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@Seis, Northern, now Mopani is concluding, news will be fairly imminent here. The Abu Dhabi crowd are obviously very serious about copper and not messing around.
The South African business is undervalued at this market cap. Earnings in South Africa alone are set to jump $50M with the two new modules coming on line this year. Crazy valuation with Roan and Sable about to join the party! Then there’s the IRH deal. With more project M’s in the pipeline, the IRH deal is the icing on the cake at the moment! But i just wonder how many cakes IRH and Jubilee are going to bake together?
Dorf, looking forward at the year to come is certainly looking much better than the year that has just passed. If PGM's continue to find strength, the two new modules coming on line are going to be incredibly influential. They will throw another circa 15-20k oz in the mix! The joint venture at Windsor will definitively have to come into play. The outlook for the bottom line is incredible. Massive increase in chrome coming at a time when chrome prices are elevated. Massive increase in PGM's on the horizon, when PGM's are starting to find some strength! Copper prices hardening nicely when a considerable increase in production is expected. We are spoilt for choice!!!!!
Indeed Northern, if PGM’s get a little stronger, i think its very likely the joint venture will come into play and start to process the excess stock pile. The last quarter could be an interesting one. If Roan is fully ramped by the end of April. Copper and PGM’s keep gaining strength. Windsor comes into play. Chrome stays steady, the last quarter could just be a little special. Lets hope the wind is behind us.
Https://www.nasdaq.com/articles/metals-shanghai-copper-hits-near-3-year-high-on-china-output-cut-concern
Can you imagine JLP, an RNS now confirming Roan is ramping up and the IRH deal is complete! Still, they are coming and copper is still rising! Even at somewhere near 50% capacity ,Roan profits are jumping!
Seis is 100% right.
Old d, i guess the more we can produce of both the better. At present we are limited to 12k tonnes of cathode. But the opportunity for a considerable up front payment on an off-take agreement must be on the cards here, especially when you look at the shortage of copper in solution around the world. This could be the key to Chambishi, which would unlock substantial copper cathode ability in the region of another 50k tonnes per year. What a power move that would be.
Https://www.reuters.com/markets/commodities/chinas-top-copper-smelters-agree-production-cut-amid-raw-material-tightness-2024-03-13/
Interesting news! I am guessing off take agreements becoming easier and easier in the current environment. Looks like copper through $8,700 on this news. $3.97 lb currently according to Bloomberg.
Graham, the quarterly update is scheduled for late April/ early May. They are fixed in stone now. Expecting some pretty good chrome figures, but news could drop any time, especially in relation to the IRH deal.
The options come into play today. They may slow matters down for a couple of days, but will soon be absorbed. You can feel the pressure building, with so much news and growth to come. Bar a disaster, this is generally on the up now.
Leon did refer to a lot of opportunistic feed supply for Roan and Sable to fill the void before M. So hopeful they will crank it up before M comes on line. Think this is the territory of Ricus.
Quite exciting really Seis. India having a big impact on chrome prices as well, so hopefully strength in chrome for some time. I believe they will keep adding chrome modules. There is still the contract outstanding that was referred to last summer! Add the next two chrome modules and PGM/ chrome earnings jump $50M, which makes new modules at $6M a piece very tempting. Especially if you are then stock piling PGM material for a comeback in PGM prices. The potential for new growth ratchets up, especially when Roan and Sable are simultaneously contributing. Really quite exciting ATM!
In my view we need to concentrate on cleaning up the waste rocks first. With typical grades 1.5 to 3%, they are outright game changers. I would be disappointed to tie up infrastructure and funds, to move onto the tailings when there are so many waste rock projects to develop. Fast forward a couple of years when we are awash with cash then develop the tailings! In the meantime lets get all the waste rock projects. Leon stated a dozen or so just near Project M, with some in advanced negotiations!
I get the feeling copper is just looking for a reason to jump up in price! Chrome going from strength to strength! Just need PGM’s to join the party. Never been so optimistic about the future. Previous highs going to be eclipsed in the near term.
Yep, totally agree Edzi, Ollies fingerprints all over it! Ollie was bought in to turn Jubilee into a multi billion pound company. He wasn't bought in to do two bit interviews, he was bought in to create a structure that can develop into a major. So far its looking pretty good.
@ JLP, this period reminds me of circa 2019/20, when the share price seemed anchored around 3p ish. No one could understand then why and we know what followed! 21p.
@ Jonah, the thought of Leon selling off the South African business has been circling in my head ever since the RNS! I have come to he conclusion i don't think he would entertain this. Its his baby and finally, heavily profitable, with the thought of PGM's rising on the back of US rates dropping is mouth watering when you add this to the chrome production, especially when you factor in the two new modules coming. When you add Sable and Roan at full tilt soon, the balance sheet is going to start looking pretty good, so i dont think he would be tempted to sell, to raise cash in the short term, when earnings are set to to rise significantly. However, i then think if he sold the SA business for circa 200-300M, the growth achievable in copper would be beyond anyone's expectation and in double quick time, creating a copper monster. But even with the cash growth is going to be limited to the production of infrastructure, but waste dumps could be secured. My preference would be to keep SA , growth is still going to be off the hook and i dont think Leon will ever give up SA, its too valuable for the long term.
Https://www.bnnbloomberg.ca/copper-climbs-to-one-week-high-after-powell-s-remarks-on-rates-1.2043590
The second half of this year could be very interesting! We all saw what happened to metal prices yesterday on the hint of a US rate cut! The impact of a couple of rate cuts could be literally dramatic!
Seis, was expecting a return a few hours ago!! Must have taken a while to create the new account. Very un subtle. RNS looks like it had Ollie’s finger prints all over it. Positioning/ structuring the company for some serious growth. He is definitely a committee man and probably the only way to structure Jubilee for the rapid growth about to come! Just shows the importance of Ricus and Neal.