.
I recently took a small punt on a gold-miner which recently floated on the £AEX (AEX Gold) which is firmly based in Greenland and bought out a load of gold assets from another miner from the past. Sounded interesting, but I am fairly over-weight in gold/miners so wasn't keen on taking any further positions apart from a very small stake. DYOR.
Aex Gold Inc (LON:AEXG), good shout. I'll check them out, thanks.
Though I tend to agree with you wrt stake size potential as I'm already heavy with gold miners based all around the world too. That's actually why I quite liked the two mentioned in the article as they were more varied mineral, but geographically specific plays.
I didn’t think you were a fan of my (LON:AMC) articles?
It’s over100% up from when I first mentioned it on here and that’s only the start. I now have a substantial holding much lower than the current SP. Great day today for those that did their research following my articles and bought in. In my opinion they are still way undervalued given their asset and current Mcap!
I’m not a fan of the multiple threads you originally posted, or the repeated focus on AMC in other blogs & threads. One thread is fair enough though.
AMC wasn’t for me, and I tried to engage in some light hearted banter about Talon metals, which made a nice profit for me in a few weeks. I am genuinely pleased there is more discussion of mining, small caps in particular, you have contributed to that.
Lastly, I hope everyone does well with their investments as for me, that’s the whole point of this community. Apologies if I’ve caused you any offence previously.
Forbsy.
Hi Forbesy,
Many thanks for this article which I found really interesting. And thanks for the acknowledgment for my effort in relation to £JLP
I did a case a few years back about a discovery of rare earths (tantalum, nyobium) in Greenland. The main problem was the lack of a deep water port to get the ore out, and the fact that to build a deep water port, you needed infrastructure (roads, electricity, housing for workers, drainage etc.) to bring in and use the materials to make a port! Seriously deep pockets required. The secondary problem was that there was a lot of uranium in the ground, which the locals did not want mined because of health risks.
I do not know whether Greenland has solved its ports issue in the intervening period. Do you have any info on this?
I will look at your suggestions with interest.
Best regards,
Ricardo
Thanks ricardow, good to get some discussion on mining small cap opportunities in an adult friendly zone!
Unfortunately, I don’t have any specific port info but things appear to have progressed on that front as in April, Bluejay Mining (LON:JAY) announced they had completed a successful shipment and trial at their ore processing plant in Quebec, unfortunately with progress disrupted due to Covid.
Roderick McIllree, CEO of Bluejay Mining Plc said:
“"The Company continues to work tirelessly to advance all our projects. Since our last update at Dundas, we have signed a conditional agreement with a major international ilmenite participant to place nearly half of our planned production, which also includes the prospect of project finance. We are hopeful that this preliminary agreement concludes successfully and is followed with orders for additional ilmenite demand from our other ongoing negotiations. We also constructed a pilot plant in Contrecoeur, Quebec and commenced processing high grade material, which was shipped to this pilot plant in Canada during 2019. However, the pilot plant has now been placed on care and maintenance until a resumption of global activities due to COVID-19 restrictions.
"Regarding our Agreement with Rio Tinto Iron & Titanium (RTIT), Bluejay have been advised of RTIT's intention to delay the agreed smelter trial until 2021. Bluejay Mining's pilot plant located in Contrecoeur commenced operation in February and had been running at full capacity for several weeks. The first batch of the bulk sample made for RTIT has been stored by Bluejay at RTIT's request. The smelter test is a key part to our joint Agreement, and we look forward to progressing the joint activities and the overall assessment of the components of the Dundas Ilmenite Project once things subside.
I wonder if the Covid disruption is a buying opportunity? Further in the update from April, they implied the delay was actually due to an inability to proceed with the public consultation meetings required to obtain the mining licence. This now appears to have been overcome, using Zoom or other videochat tech I assume, as Blujay recently announced completion of their public consultation - expect mining licence to be granted soon. Also following Covid, there have been highly supportive moves towards the Mining industry from the Greenlandic government.
In general Bluejay Mining (LON:JAY) seem to be at a fairly late stage development with the project, with sp drivers to come online in 2021 as they prove up the ore and finalise the offtake agreement. They also appear well financed to ride out any further difficulties without diluting shareholders.
“Finally, I consider our position to be a robust one - the Company owns several independently recognised world-class projects and now, following the actions taken, has up to four years of working capital should it be necessary to sit this out for longer than expected”
CEO also has enough skin in the game for me too at around 10%.
I think Bluejay Mining (LON:JAY) in particular looks promising.
Alba Mineral Resources (LON:ALBA) definitely more of a punt.
Key chart levels for Bluejay Mining (LON:JAY)
Weekly charts below as at 13:15 13/10/20
Potential for nice demand tail this week if candle confirms on the Friday close. Has also recently entered upper half of a long term descending channel, watching to see if it tightens up below line of least résistance around 11.2p before looking for further breakout from the channel upper trendline.
Daily chart below, as at 13:20 13/10/20
All analysis is for information only and is just how I see the situation with this stock.
Also, not directly related to ports, and admittedly an older article, but this would seem to confirm a strategic interest from a US perspective in the area.
Junior explorers rarely become productive mines the failure rate is said to be 99 % , risk can be reduced by visualising where the explorer developer has reached in the Pierre Lasonde mining cylce see below.
Greenland review where you are in the 10 year cycle !SLP is allready in the sweatspot and JLP has just started to move out of the development phase .
Whats different about both companies is they are not miners but above ground bulk material processors with lower risk and cost operations , typical processing costs of $ 500 to $ 600 per troy ounce with high GM and positive cash flow .
Mining is a capital intensive industry dump processing in comparison is not and providing there is political stability , a sound source of tailings and stable end prices is able to produce a high ROC and more importantly free cash flow - JLP has similar profit potential to SLP
Thanks for your input. I've learnt over time that the cycle you've shown is a good model when investing in resource companies and I'm genuinely flattered that your first comment, after 4 years membership, was on my thread.
My interpretation of your diagram, is that Bluejay Mining (LON:JAY) are at the Institutional/Strategic Investment point highlighted. You may also read across that as the Ilmenite projects in Greenland are mineral sands - ie surface based, they should compare favourably with the tailings approach you mention!
Mineral Sands Mining
Mineral sands are mined by surface mining methods including open cut mining, suction dredging and hydraulic mining.
Up 15% since posting :)
Latest RNS confirms the shipping route is both viable and approved.
Looking into the company further, the resource at Disko looks very promising as a Nickel play for future value driver.
Interesting video giving overview of company projects. The bit towards the end was particularly noteworthy as it indicates strong potential for positive news flow campaign through Q1 & Q2 2021. I'd expect this to be accretive for the SP.
Also, Disko licences could actually prove to be the bigger value for Bluejay Mining (LON:JAY) with plans to exploit in partnership with mining majors; Anglo American have taken all surrounding territory to that controlled by JAY. Highlights a highly prospective Nickel resource in geographically sound location for long term security of supply to North America.
Happy to build position here while price is below the 10p mark (below price level of last placing).
Bluejay Mining (LON:JAY)
Bluejay Confirms Cross-Trading Commencement on the United States OTCQB® Market
Bluejay is not conducting any fundraising associated with this initiation of a quotation and cross-trading on the OTCQB Market.
Bluejay is operating within supportive jurisdictions, has large scale resources, high grades, a proven processing route, low costs, strong economics and access to end markets. Furthermore, we have built a team with a proven track record of delivery and attracted institutional and industry backers, further highlighting the exceptional potential of our portfolio. The outlook for the Company is highly positive and I firmly believe these attractive credentials will be further strengthened by our first foray into the U.S. markets, thus widening our reach and facilitating U.S. investment into the Company.
Blue Jay Exploitation License for Dundas has been approved https://naalakkersuisut.gl/en/...
Bluejay Mining (LON:JAY) have now sealed the JV with Rio Tinto (LON:RIO)
Looking for a tennis ball bounce off support following some recent profit taking by many, myself and the CEO included.
Hi Forbsy. I have only recently discovered Bluejay and invested in the company. Your report from Oct and a lot of the comments here is very helpful. I noticed today that Bluejay has a letter of interest from a bank to finance the Dundas project. This appears to have affected the share price nicely. However, looking at the Bluejay chart the share price has been going down since late december and I can't see any reason for this. Are you aware as to why this might be happening. I would have excepted the deal with Rio Tinto to caused a bounce up.
Hi gari en desti,
Glad you found the info useful, imo Bluejay Mining (LON:JAY) is an excellent prospect and I hope and expect it to do well in the coming year and beyond.
Tbh, I think it was just general profit taking, especially after the recent RNS announced the CEO had sold a chunk at about 14.2p I think it was. I too sold around half my position around 13.5p avg, for ~50% gain before topping up again on the dip just there.
The CEO’s shares went to an institutional buyer i’m fairly sure and he still has a large chunk, so overall, I think it is actually a good sign but director selling is usually followed by some more by others.
Hope to see it settle down again now and move higher again as the positive news flow continues. There is a lot going on for JAY just now with frequent RNS coming through which should keep things simmering along.
Good luck with it,
Cheers, Forbsy
Nice bowl seems to be forming with the share price chart.
Going to take an initial interest and see what happens over the coming months. As long as the company makes regular updates and progress I will aim to build up a position!
