focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Can anyone enlighten me about the nature of the power problem? I had assumed it was related to unseasonal low levels of water in lake Kariba (which, I agree could have been factored into planning) but LC seemed to imply in the presentation that the problem was a totally unpredictable political one - presumably with Zimbabwe. If this was unprecedented it might be a bit harsh to berate our board for not having made allowances for it.
You make some very well informed points Seis. The cost of the chrome concentrator on the eastern limb came as a pleasant surprise. Obviously, until the issue of a PGM plant in the east is sorted this will only be a small step forward, but remeber that our transport costs for eastern limb material are very high and impact on our unit cost for pgm production. The transport of a concentrate will reduce that significantly so the eastern limb chrome plant will start paying its way immediately.
Happy to have a year end price competition this year again Bushy. I came second last year (can't remember who won). But we both know it's just a bit of fun - wild guesswork with precious little substance. I'll go for 18.76p with a much happier figure calendar year end 2024.
These are a few points I've taken away from the presentation.
1. Nice to see a degree of humility from Ollie. Hope this is contagious
2. Real progress on chrome facility on Eastern limb. Funding from cash flow. Progress expected this calendar year.
3. If load shedding in SA improves, we will improve on predicted PGM production figures. Will probably also use Eland JV facility to some extent.
4. Firming of Zn and PB prices raise possibility of processing Kabwe. Watching this.
5. 30% of our chrome production stands to benefit us as chrome prices rise.
6. Roan expansion may entail some reduction in output, but not total shutdown. This is already factored into predicted output for year end.
7. Grades at Roan are as expected (there was a rumour on here that grades might be lower.)
8. We are a front runner for Mufulira sl a g dump.
9. In contact with big mining houses re their waste.
10. He did not rule out issue of equity explicitly.
11. Nothing fundamentally wrong with our operations.
12. Sp slide as much to do with commodity prices, global economics and risk averseness as anything else, but admission that they should have been more upfront re delays at Roan.
I have no worries that the company is set to move on and do well. My major concern is with the global situation and especially China. Western sanctions against Chinese companies would hit us hard. I'm not buying more, even at this price, because of that but am happy to ride out the bumps with what remains of my investment here.
Yes! I note Cecilia Lamaswala was also a director of Blue Square. She gave the same address as a vicar (presumably her husband) who was also a director, though they both subsequently resigned. (It's totally irrelevant, but my grandfather was vicar of Walthamstow.)
Blue Star Capital does not have a Lamaswala on their board, and seem to operate mainly in DRC. Where are they going to get $300M from? It's a minefield!
I share your suspicions, Seis. I do remember the time when BMR were paying significant fees to Blue Square to 'advance' its license application. At that time I smelled a rat, well no, a coypu actually. Lamaswala is the chairman of Blue Square, I think. Not sure where DMG fits in!
Another good find, Seis. Lumuswala goes out of his way to stress Jubilee's commitment to local emplyment and regeneration. He implies that Jubilee has a solution to the conundrum of extracting copper and cobalt from glass, but perhaps I am reading too much into this. He is talking about $200 M investment so I guess they have some idea how this can be recuperated!
Quite so. https://www.marketwatch.com/story/woodbois-shareholder-miles-pelham-sells-6-stake-in-company-3ea153c
shuv, the model is that we are essentially toll processors for 70% of our chrome production. Why? First it hedges us against fluctuations in chrome price, but, more importantly, it makes us a very attractive company to get to process your chrome ore, especially with our efficiencies. The punchline is that we keep the material after the chrome is extracted and that comes FREE. The model thus ensures longevity at the Inyoni plant - a veritable cash cow. For the remaining 30% we have a deal in which our return varies with the price of chrome. I would have to search out the initial RNS to do the calculations. My gut feeling is that Mickie may be being slightly optimistic, but our chrome revenue will certainly increase with the current hardening of chrome prices.
Back home. Thanks to all the posters after the presentation which I've just listened to. Much to mull over.
Perhaps the most striking thing was the tone LC adopted when talking about three monthly reporting, the death of the contractor and Ollie's contribution so far. I may be deceiving myself, but I wonder if this does reflect the influence of our new non exec chairman.
Unfortunately, and with huge reluctance, I've got to go skiing on the Marmolada glacier tomorrow We all have our crosses to bear. At least it's going to be sunny with perfect snow.
Would some kind benefactor please take a few unbiassed and informative notes on tomorrow's investor's call and post them here. I would be hugely grateful, no doubt along with others caught up in half-term activities.
WHI note. Adds nothing new at this stage.
https://*********************/companies/uk/jubilee-metals-group-plc/research/whireland/jubilee-metals-jlp-corporate-operational-update-and-modification-to-zambian-strategy/41_2023021502305279888
Obviously a disappointing update the negative aspects of which have been amply highlighted by posters so far today. For balance here are a few further observations on the RNS. (Disclaimer: I am not a one stock investor but will be adding a few more at this price.)
1. We still have one of the lowest unit production costs fot PGMs in the business.
2. The results predate the recent sharp increase in chrome prices.
3. Much (most) of the disappointment relates to headwinds outside our company's control. These have now been addresses (albeit at a cost).
4. The upgrading of water and power at Roan now menas we can move to double capacity there. I have been banging on about this for ages. Roan is in the north, so it makes perfect logistic sense.
5.We have a coherent plan to increase cobalt production at Sable.
6. There is a suggestion of progress on the eastern limb.
One thing I am looking forward to is the Chairman's comments in the March results!