Edzi, i make you right and it would be a good time for a complete update. I do think they have had the test results and moved onto the large scale testing. Seis posted the Dopravka flow sheet a few days ago and it appears we are on stage 4, which i believe leon said we should have the results in December
https://www.draslovka.com/content/files/downloads/GlyLeach%20Brochure_English.pdf
I do think we may be looking for more than there is out there now. Probably because the share price has dropped so much, we’re looking for the problem. All caused by previous reporting failures! I am hopeful its a home run now, but dome clarity is necessary to reverse the share price decline.
I agree HD about grade, but Roan was always intended to process ROM from various third parties and tailings.
I believe, the plan is to place the first ones at Roan as the infrastructure is now there and capable of taking another 3 modules. Its the cheapest way to get commercial production underway. The strategy changed when the Zambian government supplied more water and electric than Roan required.
HD, Roan was a greenfield site. Needed all infrastructure to be implemented. Was built during lockdown, when costs, delivery etc spiralled out of control. The new modules are being placed at Roan to take advantage of the new electric and water supply, keeping costs to a minimum. Plus they now have the experience they have gained over the last 18 months. Roan should be capable of 10k per annum once the upgrades are completed if not already completed. If not its time to ask questions.
Evening Jammer. Yes, i cannot disagree with your summary, except at the current stage, i do not feel there is a need for extra funding. One of the statements the chairman made at the AGM related to not over stretching the finances and creating problems. At present we have Sable up and running, with Roan and the first module about to come on line. Assuming these are now successful, of which they certainly seem confident, the free cash will flow as you say. Im not sure how much cash the next stage would require, with the second module already on order and the Mopani refinery already secured. Obviously Mopani would need a refit and the second module installed. If Roan and the first module are performing as planned and it takes 3-6 months to complete the refit of Mopani and the installation of the second module. The free cash flow generated from Roan and module one, would certainly assist here. I see funding becoming more relevant if they want to expand faster or look beyond this with say the purchase of another refinery like Chimbishi. Otherwise its one module at a time until the 31k ton per annum capacity is used or cashflow allows more. Seems a great strategy to me, at least thats my thoughts! Whilst i cannot disagree with your view, as only the next few months will prove Roan and module one competent or otherwise. I am taking the opportunity to accumulate more shares at this price as i feel the chrome and PGM business more than underwrite the current share price, especially when you consider the expansions planned and greater chrome profits about to be enjoyed. I do very much believe the current share price is an anomaly and as the earnings of the current year come through in South Africa ( chrome and PGM ) copper aside, there is not much risk at buying at these levels. Just my beliefs!
The reality of the situation here is Got Real is right. Look at chrome. It only takes a few months to install a chrome module as we have seen and a few more for the long lead items. The ninth module is about to be fitted after only a few years, with the pace of installations rising fast. Once the industry for chrome was established, the roll out of new plants has been crazy in comparison for how long it takes to create a new mine. Expansion and development is rapid. As is testament to becoming the largest chrome producer in the world shortly. With the added bonus of escalating PGM production. Now for copper. Jubilee are about to establish another new industry in the production of copper, through various recovery procedures. This industry has taken several years to establish and is now about to follow chrome with the roll out of copper module after copper module, which no traditional miners could compete with even in the wildest derampers fantasy! With Sable proven and ready to go, plus the Mopani binding MOU in our back pockets, copper is production is set skyrocket. I wouldn't mind betting we acquire Chimbishi as well. My guess is that Jubilee will have more copper modules than chrome modules in 3-5 years time.
About to become the largest chrome producer in the world!
Thats a great find Seis and looks like we are at step 4 with the semi commercial test plant being built, maybe completed now. They expected the results from this sometime in December, alongside the completion of module one! It sounds to me like step 5 may be very close.
Edzi, from what i understood, i would agree with Jonah, but further believed each module is designed to deal with the particlar dump. Each dump is individual dependant on make up, age, exposure etc, so there is no one fit cure, but each dump processed on its own merits. So whilst they have cracked a lot of the opportunities, they are still working some and constantly looking to improve recovery and costs. They were very enthusiastic about the rocks as i think this was a major breakthrough, with so much material available and constantly being extracted.
Haha, the elephants! The good old fun days! They will soon be stampeding the likes of Bushey and his mates. Once they start running there will be no stopping them! Module after module. Suppose it will be a name change again for you then Bushey! I can think of a few????
Further note, this is all very close and copper is closer than believed. Think this point was very well illustrated by the seeking Alpha note. Does anyone have a copy they can post. But i believe he wasquite surprised at the speed copper was coming and going to influence the accounts.
Further note Leon is adding one more module, which i presume will also be at Roan and wont be far behind the second one as Leon has confirned he is trying to squeeze this one as he has capacity for 3 modules. Which in my mind utilises the full capacity of Sable and Mopani. 17k and 14k as set out in the binding MOU RNS.
It would be great to have an update to that, but remember there are many components to the site of Roan now. Firstly you have the upgrades to Roan itself, which i believe there were several. Then you have the install of the first copper module at Roan, then you have the install of the second copper module. The first one i believe is due to finish in December. The second was on order and about to start. This is why there were so many different dates all referring to different components of the upgrade. Then we all know Roan itself is way late to the party! But i feel when they talk about copper strategy being ahead of target, they refer to the 25 tonne per annum target as this is likely to be achieved very quick, almost in one go, between, Roan snd the two new modules. I believe the strategy changed completely when Roan had the power and water upgrades. Allowing the 25k target to be busted relatively quickly from ghat point, but more importantly without too much expenditure on new green field sites! Ofcourse greenfield sites will have to come for further growth, but by then hopefully copper is very profitable. My understanding anyway!
HD, i think another reason for likely prioritising the 450 ton extension over the 600 ton new contract may be the availability of distressed assets over the 6-12 months. All the infrastructure is in place for the extension, whereas they might be thinking cheap plant / infrastructure may become available as the industry takes heavy casualties in the bear future?
Totally agree Dorf. There is a lot of construction, engineering and testing going on. A little patience now and commercial copper production will be added to chrome and PGM’s. Its only a small number of weeks away. Then its just as quick as modules and refineries can be constructed. A process that will become faster and easier as revenues rise as module numbers increase. Its been an incredibly hard slog for shareholders, with 1-2 years in the dark, but i firmly believe the light is about to shine. Once metal prices start to move and they will, all hell could break lose here. Just need to find a little more patience!
@ Gotreal, im guessing the Bush is down to his last few pounds and becoming more desperate by the day!
@ HD, i dont think they will announce the 600 ton contract for a while now. Their plate is pretty full with the 450 ton additonal Thutse module, starting very soon. The Roan upgrades, which i believe are scheduled to be finished at some point in December. They are completing the installation of the first/new copper module at Roan, whilst awaiting delivery of the second and Leon is hoping to squeeze the third in. That is some serious expansion and growth happening now. Plus i would imagine they have the refurbishment of the Mopani refinery very soon. Im pretty sure in a few months, the potential earnings/ production will be in a different league to now.
No promise of an RNS Sumo, but i would be surprised if they dont.
Yes Gotreal, plus the latest quarterly update that states there is capacity for 3 modules. During the AGM, Leon stated one module is nearly installed, one is on order and im pretty sure he said he was going to try and squeeze the third one in. Perhaps some one present can validate or discount that. All seems to tie in with the binding MOU and Sable combined capacity.
Maybe forward selling the copper on an off-take agreement to fund Chimbishi? An off take was mentioned as a way of raising capital at the AGM.
“Jubilee establishes a refining presence at both its Sable Refinery in the South as well as at Kitwe in the North to better serve all of its secured copper & cobalt tailings projects - targeting a combined refining “capacity of 31 000 tonnes of copper units per annum”.
Just lifted this from the MOU for the Mopani Plant. Im now wondering if this is what they mean by capacity for 3 modules. I initially thought it was enough infrastructure at Roan, but i now think it's refining capacity. If you allow 10kt for Roan and 3 modules at 7kt you reach the max processing capacity of Sable and Mopani at 31kt. The MOU rns states they plan to beat their target of 25kt and now all is starting to make sense. In theory with Mopani only needing a make over and only one more module required to complete the 31kt capacity, this could all happen very quick. Funding more modules and Chimbishi! What is your thoughts Seis and everyone? Sounds plausible?