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The message yesterday was the new II was there for two reasons. One to support the share price around the 13p level as there are potentially blocks of shares becoming available, either Rom the convertible loan holders or there is a large willing seller for whatever reason they have. I doubt at this stage it is the directors wanting to start cashing in on their share options as that would send a poor signal to the market. Second it seemed clear to me the new II wants to support Jubilee in its new phase of expansion probably into Australia maybe late in the second half of this year once it is clear the copper strategy is very much on course.
Thank you Billyboy for an excellent summary of the Webcast today and for publishing the link. The very good relationship between Leon and Colin was clear to see. It was interesting that Leon was quite protective of Colin, especially due to the crap coming from the huge hypocrite TW this week. Colin knows his time is up and it is now a matter of securing his succession in the best possible way for Jubilee. During the webcast it almost almost felt as though Leon was the chairman at times!
Jonah, I do recall Leon indicating in an online Q&A session, after the Mineprophets presentation I believe, that it was the techniques used in developing the ultra fine chrome facility that had been used in the processing of the low grade copper tailings at Sable refinery, and it was a major factor in being able to do this economically.
Shiner, I am only going on what I have seen in RNSs. A few months ago Leon was quite bullish about the chrome price, so the Board may have decided to take the chrome price risk for their facilities outside of Windsor. They may well be proved right as the chrome price has started to tick up nicely over the last couple of weeks. We do not know the exact contract details for the 3rd party chrome ore suppliers. My best guess is that at Windsor the offtake agreement(s) provides a chrome price to the 3rd party within the boundaries of the hedging arrangement less a tolling charge. This then ensures jubilee's margin is largely linked to how efficient their processing is. It also protects the 3rd party miner from ultra low chrome prices. It appears there are standard offtake arrangements at Windsor 8 for the 3rd parties, and of course all chrome concentrate produced at Inyoni is from Jubilee's own resources.
In a recent presentation at the Master Investor show Leon indicated a target margin of around $20 per tonne of chrome concentrate I believe. With the tick up in chrome prices and Windsor 8 and possibly the ultra fine chrome facility now running up to capacity, I am hopeful of a very significant improvement in the chrome earnings both from volume and margin in H2 of the 2021 financial year.
The Windsor chrome plant would to a large extent been the only plant protected from the very low chrome price inQ4 as it has some sort of cap and collar hedging arrangement in place. When the new 80k plant just over the road from Inyoni gets going that will also be protected as it will be a toll fee arrangement. I believe all,other chrome processing is subject to chrome price movements.
Windsor 8 would have been gradually ramped up during Q4 and probably loss making during this period. It is also possible that Jubilee started ramping up the ultra fine plant rebuilt at Inyoni, which contributed to some of the loss. Pure speculation but was the unexpected 3K ozs of PGMs in December, 500 ozs better than the original targeted capacity, partly due to the higher grade ore feed coming from the ultra fine plant?
Windsor 8 would have been gradually ramped up during Q4 and probably loss making during this period. It is also possible that Jubilee started ramping up the ultra fine plant rebuilt at Inyoni, which contributed to some of the loss. Pure speculation but was the unexpected 3K ozs of PGMs in December, 500 ozs better than the original targeted capacity, partly due to the higher grade ore feed coming from the ultra fine plant?
What a hypocrite. Today in his bearcast TW has decided not to sell his own shares in Jubilee as he believes they are cheap.At least he seemed under control today. Why couldn’t he man up and admit he got it completely wrong yesterday and apologise. Particularly to Colin.He threw in examples of poor director behaviour towards shareholders in other companies, and yes Colin Bird has acted in this way in some of his other companies, but those examples had absolutely no relevance to the corporate transactions announced yesterday. Some on this board know I am not a Colin Bird fan, but the attack on him yesterday was totally out of order.
Valuerebel, I was aware of the XTR sages and again an emotional and not logical investment decision to sell. But I I actually had some sympathy for TWs views at the time he made them. XTRs funding position was stretched to put it mildly. But shortly after, maybe just a day or so after TWs comments additional finance came into the company I believe. As I am not a close follower of XTR I don’t know at what terms that finance came in or indeed if a further placing at these much higher share prices may be required to keep the drilling of the copper projects going whilst the gold assets hopefully ramp up to a level to produce the cash flow needed to support the company without relying further on shareholders.
In his bearcast today Tom Winnifrith really let his emotions about Colin Bird get the better of him. With some justification he believes Colin has a la ck of concern about diluting shareholders in his other companies at discounted prices with bucket shop brokers. Of course this has nothing to do with Jubilee, whose company name he got wrong for the umpteenth time. He seemed to have no knowledge of yesterday’s RNS either, but saw there was some dilution going on here and launched into a personal attack on Colin. He badly let himself down and his N50 shareholders may well regret his recommendation to sell Jubilee not on investment grounds but purely in my mind his personal feelings and animosity towards Colin.
Shorn, and in Galileo and Bezant and the unholy mess at BMR and probably a number of other tiny companies. Interesting that he is now gradually building management teams at Galileo and Xtract instead of running them as one man and his boy operation. Definitely preparing the ground for perhaps semi retirement.
Billyboy you could be completely right. The decks seem to be clearing for some further blue chip institutional funding for the next leg of the growth strategy whatever that may be. There appeared to be big hints it was geographical expansion in the RNS announcing the half year operational earnings. but your own ideas are just as valid.
Very interesting that Colin has sold all of his shares. To me this looks like he is preparing the ground to depart as chairman. He is I believe in his later 70s. Furthermore he may not really be seen to be of the right calibre for chairman by the blue chip institutional investors as Jubilee develop into a substantial size company. Personally I think this would be right, but I would be the first to thank him for his influence on getting into Zambia and the focus on copper, as well as getting through very tough times with Leon.
If investors want real growth in this company then occasionally there is going to be some dilution. As long as the dilution is for the right reason to support that growth and not at a discounted price, then what's the concern. The latest share sales have cleared some debt and liability on the balance sheet which will then significantly help with the discussions with institutional lenders in the near future . It will also help to secure future debt for growth at a more competitive interest rate.
Always the slight negatives TBTT.
1. This is not a negative. It is a positive. They have prematurely got rid of some expensive debt generating some interest savings. Money that can be put to better use.
2. The two directors should be thanked for helping the company out during a time of need. If I was them I would be taking the money I was owed too. They risked their own money when times did not look great and they are entitled to profit from it. They still both have significant interest/incentive in the company. By the way CB should be thanked for ensuring Leon stayed with the company in the darker days
3. Only real point of agreement.
Just compare this fund raise with that to secure their foothold in Zambia with the discounted placing and expensive convertible debt to secure the Sable refinery and Kabwe Project. Chalk and cheese. For long term holders the financial foundations are being put in place for the next strategic step into another country by the looks of things on brilliant terms in my opinion.