Share Name Share Symbol Market Type Share ISIN Share Description
Bluejay Mining Plc LSE:JAY London Ordinary Share GB00BFD3VF20 ORD 0.01P
  Price Change % Change Share Price Shares Traded Last Trade
  0.10 0.85% 11.90 4,823,335 16:35:01
Bid Price Offer Price High Price Low Price Open Price
11.80 12.00 13.00 11.60 12.20
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining -1.81 -0.21 116
Last Trade Time Trade Type Trade Size Trade Price Currency
17:00:43 O 1,762 11.872 GBX

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Bluejay Mining Daily Update: Bluejay Mining Plc is listed in the Mining sector of the London Stock Exchange with ticker JAY. The last closing price for Bluejay Mining was 11.80p.
Bluejay Mining Plc has a 4 week average price of 10.60p and a 12 week average price of 8.16p.
The 1 year high share price is 15.75p while the 1 year low share price is currently 2.90p.
There are currently 971,629,460 shares in issue and the average daily traded volume is 3,669,715 shares. The market capitalisation of Bluejay Mining Plc is £115,623,905.74.
mirabeau: Wed 30 Dec Bluejay Mining* (AIM:JAY) 12.33p, Mkt cap £120m – Research & Development Tax Credit BUY, Valuation 29.4p Bluejay Mining report the receipt of a £264,775 R&D cash rebate from the UK government for scientific research. The research was carried out on the Dundas ilmenite project over the last two field seasons. Eric Sondergaard, the Geology manager at Bluejay in Greenland is to continue to evaluate future strategic R&D credit opportunities in the area as he plans the exploration campaign for 2021. Bluejay’s qualification for the funding indicate the company has passed a number of checks to qualify for the finance and also highlights British government support for R&D in the resources sector. Bluejay recently received approval for a full mining license at Dundas from the Greenland government. The new mining license enables Bluejay to finance and start construction of the 440,000tpa Dundas ilmenite mine.. Management recently also announced the expansion of their offtake agreement with a large and long established Asian conglomerate for up to 340,000tpa of ilmenite concentrate. The pricing of this will be close to the prevailing ilmenite price at the time of sale, currently at ~$240/t and rising. Optimisation of the project feasibility in Greenland should hopefully reduce the estimated $245m capital cost and may also cut forecast operating costs. Dundas is a relatively simple project in mining terms. Ilmenite will be dry-mined off the beach and concentrated using simple gravity and magnetic separation. The very high grade and clean nature of the ilmenite at Dundas should make this a relatively simple project in mining and processing terms. Bluejay had previously shipped a bulk sample of ilmenite to Canada for Rio Tinto Iron and Titanium. This sample was concentrated further in preparation for a smelter test at RTIT. The sample is worth around $1.25m. Conclusion: We expect Bluejay to finance the Dundas titanium mineral sands project next year with strong support from multilateral and government agencies along with project and offtake finance. The company is also developing a number of other exciting exploration projects in Finland and Greenland. *SP Angel act Nomad and broker to Bluejay. The analyst has previously visited the Hammaslahti, Enonkoski and Outukumpu mines in Finland as well as Bluejay’s Dundas mine site in Greenland. -
perfect choice: Too early I'd say but that's just my view, added an update comment in my post 9302 on this subject as was covering financing. Do expect a placing at some stage before cash flows kick-in but I'm just seeing end of year banking of investments right now and the price "treading water" which after the great run JAY has had is not too surprising. JAY's £7M will not last forever though even with reductions in general expenditure, HMRC refunds and potential selling of processed Ilmenite currently in Quebec. There will come a time to raise more funds through to cash flow generation, it's just when. However have a read of the 14th April 20 RNS Operational Update. It states " Bluejay now has a cost base that ensures that the Company is viable for up to four years if necessary, without the need for a capital injection, with the exception of mine construction finance for the Dundas Ilmenite Project, which would traditionally occur with a firm offtake agreement." Now this is based on JAY maintaining those cost reductions and doing no further work anywhere which is not the case with Thunderstone and Finland drilling progressing, so it's not going to be 4 years for sure, but also not imminent by any means. In terms of share price then as said I feel it should tread water until JAY can announce further progress (pre-requisite being submission of exploitation and closure plans to authorities) notably on construction plans and commencement of Dundas, plus financing of course so expect both of those in Q1 2021. Any early supply of Ilmenite as has potentially been stated will clearly be a bonus and the other big piece of news I want to see if the Disko earn-in partner announcements, as most people consider Disko as the largest prospect JAY has. Personally I can see a slow rise in specific jumps to around 16-20p across 2021 but impossible to really consider market timing on this. Just see JAY as a sound investment which has plenty to go, so IMHO enjoy 2021!
monts12: Bluejay Mining* (JAY LN) 13.65p, Mkt cap £135m – Offtake distribution agreement rises to 340,000tpa following signing of mining license for Dundas BUY, Valuation 29.4p • Bluejay Mining report the signing of an offtake distribution agreement with a large and long established Asian conglomerate for up to 340,000tpa of ilmenite concentrate. • The Master Distribution Agreement covers a minimum 250,000tpa of ilmenite rising to a maximum 340,000tpa for a minimum of five years. • The price will be referenced to independent industry data for ilmenite such as TZMI pricing less a small handling commission suggesting that pricing will be close to the prevailing ilmenite price at the time of sale. Currently the price of ilmenite is around $240/t and rising. • Bluejay plans to produce 440,000tpa of high-grade ilmenite concentrate off the beach in Greenland with very simple, low-cost gravity and magnetic concentration. • Ship loading is via a simple conveyor directly onto a handymax or panama bulk carrier in deep water close to the Wolstenholme Fjord. • Bluejay made history in 2019 when it moved the most northerly bulk sample from Greenland (see link ) • The ilmenite concentrate is virtually clay free and does not hold water meaning it does not freeze reducing storage and loading costs. • Optimisation: We expect the optimisation program to have a material impact on key components of the construction and on the valuation of the project • Capex: We expect the capital cost of the project to reduce from the current $245m estimate which has been raised by the consultants due to the project’s location. • The lower capex should be due to the benefits of mining high-grade material with very little in the way of clay or other undesirable elements. • It is the unusually clean nature of the ilmenite mineralisation and material around it that allows for more simple processing and concentration. • Financing: We expect a number of multilateral development agencies to participate in the funding alongside project finance, conventional funds and offtake finance from the unnamed Asian trading conglomerate. • Offtake: The offtaker will take bulk shipments for distribution in smaller lots to other buyers. This should reduce shipping costs and improve efficiency. • The Asian conglomerate is not currently named due to commercial sensitivity though they may be named closer to the time of offtake. • Management continue to talk to other offtakers for the remaining tonnage planned from the Dundas project. • Ilmenite market: Mine production is running at around 7mtpa ilmenite and another 0.6mt of rutile which also contains titanium. • There is no listed market for the material meaning that concentrates are normally shipped directly from producer to the consumer often with the assistance of traders. • Reports from the latest TMZI industry conference indicate demand growth of 1.7% CAGR though this may well prove conservative given the ongoing urbanisation and economic growth in China and increased use of paint by furloughed workers in the west. • Critically, growth in demand for ilmenite feedstock is making room for new production from Dundas, particularly for high-grade clean material. Conclusion: Bluejay are progressing quickly through the steps needed to fund and construct the Dundas mine helped by the simplicity of the project and its location next to a deep-water fjord. We look forward to further news on the project financing. Rio Tinto recently took an option to form a joint venture agreement with Bluejay over the Enonkoski nickel project in Finland and may acquire a 75% interest through $20m worth of expenditure. Bluejay also has a pilot plant in Canada where it is progressing a 5,000t metallurgical sample for smelter testing. The value of this sample is around US$1.25m and the concentrate may now be sold given the company has received its exploitation licence. *SP Angel act Nomad and broker to Bluejay. The analyst has previously visited the Hammaslahti, Enonkoski and Outukumpu mines in Finland as well as Bluejay’s Dundas mine site in Greenland.
perfect choice: Yes DrM, clearly "hint" this is very short term to be announced and matches the MOU extension timescales anyway. Now JAY through its RNSs has made it clear of the expected arrangements, so have copied the detail below as a reminder for those who may have "forgotten". So the first "main" offtake partner will agree 250-300ktpa supply, the commercial terms of the agreement are agreed in principle, and it is going through legal approval with the counterparty right now which is taking the time, however sounds very close based on interview and analyst statements made. Beyond the initial main offtake partner which will be the first to be announced, there are other partners also in discussions for their own agreements. This was mentioned in the original RNS namely, "The Company will now move to finalise the last remaining xxxktpa output to interested third parties with a view to obtaining off-take agreements for all of the total annual scheduled production potential from Dundas" This is still the case as offtake partners have been stated as plural so more than one in discussions with JAY right now. Now in terms of the actual commercials for the offtake agreement, that is commercially sensitive information so will never be publicly announced and included in an RNS. But in time I am fairly certain we will get hints as to where the "ball park" price is at, which may well be based on several conditions as well e.g. volume based and subject to stage reviews for future supply for example. As also mentioned the market demand is robust right now and price increasing, where the Dundas Ilmenite homogenous, low impurity, low oxidisation benefits will also be factors in deciding pricing. Certainly feel that $120 margin before shipping costs previous mentioned is the minimum to be expected and watch out for the cost optimisation output on that. It is even mentioned there may be a possibility of needing to supply raw Ilmenite to a client as early as 2021 to meet specific demand but I'm not going to get ahead of myself yet, until such stated comments are backed up with more detail. But it does show the clear demand in place right now and why the larger players are going to take up all of Dundas volume, certainly for the early ramp up years before 440ktpa is reached. In fact as soon as the mine is operational I am expecting JAY to be looking at the output expansion to the 600ktpa as has already mentioned, in fact share price Angel is planning for that from 2027 onwards. 27th November RNS: Bluejay Mining plc, the AIM, FSE listed and OCTQB traded exploration and development company with projects in Greenland and Finland, would like to provide an update on its offtake negotiations for the Dundas Ilmenite Project ('Dundas' or the 'Project') in Greenland. The commercial terms of an agreement are agreed in principle but the agreement itself is now passing through the final stages of legal review by the counterparty. As the counterparty is a large multinational organisation, the due process for review can and has become extended. It is also vital to ensure the best practical terms available for Bluejay Mining shareholders are obtained. As a consequence, the counterparty has requested that the MOU, which covers the finalisation of the agreement, be extended. Both parties have therefore agreed a new extension date of 31 December 2020. Further details of the MOU are set out in the Company's announcement of 22 July 2020. The Company will update the market on the status of the offtake negotiations in due course. 22nd July RNS: Bluejay Mining plc ('Bluejay' or the 'Company') Conditional Agreement Extension and Increase for up to 300ktpa of Dundas Ilmenite Bluejay Mining plc, the AIM and FSE listed company with projects in Greenland and Finland, is pleased to provide an update on its offtake negotiations for the Dundas Ilmenite Project ('Dundas' or the 'Project') in Greenland announced on 14 April 2020 ('MOU'). Highlights -- Up to a 50% increase in potential off-take amount of 250-300ktpa from the 200tkpa of Dundas ilmenite -- The MOU provides for a potential off-take of up to 70% of total annual output at Dundas -- A three-month extension to the MOU in order to negotiate a definitive distribution agreement Background On the 14 April, 2020 Bluejay announced the signing of a memorandum of understanding with a multinational commodity trading firm who are also a major ilmenite market participant. We are pleased to announce that the parties have agreed to extend both the size of the proposed offtake from Dundas, the Company's flagship development in Greenland by up to 50% from 200ktpa to up to 250-300ktpa and extend the agreement by three months to 31 October 2020 to allow time for a definitive purchase agreement to be completed. The multinational trading firm have also indicated a willingness to participate in project financing for Dundas, if feasible. Dundas is currently being assessed for a mining licence by the Greenland government with a decision expected later this year. Shareholders should note that there is no guarantee that the definitive purchase agreement or project financing for Dundas will be completed. The parties have agreed to potentially increase the proposed contract size to up to 300ktpa, representing up to a 50% increase in potential offtake and representing up to approximately 70% of the total proposed annual output of Dundas. The Company will now move to finalise the last remaining 140-190ktpa output to interested third parties with a view to obtaining off-take agreements for all of the total annual scheduled production potential from Dundas.
mirabeau: Bluejay Mining : Hannam and Partners Equity Research 12/14/2020 | 10:19am EST BlueJay Mining | Equity Research 14th December 2020 Dundas Exploitation Licence granted; offtake deal expected soon BlueJay Mining PLC (JAY) has announced the granting of an Exploitation Licence for the Dundas Ilmenite Project. The license will be signed by the Government of Greenland in a virtual ceremony later today, enabling the company to enter the procurement, construction and production phases. The license will be valid for 30 years, with an option to extend if required, giving plenty of room for additions to the current ~9-year Reserve life. BlueJay plans to produce 440ktpa of ilmenite as indicated in the PFS, but this initial production level can be upscaled. The awarding of this licence represents an important milestone in the advancement of the project, allowing BlueJay to further progress financing negotiations with new and existing interested parties, including a potential offtake partner. Extensive regional engagement has fostered strong community relations A comprehensive environmental and social impact assessment conducted at Dundas has helped to build a sound relationship with the local community. BlueJay has also engaged in extensive community consultation and collaborated with educational institutions to provide the locals with the necessary skills to work at the Dundas Project in a bid to boost local employment. This, coupled with supportive comments from various official bodies, are testament to BlueJay's responsible stewardship of the project to date, and could support the company's efforts to access low-cost, government- backed funding options. We also note the Government of Greenland will receive royalties of 1% and 2% in years 1 and 2, respectively, and 2.5% from year 3 onwards, which realistically implies a 2.5% royalty over the life-of-mine given the timeline to first production. Upcoming catalysts & timeline to production Offtake discussions are ongoing with a large multinational trading company, and we note the company "anticipate[s] reaching a commercial [offtake] agreement very soon". Bluejay expects the agreement to cover a minimum of 200ktpa and potentially up to 300ktpa, roughly 2/3 of Dundas' annual production. The combination of an Exploitation Licence and Offtake deal would give a solid platform to explore various project financing options, in our view. There is also the potential for an offtake deal to come with a funding commitment, allowing JAY to accelerate the ongoing optimisation of its PFS and commence a full Bankable Feasibility Study. We have modelled first production from 2023, subject to Governmental sign-off of the exploitation and closure plan by the end of 2022, as stipulated in the Exploitation Licence awarded today. With the PFS review targeting capital and operating cost reductions, we have assumed in our DCF that the initial capex budget will be ~US$200m, compared to the US$245m in the 2019 PFS. Meanwhile, we note JAY is considering the installation of renewable power capacity; while we believe this may involve additional capital, it could also attract very low cost state-backed loans or grants, whilst reducing energy costs. Valuation - sensitivity to price upside We retain a Dec'21 target price of 20p per share, implying 62% upside from the current price. This is based on a WACC of 8% and long-term real ilmenite price of US$200/t (FOB), more conservative than the PFS inputs of 5% and US$232/t, respectively. Based on the potential size of the Resource, we model 17 years of production beyond the 9-year PFS Reserve. On this basis we reach an NPV of US$268m for Dundas, to which we apply a 0.8x multiple. We then add a further US$60m in nominal value for JAYs earlier-stage but equally attractive exploration assets: US$30m for Disko, US$10m for Kangerluarsuk and US$20m for the Finnish licences. Adjusting for working capital and G&A, we derive a total Dec'21E SOTP of ~US$257m (20p/sh). Furthermore, we note for every US$10/t delta in ilmenite we would see a ~US$32m change (~12.5%) in our Dundas NPV, equivalent to a ~2.6p change in SOTP; marking-to-market for current ilmenite prices of ~US$260/t, this would imply ~80% further upside to our PT. end
mirabeau: Bluejay Mining* (LON:JAY) 13.2p, Mkt cap £129m – Greenland government to sign Exploitation License for Dundas Ilmenite Project today BUY – Valuation: 29.4p Bluejay Mining report the Government of Greenland will sign the Exploitation license for the Dundas Ilmenite project today. The license should allow Bluejay to mine and process Ilmenite material from the Dundas project for 30 years This will allow Bluejay to move forward on procurement, construction and ilmenite production We expect the Dundas project to continue for far longer than the current PFS 11 year plan due to the presence of so much un-drilled ilmenite material Resource: The current onshore JORC resource is 117mt. This does not include very substantial near-shore, shallow marine ilmenite. We view the current resource grade as conservative and potentially subject to upward revision when the mine grade is reconciled. Dredge mining of these resources could substantially add to the production rate through the mining of near-shore ilmenite through the summer season. The offshore JORC Exploration Target here is currently estimated at 300–530mt grading 0.4-4.8% ilmenite The resource does not include a certain amount of high-grade material in the Iterlak Delta area. We believe drilling stopped here due to the exceptional high-density of the ilmenite material in this area. EIA & SIA: The Government of Greenland has approved the EIA ‘Environmental Impact Assessment’ and SIA ‘Social Impact Assessment’ as part of the Licence process. The IBA ‘Impact Benefit Agreement’ between the Municipality of North-West Greenland, the Government of Greenland and Dundas has also been signed. Dundas project: capital costs are being reduced through further refinement and optimisation of the project. These include further environmental enhancements. The project PFS envisaged production of 440,000tpa though we are sure the company can ramp up production well beyond this rate if required Offtake: we now expect Bluejay to finalise the financing proposal with existing, and newly interested parties Finance: Greenland and Danish Government backed financial institutions recently backed the company with financial support. We strongly suspect Bluejay will access multilateral funds alongside Offtake and project finance funding to fund the capital cost of the project. Optimisation: Capex is currently estimated at $245m. Optimisation of the relatively simple ore sorting and magnetic separation should reduce estimate which we feel has been inflated by the project’s remote location. Costs: were estimated in the PFS at $6.7/t for the mine and to total US$112.8/t of ilmenite concentrate. The optimisation study is expected to reduce operating costs to under $100/t as well as cutting capital costs. Margin: the current cost estimate indicates a potential US$128/t cash operating margin less the cost of loading and shipping. Loading is simply via an extendable conveyor as demonstrated with the 44,000t bulk sample sent to Rio Tinto Iron and Titanium for a large-scale smelter test last year. Shipping costs are likely to vary between $6/t to Canada and around $20-40/t to China depending on the potential to ship through the North-West Passage. Valuation: We are raising our valuation for Bluejay to 29.4/ from 27p based on our estimated NPV valuation at a revised 7% discount rate to reflect the issuance of the Exploitation license. We assume ilmenite concentrate production of 438,000pa from 2024 rising to 641,000pa from 2027. Bluejay is also required to obtain approval by way of a ‘Section 19 – 43 permit’ for the exploitation plan and closure plan by 31 December 2022 which should take no more than six months from submission as stated by the Ministry of Mineral Resources and will run in parallel with mine development planning. The Exploitation licenses required the Dundas project to start mining no later than 31 December 2025. The Exploitation Licence will see a royalty paid to the Government of Greenland of 1.0%, 2.0% and 2.5% on years one, two, and three respectively and with 2.5% being paid from years four onwards. ESPOO: Bluejay has also completed a consultation with the Canadian authorities as part of the ‘Convention on Environmental Impact Assessment in a Transboundary Context’ Ilmenite prices: Demand for ilmenite has exceeded expectations with supply shortfalls now leading to further tightness within the supply chain and potential shortages in coming years. A lack of new viable projects with low impurity levels and port access in stable jurisdictions may cause some consumers to stock up on feedstock in a market that can sometimes resemble a game of musical chairs. Seven major Chinese titanium dioxide producers recently announced price rises for titanium dioxide varying between Rmb500-1,000/t in local currency and $100-150/t for non-domestic pricing. The FastmarketsMB titanium reference price remains at $230-250/t though we expect this to potentially move higher following the Chinese price rises. Titanium was recently added to the European Commission list of Critical Raw Materials’ catching up with the US State Department’s defined list of critical metals. Conclusion: Bluejay continue to deliver on their promise to advance on the development of the Dundas project in Greenland. We await further news on completion of the Offtake agreement, project and development finance and start of construction. Bluejay’s timing is immaculate given industry concern over the next generation of ilmenite projects. It is also possible that some production might start ahead of the major project construction due to ongoing demand for feedstock. *SP Angel act Nomad and broker to Bluejay. The analyst has previously visited the Hammaslahti, Enonkoski and Outukumpu mines in Finland as well as Bluejay’s Dundas mine site in Greenland.
squiresquire: I am a VERY happy member of the Mike Walters site. In it Mike gives very well researched company information, and though he doesn't tip as such, he does give specific company write ups where so very many times a lot of members go on to make a lot of money. Do not get me wrong, this site of his contains NO unpleasant comments whatever, he simply doesn't allow it. There are some very serious posters on his site and they have made his Bulletin Board something not just special, its simply spectacular as some members are really really good at making money. the link to his site, genuinely by far the best i have come across is at the top of the page and here.... I posted earlier on his site about JAY and have been asked to post it here. Viola: The news that JAY has finally got its Exploitation Licence is great for me. I am not really that interested in the timing or mechanics of the 'Mining Process' itself at Dundas, my interest is, and always has been, to see JAY in a position where it can go to the global leaders in Mining Ilmenite, and trading Ilmenite, to see who is going to give the best deal for JAY to then move forward. I do understand the frustration, though i have never felt it too deeply myself, of many holders, JAY has, as i have repeated before many times here, broken timelines, missed deadlines and taken far longer than management had originally said. That is fact, management were completely wrong in the times they originally put out for JAY. That was due to RM himself. However, though i haver never heard RM say this, it appears to me that as RM moved forward in his understanding of the resource, particularly Dundas, so he had to educate all the players who in their own way would have influence on his project as it advanced. In other words i accepted all the way along, how he was, OK wrong in his given timelines, but so very right in continuing to pursue JAYs future in the unbelievably committed way that he has followed. But again, and this i have also posted many times, RM was, 15 years ago a virtual one man band, dragging JAY along into the real mining world. Then, a couple of years ago, RM began to build JAYs board into a different entity and one which has proved its worth in getting these incredibly technical disciplines accepted. The disciplines ime talking of are the EIA, the SIA, the Optimisation, the FSs, the political and social aspects other than those in the actual Assessments. In fact RM has made JAY evolve, almost organically, while he has simultaneously incorporated all necessary additional components, such as a well formed BOD. His skill in encouraging other entities such as GEUS and countless students from different universities to show their skills, has been wonderful to see. Then there have been the actual studies into the behaviour of the Ilmenite itself, all the way from how it reacts and what its individual properties are in relation to smelting, likewise for its properties when used for paints, printing inks, fabrics, plastics, paper, sunscreen, food and cosmetics. Remember all the samples?. Science though has a massive amount of other uses for Ilmenite, its mind boggling just how many. JAYs Ilmenite has to be tested against all the uses to see how it can best be sold. RMs team have moved forward now to a completely different they have something to sell, and its one of the best of its kind globally. I really dont care about the details of any future business, i purchased shares in JAY to make a profit, not to establish some kind of 'business' entity I thought would be best. I see the profit i am after best made by allowing RM to follow his own judgement, since though he has been, as i have said many times wrong in his predictions of calendar events, he has been, to my mind SPECTACULARLY RIGHT in other ways which include being able to market, to the top global players, a top global, ready to go, mine. We have a raft, as they say, and in this case it is clearly true, of events and dynamics that move me, and all shareholders closer, to strongly driven, event based news. Globally mines take 15 years or so to bring to implementation, RM has done far more than this because the 'spin offs' like Disko with its vast sulphide nickel-copper-platinum-cobalt which covers 2,776 km², or the exceptionally high-grade multiple drill-ready targets identified in the highly underexplored, yet proven zinc-lead mining district of Kangerluarsuk, or Thunderstone, itself on the cusp of being better explained to us. Then he has been building up the Finnish assets including the historic Hammaslahti mine whose ROM was ±10Mt at an average grade of 1.16% copper, 1.55% zinc, 0.59 g/t gold and 5.2 g/t silver from 1973-86. He also has the The Kelkka Nickel-Copper Project includes a previously producing nickel-copper mine, which reportedly produced 6.7Mt at an average grade of 0.8% of nickel between 1984 and 1994. Bluejay has confirmed extensions and repeats of high-grade nickel, copper and PGE mineralisation 2km south east of the old Enonkoski Mine; best historic drill intercepts include 15m @ 6.9% Ni, 2.0% of copper and 0.33% of cobalt. AS so many times before, i am truly in awe of the massive value RM is building, and now we are going to see what others, those with deep pockets, think. Ime still holding our original 65% portfolio investment in this expanding opportunity, and from a price of below, just, 6p. It is only a few months ago that JAY was less than 3p. It seems just unbelievable. Then for a space between the 19 March and the 6th of May it averaged about 3.75p until it jumped on the 6th May to about 7.5p by the 19th May. Now its 12p, a 400% gain from the 19 March roughly. We are up over 100% on our average, i am looking forward to the real share price gains when upcoming newsflow hits the RNSs. These may not contain much about business details, but by golly i expect then to make pretty reading.
mirabeau: The FTT supports input VAT recovery on a holding company’s provision of technical services LinkedIn (opens new window) Twitter (opens new window) By Jan Garioch CA 2 December 2020 Main points: HMRC tried to deny VAT recovery to a holding company in the mining industry which provided technical services to its subsidiaries. The holding company’s invoices were charged to loan accounts, so HMRC argued that the services were not provided to generate a flow of income. The FTT held that at the time the services were provided there was a clear expectation that payment of the loans would be made. Jan Garioch CA discusses a recent case, Bluejay Mining plc v HMRC where the FTT has to consider practices in the mineral exploration and mining industry. The First Tier Tribunal (FTT) published their decision on Bluejay Mining PLC (Bluejay) v HMRC in November 2020. Bluejay’s appeal arose because HMRC had refused to repay over £800,000 of input VAT on the grounds that Bluejay was not making taxable supplies to its subsidiaries for consideration and/or it was not carrying on an economic activity. The agreed facts There was no dispute over the basic facts. Bluejay is a holding company listed on the Alternative Investment Market which operates in the mineral exploration and mining industry. It identifies possible mining projects and raises funds, typically from shareholders. As it is frequently a requirement that exploration licenses are held by a body incorporated in the local jurisdiction, Bluejay ensures that the licence is held by a locally resident subsidiary. Bluejay assembles a team to carry out an initial assessment and, if that shows promise, moves on to test whether the original assessment is borne out by exploration. This phase spans a number of field seasons when geological, environmental and infrastructure matters are considered, with Bluejay providing technical services to its subsidiary and loaning it the funds to pay for these services. Did an accounting description create a legal provision? Bluejay’s company accounts state these loans are only repayable ‘when sufficient cash resources are available in the subsidiaries’. Therefore, HMRC contended that effectively means there is an unwritten provision to the loan agreements that they are only repayable in such circumstances. Their argument failed to convince the FTT which denied that the wording in the accounts created any additional legal provision. It was merely a description of the commercial reality of these loans. In reaching their view, the FTT felt that it was important that where the subsidiary held more than one licence, any impairment review on whether loans were to be forgiven was carried out with reference to all of the assets of the subsidiary. It concluded that at the time the services were provided there was a very clear expectation that the payment of the loans would be made. Are the contract for services and the loan agreement separate? HMRC challenged again with the argument that the contract for services and the loan agreement should be considered as a single agreement providing that the invoices would only be payable if the project is successful. Following that argument, Bluejay’s provision of services is not to generate a flow of income but merely to enhance the value of the subsidiary, and hence the value of its investment. Bluejay’s counter to this argument was that having raised the external funds, it could have advanced them into the subsidiaries in a number of ways, for instance as additional share capital. Since charging an invoice to a loan account is well established as the equivalent of payment, the subsidiary was paying the invoices out of funds in its possession. Again, the FTT came down on the side of Bluejay, accepting that the payment for services was not contingent upon the success of the project. Further findings On reaching the above conclusions, the FTT recognised that it could have concluded its considerations and upheld the appeal. However, in case it was wrong in its findings, it continued to consider all of HMRC’s further arguments. Therefore, it considered the implications if the payment of invoices was in fact contingent on the project succeeding. Despite HMRC putting forward cases where the necessary link between services provided and consideration paid was not established, the FTT gave weight to evidence from a Bluejay director that it would be a dereliction of duty if the company continued to supply its services to the subsidiaries after a point when it did not expect the loans to be repaid. FTT’s conclusion was that at the time the services were provided there was a very clear expectation that the payment of the loans would be made, so again Bluejay would succeed. Finally, the FTT turned to deciding whether Bluejay was conducting an economic activity. HMRC’s contention was that Bluejay was not carrying out an economic activity because its end objective was not to make a profit from the provision of technical services but instead from the ultimate sale of the exploration licences. Again, the FTT was unconvinced. In its view it was clear that Bluejay did obtain an income stream from its provision of technical services, and indeed it generated an income over a number of years considering the time taken for its projects to come to maturity. Therefore, the appeal was allowed.
perfect choice: Post 8848 includes advice to this individual and he should take it. Lets consider where JAY will be in Q2 2021. Exploitation licence will have been granted to Dundas Titanium A/S which is 100% owned by Bluejay Mining plc, Dundas Titanium may be registered in different locations but in terms of control (and so future Dundas operation), that is only through JAY. Now what do you think the JAY share price will be Q2 2021? I would conservatively put it near to 20p and could easily be higher? Now to attempt a takeover of JAY would require a premium price to that to even be of remote interest to holders and even then such a theoretical scenario would generate competitor bids IMHO. FWIW I have now seen cases made for a JAY price around 60p, be it that includes Disko viable initial discovery results being issued, so not just related to Dundas but progress with other JAY exploration assets. That's just the JAY share price situation. Dundas itself has a long way to go to prove up all resources and remember the 10 year mining licence about to be gained only covers 17% of the Dundas licence area. So Dundas itself has a much higher implied value to what is purely covered in the PFS. Furthermore, Dundas Titanium will have signed legally binding contracts for both construction (for full planned operations) and offtake supply (at prices above $200/t I fully expect and driven by at least 1 major market player who we are about to find out) by Q2 2021. Any controlling party of Dundas will be obliged to retain them or pay heavy penalties. The granting of the exploitation licence will also generate IBA obligations for local community investment and jobs as a condition of the licence. Do not underestimate the obligations to meet the SIA in particular which will be built into the IBA. Any change to these by changing planned Dundas operations will invalidate the licence. There are more points to make including the interest of expert parties in the construction and operation of Dundas, plus additional value of Dundas specific sourced Ilmenite to smelter operations, which is all driving the current construction and operational plan. The above information shows how the destiny of Dundas is already fixed and highlights its dependancy to the investment and operational plan as already published. So if anybody thinks they have even a remote chance of changing that, they will be very disappointed IMHO. Any thought of takeover can only be matched by a very expensive bill to acquire JAY, well beyond the funds of smaller groups. Also, major players are after all the planned output (so any start up initiatives yet to progress planning applications will not get a look in at this stage) and Greenland authorities want to maximise the benefit to "local" communities (so local jobs and income generation is key) to Dundas, as previously posted. Those factors alone have already ringfenced the future of Dundas here.
perfect choice: Yes we need to get used to the possibility of late morning announcements now! FYI, any earn-in agreement always has no guarantee statements as the earn-in party may not progress through all stages especially if results of drilling do not confirm the prospects - fairly standard for any exploration activity. Also the timeline for a typical exploration to production prospect can be between 10 to 13 years as a natural exploration to production template, so again nothing unusual in yesterdays announcement. Welcome to the world of exploration to some it seems! Now despite those timelines it doesn't mean value is not realised earlier in terms of company share value. It is worth remembering the lifecycle of a mineral discovery for which the following link is a good example - Https:// The first stage of value is at the discovery stage from drilling results, which is why I am always keen to monitor how close a company is to these. Also consider how far JAY have got with the "pre-discovery" work. So for Disko and Kangerluarsuk they have virtually completed that stage ready for initial drilling. In terms of our Finland nickel prospect there is still work to do at pre-discovery but we are not starting from scratch there as well. Now all the above has no bearing on Dundas (but does have a bearing on JAY share price) where we are getting really close to improving even further the economics (optimisation work output), the exploitation licence and offtake agreement news. Going to be an exciting 6 weeks for JAY holders IMHO!
Bluejay Mining share price data is direct from the London Stock Exchange
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