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I'm not sure what to make of this RNS. Can't say it's got me bubbling over with excitement, but the wording does seem to suggest that there will be a trial. I would therefore be grateful if someone here could inform the executors of my will of the outcome.
Yes, thanks GK. The article mentions that the industry is going to need to find at least another 500,000 tonnes Cu per year over and above the average annual increase of 500,000. 25,000 tonnes per annum from Jubilee by 2024 represents about 5% of this additional need. Not small fry by any means.
Scott, I agree that the Sp action here has been disappointing over the last three weeks, but this is not specific to JLP. It has been happening everywhere, particularly with the juniors as evidenced by the comparative performance of small cap funds versus ftse trackers. We can look at a pull back in commodity prices (temporary according to most pundits), concerns re inflation and interest hikes, traders taking profits from a perceived overheating etc. So prices as a whole have been a tad doldrummy, I agree.
But (!) I can see nothing specific to Jubilee to suggest everything is not going to plan, not even in the rumour market. Even at today's commodity prices we are hugely profitable and there is a sackful of news to look forward to. These transient fluctuations are inevitable. At the risk of sounding like a much appreciated poster here, I would say that the 'Jubes Yacht', far from being in the Doldrums, is on the plane, zooming on a broad reach with a fair wind and heading rapidly for a win in the America's Cup.
I think your post is simultaneously right and wrong, Barnet. True in that sentiment has turned against commodities in the last month, but this is not specific to WBI. Has WBI announced (or are there any rumours) that anything specific to our company is responsible for the retrace? Of course, there was the raise, but Rhino was happy to lob in another £1.4 million at 6p. And, as another poster has pointed out, the raise was not for general running purposes but for specific equipment and projects which add value. The fluctuations in Sp have occurred on minimal volume and are hardly indicative of the progress (or lake of it) of the business.
Nothing has happened to change the reasons I am invested here. Le'ts see what story the financial reports tell. Maybe even a dividend!
Theoretically, Throne, the EA could be extended yet again, but the general opinion, from people who know a lot more than I do on this board, is that it won't do this unless we are very close to an agreement. If it expires with no imminent agreement nogotiations could continue, but we are also open to negotiate with any other interested parties.
Good post Tricky. I am old enough to remember his early contribution and his legacy continues. He somehow matched rebellion with moderation. Perhaps he fell short in economic matters - his nationalisation of the copper industry proved hopelessly expensive. It is exciting that we are now part of the effort that can help to rectify that. RIP Kenneth Kaunda.
Nice article, Mikie. I particularly like the bit about Jubilee producing 70,000 tonnes of PGM per month. This would equate to an approximate monthly income exceeding £4 trillion (excluding tax and subject to exchange rate fluctuations, of course). Maybe we should christen the new Eastern limb unit "Ibhubesi", in honour of our CEO.
Not only a very exciting RNS, but I very much appreciate its style: informative, enthusiastic and investor-friendly. There should be reasonable news flow in the next few months. I am very happy to be invested here as things are going.
People who ask why the share price dropped yesterday should also ask why it went up the day before. We are no longer under the radar. There is huge interest here and lots of shares are changing hands. All very healthy. This share is also being traded which tends to exaggerate the normal daily fluctuations. I am very relaxed about the price action.
We have plenty of news coming to keep our momentum. Half year report. Completion and commissioning of Roan phase 2 and both projects at Inyoni. Results of Cyprus drills. Start of construction at Elephant 1 and, unles I am much mistaken, more deals on the eastern limb. Great times to be invested here.
I don't know how valid this is, Scott, but one of the reasons given is that in the PGM business, the time between producing the stuff and getting paid for it is several months during which the basket price can change significantly, so quarterly reporting gives a false idea of what is going on. We used to have quarterly reports, so going to six monthly was a positive decision to change, not just a historical anomaly.
Splodge; I'm a huge fan of Mickie and what he says is true (!) but as a self admitted inexperienced investor you also have to consider our exposure to metal and currency price fluctuations, geopolitical problems, power outages, defaults by joint venture partners, the jurisdictions in which we operate, floods, fires, law suits and a host of other unpredictable factors. I am holding onto my shares in the expectation of at least a 50% uplift over the next year but this is the Wild West and at the risk of sounding patronising AIM is a place to invest only what you are prepared to loose. I should also add that I have 8 holdings on AIM and this is the one I am most confident about and consider least risky.
Factually incorrect, Destitute. Someone wants the pile of dust.
As for the raise at 5p - yes, there will be a raise. It’s a punt. Current sp movements are based on minimal volume and are virtually meaningless. You either back the team or you don’t. Your choice.
It's good to think big, JPos! I believe Glencore are impressed by what we have achieved at Sable. The RNS outlines a number of ways forward:- "As previously announced, consideration is being given to implementing a dedicated processing facility in the Eastern Limb to further expand the Company's processing footprint but in any event, this acquisition of material provides the option to Jubilee to secure additional processing capacity through acquisition, partnership or construction of a new facility to further expand its processing footprint."
We have used all three methods suggested (Acquisition: Sable, Partnership: Eland, New build: Inyoni). I think an Eland type deal is the least appealing. Does LC have his eye on a distressed operation we could acquire? A new Inyoni-type build, however, seems the most likely plan.
If we are right, JLPos, this looks like money for old rope as far as Bauba are concerned. We dig up their discard from which the chrome has already been extracted, cart it hundreds of kilometres to Inyoni, extract the PGMs and give them some of the profit. It can't be hugely profitable for us, but we are not a charity. It is looking more and more likely to me than Leon sees this as a stepping stone to replicating Inyoni on the Eastern limb. If so, he must surely have some further deals in the area lined up already. Watch this space.
Just a bit of idle speculation. Who are the partners in the two recent RNSs? Ther are multiple chrome mines on the Eastern limb, whose operators incude Glencore, Samancor, International Ferrometals, Sail group, Afarak and Bauba Platinum whose Moeijelijk farm mines LG6 ore in roughly the right quatities to match up with RNS 1 (https://www.baubaresources.co.za/moeijelijk-chrome-mine/). Do any of our SA friends have a view on this. Samancor is the obvious other bet.
With regard to RNS 2, BushyTailed has rather unkindly (!) posted a view that the large body of tailings procured is, in fact, what we always had at Dilokong but is now the subject of bitter legal wrangling. (https://www.dailymaverick.co.za/article/2020-12-18-legal-tug-of-war-shutters-one-of-sas-richest-chrome-mines/). Has anyone heard any further information about how this dispute is progressing? The size of the dump (800.000 tonnes is the most recent figure I can find - https://thesa-mag.com/features/mining/asa-metals-pty-ltd-power-partnership/) - is about right and it is odd that DCM is not even mentioned now on our website. Despite these suspicious features, I don't go along with BushyTailed but I do think it is not unreasonable for us shareholders to ask our company to give us an update on DCM.
Also, if it is going to be economical to lug the new material for over 4 hours by truck to Inyoni, how much more profitable would it be to transport the DCM material which has the added benefit of having its fine chrome removed so should have a higher concentration of PGMs.
Neither of these two deals is huge, but as a gesture of intent they speak volumes. We want to corner the market and are setting about that aggressively. I don't think Mikie is ramping!