Jubilee Metals Share Discussion Threads

[lostabillion] 04/4/2019 15:38

PGM and chrome production from Jubilee Metals is now generating more revenue per year than its market valuation.

Jubilee Metals will be adding significant extra production capacity in the short to medium terms
PGM and chrome production from Jubilee Metals is now generating more revenue per year than its market valuation
OVERVIEW: JLP
THE BIG
PICTURE
Workers at the Hernic project
There’s a straightforward financial dynamic about Jubilee Metals Group PLC (LON:JLP) that the market hasn’t woken up to yet, according to chairman Colin Bird.

The company is generating around US$700,000 per month in operating cash flow from the treatment of old ore from South African platinum and chrome mines.

At the Hernic operation the most recent numbers show the company exceeding expectations by passing through a monthly production rate of 2,500 ounces of platinum group metals, including rhodium and palladium which have benefitted from strong prices this year.

Meanwhile, chrome production at the nearby DCM project is steady at around 9,500 tonnes of chromite per quarter while an expansion build out completes.

Thereafter production should rise “dramatically” according to company literature, after the new fines recovery plant is completed.

And that’s not all the growth that’s on offer either.

The first material from Jubilee’s Platcro project has now been delivered to the Eland operation owned by Northam Platinum (JSE:NHM) as part of a plan to build up an inventory of 200,000 tonnes of platinum rich material. Early this year the processing of this material will begin, and the revenue from the resultant platinum will add yet another income stream.

And if that wasn’t enough, following on behind is the recently acquired Kabwe project in Zambia, which holds a significant lead, zinc and vanadium resource. Here, Jubilee is currently building in processing circuits to cater for each metal and expects first production in the second quarter of this year.

With all this going on, it’s not surprising that some market watchers confidently predict that Jubilee’s earnings could go as high as US$60mln per year in a relatively short time.

Set against the current market capitalisation of £29mln, that’s quite a thought.

To date, the focus has been primarily on driving the company forward at a project level. After all, it’s not easy to make money in the current mining market, and it’s even less easy to build a company with such an attractive growth profile.

With that job done, it’s now time to get out and tell people about it.

“Not many people appreciate the shear magnitude of the waste created by centuries of mining in Southern Africa,” says Coetzer.

“But there’s a common theme in the industry now: let’s extract every ounce of value we can out of the blood and sweat it took to bring the metal to the surface.”

And now that the African foundation stone of the company has been laid, Coetzer and Bird are looking up to Europe and beyond for the next opportunity. Because these are entrepreneurs now supported by significant and growing cash flow – they’ve shown an appetite for deal-making and an ability successfully to conclude transactions.

They are unlikely to rest on their laurels, so expect plenty of newsflow in the weeks and months ahead.

[choppernoel] 04/4/2019 15:37

Sleveen also takes a couple of bags orally a day. Sleveen enjoys rooster size suppositories for his period pains.

[deme1] 04/4/2019 15:16

this is gonna have more bags this year than plats mom has in a day.

[deme1] 04/4/2019 15:15

10 bagger here we come.

[adejuk] 04/4/2019 15:05

i like a bit of optomism [sic]

[plat hunter] 04/4/2019 15:01

Bitcoins up and golds and silvers down.

It's the same market participants. You'l see gold and silver take a bid when the current bitcoin pump gets dumped.

[the bull] 04/4/2019 14:48

Losta, we were here before the institudinal herd, then they left and came back again, let us hope this time we have real success but sadly I think your 30p is a tad optimistic. But if we get there, I will chase you around the med on my fairline squadron 55

[nelson01] 04/4/2019 14:26

I very much doubt Jlp would go put in all the work of building and operating Hernic for 15%, does anyone know if this is true.

[sharenotes] 04/4/2019 14:25

Boris,

Purely for personal (selfish) reasons I would not mind if they gave gold a good trouncing, near term anyway. Nice to see platinum rising, however.

[lostabillion] 04/4/2019 14:24

Goingforarun, that’s correct.

We’ll be generating that in just over a year imo. The market normally starts recognising potential 6 months prior.

On that basis the share price will shift vertically on a sustained run very soon.

It is also quite rare to be able to invest in a company before the arrival of the institutional hurd.

[goldibucks] 04/4/2019 14:23

JLP have to share 85% of Hernic eventually per one of the recent Shard notes. A higher platinum price won’t cover that. PlatCro PGMs will cover it until Kabwe earnings come on stream.

[nelson01] 04/4/2019 14:18

It’s quite possible that the rise in the price of platinum will outweigh what we have
To give away at Hernic.

[goingforarun] 04/4/2019 14:13

Losta, 30p is going to take the market cap to £450m? Thus would need earnings of £50-£60m a year to support it?

[billthebank] 04/4/2019 14:11

Plat hunter Do you not think that JLP could actually increase their production flow still further in Hernic. Leon felt that 2000 ounces was not the target just really the next objective. I know that once all the Hernic debt is repaid then of course we wont be getting so much in but I think there is a lot more to come from that platform

[boris cobaka] 04/4/2019 14:05

Would be interesting to see if there's a deliberate takedown on gold at the moment of that drop. It's happened so many times before.

[boris cobaka] 04/4/2019 13:55

See plat surge then at the same time gold and silver dropped.
Unusual times.

[plat hunter] 04/4/2019 13:46

Hernic has been the backbone of JLPs recovery and survival, however we all know that the rosy terms are ending soon. I think it's prudent that we stop including it in future cash flow projections and price it respectively to the share price

[lostabillion] 04/4/2019 13:45

Frog,

Yes, and that’s without Kabwe, DCM, and any other near term projects not yet announced.

This has to reach 30p (10 bag) in the not to distant future just to reflect what is going on under our noses.

Institutional investors are cottoning on slowly but word will soon spread.

[deme1] 04/4/2019 13:44

If it were just £2.9k i could afford to retire up your moms chuff.
she only charges 25p a day!

[billthebank] 04/4/2019 13:42

I have to admit had some time today and revisited Leon's last Q&A and the last few RNS Very informative. It is absolutely clear this is a man who is very specific unlike CB who could waffle for England. His frustration at some of the ridiculous statements made on bbs and directly to him was evident but his answers were not fudged I am so much more confident now in the future of JLP than I have ever been. Will I double my holding again Will reflect on this over the next few days GLAHs!!!!

So much happening and I personaly believe it will be the quarterlies released in July that will be the defining moment for JLP In the meantime fill yer boots. Great to hear that ConRoast is being used and that Tjate is being monitored closely. The old ones are the best!!! One day Rodders one day. Still talk of mid cap and why not but only IMO once we have two or three sets of quarterlies Hopefully in 12 months the share price will be closer to 20p then 10p!!!!

[bullster] 04/4/2019 13:42

.
.

Work on $600 per ounce profit for Q2

It was $450 for Q4/18

.
.

[plat hunter] 04/4/2019 13:41

"I'm going to retire at 36"

Invests £2,900 and starts ramping. Where are retiring, Hull?