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I definitely agree with you Gray, that it's time to reign in the spending and focus on delivering what we have, primarily Roan, which to start with at least will be the main source of income. I find it a bit irritating that Leon keeps saying we are coming into a period of lower CAPEX and yet he's already talking about 2 modules for the leach plant at Munkoyo at US$13m plus the remainder of the waste dump to pay off at US$11.5m. Unless they can do this from cash flow I think as you say it needs to go on the back burner. Shareholders need to see that they can actually generate more cash than they spend in Zambia, and soon.

Of course if Leon is being genuine when he says they can get a better deal for the Waste Rock project then that would take care of itself and also free up the cash they already invested but nobody wants to wait another 12 months for that to happen, it needs to happen ASAP.

Most boards have a village idiot who is just here to wind people up, I filtered that one out years ago.

Unless you are calculating the PGM basket it can be tricky to see what the fluctuations in the various metals are actually doing so here's my updated chart for anyone who is interested, it also shows the chrome price which is still improving:

https://tinyurl.com/ktfy8bw5

The improvement in PGM's probably amounts to around US$3m over a year so not massive but if they initiate the JV to process the stockpiles it could be a nice bonus. I have asked the question about what level they might see that happening.

With chrome prices improving in Q3 and much better in Q4, along with the improved PGM basket, SA should deliver a decent performance.

Midnight Sun just announced they have kicked off their exploration season today, at Solwezi. Not sure when drilling is planned to start but good to see they have boots on the ground not too far away from our licenses.

Gotreal, Project G is referred to as the Grovenor project in the Zeus note and there is a company called Grovenor Resources with a project near Mumbwa. I can't see any mining license in that name in the Cadastre so not sure where exactly.

Thanks Northern, I might check that out later. Its good that chrome is still trending upwards anyway

Where did you find that number Northern?

Leon said in the podcast that about 80% of production from Roan would be plated to cathode so selling at LME price. If you take just the projected DMS output of 5000 tpa with costs of US$5500 you're looking at US$20 million gross profit per year just from that. As long as they are somewhere near the targets they have suggested then the financial situation will rapidly turn around. If they can't deliver now with water and electricity and high grade ore then they never will.

Sumo, the average chrome price in H2 is likely to be lower than it was in H1 but the big difference is that in H2 we have the two large Thutse modules operating at the higher margin which will significantly increase gross profits. It's difficult to say exactly where we will end up but my feeling is we should at least equal profits from H1 and potentially exceed them, depending what happens with the chrome price.

I'm not sure what HD is going on about, the partners are certainly not making 80% of the profits! Jubilee buy the RoM at cost to mine plus a margin for the mine owner.

I don't see any evidence of you doing any research Pandy, all I see is you moaning about the company on this and other boards. Have you looked at Mupala? Have you looked at Mukai? What is your opinion on those licenses? What about the recent near surface silver discovery at Mushima North, what do you think about that?

Piscator, I'm not stating that the license is a few km away, I'm just stating that the copper anomaly they mapped is a few km away from where Anglo drilled and discovered the 40m copper intersection. You are of course correct that the license is adjacent to the Arc Minerals / Anglo JV area. Here's a screenshot from my Google Earth map which shows the Mupala copper anomaly and the Cheyeza East drilling where Arc discovered high grade oxides (green pins) and the Anglo drill where they discovered a 40m intersection of oxides and sulphides (light blue pin):

https://tinyurl.com/mv99wfja

The white line shows the approximate location of the basin edge where the Roan geology is close to surface. This geology is associated with all of the big discoveries in he area which is why Anglo wanted the Mupala license.

Pandy I'm sorry it's taken you years to realise that investing in ANY exploration venture is a gamble, thats the very nature of exploration, there are no guarantees. I was listening to Rick Rule the other day on the Sunday Roast podcast and he made a very relevant point, most people should not be speculating on the market because they are not prepared to do the work. If you invest without knowing as much as you can about what you are investing in then you are highly likely to fail. There are no guarantees of success even if you do put in the work but at least you can pick and choose with more certainty what to invest in.

"I'm not expecting much from the second hole..."

Based on what exactly? Your extensive geological insight as a trader on AIM? It wasn't long ago you were writing off the silver assays at Mushima North and yet people who know better than you are interested. Kobold know what they are doing and they now have a much better understanding of the geology at Konkola West.

Mupala is still early stage, they have done a soil survey and identified a large copper anomaly along the basin edge, a few km from where Anglo American has recently identified a 40m intersection of copper of grade similar to Sentinel mine, also along the basin edge. As Anglo tried to get the license but were beaten to it by Tertiary, I think they and others will be interested. All speculation at this stage but I personally think it could be a valuable asset either for sale or JV.

Mukai assay results from FQM JV must be close. They have already drilled part of the anomaly on their side of the license and discovered good grades of copper sulphides so feeling positive about this one. Fingers crossed for good assays and we could really see the SP take off.

Mushima North is attracting attention from other parties after the silver assays were announced. I think a JV is the most likely outcome here as it will require significant drilling to check not just the A1 target but all the other targets too.

Konkola West hole 1 will be finishing up one way or another in the coming days / weeks. If they do intersect high grade copper it bodes well for future drilling.

Https://news.metal.com/newscontent/103227920/What-Happened-in-the-Cobalt-Market-After-the-DRCs-Export-Ban-And-Whats-Next

The interesting point in this article is that cobalt metal is in surplus so is not affected in the short term but cobalt intermediate products like cobalt hydroxide have a much tighter supply / demand balance.

https://www.fastmarkets.com/insights/drc-cobalt-export-ban-market-impact/

Some different viewpoints here regarding the long term effects of the ban and any export quotas but right now the interesting thing is the cobalt hydroxide price:

"Fastmarkets’ daily price assessment for cobalt hydroxide, 30% Co min, cif China, was $10.00-11.00 per lb on Wednesday, unchanged from the previous day but up by 84% at the midpoint from $5.65-5.75 per lb on February 21.".

That equates to US$22,000-24,000 / tonne for 30% cobalt content which seems very high compared to the refined cobalt price of about US$33,000 / tonne but as stated in the earlier article, intermediate products is much tighter in supply / demand than cobalt metal is.

Currently the price in China is US$11.6 / lb or US$25,500 / tonne:

https://www.metal.com/Cobalt/201905280003

I had a note from 2022 when Jubilee were producing cobalt that production costs were around US$17000 / tonne so it will be interesting to see if it's up for discussion again at this level.

Https://youtu.be/7hFJnIEdSIE?si=MRsB2jF7Mr4VNA0y

Mushima North has been attracting interest and talk of potential JV on that.

The capital raise they did last year was much bigger than they have typically done and they certainly didn’t spend all of it on exploration. I think that was done in order to give them some breathing room for the projects to play out and hopefully lift the share price significantly before needing more cash.

I don't know the history of Tertiary beyond the Storuman project but as far as I'm aware that was a ready to mine project before they had the rug pulled out from under them by the Swedish government refusing a mining permit. From that they have had to pivot into other areas and since then have amassed a portfolio of copper focused projects in Zambia and progressed them on a very tight budget. Mushima North is already starting to show signs of being a significant discovery, Mukai is a very exciting prospect with assays due soon, KoBold spending more than TYM's MCAP on the first drill hole at Konkola West shows how serious they are about that project, Mupala just a couple of km from where Anglo / Arc have discovered significant copper mineralisation, a license that Anglo wanted but were beaten by Tertiary.... if you can't get excited about that for a MCAP of less than £2 million then maybe go buy some premium bonds instead!

The chrome price continues to edge upwards, now US$265-270 / tonne. Chrome prices along with the higher margin production from Thutse modules should underpin a strong second half to the year. Improved PGM basket will also add something, let's hope this is the start of a broader improvement in PGM prices.

I'd really like to see that they have activated the JV with Northam for the processing of the PGM stockpiles. The PGM basket continues to be around US$1500 / oz which is about US$80-90 / oz above what we have been seeing over the last few quarters. It doesn't make a massive difference to the Inyoni bottom line but if they start pushing through more ounces it could make quite a difference.

Assuming they use the full DMS capacity of 45,000 tpm for the high grade material it could theoretically produce:

45,000 tpm x 1.6% (grade) x 55% (estimated recovery) = 396 tpm concentrate.

If they have the glycine heap leaching up and running that could be higher.

There's an unknown amount from the original flotation circuit each month to add to that.

From the figures I calculated earlier there's a potential 250 tpm from Munkoyo and 300-450 tpm from Project G

If you add them up it's a theoretical 950-1100 tpm plus an unknown amount from Roan flotation circuit / leaching. In reality that probably unrealistic as there will be losses along the way, but in theory at least, 1000 tpm is not impossible. Lets see how the updated guidance compares!