Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
We are producing 300 metric tonnes of copper per month. Taking a pessimistic all in production cost of $6000 per tonne that equates to an earnings of $4000 per tonne or $1.2 M per month which is more than we are earning from PGMs I suspect (though the basket price is creeping up, so that comparison may be wrong). In any event, it is certainly not trivial.
I am not sure what you mean by payback time, Gray. Yes, the SPV will need to payback the shareholder loan but that will come out of SPV earnings. The capex for this project from Jubilee's point of view is zero if my understanding of the original RNS is correct. So, from a Jubilee perspective, the payback time can be measured in microseconds!. As soon as the SPV goes into production, we will be earning our 30% (more, actually, as we will be paid a fee for operating the project too). The payback time for IRH will depend on the precise details of the arrangement Seis pasted from the RNS but it is clear that the SPV will continue to bank some earnings during the payback period and 70% of the loan repayments will, in reality, be IRH paying itself.
The conductivity and corrosion resistance of aluminium is much improved in aluminium graphite composites. I got quite interested in this and lobbed a modest chunk of cash into Tirupati (TGR) which promptly tanked (see my Avatar). Still looking for an appropriate windowledge to jump off because of that one.
I was going to ask that very question Edzi (I'm with you all the way on the tinnitus front!) There have been some helpful speculations about what Leon means by all in costs, amortising the capex of the modules and purchase of mining license etc. Another possibility (not Munkoyo) is that we are setting up some joint ventures in which the mine owner is essentially a sleeping partner and is paid a royalty which must be added to the processing costs of ca $4000 to get the 'all-in' cost
In any event, I sincerely hope we have ordered a job lot of electrical control gear!
Come on! By no stretch of the imagination could today's activity be described as a dead cat bounce. The feline is alive and purring.
Interesting that in The Roast Leon once again said we would be looking to increase refining capacity either by some partership or by a purchase. Something is being worked out as I type!
Thanks Mikie for keeping a smile on the board.
I think some posters here underestimate the logistic challenges of operating in Zambia. I found this well written and illustrated article very interesting:
https://www.bloomberg.com/features/2022-africa-copper-supply-chain-snarls/
However, the module at Roan is based on our much vaunted chrome modules, so one hopes the lesson had been learned in SA. I assume the same control electronics will be needed for the Munkoyo module and the OB1 modules. I hope we have ordered them already!
The two new small mine projects are interesting. 250,000 mt at, say 1% Cu, will be a very short payback time. I am still wondering how it is all going to be refined and whether we will be involved in that process.
From the information at company house and their linked in page it would be very surprising if this company had suddenly built a 3% stake in JLP! From their accounts they did have just enough cash in hand to buy these shares, but significant shareholding in any other company does not appear in any of their assets. Perhaps there is another Peppermill!
Quite so POORS and vice versa (this made me laugh)
https://news.sky.com/story/car-industry-insists-2-000-increase-in-sales-to-azerbaijan-has-nothing-to-with-russia-13097685