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Tjate isn't so much a waste of money, but will be so expensive to develop that it has little value to us because we couldn't afford to do it, imo. It will require deep level mining, with costs running into $100's millions over many years to develop a new mine before any returns are made. The low price of platinum for the last 10 years or so has meant it's not really viable as it may only just about break-even or create only a very small profit over the life of the mine

Also, (imo) the value to us will only come on a sale of it, or partnering with someone who takes a large majority stake in return for paying the costs. That will probably only happen with long term increases of the platinum price above £1200/oz.

However, an interesting situation is occurring with the overall PGM basket price with huge increases in palladium and rhodium. It's possible that the economics for Tjate have now changed without platinum getting back to desired level.

Quite right tbtt, my mistake, it’s 60k tonnes per annum not per month, misread it in a hurry while on the mobile.

But I’m still a bit skeptical about just how significant this deal is for jlp. No doubt star zinc is a good resource and will deliver returns for both, but just how much profit and what the costs will be remains to be seen imo.

Ka****u looks like the better option more suited to our Kabwe operation with vanadium as well. But that will probably require the cash flow from star zinc to progress.

It does look like the off take agreement with GLR isn’t going to be quite the deal that some were predicting. A grade of not less than 14% must have thrown a bit of a spanner in the works, and it looks like it may now require some pre concentration prior to trucking to Kabwe. Their JORC statement was for 500,000 tonnes at 16%, so at a slightly lower grade at 60,000 tonnes a month, there’s maybe one years supply.

So despite previous claims no extra funds would be required for starting mining, it might explain this part of the GLR RNS:

“Mining targeted to commence Q2 2020, subject to availability of further funding and grant of mining right including environmental permit“

I do also recall DCM pgms being stated as 100% earnings to JLP. But not sure if this has perhaps changed as a result of the revised agreement that gave us 50% of chrome earnings as opposed to 0 on the original plan.

Good to see a presentation announced, normally they're just quietly uploaded on to the website. Adds in a bit more detail to the time lines to be expected, looks very positive.

And perhaps an indication a significant deal is in the making and on its way soon. Often companies will produce this kind of info when they're trying to raise the profile among investors in order to raise finance. Don't see that as a problem myself, at the moment we've got strong growth prospects from existing projects for a few years, but good management should be looking beyond that to set up the next phase of growth.

Or maybe this presentation is just part of the improved comms they've agreed with the major shareholders?

Posted this article on platinum price forecasts previously, and there is good potential that the current platinum price is an excellent sign of things to come. If the price remains above $900 for 3 months, then the target price turns bullish with a first target of $1190/oz, which they predict to happen around the end of the year. So far we're almost a month in, 2 months to go, which ties in very nicely for our audited accounts in November.

https://investinghaven.com/commodities-gold/platinum-price-forecast-2019/

Thanks HG, could be the icing on the cake depending how much there is. Maybe not much which is why they’ve not made a big deal out of it, but could be just enough to get the plant running and/or keep it going if there’s any supply interruptions.

Just wondering if the historic copper tailings could have come with sable? There has been no mention of the acquisition having a tailings stock pile, but it wasn’t bought for that purpose so may not have been relevant at the time. We do know the plant was producing copper and so would have created tailings, but not clear who would own them.

Seems that DW is spot on when he says drilling Charlie 1 will be a pivotal moment, and just after that "we enter into this critical phase". Still huge potential here, but with not getting full uptake on the placing this time and you have to wonder what we'll be able to raise next time if we have another unsuccessful well.

But its already been proven that there's oil where we're drilling charlie 1, we just need to get it to flow. Success here could change everything.

And must admit I'm not particularly enthused by the further mention of new opportunities on the north slope. Always seen previous lease additions as positive, but do feel we're at the stage now where we shouldn't be looking to take on further costs and risk before we make some progress.

Jiddy, 66m is the population of the UK. 17.4m is not a majority of 66m, and the MPs have a duty to represent everyone, not just a minority.

As I said, I think best to not have a brexit debate here. If parliament can't come to an agreement, I doubt we can either

10.32 - That could be a reason for the fund raise, rather unknown at this stage. But the $23m price tag on Charlie is significantly more than Winx. Both wells designed to target multiple horizons. The plan for Charlie is also for a horizontal drill later on, so perhaps that's where the extra cost is coming from, but the depth and targeting the HRZ for pressure cores could also be a big factor in the additional cost.

I don't think we should get into a brexit debate here. It would be just as valid to say that 17.4m is not a majority of the 66m people the MPs are representing. So I think we should stick with 88e discussion :)

Jiddy, I wouldn't go as far to say we rejected cash from PMO, there is simply nothing to confirm cash was ever on the table.

But we do know from the drill that PMO are funding will also be targeting the HRZ, which is a target not included in the farmout. So they are paying for us to get data to help prove up the HRZ which they won't benefit from. Perhaps this was a redline from DW, and he took that over cash to get that data and avoid giving away a share in the HRZ at this stage, but we just don't know for certain.

If it works out, that data for the HRZ could end up being worth a lot more to us than any cash we might have got from this farmout, even after taking the placing into account.

After we announce the audited accounts for the financial year just finished I think we'll start to get a lot more coverage. (If as expected those accounts show we've finished the year with our first annual profit)

More commentators and analysts will start to notice at that point. It won't take long for them to piece together:
- currently in profit, +
- proven low cost/risk production +
- more earnings streams started and ramping up since year end +
- Kabwe production about to start

Yes he did appear to say that PGMs were battery materials. Maybe a mistake from someone who doesn't really know what the metals are used for, they didn't really seem to know what vanadium is either.

But to give him the benefit of the doubt, he may not have made a mistake, amplats is actually developing a battery that uses platinum:

https://www.bloomberg.com/news/articles/2019-08-13/platinum-giant-wants-in-on-batteries-to-ease-electric-car-threat

https://www.angloamericanplatinum.com/media/press-releases/2019/15-07-2019.aspx

Miloh, oil & gas is about 8% of the US GDP, largely due to fracking (about 60% of US oil is from fracking). Does anyone really believe that any politician is going to remove such a large proportion of the GDP from their economy? It may sound good on the campaign trail, but reality is very different.

9.05 - Yes I noticed that as well. It seems a little odd to me for that to be thrown in because the amount we're raising is not huge, but looks enough to cover cost commitments into next year after the drill results. I can't see that there'll be a lot left over to go after something else and have funds to do anything with it. Only thing that could be a viable option for us at this stage is something like the deal UJO got on west newton, with a small stake for little cash in someone elses drill that is ready to go.

Everyone knew cash had to come from somewhere after the farmout didn't include a cash element, so its not really surprising.

Dilution and placings never ideal, but now its out of the way we should be able to move forward after the initial drop by MMs to the placing price.

Fully funded drill, company fully funded until well after the drill results, and possibility of other news in between such as tax credits being paid, HRZ farmout starting, maybe even a Yukon farmout starting.

Nice video clip here discussing JLP:

https://youtu.be/jvhBKyH_szE

Seems that its only two companies involved in the wage dispute and possible strike action, amplats and sibanye, so shouldn't affect us in a negative way. Could be that its a sign higher wages across the sector will be pushed for, which will increase mining costs and end up resulting in cuts to production.

But since we're not mining then its not such an issue, and any cuts in production elsewhere that lead to reduced supply could end up benefiting us.