Member Info for NorthernShark

Nimrod,
Whilst it is good that palladium is rising I think Rhodium is the one to keep an eye on as has a significant impact on the overall basket price and now over 20k.

Eastern limb basket looking very healthy despite the transport costs and probably in line with the highs of Q2 2021.

Second half PGM earnings should dwarf 1H based on basket price, higher production and greater copper output.

Northern

Heroic,
Important to put some context - JLP needed funding for the opportunity in Zambia and didn't have access to the funds at the time. ACAM filled that need in what was a risky deal at the time and had the convertible element to benefit from potential upside. The future cashflows from the Zambian operations now looks impressive from Copper alone let alone the other metals at Kabwe or the Cobalt in the northern tailings.

This has been on the balance sheet and has been known by investors.

I am happy that the balance sheet is now cleaner and gives the opportunity for cleaner debt funding for other opportunities.

I am not keen on additional shares being issued in general but in this case it unlocked a massive amount of value which we will see over the next couple of years. JLP can always implement a share buy back scheme when operations are at full tilt.

All the best
Northern

Pretty good investment from Acam all told.

I get the feeling that this is the key to opening up other deals. I wouldn't be surprised to see a lot of newsflow from this point forward.

Nice to have a cleaner balance sheet as well!

Northern

Happydays,
I do agree with you but the "market" is a fickle beast.
We are producing copper but I believe investors are awaiting confirmation Roan is fully on line and producing in line with forecasts. Lets not forget the SP has had a decent run from the depths.
I am sure our SP will rise in line with the fundamentals of the company and the projects being delivered - of which there are many and profitable ones.
A slight addition to the list maybe Zinc - given the price rise it maybe they get this running at Sable. If memory serves correctly this was a relatively quick process as well.

Northern

I agree Dorfan - some patience required.

Leon and the team rarely stand still so I am sure there is a lot going on in the company -
Inyoni at full steam post downtime
Bringing Roan to full capacity
CMRS JV sampling
Northern copper project planning
Eastern limb?
New Chairman?
Plus of course the plan for global rollout

I have some sympathy for those looking for a return over a shorter time frame, and can see why they would want more frequent newsflow. I have a longer timeframe so happy to hold and enjoy the ride, which will happen as projects develop

Northern

First post and posting unfounded nonsense about a capital raise.

Ignore

I agree SeisNav, they have alluded to looking at a range of deals but they will only do the right ones where the grades and metallurgy makes sense.

Cherry picking the best ones is a lot better than blindly doing deals for the sake of it.

The cashflow from Copper will support a number of new projects which will underpin future growth.

The Jubilee Way has worked so far and I trust it to continue to deliver. I have three and a half years until I hit 50 during which time I hope this investment will get me close to retirement!

Northern

The cobalt is in greater percentages in the northern cluster - mainly Elephant and possibly Mufulira which will be after Roan and Lechwe in terms of timings.

We may however get access to other material with a higher Cobalt content in the intervening period...

Nelson,
In one of the webinars it was mentioned that the costs for getting the cobalt out would be minimal as most of the work is done via the copper processing.

Healthy I would think but don't want to get ahead of myself.

Northern

NtD,
I have run some numbers myself and get similar to Homey.

Margin...
£10m from Copper based on 4,114t production
£4.4 from Chrome based on 1,309kt production
£37m from PGM's based on 47k oz

Not expecting any Cobalt in the period.

I am not anticipating the write down and there maybe some "manipulation" in the background so not second guessing the outcome in terms of EPS.

For me its about confirmation on Roan output which should set us up very nicely for the next financial period.

Northern

ElProfessor - For the sake of balance we do need to take into account the fund raise in September of £30m but still a nice amount in the bank to cover requirements.

Northern

After some initial disappointment with the comparable financials and downgrade to PGM forecast for this financial year it is hard to underestimate what has been achieved here.

Now the upgrades are out of the way the PGM side is a cash cow. The increase in Chrome production means we have a huge amount of feedstock being produced to support the ongoing PGM production.

Copper will really start to hit the numbers in H2 and I am convinced we will find an existing facility on the Eastern Limb to upgrade and replicate Inyoni operations.

Looking forward the future is very bright in my opinion

Northern

Report on Reuters says Hyundai sees the chip shortage as less of an issue in coming months. Lots of pent up demand for new vehicles bodes well for PGMs.

Northern

Sumo,
Spot on - increase the capacity, have the ability to process multiple feed sources and increase the margin as the material doesn't have to go elsewhere to be processed.

I will take a bit of short term pain for long term gain!

Looking forward to the update specifically:
Inyoni throughput and margin
Chrome processing capacity and margin
Copper progress on Roan, Northern Strategy and Mufulira
Eastern limb?
Cyprus?
Global development

Lots to look forward to and we are now getting more tips than a Hooters waitress which will obviously help!

Northern

https://www.kitco.com/news/2022-01-19/Global-platinum-group-metals-autocatalyst-demand-to-hit-record-levels-in-2022-report.html

Platinum and Palladium on a bit of a bounce today!

Northern

Northman,
The cobalt circuit as I understand it is up and running at Sable. Decent quantities will only come with Elephant unless the ROM has a decent content as Mikey says. Personally I am not expecting a meaningful content from Cobalt until next financial year but looking at the production forecast from the broker note it will be a highly significant revenue stream.

Also, don't underestimate the value of this coming from a traceable trusted source. Massive issues with child labour exploitation in DRC means our ouput will be highly sought after!

Northern

Bass - depends on the application/vehicle type especially on the commecial vehicle side. Infrastructure is an issue but overnight charging is the simplest solution and there are a lot of people with off road parking who could have a home charger installed.
Most of the fleets we work with 80%+ of new car orders are electric and it is the same in many countries across Europe. In the US the best selling F150 is now electric.

All of which bodes well for copper and cobalt demand :)

Northern

mleshem - not sure that really matters given the tax incentives to take them up. My business is in the automotive space and people want to decarbonise, in many cases without looking at the cost!

Northern

https://www.mining.com/web/metals-traders-are-bracing-for-the-next-big-supply-squeeze/

Taken from the other board but very interesting reading especially with the Zinc circuit ready to go at short notice

Northern