The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
I need to listen to that 2 or 3 times to really comprehend. But 2 points really stood out. Firstly we have an exclusive licence with Draslovka for Zambia and the Congo. Just proves intent to move into the Congo! This is unquestionably a monster in the making! Go get the Congo, Leon. Secondly the Mopani MOU is about to happen! That will give 31k tonnes of refining capacity plus copper solution and all in the near future. I get the feeling, the copper roll out is now going to make the chrome rollout look like a snail in comparison!
Dorf, it certainly would. But i am very hopeful now, the world economy is starting to pivot. China is stabilising their property sector. Inflation is gradually falling in the states, hopefully meaning no more rate rises, which means a weaker dollar. A weaker dollar naturally means higher dollar traded metal prices. Add in a gradual world recovery off the back of peak rates and who knows? This time next year Rodney? But one thing for sure, when the recovery comes, we will have 3 metals in play and not just PGM’s!
So over sold Sumo! Somethings gonna make a differencevsoon!
If its not Project M, Leon did want to squeeze another module in. If the cathode capacity is full, theres plenty of money to be made from copper solution.
Hopefully Sumo, could also be something linked to the Northern project. Maybe linked to Mopani. So much happening.
Seis, that really highlights the magnitude of Roan! I think we are going to get quite a comprehensive update on Roan,Friday. Hopefully they are very close to commissioning or maybe we even get a commissioning RNS, Friday morning. If so, cash flow will be considerably enhanced providing the key to the North.
Totally agree Jonah. @ HD, i would think the modules are very much proven and based on their lessons learnt from Roan and to a certain degree the extremely successful chrome roll out. The only concern here is rainy season and thousands of tons of material has to be moved to the Roan complex. Its no longer just Roan! You only have to look at the time lapse provided by Seis, to see the network of roads feeding Roan! Hopefully plenty of material gets through. This is the only risk now, in my mind. At least its a limited period risk.
Well Northern, it doesnt look like those warrants were taken up. Got to be good for all other shareholders.
Looking at todays discussion. The past 12/24 months are irrelevant now! Especially to prospective shareholders. Do you buy into a company at the top of the market ( HUM ) and still doing appallingly! Or do you buy into a company at the bottom, that is about to undertake a massive expansion? One that is severly over leveraged ( HUM) or one that is not. Simple in my mind.
Definitely seems to be a changing mood Jonah, even Hunt talking about cutting taxes. Hopefully were at that pivot movement. Had a close look at the presentation at the weekend and i note the expected 2,000 tonnes per annum from the module is assuming a feed grade of 1.5%. Whereas the RNS states a minimum grade of 2% for the life of mine contract and subsequent RNS states 3,000 tonnes per annum from a 20kt module. So if the feed stuff is a minimum grade of 2%, it would seed seem closer to 3k tonnes more likely. Makes a huge difference.
Edzi, apart from capacity discrepancies. Its concise, understandable and much easier for a new investor to understand. This document makes it harder for the average deramper to cast lies and misinformation. For example, it clearly shows Sable in play at an easy glance, discrediting certain individuals. Its not going to make much difference to your seasoned investor, but i think it will help new investors no end. Hopefully a new web site to follow.
I feel, this presentation is getting the really important message out there. Copper ramp up is about to begin. The Southern project is just the tip of the iceberg. The Northern project is close. Its now in their hands to conquer Zambia and i presume on to the Congo. Cash flow should make life much easier shortly. We must remember they are ramping up chrome production simultaneously! The company is moving at pace now.
Seis, totally agree, the concentrate will be in addition, plus the capacity on the presentation for the modules is less than disclosed on the RNS, so they could be being very conservative here. Also Leon is trying to squeeze a third module in, which will increase capacity further. He did say the second module would be 50KT, but it would appears its only going to be 20kt, maybe sited at Mopani?
Dorf, just looked at the new presentation and very impressed in comparison to previous documents. This fills in a lot of blanks and pretty much sums up the Southern strategy. Hopefully we will get similar soon for the Northern strategy. Looks to me like Neil is already making a difference. very concise and simple for new investors.
Morning Dorf,
The modules are simply condensers in the same manner as Roan is. Feed source goes in one size and comes out much smaller, making it much more efficient to go through the refinery. The modules are easily produced and deployed taking 6-8 months from order to going live. They can vary in size depending on the size dump they are dealing with.
So, this is my take. Firstly there are basically 2 types of feed stuff. The first being what was termed as rocks at the AGM. This is the waste that is thrown away by miners. So it has never been processed before. The industry deemed this as impossible to process and simply discarded it. It was basically removed from the mine to get to the easy to process ore and binned. When Jubilee started this concept a few years ago, this material was not on the agenda and is a huge bonus offering massive extra capacity. Jubilee have already announced a life of mine contract for this material and this type of material is going to be predominately processed by Roan. This I took to be the first priority to get Sable ramping up around Christmas time with predominately this type of feed. There appears to be great potential for this type of ore, with many contracts being discussed, but with the priority of getting Sable up to 14k tonnes in the New Year. Biggest risk as i perceive it, would be getting the material to Roan, the first module and Sable because of rainy season approaching. The infrastructure is appalling in SA. Hopefully they have been stockpiling and the roads remain good. The plan is to get Sable up to 14 tonnes imminently with any excess material being sold directly in to market as a 20% copper contained solution. This process can then be replicated, for other miners as cash flow allows. There is plenty of feed source to attack and is constantly being produced. This nut has been completed cracked and roll out is on its way, along with the cash flow this will produce.
Secondly we have tailings, material that has already been processed, but not all the copper was recovered. It would appear this nut is very close to being cracked and i think they will be in a position by Christmas to confirm this after the semi commercial trials have been concluded. All the trails so far have been extremely successful with extraction at as much as 80% of copper, which i believe is outstanding. They are using the Draslovka process technology in this process. No doubt this will come with some sort of fee, but in comparison to the potential of releasing 80% of the contained copper, fades into insignificance in my mind.
Whilst there will be clearly no funding requirements for the southern project ( Sable & Roan ) as virtually complete, im not so sure for the Northern project and how big they want to go initially. But i perceive funding should be relatively easy with the cash flow provided by Sable and the excess concentrate sold combined with the current asset value.
This is just my take.
Edzi, timing the market is impossible, especially with the geopolitical storms around the world. Was great to see some better news from Biden & Zi. Dhould calm some nerves. But im sure you will look back on this in 2-3 years and think your timing was near on perfect!
Edzi, at first i presumed that test was ordered at the request of the banks. Until the partnership was announced and Seis posted the Draslovka flow sheet, which explained the pilot semi commercial plant test. I am now thinking there is no finance to be arranged as its pay as you, module by module. Unless a big purchase is announced? I cant see where there is a need for finance at present. What are you thinking?
Edzi, they are expecting the results in December. They started building quite a few weeks ago. Can only hope it is on schedule.
Its only Roan that is being upgraded. Leon said they will try and keep Sable going to some capacity.
Old D, it may not be as bad as feared because Sable is still up and running. Hopefully they stock piled some material to process. Hopefully your right and we see some rapid increases with increased copper production. @ Dorf- just ordering my wings! But definitely agree. @ Jonah- it can only get better from here! Or make sure you pick the ground floor ledge!
Morning everyone. Im feeling more confident at present. Not just with Jubilee after the AGM, but with the market as a whole. Has a pivot started? markets are forward looking, right? Even Biden & Zi talking! Has the market started to price in a recovery/ falling interest rate world? If not, is it on the horizon? What is everyone's thoughts? Maybe a great time to be going into commercial copper production?