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Good to see 'some' money going into the till, but unless I'm misreading the RNS, it's not a tremendous amount of money.
From the RNS
"The strategy to keep in good standing our entire portfolio over the last several years of difficult market conditions for commodities is now bearing obvious fruit and we expect to announce further developments on our other projects in due course."
What worries me is that the shares are likely to go down in value if there are later dilutions
The shares may well go down in value but given they represent less than 1% of our company value, who really cares? These assets have not been mentioned in an RNS or company presentation for at least 4 years I think so how people can see a negative in this is beyond me?! Talk things down as you want but this news today cannot be perceived as a negative.
Looking forward to the real news next...
Definitely not negative. Very positive. I confess that I did not know about this asset.
I'm not sure how much money was spent on exporation for that asset, so can't comment any further. It just doesn't seem like a huge amount of money for an asset like that.
Overall, I'm very positive here. The main assets are just incredible. BUT, we need some progress on the financing for those to get any significant share price movement.
In your same post, you state that you did not know about this asset but then you also say the deal seems cheap for it. You can't have it both ways. So you've invested in the company based on the assets that you are aware of, you can hardly complain when someone gives you $4m out of the blue for one that you had no idea about. Some people are just a glass half empty I guess.
Maybe a case of too many plates spinning? I would be happy to have this project move forward at a pace ee could maybe not permit. Resources that seem to be in demand....
Whatever any of us might think about this "deal" its what the market makes of it and as per usual, we're marked down again. The news needed to actually enhance shareholder value continues to elude us and probably for much longer too. Potential joint venture parties such as RIO and AA are in no hurry to help us along; in fact they will be happy to see JAY struggle on into an ever weakening position. Our board seems inept at moving this along but when the "big boys" don't want to play what can JAY do or say? Nothing! Which is what they are doing!! Palming off this little entity that no one seems to have known about looks like a tidying up operation whilst waiting for a throw of the dice from a big player. JAY remains in hibernation for the remainder of this year at least.
I'm as frustrated with delays as anyone but things are progressing. Every single statement, both internally and externally tells us that everything is going ahead as planned for Dundas. The recent chat on here about a change of BoD to get projects over the line are laughable.
The latest broker target released today is a BUY aiming for 37.7p per share based on us agreeing $250 per tonne, every $10 increase in price raises the SP by over 5p. Current spot ilmenite prices are running around $350-370 and have been steady in that range for the last 6+ months.
Richards Bay Minerals effectively closed and SA, in general, slowing down production. 64 trucks full of copper have been hijacked recently in Africa alone.
US and EU want material coming from local and stable environments. Greenland just signed up to the EMRA, and both Danish and Greenlandic governments own stakes in JAY.
Fair comments snip but I'd be amazed if you actually believe a brokers target. In fairness though that target might mean something if JAY were actually producing and selling but they're doing neither so the current ilmenite price is pointless.
Jay won't be selling anything for at least a year and more likely two given all the work they have to do with infrastructure etc..
Through gritted teeth I accept that the BoD are probably working to achieve a JV or some kind of partnership but the pace won't be dictated by JAY so we are in the hands of the big boys as I stated earlier.
Credibility counts in this game and JAY has not earned too much of that with their failed forecasts for several years. Not a track record to be happy with hence the current SP. The MM's need to see the colour of money and right now its translucent!
@Snip: My point here (maybe taken the wrong way, because of my fuddled response) is that $4m is not a lot of money for a mining asset. It's piddling. As you rightly said, $4m is great to have though. No complaints about free money.
What we need is some news about the funding situation with the ExIm Bank or the EU or some other news about the site. It seems to have gone dead.
Thanks for the useful response.
Ca ne, there is no $4M cash, only 25K + 250K (leaving 3.25M) if all goes well with Metals One listing. The the balance 3.25M comes in the form of shares in Metals One at their future listing launch price. If Metals One SP goes South then so will that 3.25M. Wing and a prayer it seems!
Todays RNS is only a proposed transaction with Jay should be receiving £25k payment within the next five days.
This will be followed by a payment of £250K only on the completion of the Proposed Transaction.
Jay will also receive a value of £3.725m worth of shares, but only if Metal One raise at least £3m from the issue from new shares.
Metals One have only informed that it intends to seek a listing on the AIM market of the London Stock Exchange in 2021.They have yet to prepare or publish any formal documentation of AIM admission as yet.
Finally as the last paragraph states : The Proposed Transaction is subject to formal agreement and completion of the outstanding conditions. Shareholders should note that there is no guarantee that the Proposed Transaction will be completed.
So SnipVW JAY have not received £4m( and definitely not($4m) out of the blue.
No, they haven't, they will hope the SP of this newly formed company will at least hold to the IPO price for a while. Jonathan Owen/Helium One and Helium Ventures are their other ventures, so far and they seem to be doing OK of late? and Proudfoot is a reputable energy consultancy too.
My point is, it's money for nothing really as nobody was realising that this obscure asset was worth anything at all. I doubt it was by our accountants and if anything carried a nominal value on our books.
You say mining licenses are expensive but I'd beg to differ. ECR Minerals just 'purchased' a license in QLD in Australia, a tier 1 mining jurisdiction for less than $50k AUD - licenses are not expensive.
Todays RNS is such a sideshow as to be insignificant. They need to focus on the bigger picture. If they´re capable of doing that.