Member Info for NorthernShark

Pure speculation but what would people vote if the stockpile is excluded from the sale? It could then be processed via the existing JV at a time of JLP choosing.

We will have to wait until the circular comes out but would seem a sensible option to keep some exposure to the PGM basket whilst still generating income from the sale of the processing assets.

HD,

Your multiple posts keep with the narrative something doesn't smell right.

All the detail will be in the circular at which point you can either sell your shares (if you currently hold), vote no to the transaction or vote yes to the transaction.

Being hysterical doesn't help anyone.

One question - why would the board agree to this if the copper side didn't offer vastly superior returns over the medium to long term?

My personal view is Roan is working, and working well (hence more feed) and there will be a number of value acretive transactions to follow in Zambia well before this transaction completes (if it gets shareholder approval)

ATB Northern

Agreed Shuv, I will review the documents and vote accordingly. The news release only tells us part of the story

I see someone has been let out on day release again...

Quite simple I would think - deploy capital where it has the best return which undoubtedly is in copper.

Buying more material for Roan must mean it is going well and potentially getting closer to the 50k nameplate processing volume

Personally I like the rationale but would need to dig deeper into the numbers. Many posters have said there has been zero value attached to the Zam business even though OB1 is worth 150m+ given recent transactions.

We are still linked to the SA business which as a country is viewed as high risk and PGM companies have generally traded on low PE ratios. Growing copper companies however attract a very different valuation and also attract a different set of institutional investor base.

SA business comes with a fair bit of working capital and banking covenants which needs to be factored into any transaction price. Whether the value offered is on point I honestly couldn't say but JLP will have received advice on this.

Key thing is how they deploy the funds and lay out the Zambia plan in more detail as I expect them to do in the coming weeks. We can all hope PGMs increase but we are fairly confident copper prices are only going to go in one direction over the medium term. Chambishi might be back in play.

ATB Northern

Pure co-incidence certain posters all appear at the same time with same narrative - same user maybe?

I say again the OB1 project is worth more than the current market cap by itself! And in answer to Grays concerns how can we sell some of the material if not concluding the agreement? We only need to sell another 20MT at similar pricing to the first tranche and the other 230MT is a free carry! The non-core sale if its what I think it is then will represent a good profit on what it was purchased for.

PGMs and Chrome should do very nicely in H2.

Copper strategy looks clearer but I agree the proof of the pudding is in the delivery on this side.

If you want to sell now then thats up to you but I want to see how this plays out!

ATB Northern

Edzi, I don't think anyone disagrees that the Copper story has changed direction multiple times and had their fare share of problems. Key thing is where we go from here. Roan appears to work - lets see what the production profile pans out to be. Talk of mining partners seems like a shrewd move which lets us focus on the processing and should speed up the provision of the material / development. I personally like the sale of non-core assets as it re-focuses the company which can't be a bad thing.

Also lets not forget the OB1 opportunity (acquired for 18m) which is as valuable as the current market cap (based on the 10MT transaction) let alone what it could be worth with us processing the material ourselves. That gives you a developing copper play with processing plant, refinery and an established SA business which will turn a decent profit at current metals prices, effectively for free!

Always like to hear different points of view for balance, but whilst long overdue in Zambia I can see the route ahead and happy to hold as the strategy is now much clearer.

ATB Northern

Edzi, Slater has his man in there in JMK. Cashflow as a group should be fine supported by SA operations and significantly lower Capex. The mantra has definitely changed from expansion / growth to maximising income from existing assets. They slowed Sable down as they don't currently need the expanded capacity - mapping the expansion to when it will be utilised seems a sensible move to me!

ATB Northern

Bobill, there is a back end circuit at Roan which has a bigger capacity for sulphide material. Not clear if this has feed going through it or not but would suggest this is underutilised at present

I have a concern with communications on Project G. Previous RNS stated copper concentrate being produced in October 2024! Todays note says drilling to start in June 2025 but apparently it was underway in October 2024 as well. Is there any production at G or not? Something does not add up and needs clarification from the company!

7th October 2024

Project G targeted to commence operations and delivery of pre-concentrated run-of-mine (ROM) to the Sable Refinery (Sable) by December 2024

Under the Agreement, Jubilee is appointed manager and operator of the open-pit operations with immediate effect

Project G will ramp up over a 6-month period to reach 3,000 tonnes per month of pre-concentrate material through a Jubilee on-site module, and delivery of an additional 350 copper units per month (4,200 per annum) to Sable for further refining.

Resource drilling program currently underway, targeting a potential increase of production to 20-25ktpm ROM ore.

13th January 2025

Following the completion of Jubilee's due diligence on Project G during August 2024, the Company acquired a majority interest in Project G.

The project aims to expand existing operations to achieve an initial mining rate of 10ktpm by February 2025. Project G includes an on-site facility designed to pre-concentrate mined ROM material, with an immediate capacity to produce 3kt Cu Conc per month, containing 10% to 15% copper. Lower-grade copper will be stockpiled for future on-site processing. First copper concentrate was produced at Project G during October 2024.

28th May 2025

Project G is scheduled to commence drilling of the resource during June 2025. The Company aims to follow a similar implementation strategy to Munkoyo, with a portion of the mined reef being upgraded on site using physical separation techniques, while the remainder of ore is processed further using chemical extraction techniques.

The Project G mining operations are adjacent to an existing mining operation, as well as a new developing mine, which offers the potential to collaborate on the implementation of a central processing unit. The area has already established infrastructure such as power and roads allowing for a faster implementation process.

The final targeted scale of the mining project and potentially shared processing facility will be finalised on the back of a completed drilling program and current negotiations to collaborate on the processing facility.

HD, you could well be right! Repurposing an existing facility with the right process would be the quickest way to monetise the asset. Hopefully all will become clear soon enough!

I would only expect a Roast after the copper strategy has been laid out - otherwise there wouldn't be a huge amount they would be able to talk about.

Seis, I am not convinced anything is priced in for copper at the moment so may suggest any downside is limited. Chrome and PGM earnings will do very nicely in Q4 and would expect the KV to be activated if the prices hold or rise from here. Like you I hope and almost expect a copper RNS tomorrow am

Kalan, given PGM basket price the original JV now comes into prospect and would be surprised if we don't hear news that this has been activated. Another source of income without any corresponding capex requirements!

ATB Northern

Sumo, the company has said we will get a full operational update and this will include future strategy. I know there are some impatient soles and I am one but am sure all will become clear. The destination is most important not the steps along the way

Big week ahead one would imagine

Zambia power statements were obviously a downside communication issue but there have also been upside omissions - like when there were two modules at Thutse suddenly in operation when the prior communications had pointed to one.

Compared to where we were communications (in my opinion) have improved, but still leave plenty of room for improvement

ATB Northern

The deadline for OB1 is mid May so should hear definitive news on the route forward