Member Info for NorthernShark

LinkedIn post by Chris Koen - Head of Mining, Zam for JLP with a picture building modular apartments for the operators at Munkoyo.

Interesting interview with Duncan Wanblad (CEO of Anglo) on Bloomberg this morning. Seemed confident on PGM price recovery and very bullish on copper despite the recent pull back in prices (Copper apparently an emotional metal and prone ot large sentiment swings but the fundamentals are very strong).

Lots of talk of sales and demergers. At what point does the thought of demerging the chrome/PGM operations (cash cow and could be decent dividend payer) and copper operations (high growth) become a discussion at Board level?

ATB Northern

HappyD,

Not sure if we will have to wait another month as the quarterly update will be production numbers (which should be in line with what has previously been stated) rather than financial numbers. My reading of the closed period wording is that this only applies to financial results - but not something I am overly familiar with to be honest so would take that with a pinch of salt.

I was hoping for production numbers this week.

ATB

Northern

Afternoon Edzi,

What would you a wrong reason for purchasing the shares? I know some have lost a degree of faith with the board but to suggest a nefarious reason I would find a little strange.

ATB Northern

I think its safe to assume Roan is working as planned!

Neals purchase is interesting in terms of timing as I would think the Q4 production results are available now (Q3 out on 18.04). That said if there is no material change to what has been forecast then wouldn't expect it to be a closed period.

Just looking back at the Q3 announcement - "The construction of the second Thutse chrome processing module, with a capacity to produce 300ktpa Ch Conc, remains on track for completion in Aug-24 and will bring Jubilee a step closer to achieving its targeted production of 2.1 million tonnes of chrome concentrate per annum." Should provide another earnings catalyst in the short term.

In terms of Zambia - there has been some discussion about the IRH progress slowing. If we take the raise at face value then the modules will have construction slots anyway. If not needed at OB1 for a period then could they be diverted to Munkoyo and Project G?

ATB

Northern

Mikie, Ricus Grimbeek is the Chair of Makor Resources as of a month ago...

"Bond Equipment is thrilled to announce a major leap forward in our production capabilities with the installation of a state-of-the-art robotic Python Cutting Robot.

This substantial investment marks a new era for us, significantly enhancing our ability to construct heavy beams, channels, and other profile sectors with unprecedented efficiency and precision.

The new Structural Robotic CNC coping machine is a game-changer, capable of processing structural sections up to 1,219 mm x 457 mm. Its advanced cutting capabilities include:

⚡ Weld prep bevels

⚡ Notches & copings

⚡ Slotted holes

And that's just the beginning. This cutting-edge technology empowers Bond Equipment to stay ahead of the curve, ensuring we remain at the forefront of the industry.

We're excited about the endless possibilities this investment brings and the value it will add for our clients.

Stay tuned for more updates as we continue to push the boundaries of innovation and excellence in construction."

Sorry to hear about your daughter BB and hopefully she is on the mend.

Similar to yourself I have been adding a few over the last few months.

As Mikie points out things have taken longer than anticipated but the SA operations in fine fettle and boosted by the stronger chrome prices - also primed on the PGM side if prices improve which many expect them to.

Zambia challenged by getting Roan up to speed but the ducks are lined up with feed secured and facilities pretty much built to take advantage of the strong copper price. Worth considering the copper price when they first went into Zambia vs now.

Going to be an interesting few months but look forward to catching up at the AGM.

ATB Northern

Welcome back BB hope all is well.

The numbers from the broker (WH Ireland) are currently under review (and I would suspect conversations with the company). Might also get something from RBC at some stage?

Northern

Project M from previous comms was 1.5%-3% so think this is the better number to be using

I like the videos as you get the sense of scale of what is being built - these are some serious operations!

I am sure the market will wake up at some stage and as the market cap grows this will allow other funds to add holdings which should also help the SP trajectory.

Grab as many of the high grade opportunities as we can then we can fit the operations around the material!

Not too long before end of year production numbers - I reckon chrome will come in at circa 1.526k tonnes and am also expecting some third party oz's of PGM's. Would also be good to get some timelines and more details on copper expansion plans as well as Thutse 2 and 3!

ATB

Northern

Sumo, no official word one way or the other. Leon said we would hear shortly. The drilling definition makes sense but may run concurrently with the core module production.

Only a few weeks to wait before we get more information.

ATB

Northern

Nice to re-focus Mikey!

I agree there is much to look forward to and undoubtedly there will be delays or changes to strategy as we move forward but the overall direction is hugely positive.

I share frustration that this isn't fully understood by the "market" but sentiment changes very quickly. Happy to have added at these prices in recent weeks as well.

ATB

Northern

Gray, the results presentation where Leon and Neal presented gave some good indications on toll processing vs own feed percentages and what to expect going forward so maybe a good reference point.

ATB

Northern

Mikie, intuitively my preference would be to update an existing refinery if possible as would shorten the timescales and potentially be lower risk and lower capex. However, a new facility would probably be state of the art and tailored for the required feed sources. Good job we have some good process engineers in the company.

Thanks for posting Seisnav, much appreciated.

ATB

Northern

Did anyone get a copy of the updated broker note after the annoucement earlier this week? Behind a paywall unfortunately so couldn't get access.

Similar opinion to Mikey in terms of results but should be showing an upward curve in H2 in comparison to H1. May also depend on if they have used the third party PGM processing capacity. This may not look great from an accounting profit perspective but might be used from a cash management angle.

ATB

Northern

Gray,

I agree cash management is key and a well managed strategic capital allocation plan which I am sure Neal is focussed on delivering.

I also agree there are some unknowns about the splits between sulphide concentrate, oxide concentrate and copper cathode production.

What I would say is that Monkoyo coming on stream early has covered some of the gap created by the Roan delay which means there has been a step up in production as the forecast production to this Sunday (yearend) hasn't moved - is just coming via Monkoyo/Sable rather than Roan.

Lots to look forward to with Sable getting close to capacity and Roan finally producing in month 1 of the next financial year. I am optimistic as we have the feed source, the production facilities and a positive forecast for copper demand.

Also looking forward to the OB1/IRH update / plan in the next 8 weeks as well. Profiling 70 years of production and 260MT of waste rock material obviously takes time. Rather get this right up front so the modules can be sited approrpiately and optimised accordingly. If the core manufacturing can be completed in line with original schedules then they may not be too far behind the original schedule.

ATB

Northern

Gray,

Don't agree with your need on dilution. Just because the 25k might not be hit for 12 months, it doesn't mean the copper earnings will not substantially increase in the interim. Monkoyo material is now going through Sable and as they kept the year end forecast for copper the same you could assume this has made up for the delays at Roan. Project G will add to this in the short term as well.

As more material goes through Sable the effective cost per unit is reduced.

My view would be that they can self fund the modules (as IRH are funding the others at OB1).

Where they may dilute is similar deals to those announced yesterday but these would be earnings enhancing. I wouldn't view this as a NEED to dilute but rather an option to increase overall enterprise value.

All the best

Northern

Edzi,

I know there has been a lot of talk around Chambishi but there maybe another alternative. Horizon Mining who we did the deal with for the tailings at Kitwe apparently own a "refinery that produces LME primary cobalt metal and copper" under Copper Tree Minerals www.zccm-ih.com.zm/investments/mining-assets/copper-trees-minerals-ltd/.

I don't know the capacity etc... but could be an alternative.

ATB

Northern