Jubilee Metals Share Discussion Threads

[haughtonhoney] 21/3/2019 07:09

In other words - buckle up, sit tight and enjoy the ride.

[boris cobaka] 21/3/2019 07:08

1.00 by xmas?

[choppernoel] 21/3/2019 06:58

Aceshi says"Nothing is going to be back to normal in March, and probably not for months or even years to come, some are saying".

You are 100% correct. Load shedding is not going away at all. Leon and Colin must explain their statement that jubilees electricity interruptions will improve from March 2019. Load shedding is not going anywhere. I hope they can justify that statement.

[nelson01] 21/3/2019 06:04

The skipper....well done...wonder why nobody else could find it.

[aceshi] 21/3/2019 05:56

GoldiMost areas in SA are currently rotationally without power for about 7,5hrs out of 24hrs. Your research is normally up to scratch. It's called "loadshedding" by the geniuses who created it, look it up, it will shock you. Nothing is going to be back to normal in March, and probably not for months or even years to come, some are saying.

[aceshi] 21/3/2019 05:50

Now that's a lazy answer PlattAt what point does it become a project,? I would say when it starts costing shareholders, it dam well is a project.

[choppernoel] 21/3/2019 04:33

From Plat Hunter:"No, kabwe is not yet a project".

Then why on the jubilee website do they have kabwe listed as project - Zambia?

[the bull] 21/3/2019 00:13

I looked for signs of brokers notes recently and none listed, certainly not on the company website. Is there a link TS?

[the skipper] 20/3/2019 23:46

Not sure if anyone has posted up the broker note put out by Shard Capital on 4th March. It runs to 42 pages, but here's the summary from the front page:

"Putting the pedal to the metal

After years of laying the foundations of its metal recovery business, the pace of project execution is speeding up and Jubilee is delivering on its growth trajectory. Early focus has been on the recovery of chrome and PGMs from mine tailings where production is set to increase significantly over the next 12 months, including the recovery of fine chrome, an industry first. However, JLP has bigger ambitions and Kabwe in Zambia will turn the company into a base metal and vanadium producer.

JLP has also been invited into the boardrooms of the major miners to discuss access to the substantial portfolios of mine waste lying at surface. We believe this could be game-changer for Jubilee.

► JLP is the expert. Jubilee is an industry acknowledged leader in the retreatment of tailings,waste, slag slurry and other secondary materials generated from mining operations. This is a wide-reaching metals recovery business and not solely focused on platinum as the company's previous name or legacy suggests. Jubilee has a proven track record of success in the South African PGM and chrome industry, working with some of the industry’s leading companies including Mitsubishi, Northam and Lonmin.

► Robust project pipeline. Hernic PGMs and DCM chrome are in production, the fine chrome plant at DCM has been commissioned (first saleable product Jan 2019), and JLP is preparing to commence PGM production at PlatCro. The recent PlatCro acquisition also secured 80ktpm chrome processing capacity. Near-term projects include implementing fine chrome capability at PlatCro and Hernic, PGM production at DCM and developing the Kabwe Zn-Pb-V project in Zambia. Looking out to FY20, we see PGM and chrome production doubled and maiden production of zinc, lead and vanadium.

► First Mover. JLP is emerging as a world leader in mine waste retreatment with the in-house ability to design, build and execute projects. Jubilee has executed framework agreements with some of the largest mining companies in the industry to access the substantial waste portfolios lying at surface and where remediation is becoming a growing imperative. This has the potential to expand JLP’s production base considerably, whilst diversifying to new metals and giving the company a global reach beyond South Africa. JLP is currently evaluating the huge opportunity presented by mine tailings and slag in Zambia.

► Lower risk profile. JLP sidesteps the high-risk exploration stage of the industry and has no exposure to mining risk. Tonnage and grade variation are known in advance and the company’s processing expertise increases in-situ grades substantially for minimal processing. Furthermore, a typical JLP project has exceptionally low capital intensity and low operating costs ensuring robust margins even in low metal price environments.

► Fine chrome game-changer. JLP has taken a leading position in the recovery of fine chrome with a proven process recovers fine chrome sub 60-40μm where substantial losses occur for the primary chrome processing industry. This opens up enormous potential for the recovery of fine chrome from the millions of tonnes of historical tailings that are produced by primary platinum producers mining the UG2 reef.

► Upcoming key catalysts. First PGMS from PlatCro (Feb). DCM fine chrome full production(March). Decision on Kabwe development plan and potential refinery acquisition (Q1/Q2 2019). Permits and approvals for PGM production at DCM (2019).

► Valuation. Our current indicative valuation for Jubilee Metals is 6p/sh fully-diluted (unrisked 8.2p) which implies that JLP is trading at an undemanding 0.40x discount to NAV, with an implied return of 2.5x to the current share price. We forecast significant ramp up in revenue and earnings generation from FY20 as JLP executes on its ambitious growth programme.

Jubilee is not likely to remain under the radar for much longer. 2019 will be a pivotal year for the company as it beds down several new projects. We see no other company as well positioned with the resources, expertise and connections to take advantage of the compelling opportunities presented by global mine waste and tailings. JLP now has multiple commodity exposure and is expanding into new jurisdictions beyond South Africa."

Clearly the note will need to be updated to take account of today's news and also what's to come re:Kabwe processing. I expect to hear something about that in the very near future.

[timhigginson] 20/3/2019 21:48

Just to let a little steam out of the figures being put forward for DCM, I remember when this project was first being mooted that a DCF and NPV was done on the project showing an NPV of $14m. At the time those figures were put out platinum was $1,250 per oz.

[boris cobaka] 20/3/2019 21:47

bully - doing very well thanks. His IQ is already higher than a few on here....

Nice to see the ol' gang still knocking around.

[kryptonsnake] 20/3/2019 21:32

If your chrome and non-platinum projects can only make £6 million a year net profit then Kabwe will blow all of that out of the water

Kabwe will blow harder than plats mum on crack

[deme1] 20/3/2019 21:26

Analised good and propper.

[goingforarun] 20/3/2019 21:25

Here,here!

[goldibucks] 20/3/2019 21:09

"So F#C£ed on a couple of fronts" What fronts are they? The only disappointment was Hernic, that's back to normal production in March, and we'll end up making more money in the long run by selling the PGMs not processed at a higher PGM basket price. Annualised, we are making £6m profit before tax with plenty more to come with PlatCro PGMs and DCM fine chrome.

[goldibucks] 20/3/2019 21:05

"but you left out your most important project KABWE" Kabwe is only the most important one for you because your BMR royalty depends on it. Until we buy it for a couple of quid and a set of heated rollers...

[kryptonsnake] 20/3/2019 20:40

Nice project update Leon but you left out your most important project KABWE

More jam stories to keep the rampers appeased

[plat hunter] 20/3/2019 20:35

No, kabwe is not yet a project.

[sharenotes] 20/3/2019 20:21

Fockers to that Goldi; or should I say Fokkers?

[goldibucks] 20/3/2019 20:15

"Excellent RNS, though why towards the end of the day?" Somebody said it's a Public Holiday in South Africa tomorrow. Maybe it's to do with that. Maybe it was meant to be released tomorrow morning but there was a mix up. Or maybe, they wanted to clear the decks for a bigger announcement tomorrow morning or Friday. We can dream! :-)

[sharenotes] 20/3/2019 20:13

sleveen,

Brilliant!

[nash81] 20/3/2019 20:12

excellent rns, though why towards the end of the day?

anybody else going to see Leon next week at UK exhibition ?