As I said Cretan this deal has about as much chance as going through as I do getting my money back.
From someone who attended the Jubilee AGM............
jelenko 30 Nov'13 - 21:22 - 18059 of 18067 4 0
Firstly I'd like to point out that I can't remember every word spoken by every person so I will post what I feel are the significant points as I remember them.
1) PLA This deal looks even less likely to go through in my mind. When the original deal was agreed on the original terms the amount of money required to secure was $10m However, since PLA have put their mine on care and maintenance there are ongoing financial obligations that have to be met, these involve the local community, schools, staff etc. These payments are presently being made by McQuarie bank and the amount required is substantially more than $10m now(and growing) These will remain repayable to McQuarrie by the new company and that is why the ratio's changed a while back. According to Colin if it did go through now PLA shareholders would probably get nothing at all. They didn't sound too keen on it actually. Their comment was that there is an alternative proposal close to conclusion that on paper is a better proposition that would make JLP cash flow positive immediately at PLC level. On the east not the west and where all infrastructure such as roads etc is in place and does not involve employing 800 people etc etc. Details likely to be released January.
2)JSE listing. At the moment JSE is the primary listing. The trading volume ratio is very much biased to London so London will become the main listing and the JSE version if AIM the secondary. This saves about £20k p.a. and is less onerous in governing what the company can and can't say via news releases etc.
3) GRE The purchase of a share in middleburgh was to enable GRE to progress its major wind farm project in South Africa. This project is being funded by Warren Buffet and a bank (forgot which) GRE thought they could use a very small part of their funding to do the middleburgh deal since they need one to achieve the other. Apparently they couldn't. They have so far paid $1,000,000 non refundable to JLP. Not clear where this goes now.
4)Northam A deal with Northam has been agreed and apparently signed a while back. This provides for Northam to build and pay for a full blown Conroast furnace for Boysendaal ug2, Jubilee would have free use for x thousand tons per month with no cost at all, no power cost no labour cost, nothing. This was ironically put on hold when Northam's furnace blew up. All funds and attention was diverted to rebuilding their broken smelter. This will clearly come back on the agenda soon.
5) Tjate Usual comment about not chasing the mining licence because from date of grant they would have 18 months in which to start work on it. Colin did say that they may look to "mortgage" 20% of it sometime in the future.He mentioned a recent deal by another company where they sold about 5% of a project for $200m. Apparently he's been to china in the past and discussed this option.
6) Quartzhill working to decouple this from Tjate so as to expedite the sale. Got the impression it was no straightforward
7) Colin and leon confirmed that jubilee also provide consultancy services to mining operations, Ivanplats was a recent customer. ( I think most of us had worked that out by the way)
That's the gist, although Colin did mention something about a rabbit and a hat, sorry forgotten in what connection.
