Bluejay Mining Share Discussion Threads

[perfect choice] 18/1/2020 16:57

Finally had a chance to fully read the H&P report. Great analysis, full of useful facts and sensible valuation with I think 4 or 5 routes to further uplift as projects progress.

In fact they have been particularly cautious with Dundas alone valued at 16p which is the lowest I've seen on any report. But they are below the PFS and if they only used the PFS figures instead, value would be 40% higher as stated.

But with the extra detail on each prospect there is some excellent information to review. I notice in particular a new area of potential additional resource identified by JAY at Dundas in the far east, see diagram bottom of page 5 for its location.

Overall the document is great reference material on all of JAYs 4 main projects and I would say this could have been produced to entice the potential partners JAY will need for all of their prospects, certainly Disko and Finland. Personally I expect Dundas to be off-take or JV, Kangerluarsuk is the one I'm not sure which way it will go yet either own or JV.

One other thing I spotted which I am not quite sure about is that the cost of this report has been covered by SolGold as part of a contractual engagement with H&P, its stated on page one on the right. What has SolGold got to do with JAY in any way or am I missing something?

[snowyflake] 17/1/2020 21:55

Andy - I am fully aware of that. Hannam is an adviser to Bluejay; that is clear from Bluejay's website.

The document is still a research document - 80 pages long and as one would expect from Hannam conservative in its comments which are worth considering; if, of course, one has an open mind.

[andy] 17/1/2020 19:59

Snowy,


this is the relevant part of the report:


"This Document does not represent investment research for the purposes of the rules of the Financial Conduct Authority (“FCA Rules”).

To the extent it constitutes a research recommendation, it takes the form of NON-INDEPENDENT research for the purposes of the FCA Rules.

As such it constitutes a MARKETING COMMUNICATION, has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of dissemination of investment research".

.

[perfect choice] 17/1/2020 12:11

Yes it is commissioned as is now the case as Longrod highlighted. But it doesn't mean company controls the content and what is stated, however they must ensure no missleading or factually incorrect information is stated.

This report is impressive for practical content on the prospects providing much more information on the new exploration prospects I've not seen before e.g. never seen the exact detail of the Finland licenses and the 3 former mines/drilling targets/information.

Valuation seems practical with identified areas uplift on the base valuation without "assuming" they will happen to propose a higher valuation. I would even say they have been quite cautious in places e.g. "We have assumed an ilmenite price of US$200/t and a WACC of 8%, more conservative than the PFS inputs of US$232/t and 5%" to quote.

If this report came out with a 35P base target price for example I would take a sanguine view as well since it would almost certainly have to have a part of "what if" value on on top of the base Dundas plan (clearly based on Dundas happening, also with nominal valuations of other 3 prospects included). At least this report starts from a logical base and given options to uplift which may occur. But great to have the detail at least, they've spent some time producing this.

[mach100] 17/1/2020 09:46

Or simply pointing out that investors and holders like myself should take a sanguine view of this 'research'.No bad thing for some balance and you pays your money and takes your chances.

[snowyflake] 17/1/2020 09:24

Longrod - the answer may be either to show how clever he thinks he is or to pick an argument.

Hannam & Partners are advisers to the company.

[longrod] 17/1/2020 09:15

All research is commissioned these days thanks to MIFFID2 regulations.

Not sure what your point is Andy

[archie222] 17/1/2020 09:12

Brokers notes TP - I'm begining to loose the plot here ...

SP Angel TP 45p > 23p
First Berlin 23p
Hannum 20p

And all within the space of about 2 years. By the time they've finished messing around adjusting assumptions the price could eb anything you like :)

An encouraging start to what hopefully will be a few more pieces of news.

[andy] 17/1/2020 09:08

PC,


That report from H & P is a commissioned report, not a research report.

[snowyflake] 17/1/2020 08:59

I agree with that sentiment Rampair.

[rampair] 17/1/2020 08:43

I think that like us shipping twice the amount needed - RIO are not averse to adding a little competitive tension into
proceedings / i expect that RIO would quite like an introduction into Greenland. Offtaking Greenlandic ilmenite is a good way to start.

Imho of course
R.

[perfect choice] 17/1/2020 08:23

That's a great report from H&P research being 82 pages long. Particularly welcome the extra detail on JAY's other 3 prospects outside of Dundas, going to take some time to work through and analyse. Multiple routes for significant upside from their base valuation of 20p and confident some of them will happen over time.


Thanks Mirandaj for that extract from RT 4th quarter results. So all 9 furnaces at RTFT in operation so they need guarantee of supply to keep that capacity going. Maybe logical to think that if they start 4th furnace at RBM, then that opens door for Dundas supply into RTFT?

[mirandaj] 17/1/2020 07:20

From Rio Tinto's 4th quarter production results today:


Iron and Titanium

Titanium dioxide feedstock production was 8% higher than 2018, reflecting improved operational performance and the restart of furnaces.

Fourth quarter production was impacted by the curtailment of operations at Richards Bay Minerals (RBM) in South Africa. Operations were impacted in mid-November, following an escalation in violence in the communities surrounding the operations, and a full curtailment commenced at the beginning of December. A phased restart commenced at the end of December. While RBM continues to monitor the security situation closely, a return to full operations and resumption of normalised production is expected in early 2020.

All nine furnaces at Rio Tinto Fer et Titane (RTFT) are currently in operation, with three of four furnaces in operation at RBM. This compares with six out of nine furnaces in operation at RTFT and three out of four at RBM in the fourth quarter of 2018. We will base our decision to re-start the remaining idled furnace to match market demand.

[archie222] 16/1/2020 17:56

Treasure Island - 82 page LP version @

hxxps://mcusercontent.com/110d0aa5f5d9bf9478796664e/files/6df16bba-766d-4353-8d18-c78b694a6925/JAY_1_20200116_initiation.pdf

[monts12] 16/1/2020 11:53

Treasure Island: unlocking Greenland’s mineral potential – initiating coverage with 20p target

[rampair] 16/1/2020 02:04

No problem Parsnips it keeps the brain occupied!.

[parsnips59] 15/1/2020 17:02

Rampair 7190: as a LTH, I VERY much appreciate all of the comments that you and the other regulars have made. I’ve been rather embarrassed that I could not add anything original or constructive to the BlueJay board so was delighted to have the chance at last to say something that might be of interest, even if not strictly BlueJay. .

Smiled wryly at your RNS comment: so I’m not the only one checking every day! Same old story: heart says “Maybe, just maybe, today we’ll get the RNS saying ‘exploitation licence granted AND agreement signed with RTIT and others for eye-watering sums’” while head says “don’t be silly – they’ll come but separately and certainly not yet”.

Again, many thanks for all of your very helpful thoughts, comments and reflections.

[rampair] 15/1/2020 13:22

City, Parsnips - thank you, i used to inhabit the Banking board on M.Fool, but that too has gone. After 2008 all i bought were prefs, sub debt etc - Bradford and Bingley perpetuals were things of dreams! (BBP etc) you can still get NWBD an Ulster bank pref that was at the time the best bit of RBS - its terms meant they have to pay holders before RBS - apologies to Fellow JAY holders for the off topic.

I hope that we reap a decent reward here
- if only they would issue a bond.....

Rampair.

[parsnips59] 15/1/2020 12:59

Consols: going, goig, gone. From the DMO Annual Review 2014/15, page 23: "The redemption of the undated gilts
Another milestone in the history of the gilt market was reached on 5 July 2015, when the last remaining ‘undated’; bonds in the UK gilt portfolio were redeemed. This concluded a process that was first initiated by the Chancellor of the Exchequer in October 2014. As at end-October 2014, there were eight undated gilts in issue, which comprised just 0.23% of the gilt portfolio, a total of £2.59 billion nominal, (see Table 7). The term ‘undated’; refers to the fact that these
gilts had no fixed maturity date, only a first maturity date after which the government could choose to redeem given a set notice period10. The option to redeem these gilts rested with the government. Prior to the Second World War the undated gilts comprised a large part of the UK debt stock. The oldest of the remaining undated gilts was 2½% Annuities which was first issued in 1853. This bond was the consolidation of a number of issues, including the debt and capital stock of the South Sea company, dating back to the early 1700s. The last undated gilt to have been issued by the UK government was in October 1946 (2½% Treasury Stock)."

Let's hope we don't have to wait this long to get payback from BlueJay!

[mach100] 15/1/2020 10:51

Bought in today and hope to build a position. Saw someone tip it on TV or youtube and looks an interesting play. I might be alone here in hoping good news doesn't drop too quickly before I can accumulate more.

[rampair] 15/1/2020 09:59

Ha! It would be a bit bloomin’ dull wouldn’t it?

It was a cold wet morning, yet the annoyingly optimistic shareholder of a Junior miner
Scanned the RNS pages of investegate to so if what was hoped for for a long time had arrived. Unfortunately today it had not, he would look again tomorrow.

Just in case anyone thinks We only have one holding - there are other instruments in the Rampair portfolio, it’s just that Greenland is a fascinating place. We do, occasionally,
Buy shares that pay dividends, allsorts of odd things - Consols were the strangest,
Consolidated War Debt, perpetual and issued in the 1720’s not sure if they are still about? Anyone know?

R.

[moreminer] 15/1/2020 09:22

Wise and well written words ramps

Ever considered writing a novel?
Mm