The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
I am not sure,Brad, that we are looking for a benefactor as such. I'm pretty sure we are looking for a joint venture partner which could be anyone, including the Gabonese government. The terms of the JV will determine how much we earn from the credits.
Whilst you are right that a project started today will not start sequestering significant quantities of carbon for a few years, it may not take that long for the prospect of useful additional income to be reflected in our share price. Not the stupid hype of the de-bunked article,of course, but once a JV gets going we will see some action as punters forward guess the market, which they always do.
I do agree with Mickie and Seis that something is brewing in Zambia. Whilst it is obviously pure speculation, the ramp up in activity on Twitter is hardly needed to publicise our existing 'southern' strategy. Rather, it seems part of a plan to establish Jubilee as an important player in this space, integral to the overall mining strategy of the new government.
It’s called P & D cthed. It’s a long road to completion of a phase 3 trial. I’ve looked at the first one critically and don’t think it was badly designed. My major criticism is that it included a disproportionate number of participants from Mauritius (an isolated place where one might expect to find, historically, a reduced genetic diversity.) I agree that the drug was effective in the anti double strand DNA subgroup, but even in that group there was racial and gender inhomogenuity in response.
I am a lth here and have topped up recently at what I agree are attractive prices in the Hope of limiting my losses in the long term. By contrast, I anticipate any fireworks to be short lived.
Thanks again Seis for trying to bring some order to all of this. We do have a big pile of tailings at DSM too. God knows what is happening to that. Has the dispute with Cheetah moved any further towards resolution, I wonder? We might have used up most of the historic material at Hernic by now.
Dorf. Go to WHI website. Then click 'Capital Markets/Investors/ Research and Events Hub. You may have to register, but all they require is an email address.
Interesting that WHI agree that Roan tailings is low on cobalt, so that must be coming from 3rd party material.
I'm not sure what people are grumbling about. Read the WHI note referred to by Seis. Our operational footprint is now about twice what it was two years ago. We are told the Northern strategy is on track. We have some of the lowest unit costs in the business - and all at a time of global pandemic, China lockdown, semiconductor short supply, shipping crisis, recessionary fears, inflation, fuel shortage and war in Europe.
I do agree with Dorf that it would be nice if Dollie put his head above the parapet and, given the huge transport costs, some indication of progress (or otherwise) on the Eastern limb.
Nevertheless, a huge amount has been achieved recently. The drop in Sp has been on relatively little volume. Retail investors like us are starting to feel the pinch (I certainly am) and may be looking towards safer dividend paying investments rather than the wild west of AIM. A lot of people do not see now as the right time for high risk investing.
I could have said all these things when the Sp was around 3p for ages. Glad I topped up and held then. It payed off. I will be doing the same now.
Thanks Seis. You are a mine [sic] of information. Interesting that the average rhodium content is the same for both regions. I also feel sorry for poor ruthenium which nobody pays much attention to. I estimate we sell about $2,500,000 worth of ruthenium a year!
Thanks Seis and DRB. All good points which I accept. I agree there is plenty of cobalt in the Kitwe dumps but had assumed that will be processed in our northern refinery. The truth is that all the material is ‘northern’ and the split into northern and southern operations is somewhat artificial.
In the fullness of time it would make sense to process all the northern material in the north and use Sable for Kabwe, other local zinc sources c(Kashytu?) and possibly feed from just across the border in DRC.
Thanks Seis. As you say, the big unknown is cobalt. I was initially surprised we had produced any cobalt until I remembered that Sable was set up by Glencore to process DRC material which is cobalt rich. Presumably it was this stuff which came with the refinery that we used but I guess that’s finished now. I read in one RNS that Roan material is low on cobalt so why are we investing in a cobalt circuit for our southern strategy? Are we going to shift material from TD 52 or have we got, as I have long suspected, half an eye on DRC?
Just speculating here. The very high transport costs seem to imply that we are shifting a lot of material from the eastern limb. I can’t believe we have locked ourselves into a contract with a chrome producer which obliges us to do that when we have ample material to process in the west.
The last I heard from DSM was a court ruling prohibiting us from shifting the material that we had beneficiated. Perhaps we have found a loophole and are moving as much tailings as we can before Cheetah plug it. Only a thought.
Further to my post 08.32 in which I point out that JLP is not the only agency with a finger in the clean up Kabwe pie; this article puts a little more meat on the bones.
https://www.hrw.org/news/2022/06/22/zambia-hope-kabwe-lead-poisoning-victims
I share your relief, Charles, about Cyprus but I think you are mistaken about lead and zinc. We haven't had to invest heavily in a zinc circuit as it was already there. The reason for failing to progress zinc was purportedly uneconimic metal prices, but I think there is more to it than that. The zinc/lead clean-up has input from a variety of agencies including the Zambian government and the world bank. The more people involved, the slower the progress. But I believe it will eventually occur. I only hope this happens in my lifetime as I would love to see the abomination of Kabwe confined to the history books.
Quite a bit to like in this RNS, especially, as others have said, our ability to keep unit costs down in an inflationary environment.
Leon is playing his cards pretty close to his chest when it comes to any plans for expansion. I get the impression that acquisition of a mothballed plant in the eastern limb, previously appearing to be a a virtually done deal, is not so certain now. There is still talk of building a facility from scratch = huge capex.
Good to see 95% PGMs produced 'in-house'. Presumably the Eland JV is still alive, then, accounting for 5% of our production.
I saw the tweet Mickie. Not sure it has any immediate significance but as someone else has pointed out these tweets are something new. Clearly there is a deliberate policy to beef up our ESG credentials and , more specifically in relation to Zambia. It doesn’t take a genius see which way our company wants to go!
Like most investors here, I suspect, the majority of my portfolio is in 'safe' dividend paying stocks. I have a smaller fund for the high risk, fun stuff on AIM. The funds don't overlap. So there is no way I am selling JLP just now. Interest rates have 'rocketed' to 1.75%. That is nowhere near enough to tempt me into cash either!
Thanks for posting this Seis. The striking graph is, as you originally posted, the rhodium price. It would be nice to do some correlation coefficients to put a figure on the relationship, but it looks tight on eyeballing. Your conclusions are difficult to dispute, but, as you say, we should see what the market thinks of it all soon enough.
Easy to be wise after the event, Pain! I missed that one too. I thought that if it was just a pump and dump, the company would issue a speeding ticket, so when one didn't arrive I stupidly assumed there was something more to the rise that the wretched article. Anyway, at these prices I reckon your investment will do well. I, too, am adding in dripbs and drabs on the dips.