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Cash advances in trade and other receivables would be advance payments by HMI to its suppliers, no? The 10% received on orders received would show as deferred income in creditors I think, not sure I see it unless it’s buried in trade payables somehow. Wouldn’t rule anything out, but possibly average pricing needs to be reduced a bit from what can logically be derived.
Interesting question I think posed by @BigBiteNow on Twitter. Is the 10% down payment on orders recognised when the order is placed or when the product is shipped/sold. Anyone know for sure? Logic says it should be the latter, but if non refundable, not sure. Impacts quite a lot if trying to derive average sales price per tonne in H1 given orders so much higher than sales.
Thanks DCat. Obviously a very experienced guy. Maybe they couldn’t say no to the chance to use his knowledge but the more people brought in the more it suggests there’s more to do to commercialise the technology. I’m assuming the main protagonists have other jobs/income but the Fodere venture has been going on quite a while - they surely must want to monetise their efforts soon. Hopefully it’s getting closer to the crescendo. My instinct says the investment here could eventually be a really valuable asset in the Jangada toolkit, just bucketloads of patience required!
Slightly off topic (although the more I think about It the more I think a tie up somehow between JLP and Fodere makes sense), but JLP’s CEO has just done a short interview on directors talk. Implied their expansion strategy will be revealed quite soon, so worth I think watching out for that. But mainly the reason for the post is to highlight how a short interview that doesn’t reveal much can bolster investor sentiment. Would love a similar simple update from Jangada HQ! Good weekend all.
Thanks. I’ve looked for info on the plant in Zambia to try to see how progressed that is - but so far drawn a blank. But part of me thinks it must be reasonably well progressed for them to start the process to amend the South Africa approval - the consultants are probably not cheap to do on a whim.
Dcat, think the Highveld tailings are 32% TiO2 content, so processing 120kt gets to 38t of pigment. Agree it must comfortably support Pitombeiras at that level, but where do you get the 42% figure from for the 66kt, I couldn’t quickly find that?
Anyhow, I’m assuming it’s not possible for the DFS to be based on Fodere’s technology when it is released with the TiO2 to DFS standard. Would be interesting to know how the board plan the sequence of the information flow coming down the line without it becoming a drip feed. Maybe that’s unavoidable and you have to produce the ilmenite first before doing the Fodere processing step anyway, who knows.
Interesting update on the website of the environmental consultants handling Fodere’s planned project in South Africa.
https://savannahsa.com/public-documents/waste/zero-waste-recovery-plant-expansion/
Suggests they are applying to increase the throughput 5x which to my reckoning would mean 120kt of tailings processed per annum. If the comment “ It should be noted that the footprint and workings of the already authorised Anglo African Metals Zero Waste Recovery Solution will remain the same.” can be interpreted to mean the capex investment is not too dissimilar to before, the payback using this technology should be fantastic. I still have not come across any different information to the news article posted before about them investing R280m (around USD20m) for the South Africa project.
I guess we still have to wait to learn if the Fodere technology is going to be of any help processing the ore in Brazil, or if indeed the pilot plant works at all, but think it’s potentially very interesting if Fodere have tweaked the technology to get a bit more throughput.
Quite a big trade of 380k earlier I see. Can’t believe that’s a sell. Fodere’s linked in post must have been slightly before. Hopefully there is at least one of the Fodere shareholders (much expanded per my previous posts) with a vague interest here too*.
* apart from NVS - next time he sells, I sell too. Or in my case, I don’t use as an opportunity to buy.
Biggest new thing I’ve spotted is the summarised cash flow in the appendix of the presentation. Not many do this, I suspect because if they did it might show cash flow mostly at the end despite an apparently mega NPV.
Plus my presumption is the presentation will actually get presented at some point where we can gauge the mood better.
One step forward today imo.
Thanks Dcat. My message from IG has a link to the homepage of the Jangada website but I can’t see any notice there. And I can’t see last year’s notice either for that matter so maybe I’m not looking in the right place. The results RNS said there would be a further announcement so have to assume all will become clear in due course….
I don’t think it would take much to change sentiment here enough to at least stop the price sliding, perhaps even just announcing a date for a future investor presentation. Issue presumably is they don’t know when the final info needed to complete the FS will be ready and don’t want to announce a presentation (or the AGM date) till then. But I noted at the very end of the April RNS it implied the technical report was actually issued on 31 Jan which is now 5 months ago. Surely we have to be close now.
Interesting new filing at companies house to show a new director at Fodere who seems to me to be the previous CEO/Chairman of Tronox. Quite a big hitter for such a small company, suggests to me they do have something interesting. Guessing maybe an IPO is getting nearer, unless he just wanted a seat on the board to protect a planned investment in the company.
Also on there is a correction to the shares issued last November and the company secretary firm seems to have departed - so to my previous comment looks like we kept the 3.6% interest after all. Admin wise, with late accounts filings etc., they do seem poor. But I guess what matters most is whether the tech works and we can use it if we need to. Taking an age to get the pilot plant up and running though, hopefully we’ll get a proper update in the next presentation/annual report… for now it’s just more guessing what’s really going on…