Member Info for NorthernShark

Dorfan,
I can only assume they will cover a lot when the annual results are out (early November if it follows last years timeline).

Northern

From Kendrick Resources annual report (Old BMR) and Colin is the main man over there.

“Jubilee is currently actively engaged in copper refining through its purpose-designed refinery at Kabwe. The zinc price has been extremely volatile and the zinc tailings at Kabwe may be metallurgically complex, giving way to copper production, being the best alternative to the refinery. Against the aforementioned, the Board has no expectation of any royalty income in the midterm”.

Doesn't sound although the zinc will be produced for a while which is a little disappointing.

Northern

Dorf, I am less concerned with short term market movements but have an eye for the bigger trends which will influence long term pricing.

With that in mind you will not decarbonise without electric and hydrogen. The scale of change will mean prices will be supported over the long term.

I think we are in the right metals at the right time!

Northern

Charles - your point about Mopani is very valid and something I had not considered enough. Leon comes across to me as very measured and incremental in what he does from a process point of view and always looking to improve.

I expect the copper and cobalt processing will be the same as the PGM side with increasing efficiency over time as the team get more experience and understanding of the material / process flows.

Northern

Prickly, I still hope for substantial gains from here and have let my profits ride (ave 4.5p). Given the copper and cobalt projects and how this links to the decarbonising agenda I can certainly see Colin getting his wish!

Also Slater has taken a large position in the company - he doesn't invest for 5-10% gains - he is here for explosive growth!

Northern

Thanks Mikie - appreciate it

Maybe Colin can head north next time as part of the levelling up agenda?

Any snippets Mikey?

I believe he was talking last night - anyone have a link to a transcript or video?

Max,
A lot of charging will be at home (overnight is best plus you are mainly using renewables) so you may have to increase VAT on electricity (not a good vote winner and will hit lower incomes more).

Big gap in tax receipts to fill but household bills should come down and corporate profits up as electricity will be cheaper than filling the car up with diesel

Frog, I think they will but likely to taper as the technology and cost gap closes. Not sure how they will address the drop in fuel duty however - road pricing perhaps?

Mikie - I agree its looking good - thats why I added a small tranche to my overweight holding yesterday morning. Well timed as it happens.

Northern

Frog,
I agree with your sentiments about the Auto industry (I work in this space). We have been told there will be issues into 2023.

However that said, the demand is just pent up and is not going away. I have clients who have 5 year old vehicles who want to replace now but can't.

Also, in the car space all the work we are seeing is environmentally focussed (for that read electric). All the car policies we work on have electric and salary sacrifice EV schemes are going bananas.

We are only just at the start of the EV transition which bodes very well for Copper and Cobalt. Watch out for Arrival - their van they say has cost parity with a diesel van which could change the delivery game completely.

Northern

Mikie, love the enthusiasm and the info on prices. Zinc has also moved a lot higher.

However some of these are shorter term factors and for some metals we are only in the build phase. Copper and Cobalt medium term pricing is key for us and as you rightly point out those are heading in the right direction. They just have to be there when we have ramped up Zambian production!!

Northern

I think we may have a relatively quiet period until the full year results which should be with us in about 4 weeks.

Whilst I know for some this may be a frustrating wait I am really happy to wait for the annual results and get some answers from the detail contained within those documents. I would also hope the review of the year will provide some guidance for the year(s) ahead.

Northern

https://www.reuters.com/technology/german-auto-giants-place-their-bets-hydrogen-cars-2021-09-22/

Given the decarbonisation agenda this article gives a good indication of what metals are needed and where... (stolen from another board but certainly relevant here)

https://www.bloomberg.com/graphics/2021-materials-silver-to-lithium-worth-big-money-in-clean-energy/

This is happening and at a serious pace - the German car makers will be under massive pressure if the greens form part of the new government there. Hydrogen still a little way off but undoubtedly has a role to play especially with heavier forms of transport where pure electric will struggle.

Northern

Agreed Mikey - very happy with Slater! He isn't in this for 5-10% return - he backs companies he thinks will multi-bag through growth.

Beyond the Zulu Principle is on my bookshelf and one of the best investment books I have read!

Northern

Dorf,
I think they could end up with something similar to Project Roan in Cyprus if you look at the higher grade volumes and material. With a little gold sprinkled in for good measure.

All they need now is a redundant or under-utilised refinery in the locality....

Northern

George - have a look at the earnings growth and onward forecast from the broker - should give you your answer.

Northern

Homey, do the owners have the skills to get the return from processing the dumps? Thats the real question as there is only value in the dumps if this can be done effectively!

Also the original move into Copper was done when the price was $5.5k/t. Pretty good timing I think you would agree. May pay a premium for the additional control but if the economics work then why not do the deal?

Dilution can be an issue but also so can debt - really depends on the circumstances.

Northern