Member Info for raxfactor

Watching the oil price drop over recent days while may be a concern for other companies pleased that JSE whether forced under loan conditions or of the own foresight must be sitting easy knowing they are by enlarge unaffected by oils recent movements and it's impact on their financial health.

Well that's my take even though the sp doesn't agree.

Great results today, the mine has been operating well for some time at high efficiency and when low cu ore was being processed it seemed to pass by everyone without comment, well in this half year the company has reaped the rewards of a mine running like clockwork combined with a move to higher grade ore, well done Antalya and a nice reaction from the market.

Excellent financial results from this quarters results boosted by the sale for the solar plant, high gold price, and processing higher grade ore, combined with record production, good to see they are improving gold recovery even though it's only a small amount it adds to efficiency.

They have moved from slightly negative cash position to nearing $30m cash positive, probably the main contributor here was the solar sale.

The higher revenue from operations being invested in Blanket, and further drilling adjacent to Bilboes, so it's no suprise that is aisc costs have risen which is well explained by management.

Consolidated on-mine cost per ounce increased by 10.9% to $1,123 (Q2 2024: $1,013), primarily due to higher labour and consumables costs at Blanket Mine. Labour costs increased due to a higher headcount, inflationary salary increases, bonuses paid for higher production, and overtime worked. Consumable costs per ounce at Blanket increased due to higher repair and maintenance activities at the metallurgical plant and on underground trackless mining machinery in the Quarter.

Consolidated AISC rose to $1,805 per ounce (Q2 2024: $1,485); this was as expected due to higher on-mine costs and increased sustaining capital expenditure (as planned).

They must see value here to consistently increase their holdings, although you have go back several years for the SP to be this low, in the world we live companies can't suddenly stop buying the latest updates from Microsoft or expanding their space in the cloud if they do they will lose efficiency and public companies a competitive edge they might have over others, so short term they may delay their commitments but that's about it.

It's not gone unnoticed that we have started creeping back up 1% at a time.

Interesting comment we are trying to produce as many barrels as possible it's frustrating how many we lose from one day to the next so we are working on that to get maximum efficiency SQZ has never had that, making sure we have critical spares on hand to get production back up as quick as possible, there is a lot to do to maximise efficiency.

Comments along those lines don't reflect well on the last regime, seems they were asleep on the job.

I believe that final leg of this pipeline is to completed sometime in December when the horizontal drilling under the rivers restarts.

As this pipeline has been ongoing for several years and I believe it will be a world class achievement especially construction under the rivers if completed, what would be the impact on the ANOH gas processing plant if for one reason or another it didn't get completed, or more than likely delayed due to engineering difficulties.

Would the plant still be a viable operation? I don't know I would value others opinions, hopefully this situation won't arise if all goes well but we have heard this so often in the past, this last section is the most challenging with horizontal underground drilling which is technically breaking new ground by length.

Correct me if I have got that wrong.

I know Sepl have no control over this pipeline as it doesn't come under remit and they have no direct input.

Would the post reporting period payment of $100m to pay down the RCF reduce net debt further to $567m.

Maybe that's down to Sepl still paying high taxes on the the acquisition assets which will decrease significantly as investments into these areas will reduce the tax burden.

Taxation

The Company reported an income tax expense of $265.5 million (6M 2024: $129.0 million), representing an interim effective tax rate (ETR) of 91% (6M 2024: 72%). This ETR has been determined in accordance with IAS 34 Interim Financial Reporting, which requires the income tax expense recognised in the interim income statement to reflect the estimated full-year effective tax rate, applied to year-to-date profits. The high ETR reflects the front-loaded tax burden typically observed in our fiscal profile and the current estimate of full-year taxable profit.

Looking ahead to the second half of the year, we expect a lower tax burden driven by:

1. Increased capital allowances in our offshore business arising from planned capital investments in 2H 2025

2. The outcome of an updated Competent Persons Report (CPR), which is expected to support a potential reduction in the unit-of-production (UOP) depreciation rate, thereby lowering our DD&A expense

3. Progress on the Petroleum Industry Act (PIA) conversion for our onshore assets, which could shift our tax regime from the legacy 85% Petroleum Profits Tax (PPT) framework to a more favourable combined 60% rate (30% Hydrocarbon Tax + 30% Corporate Income Tax).

While these initiatives are still in progress, our current projection is that the full-year 2025 effective tax rate is expected to range between 70% and 80%, subject to the finalisation of the above matters.

The second dredge arrives on the beach posted by Kenmare on x

https://x.com/KenmareRes/status/1949081203199332440?t=aNSwepnzyfz5o88nEShmUQ&s=19

Valaris sold the jack-up rig (VALARIS 107) used in the current Jadestone campaign *before* Jadestone contracted it. Jadestone is now using the same physical rig under its new name (PERRO NEGRO 8) and new ownership (Perro Negro Rig).

I would say that they have hedged well in low cost environment to avoid any financial issues that would come with even lower prices at present they are immune imo.

What nonsense you are peddling the only thing you have got right is that the climate has always changed and always will, did the Egyptians build the pyramids in a desert I don't think so, was the Sahara always a desert or once grass land as the buried cities West of Nile price.

I won't even go back in time when the dinosaurs ruled co2 was around 7000ppm with world experiencing the most explosive burst in life it ever has.

Oh you do realise that co2 is pumped into green houses at 1200ppm it makes plants more resistant to drought, pests the plants grow stronger and give more yields.

This might explain while the earths population is growing there is plentiful food for all, no mention of the earths orbit which is not constant, the Sun cycles or Sun spot activity the magnetosphere which is weakening currently which impacts the Jetstream or Ocean currents no it's all down to burning fossil fuel I don't think so.

Just as aside in the US all their highest temperatures where in the 1930s and before, and I won't mention where they site the weather stations adjacent to built up tarmac areas to distort the readings ie airports, where back in the day they where in fields

I was scathing with JSE at the excessive overrun of costs during the recent campaign, now however I understand why if they hadn't continued they would have caught criticism for that so they continue and we should see the benefit of more than 3500 boeod which I feel they being cautious wanting to over deliver rather than fall short.

So net debt without this over spend and the recent lifting which isn't included we would be in a very healthy financial position, which I feel is reason for lacklustre reaction from the market which is in fact an excellent update.

Announcements such as this one are a pleasure to wake up to, nice to see the market respond in an appropriate manner we have been moving up nicely of late, the reality is the mine is running like clockwork working at maximum efficiency in combination with ath of the price of gold.

Well done to the team at Blanket.

Tom Hickeys interview with crux investor posted on twitter with interview embedded within.

https://www.cruxinvestor.com/posts/kenmares-340m-mozambique-investment-secures-future-production-

This video shows the sorry state of the US at grass roots level and why copper matters don't let anyone tell you there is ample supply in the West the evidence is front of your face, copper demand is only going one way even if one small part is going to repair US infrastructure, then we have AI and the power requirements to make that happen.

https://youtu.be/G7i49dNB3RM?si=aTRYkZfLRqEM-whx

I see these upgrades and moving of plant as turning point, never in Kenmare history has the plant worked full capacity/efficiency the dredges were to small, all major capex will be complete so I am thing more fcf for dividends and a cash build to go with it, then we look towards acquisitions, no major supply or new mine is currently due to enter the space, so the next 3-5 years look good the only problem is my age lol, perhaps I should be looking at short term bonds rather than an opportunity here which may or may not come good however if we have no major mishaps or political instability the future looks more positive than negative.

The first of the two dredges arrive on the beach at Moma mine.

https://x.com/KenmareRes/status/1946329548846420271?t=ajz_JZs_33rkDLgVYI4F8A&s=19

Rh $5800 has been slowly rising towards the breakout high of $6000

Being a major shareholder Tyrus will probably had face to face meeting with management about the state of the company and discussed what it immediate and future prospects are, Tyrus have been faithful to JSE throughout this doubling down with further share purchases at this time does send out a positive signal imo.