And I certainly note your comments about the royalty value which I entirely agree with. I had also picked up the low contribution to the Jubilee share price WHI were predicting from the Kabwe tailings project. And only 2 years ago this project was perceived as a transformational one! A good cover for the copper projects. Glencore must feel a little bit done over on the refinery deal and perhaps have some professional admiration for Leon and Colin.

If something like this should happen, Galileo by then will have had regulatory approval for the transfer of the large scale Kabwe mining licence, and therefore access to the Kas hitu zinc exploration project, which appears promising and the potential high grade zinc supply to Jubilee's Sable refinery once the Star zinc source has run out. Galileo would I am sure use some money from the royalty sale to prove up this resource. The rest would probably go on the promising copper project, in Botswana I believe. The most realistic and certain! near term monetisation project, perhaps a year away, is the Star Zinc project. If that is confirmed as definitely proceeding the Galileo shares should be re rated. We have of course the forever close to sale phosphate/rare earths project but that would be a bonus if the sale actually gets over the line. News on this apparently within the next two months, We shall see.

Here is my two pennyworth to try and wake up this board. Complete speculation with no facts to back it up. Solely thrown out for discussion. An existing quoted Colin Bird company with projects in Zambia takes over BMR through a share swap. Of course this would require BMR shareholder approval which may not be straight forward. That company will then hold the royalty for the Kabwe tailings project. BMR shareholders now have quoted shares as will Jubilee for their current 29% shareholding in BMR. Jubilee buy the royalty off the CB company on "favourable terms" in which part of the monies paid is used to buy back the Jubilee shares. Hey presto Jubilee now exited and with 100% of the Kabwe tailings project. If this is any way valid surely the CB company would be Galileo and maybe a sweetener is thrown in to grant better terms in the offtake agreement for Star Zinc ore. But all of this is probably completely off the wall.

With BMR approaching the time for the release of their end of year( to 31 Dec 2019) accounts and AGM, something is needed to show progress for their long suffering shareholders. In the mineprophets Q and A after the Jubilee presentation Leon intriguingly stated
"Once the transfer is complete of all right to Jubilee from BMR we will retain a nominal holding in BMR. We plan to use this holding ultimately to negotiate a complete exit from BMR. the details of which we will discuss as soon as we have clearer sight of the time lines"
The transfer he was referring to was the BMR company that holds the Kabwe mining licences being transferred to Jubilee. Any speculation on what this comment might mean?