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Mikie I would agree that we are likely to see further modules assuming all goes to plan with the first batch, it does say in the RNS: "The Waste Rock Project aims to implement an INITIAL 4 Copper processing modular plants..."
For any new investors / potential investors, this recent podcast with Leon and Charles Archer is worth a listen:
https://www.thesundayroast.net/podcast/episode/51127872/s7-ep29-midweek-takeaway-with-leon-coetzer-ceo-of-jubilee-metals-and-charles-archer-long-term-ftseaim-investor-and-freelance-financial-analyst-aimjlp-jlp
Leon said in the podcast that they were about two and a half months away from the first of the additional chrome modules being fully operational, although the RNS says commissioning by August, so I guess somewhere between June and August. Hopefully August is a conservative number.
Edzi, we will have to disagree about Kalan, and I'm far from the only one who has repeatedly pulled him up for distorting the facts. He was doing exactly the same thing when I first started reading these message boards and nothing has changed as far as I'm concerned.
It’s difficult to know how the cobalt market will play out in the future but every article I’ve read suggests that cobalt demand will be multiples of what it is today just by sheer numbers of EV’s on the road, even if there are competing battery chemistries out there and even non-EV options like hydrogen.
The west certainly seems bullish on cobalt though, looking to create processing options outside of China, where most battery grade cobalt sulphide is produced. ERG recently announced a plan to build a cobalt sulphide plant in Saudi Arabia and there has also been talk of one in Chingola, Zambia. Just down the road from Mopani and Chambishi Metals.
We know that Zambia and DRC have ambitious plans to start manufacturing EV batteries in country and will need battery grade cobalt sulphide for that, produced from cobalt hydroxide such as Jubilee can make. The USA is backing this project and also the Lobito Corridor rail project which will allow direct transport from Zambia to the Angolan coast and onwards to the West. I definitely think there’s a big picture playing out which Jubilee can play a part in.
I think there is a more clear plan emerging now. Leon reacted early to the PGM basket price falling and saw the opportunity to build on the well established chrome processing abilities and rapidly expand into higher margin opportunities. This is starting to come through in the numbers now but will only get stronger assuming the chrome price remains strong. After the next two modules this year, we should, by my estimates be earning in the order of US$45-50 million from chrome alone. It sounds like they are not finished there either, Leon mentioned that further expansion is likely, although he didn’t specify where that will be.
PGM’s remain profitable and will every chrome module added we increase the PGM ounces too. Any increase in the PGM basket will reflect in the bottom line. Rhodium seems to be getting a second wind today I notice.
Cobalt has been proven and high grade product sold into the market. This is definitely one for the future, as the market comes more into balance again.
Copper is the last piece in the jigsaw, if they can prove to investors that these modules will do what they they they can, then we are off to the races. Copper expansion can follow a similar trajectory to chrome and in the longer term can easily outpace chrome. With copper price starting to strengthen again, there is no better time than now to be ramping up.
For those who have an interest in understanding why Anglo American agreed to such a standout JV
This map shows the footprint of the hydrothermal fluids in yellow, these are rocks which have been altered by the mineral rich brines passing through them and also areas of potential copper deposition. The pink areas are showing copper-scandium anomalies, this is showing where the hydrothermally leached copper has actually been deposited at surface. The blue areas are electromagnetic anomalies.
https://x.com/navseis/status/1770747515874279768?s=61
If you can look at this and understand it (some less academically inclined people here refer to it as a pretty picture!) then maybe you have a better understanding of why Anglo American is so interested in these licenses. Have a look around at other companies for similar results… you won’t find them. Make no mistake the opportunity here has the potential to be big.
Obviously I count takenorisk as one of the uneducated ones. Although I think it's a bit presumptuous to assume that every other investor is as ignorant as he is.
For those who have an interest in understanding why Anglo American agreed to such a standout JV
This map shows the footprint of the hydrothermal fluids in yellow, these are rocks which have been altered by the mineral rich brines passing through them and also areas of potential copper deposition. The pink areas are showing copper-scandium anomalies, this is showing where the hydrothermally leached copper has actually been deposited at surface. The blue areas are electromagnetic anomalies.
https://x.com/navseis/status/1770747515874279768?s=61
If you can look at this and understand it (some less academically inclined people here refer to it as a pretty picture!) then maybe you have a better understanding of why Anglo American is so interested in these licenses. Have a look around at other companies for similar results… you won’t find them. Make no mistake the opportunity here has the potential to be big.
Yes it's much more profitable now, for two reasons.
First they are moving away from fixed margin tolling agreements which guaranteed something like US$4-5 / tonne for most of the material processed and moving into own sourced RoM where the margin is much higher currently something like 5 times the tolling rate.
Second the price of chrome concentrate has doubled in the last couple of years.
When PGM's were strong, the company was a PGM producer with chrome just being a means to get to the PGM's. Now PGM's are no longer strong and chrome is flying then we are a chrome producer with PGM's as a by product. It's just an about presenting the company in the best light for potential investors. Being seen primarily as a PGM producer is obviously working against Jubilee at the moment but strong chrome numbers in Q3 will hopefully start to change that.
In case you missed it:
Https://audioboom.com/posts/8478147-midweek-takeaway-with-leon-coetzer-ceo-of-jubilee-metals-and-charles-archer-long-term-ftse-aim