Member Info for NorthernShark

Nelson,
I think when we start to see production figures then the re-rate will happen. Given the supply chain impacts of Covid the progress has been impressive.
Lower metals prices a slight dampener but JLP is still profitable at lower prices and may pick up other projects at a better price point than would otherwise have been the case.
Cobalt sales price will be a key factor for me - not clear to me if we are selling an intermediate product and what % of the market price that would attract - if anyone could qualify this it would be much appreciated.
I fully expect quite a run of newsflow in the next weeks and months which should support interest in the share. In the meantime I am looking to add some more.
ATB
Northern

Kaiser, I have a few TYM as well so spotted that this morning. Not sure this will be number 4 as I think they will site this close to a large waste dump. Does tie into their strategy to take feed from many smaller sources which the government is encouraging by the sounds of it.

Interesting few weeks coming up. Year end earnings within 2 weeks I would think and long overdue an update on operations and strategy.

ATB
Northern

Homey,
Sorry, but you have said in the past you are shorting the stock - hence why some may view your opinions as overtly negative - so you can make a return.

Hence why some investors may take what you say with a degree of caution.

ATB
Northern

Charles,
Are you being serious?

This role is about opening doors to major global players who between them must have a large volume of dumps which need cleaning up (Vale given past history). The problems you mention are just that, and we become the solution.

For me it could be transformational and takes us into the big leagues with seriously big players.

ATB
Northern

Interesting

Vale had a JV in Zambia at the Lubambe copper mine with African Rainbow Minerals... who run the Nkomait Nickel operations in South Africa’s Mpumalanga province. Maybe Peet and Mr Oliviera met when working on the project and know each other...

"Mr Oliveira has profound knowledge and contacts at Government levels in a number of African and South American resources jurisdictions"

Homey, I am sure there will be a ramp up phase as with all operations but the fact we will be producing cobalt and proving the solution before the northern strategy completes is good news I am sure you will agree. Coupled with the fact it is a by-product the processing costs will be low.

Also, I am not sure why they would have a capacity unless they were going to fill it! Just spreads the fixed costs of the refinery over a broader production base = higher margins.

Timing on when the various revenue streams will hit are still a little unclear I agree. However, hit they will and most here are happy to see this story play out. Don't look at the road, look at the destination!

ATB
Northern

Thats an easy one Sumo - he/she is short and has admitted as much

https://www.***************************/jubilee-metals-group-deliver-a-new-large-sustained-company-video/4121065032

Some interesting comments on the JLP board taken from the GM today regarding the potential JV.

Northern

My other question is how many other dumps are available in Zambia? Leon or Colin mentioned this at some stage - 1bn tonnes of waste material?

There could be another couple of sizeable dumps which JLP could add to the stable before looking at another territory...

Northern

Sorry Charttopper you are correct.

In the grand scheme of things not too big a delay given supply chain issues.

Plenty more to look forward to!

Commissioning May with full ramp up by July is my recollection.

Inyoni operating at 14% over design capacity and low operating costs
Eastern Limb - mothballed facility rather than new build = relatively quick ramp up
Roan - nearly up and running
Cobalt - potentially massive income stream from a by-product

Executing well in a tough operating environment. Also good to see the local employment in Zambia which should help keep government on side and lead to other opportunities.

ATB
Northern

JLPpositive,
My guess is there will be an announcement before Monday. I would guess on Thursday (favourite day for releases) they will give an operational update to take into account the performance of Inyoni post-upgrade and Roan.

I could be wide of the mark but think this will be choreographed to provide some more answers in advance of the Monday meeting.

ATB
Northern

BM, note 4 to the accounts. £18m intangibles write off of which £17m relates to the Nickel project. Page 83 of the annual report so should answer your query.

ATB
Northern

Welcome BM. Check the notes as there was a 17m non cash write off in respect of a Nickel Project which might explain your difference,

ATB
Northern

Summit,
Look at the accounts and it will show you they are generating cash from existing operations. However, as the company is in a growth phase they are choosing to re-invest in projects with substantial future cashflows - in much the way an individual could re-invest dividend payments in more shares of a company to compound growth.

If you pay out to shareholders you risk more dilution to fund expansion or miss out on opportunities completely. Jubilee are at the forefront of the market and have first movers advantage in a massive market (tailings and dumps) so I for one want them to grab opportunities whilst competition is relatively low.

This is about growing the company footprint through selecting profitable, long term projects which so far the management has demonstrated they are adept at doing, albeit with the odd mistake along the way.

SLP is a better bet if you want a cash cow but current experience suggests it won't grow anything like Jubilee will in the next few years.

ATB
Northern

Frog, we would never be party to the commercially sensitive conversations that are taking place for obvious reasons!

If they said it would be for business development would it make any difference? It would certainly not be for working capital and keeping the lights on.

Northern

Frog, another view would be why would you want to take away the flexibility from management to act in a way which is value enhancing?

If 10% dilution brings a 30 year project with strong cashflows then we should absolutely do it. Can always do a share buyback when copper is fully operational and the capex requirements for that project have reduced.

ATB
Northern

That was my read Dorfan.

I read an interesting piece about the majors sweating the assets they already have rather than looking at major acquisitions as they have done in previous super cycles (which ultimately they overpaid for).

Got me thinking about the tailings dumps at Leinster and whether they could resurect that deal. Should be relatviely quick to bring to production as a lot of work was put in originally. Current Nickel prices make that one very attractive indeed!

ATB
Northern