Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
I hope that they don't either, but in Zambia, we are diversified anyway, between copper/zinc/cobalt and lead we are already pretty diversified, especially with the rewards on offer in Zambi, for example, look at Project Elephant for example, then throw in to the mix of silver and germanium from Star Zinc and Ka****u and the rewards go from good to amazing and possibly stratospheric.
SumoSkier, Jonah58 & NoExcuses,
Here is my 2p's worth.
1. The value in transporting concentrated tailings from DCM to Inyoni will depend crucially on the PoP, which is holding up well - especially Rhodium. I thnk this will be maintained, or evn get better, but I suspect Leon is in no hurry to cart the stuff over. They have plenty of material close by, and are acquirng more by the minute! and 3. Progress on project Roan should feature soon enough.
As far as I am aware the DCM mine is on care and maintenance, I might be wrong here, but I am fairly sure that I am not and therefore we won't be acquiring more by the minute. Personally I feel that we need a processing plant at DCM for the PGM's, but now I feel that Leon is going all out for copper and Zambia and he will forget all about the PGM side of things. It really wouldn't surprise me if we sell the South African side of the business to SLP and use the proceeds to grow the Zambian side of the business, where we are going to be basically heroes for the Zambian government.
2. We should be hearing about re-commissioning the fine chrome plant (is that at Windsor or Inyoni, the former I think) once that comes on-line.
With regards to the fine chrome, it isn't market sensitive information, as we know it is moving to one or the other, a delay doesn't mean anything either, because common sense prevails about delays at the moment, especially in a Covid environment. Fine chrome will be produced when it is produced, it is that simple.
4. Maybe sorting out of the cross border issues to get working on the zinc recovery plant at Sable. Not expecting that soon, but Covid situation in SA is easing.
Zinc prices are through the floor (again) at the moment, so why would we use our precious resources to initiate a zinc circuit rather than expand the Copper circuit? Granted the Zinc is right next door to the refinery and we could store up the Zinc and sell it on a price jump, but do we honestly want the drain of buying the ROM from Galileo and processing it, just to store it in the hope of a price spike in the future, when we have Project Roan & Project Elephant and all the 3rd party ROM to process. My honest thoughts are that we will forego intalling the Zinc circuit for the moment but design and test it and whilst that is going on we'll expand the copper side of the refinery and when Star Zinc & Ka****u come online in 6 months to a year, they can store the ROM until we are ready for it.
Just a few thoughts, but not unrealistic, I believe.
Sharegar,
I can see this company taking off too, for a few reasons:
Firstly: Not only because the world needs to be greener in what it does, but in the way it works,
Secondly: As proven over time with for example Vale's Tailings dam failures, they are a drain and a potential liability on a companies balance sheet and need storing correctly and
Thirdly: As a small company we, have to do things more efficiently and extract value where we can.
There are competitors, such as SLP, but they are PGM focused and whilst that is great if the prices stay where they are, but if they drop, they will see a big drop in revenue.
I am one of the first to admit that LC & CB that have made mistakes in the past, in fact I have chastised them on multiple occasions for what I have thought are mis-steps, but by luck or chance, they have stumbled on to a winning combination. The fact that we are now one of the biggest producers of chrome concentrate IN THE WORLD, WITHOUT A MINE, bears testament to that winning combination. Yes, there have been tough times, but it appears that the timing of bringing all these projects online, couldn't have come at a better time too.
Personally I agree that, WE, as a company, are the actual market leaders in waste/tailings recycling and I feel that we will get bought out sooner rather than later, because this industry that we are building here has the potential to be one of the most disruptive efforts moving forwards for big mining companies.
As for Tjate, I am not ascribing it ANY value, because it WILL cost too much for us as a company to access it, but there may be others who want it and want to control their own PGM's, such as the Chinese who will take a punt on buying the entire company, especially if it paints them in a good light twofold by firstly becoming more environmentally aware and they have near unlimited funds to bring to Africa to make countries AND governments like them.
High geared,
There WAS deal between JLP and Anglo-American, for Quartzhill, but they got greedy and tried to stiff us thinking the company will fold and they'd probably pick all three of the Tjate farms up the chump change. Quartzhill is deeper than the other 2 reefs on the other two farms and the 68 million ounces only came from 2 out of the three farms, if i remember rightly so. Quartzhill was and is next to useless for Jubilee in that term and would only be useful for Anglo-American due to its location next to Twickenham, which would extend the length of mine if it ever leaves care and maintenance and gets back to production, which seems unlikely at the moment or even in the near future and Implats Marula mine, which is currently temporarily shut down down to Coronavirus and is probably the one one who would like Quartzhill in the present and near or even longer future time line and selling to one customer doesn't give the best return.
Personally I don't think Tjate will be developed at all by ANYONE, unless one of the majors just wants to keep drilling into Quartzhill, but that would be it and we probably wouldn't get the 4.1 million that the deal outlined previously, as we are in a cash is king time and for the aforementioned reasons states above.
Personally I have done my research and I agree that there is NO WAY that Tjate can have ANY value ascribed to it, because it would cost between a billion and 1.5 billion pounds just to get a mine down to the upper 2 levels and with an NPV of between 1.5 billion and 2 billion pounds, it doesn't leave probably ANY meat on the bones for Jubilee, once other costs are added.
So if you do care to show me these tidbits that you say are readily available for investors, about a sale of Tjate, I would be all ears.
The fine chrome operation, which is currently part of the Dilokong Chrome Mine (DCM) joint venture with Sinosteel and Samancor, is paused with no plans to reopen, the AIM-listed company said.
Jubilee noted that moving the fine chrome facility to its larger Inyoni and Windsor chrome sites, both of which are still operational, would enable it to contribute more significantly to earnings.
https://www proactive investors Co uk/companies/amp/news/919942
Add the. in and away you go.
I do feel that we need to take charge of our own destiny again and smelt our own PGM's perhaps a JV with SLP for our own smelters or buy back Middelberg and do our own PGM smelting, even without the conroast.
Jammer,
You have to wonder if we should or can expand Windsor to allow for more 3rd party tailings or ROM to be processed? I only ask as ecomony of scale gives us a pretty good effort, we have everything in place already and the fine chrome plant will be in place too.
Thoughts mate?
Personally I am not bothered about a dividend in the short-mid term. A dividend is given out, in my humble opinion, when a company has run out of expansion plans, we need to keep expanding our company to the point where no more project debt finance is used and we can go out and buy and/or pay for projects outright. Once that happens the company should start thinking about it, but not until then.
The company needs to be thinking about becoming a billion pound company and that can and should happen, if they really go for it, without being bought out prior to this.
We have good processes and we have scalable efforts moving forward. Zambia was and is proving to be an excellent move for the company and if we can clean up the poisoned sites such as Kabwe along the way, the Zambian government should make us preferred people to deal with mine waste/tailings.
I bought in previously at an average of 0.66 in August last year. I have watched it drop in to the .20's, but knowing full well this would go well past the levels I bought in at sooner or later. My only regret, is I didn't sell out at the top and buy back in lower and reduced my average slightly, but even now at these levels, I am 25% up in less than a year and once mining starts happening and hopefully as cheaply as they say it will, these shares will be trading at multiples of these levels and for a long time. My short term hope is for 5p+ and possible dividends in the future and that will give me a starting point to diversify the money here in to something else, but small steps and all that jazz.
How can you say that 50+p isn't a ramp?
I only ask as we have over 2 billion shares in issue, so even at 50p a share, that gives us a market cap of a billion pounds and using a relatively low P/E of 8, that means out profit has to be in the region of 125 Million Pounds. Which considering we are currently in the 10-15 million pound annual profit until we hear otherwise. We would have to, in essence, Triple our profit every financial year to get to your stated 1 BILLION Pounds market cap!
It is either that or we are going to consolidate at say a 5:1 effort, if we get to 10p, giving us a market cap of around 200 million pounds.
So which is it then?
I am an investor here and hope that you can show me the error of my ways.
Also the figures from the first option also doesn't allow for any spends on transactions/acquisitions or infrastructure that may occur too, before July 2021.
Jonah58,
I think that the prices of Rhodium and Palladium is important, but not as much for Tjate and especially not for us, as there is no way that anyone, possibly the Chinese aside, and I doubt even they probably wouldn't do it, will give funding of over a Billion Pounds to a company with a Market Cap of around 90 Million Pounds, even with prices of Rhodium and Palladium at the moment.
Personally, I hope Anglo will JV with us and they will take Quartzhill off our hands and we may get the tailings from some of their Chrome/PGM's/other metals across the board. It makes sense, we don't need Quartzhill and it is at a different level to the others and Anglo can get to it from Twickenham for minimal further cost and we get access to some of their tailings.
That would in my opinion be the best of solutions for both parties. Also I do say that it is only my thoughts here, but I can't see a problem with this suggestion.
Tjate, I my humble opinion, at this time isn't viable. The price of Rhodium and Palladium will spur mines to re-open mines on care and maintenance, which will cost far less than the 1.2 billion pounds to get to the PGM's in Tjate.
Eventually it may become economically viable to get financing to get the PGM's out of Tjate, but supply will have to get strained to the max and platinum will have to get to 2,000+ dollars and potentially around the price that palladium is not far off at the moment, which could happen, as palladium has proved recently.
The one thing to consider at the moment is that Tjate is not likely to have a lot of value on either the balance sheet or to the company and that could/should change.
The other thing to consider is that the Zambian government, want to clear up one of the most polluted sites in the entire world and realose that the water that is at Kabwe is pretty much undrinkable at the moment, due to the chemicals that have leached into it. Clearing up the water at Kabwe is imperative for them and the only way to do that, is to provide water to us to process it. They will make money off us from taxes and wages etc etc, which can then start to help them put stuff right.
Either way, we will get water, it is just whether or not we need to treat it first to remove additional pollutants.
Being honest, the fact that the Zambian government is giving us priority treatment says alot, especially in a country where the mining tailings piles are immense and are literally killing their own citizens.
It wouldn't surprise me if we basically took over all the tailings/waste/dumps that are legacy for the entire of Zambia, because they have to do something to get the problem sorted and we are apparently the only ones looking there.
Is definitely this one.
The Company has gained an enormous amount of knowledge about how to successfully drill wells in the South West Peninsula and we look forward to seeing the interpreted logging data and completing and testing the Saffron well in Q1 2020.
Note the use of the terms such as knowledge about how to successfully drill wells in the SWP and completing and testing the Saffron well this quarter.
We also, know that they are likely to have three bites of the cherry, as why go to the extra cost of widening the well if they didn't think that all three would flow?
Sorry, just finished a night shift and pretty tired. I don't think that we have 634 feet of solud oil from the Lower Cruse. Reading the RNS, it seems like they have hit multiple levels of oil in the Lower Cruse and of course they will keep going until there is no more oil shows, around the depth that they expected it to finish at.
The RNS states this:
The Saffron well was originally proposed to be drilled to 4,600 feet (measured depth). So only another 34 feet drilled.
Not 634 feet as you state from the 4,000 feet TD claim.
I really am happy with my top up yesterday, because this potentially could motor today. The good news is that, despite them meeting difficult conditions with the drill, they didn't do a Neil Ritson and get the ****ing drill bit stuck.
I am happy with the RNS though and it looks like we may get some great results moving forward and I really hope that we drill Clove too.
Another little top up of 16,945 shares here. I sold my SXX shares at the offer price and yes, it could go up abit more, but the offer has been accepted by the board, so it will go through. Yes, someone else could put an offer in for it, but I am not sure that will happen.
Personally I am hoping for 15-20p a share here in the long term, so that will make up for any losses I had and a whole chunk more from there.
Admittedly, nothing is certain here yet and we do need more information moving forward, but I can see this company becoming a big player in T&T especially if Saffron goes the way, that we are being led to believe it will go and I can see us getting snapped up by one of the big players in the nearer term for multiples of this current share price.
Anyway, that is me done for purchases here until March/April time. Good luck one and all, whatever your strategy is.
Another little top up of 197,509 shares here. I sold my SXX shares at the offer price and yes, it could go up abit more, but the offer has been accepted by the board, so it will go through. Yes, someone else could put an offer in for it, but I am not sure that will happen. Personally I am hoping for 5-10p a share here in the long term, so that will make up for any losses I had and a whole chunk more from there. Admittedly, nothing is certain here yet and we do need more news about production and the gold but moving forward, I can see this company becoming a main player in the tungsten market for Europe AND America. Anyway, that is me done for purchases here until March/April time. Good luck one and all, whatever your strategy is.
Another little top up of 14,515 shares here. I sold my SXX shares at the offer price and yes, it could go up abit more, but the offer has been accepted by the board, so it will go through. Yes, someone else could put an offer in for it, but I am not sure that will happen.
Personally I am hoping for 15-20p a share here in the long term, so that will make up for any losses I had and a whole chunk more from there.
Admittedly, nothing is certain here yet and we do need more dumps/waste/tailings but moving forward, I can see this company dominating the dumps/waste/tailings metals recovery market, because we have the processes ready to go and I can see us becoming a big player in that sector, before we get snapped up by one of the big miners.
Anyway, that is me done for purchases here until March/April time. Good luck one and all, whatever your strategy is.