Jubilee Metals Share Discussion Threads

[goldibucks] 21/7/2019 21:09

"Sable is the monetization of JLP's intellectual property." Pie in the sky Plat! :-) I'm not convinced they have any intellectual property. If they did, they wouldn't need to dilute shareholders to buy tailings (Platcro PGMs, Kabwe), acquire plant (Sable), or buy earnings (Platcro chrome).

They could offer their services to 100s of miners in return for access to tailings with the miner funding CAPEX, and take an X% share of profits when costs have been recovered.

They said they were showcasing fine chrome and tendering for waste portfolio management contracts in January but nothing has been announced. That seems to be how things have rolled for 17 years. All talk, no delivery.

Their business model (for the last 5 years) has been to buy tailings and processing plant using shares and debt whilst taking years to make money from it. To profit from that you have buy into the fatigue it causes and wait for existing earnings to get annualised and the pipeline to turn into earnings (if it ever does). The monetization of patience! :-)

I don't agree with either the extreme bear or bull arguments on JLP. The bears won't accept that earnings get annualised, pipelines turns into earnings, and they might end up making more than the value of initial dilution and debt from projects like Kabwe.

On the flipside, I don't see JLP the way Losta sees it, about to ten bag. On the their current trajectory, that's not going to happen. They don't have the business model for it. At best, they could start funding projects from existing cash flows but they take years to get a project up-and-running and while they are doing that the market will deduct what they spend from their market capitalisation while disregarding earnings more than 12 months out.

I think Kabwe will only take JLP to 4p-5p. Having to pay 35%-40% tax will kill the golden goose. The temptation will be to transfer price profits back to the UK or SA to use accumulated losses but that risks a spat with the Zambian government.

For JLP to grow the market capitalisation beyond £100m they need to do 6 things;

1) Stop issuing shares and start selling intellectual property (if they have any, I don't think they do)
2) Fund new projects 100% from cash flow (to capture the financing margin they are currently leaking).
3) Acquire tailings they can process through existing plant or plant they can use to process existing tailings (having to buy both for each new project kills margins and drags out timelines)
4) Reduce the time it takes to process tailings from acquisition to less than 12 months (unless they can do this new projects will continue to be a drag on the share price).
5) Improve the quality of their financial reporting. It's inconsistent (quarterly to monthly to quarterly to six monthly in the last 12-18 months), poor quality (the last 2 project updates have been dire and impossible to forecast anything from). They should be reporting earnings by project for each quarter to calendarised dates.
6) Improve the quality of their communication. Director's Talk is amateurish ("what's next for Jubilee Leon"), Leon is wooden ("of course there's the vanadiums, the leads, the zincs". The only useful source of information about Jubilee are the the Shard notes and we get those 1-2 months after they get published.

[plat hunter] 21/7/2019 19:48

If you had 6 million quid, you'd be wise to set it aside and allow the interest to supplement your other means of wealth generation.

[scrappycat] 21/7/2019 19:23

I doubt the recent II buyer(s) shares those feelings !!!!!

[kryptonsnake] 21/7/2019 19:04

TEST FEED LOLsss


6 million tons of tailings at Kabwe and this is just test feed? What do you think they are going to treat more of. Tailings from miles away or tailings that are sat on the ground right next door

Plat Hunter and his wisdom strikes again


LOLsss

[robers98] 21/7/2019 18:49

First Quantum was quoted by Colin as the model to follow where progressively each next project is self funded by previous. If that is not what they follow through on, then they will have questions to answer to shareholders.

[aceshi] 21/7/2019 16:51

Exactly. In fact, it's only a matter of time before they roll out the cannon again. They will always have another project in the pipeline that is potentially too lucrative to walk away from. It never has been, or ever will be, about the shareholders, with these guys.

[gsg] 21/7/2019 16:08

1MM & PH. Agreed.

fozdad. The statement is a historic one, probably from around 2006. Leon did mention that the zinc tailing's at Sable have since been exhausted.

[plat hunter] 21/7/2019 15:47

Sable is the monetization of JLP's intellectual property.Kabwe is merely the test feed to demonstrate 3rd party ore viability.

[fozdad] 21/7/2019 12:13

GSG, does the last sentence if that quote mean that with the Sable acquisition, we also own more zinc tailings?

[1madmarky] 21/7/2019 08:15

GSG , looks like a regional hub in the making. Processing Lead, Zinc, Vanadium, Copper and Cobalt.
It might be that we have to build concentrator units at the source of the 3rd party ore to make transportation to sable viable. Hopefully it's all viable and turns the Kabwe into a giant cash machine. Gla

[plat hunter] 20/7/2019 22:47

There won't be a share buy back... It was a carrot to soften the blow of more dilution for Kabwe.

[robers98] 19/7/2019 21:31

So SLP share price hasn't risen due to their share buybacks?

[robers98] 19/7/2019 19:29

Ii's that came on-board want it 1St in advance of dividends. Of course other tailings dump deals might also need funding, which hasn't been helped by Northam with their delay in processing our Platcro pgms.
If only we could get sight of the cashflow projections for the next 12/24 months. But they aren't allowed to issue so we are left with Bullster doing his best projections.
Time will tell, but shareholders have let management know what they consider the company should deliver.

[aceshi] 19/7/2019 18:40

RobersMay have voted for it but will never happen with current management, not their game

[robers98] 19/7/2019 16:54

Or they start share buy back once the cash starts flowing in. That's what was voted for at the last agm.

[plat hunter] 19/7/2019 16:43

Lmao Goldi

[goldibucks] 19/7/2019 15:33

I heard that Colin and Leon like to be referred to collectively as “Colon” because they are full of 5hit. I shouldn’t feed the bears but it’s Friday...

[goldibucks] 19/7/2019 15:30

“It's not for sale”. That’s what you said about the other 89%! ;-) That kebab van’s not going to pay for itself.

[1madmarky] 19/7/2019 15:13

A bird in the hand is worth 3 in the bush,,! I'm sure AB could be easily tempted..... magic beans anyone :-)

[kryptonsnake] 19/7/2019 14:36

It's not for sale BMR will keep that 11% thanks


LOLsss

[goingforarun] 19/7/2019 14:25

AcesHi, the alternative would have been that JLP would have gone bust. To remove the problem they can always consolidate on a 1 for 10 basis? Not important at the moment!

[aceshi] 19/7/2019 14:08

CB's confetti cannon