Member Info for NorthernShark

mleshem,
The accounts are more focused on what was delivered in the financial year and the shorter range outlook for copper. Cobalt I am sure will come into focus when Lechwe is in the build phase.
Reading the accounts and listening to Leon on the Directors Talk interview they have delivered a huge amount in engineering and process terms - and continue to do so on the copper side.

I will continue to hold as the market hasn't grasped the scale of opportunity here or the quality of business which Leon and Colin are building.

Northern

Managed to get throught the accounts and even for someone like me who trained as a management accountant there is a degree of complexity.
The major thing which stands out for me is that they have written off £17m in respect of the Nickel tailings project in Australia which is in the operating expenses line as amortisation rather than an impairment (I would have thought they would). Either way it is a one off and won't be there next year making the comparable profits more significant. Also taking this out gives a better understanding of the true overheads. Strange there isn't any reference to this in the accounts apart from in the intangibles reconciliation (p86) - you would have thought this would have attracted a comment at least in the financial summary.
There are also an estimate £35m of tax losses to carry forward against future periods (p83).

From a balance sheet perspective there is £34.5m in relation to Tjate so getting a deal over the line there will be important in time.

No gremlins from what I can see and imagine what the EPS would have looked like without the Nickel project write off!

Northern

Thats my plan for this evening - goign through the detail to see whats in there.

Northern

Shareswotter - I agree we could do with results to change the official PE ratios. Forward PE is the most interesting one for me so would be nice to get some forward looking statements on earnings - or failing that a detailed broker update as the existing ones are woefully out of date!

Northern

Edzi - Australia Nickel / Leinster?

Arry - for the sake of balance if you want to pro-rata then do it to the revenue and profit lines and see where it lands in 5 years!

Northern

Jonah - don't forget processing via Inyoni will also increase the margins

Charles,
I concur in the respect its more valuable to Bezant and Caerus than Jubes but 9k tpa Copper in a solid juristiction is not to be sniffed at - especially if the grades mentioned are proved up.

I also agree that there are other larger deals to be done in other locations which maybe a priority for the management team.

Northern

https://audioboom.com/posts/7981891-midweek-takeaway-with-caerus-minerals-and-bezant-resources

JLPP,

My question is why not include this with the results which are due anyway?

As you say it brings forward the earnings on Copper, clearly states the strategy on PGMs (Multi-feed source) plus anticipated volumes of PGMs.

The snippet I found interesting was the comment on Sable - I think there maybe other third party ore agreements coming on that side of things

Northern

Jubilee do their process homework before committing to projects and will want to know what they are getting into before committing. The increase in time for evaluation maybe down to the evaluation of sulpides and oxides as will add some more complexity to the processing,

Jubilee has a full pipeline of projects with whats going on in Zambia and it maybe that they have prioritised those if there is a resource constraint.

I hold both as I think the JV will come good at CMRS but currently Cyprus maybe lower down the priority than Zambia but time will tell on that. Expect an update shortly when Jubilee results come out.

Northern

Nelson,
I was wondering about the cobalt the other day and did some calcs based on what we know:

TD52 114MT @ 0.08% Co - circa 91k contained tonnes (80.25% working interest)
Mufulira 200MT @0.08% (based on comment of similar grades to Elephant) - circa 160k tonnes (97% working interest)

Take a 50% recovery rate and 25k/t profit at current levels and its circa $2.85bn.

Could be wildly out but one thing is for sure - it will be a substantial and relevant number to the future prospects of JLP.

Not bad for a by-product from the copper dumps!

Northern

Mikie, little disappointed we don't have a full year results today which would have been in line with last year.

I see the JV between Caerus and Bezant has been signed - maybe we have delayed so Colin can wax lyrical about another of his ventures?

Either way it would be nice to have our full results with all the detail that it brings asap. Could be another deal in the offing which is delaying it but all will become clear enough in due course.

Northern

Shiner, JLP would be benefit from exposure to Cyprus from a risk perspective which is why I have had an albeit relatively small punt here as I can see it paying off for both parties. JLP is my focus but can see the projects in Cyprus being a useful bolt on to the existing operations.

Northern

Jubilee annual results due this week (if last year was a precedent - they normally like RNS release on a Thursday so I am expecting them tomorrow) and would expect an update to come with that from the JLP side.

Northern

"Burning Cash" suggests they are spending cash on non-productive assets.

The cash JLP has is being invested in infrastructure which will produce many multiples of the investment - its called an asset!

If you strip out the investments you will see JLP does generate a lot of cash!

Northern

Everyone is waiting for the results

Dorf,
I would expect full year results as well as a very comprehensive update to be issued next week (if last year is a guide)!

Hopefully not long now. Almost feel like blocking next Thursday morning out to go through the detail!

Northern

I have a slightly different view. I think that potentially LC and CB kept quiet during what I will call the "build" phase of the company as they didn't want to let the cat out of the bag on margins on the basis the cost of projects may have risen.

However, the cat is out of the bag now so would support the move to quarterly reporting!

Northern

JLPpositive - I only posted as its the first time I had seen it and can't recall it being posted here before. Given what had been said before I was under the impression the zinc circuit was ready to go.

The pivot to copper is well timed but it would also be good to see additional metals which can diversify risk. Daily swings are not a concern for me as I am holding long term as the earnings story plays out.

Northern