Jubilee Metals Share Discussion Threads

[1madmarky] 06/11/2019 12:45

It's getting too rich for my blood... fold

[deme1] 06/11/2019 12:29

alwaysevolving

I see your one "what a joy"
and raise you two "mid caps"

[alwaysevolving] 06/11/2019 12:27

My money is on getting at least one “what a joy” from Colin tomorrow
But probably multiple?

[the skipper] 06/11/2019 12:17

Couldn't agree more Kenny. You might also wish to check your mailbox.

[ginko3] 06/11/2019 12:14

Really hope you are right Plat but this is Jubilee - past masters at shooting themselves and us in the foot and don't forget, Colin is doing the talking tomorrow . .. . . yikes

[plat hunter] 06/11/2019 11:43

Anytime over the next ten days we'll see the financials hit the door mat.If you're not in yet or top sliced then this period now is pretty much your last chance.

[the skipper] 06/11/2019 11:30

I think that people are becoming too focused on the latest deal. What the II's and HNWI's who have bought in to the company will be focusing on is the financial results and outlook which will be delivered sometime this month. They will inevitably demonstrate strong cash generation and a maiden profit, and then we will get the re-rating that LTH's deserve. I still see this going to 6.5p to complete the bowl or cup formation which has now become readily apparent on the three year chart.

Expect some sideways amovement to play out for a couple of months after that as the handle forms on the cup and then the next leg up will come into play as Kabwe and Sable Zinc come into full production. 10p not at all unrealistic in the next twelve months imo so I am adding on current weakness.

[bullster] 06/11/2019 11:16

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If you take a look at our H1/19 report, you will see that we produced 164,936 tonnes of chromite concentrate, we received attributable earnings of £1,576,000.

That's a profit of $12.3 per tonne (seems terrible, doesn't it)

This figure was derived after a 50% forfeit at DCM, project expenditure on plant and equipment and negative stock value adjustments.

Valuing our chromite or even our pgm's in isolation, is difficult. Our chromite production is a bye-product of our pgm production, so apportioning cost to produce, on any one in isolation, isn't straightforward.

I valued the Inyoni chromite concentrate at full sale price, because the cost to produce it is borne by the $400 per ounce, cost to produce, we calculate for the pgm's.

On the plus side, we have attributed cost to produce chromite concentrate at DCM, therefore the cost to produce the pgm's should have that discounted. (edit ... unless this is what the negative stock value adjustments, are about.)

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[plat hunter] 06/11/2019 11:12

They've sold it, for someone else to uptake the liability and the financial reward.Outsourcing maybe the wrong word but to me at least ot's clear that Hernic just want to mine and be responsible with their waste.

[plat hunter] 06/11/2019 11:08

Here's how I see it.Even if we make a 10% margin on the chrome then we make 1.6 million for utilising the spare processing capacity.Leon is putting our cash to work... This is a good deal imo. You have to step back and think about how much processing capacity we actually have sitting idle.It's still a case of buying what we can atm, we're just using cash for it now instead of equity or debt.

[eblitz1] 06/11/2019 10:46

Hi Sleveen
Thanks for your response, it' the packaging of the whole deal plus the lack of knowledge that we have which is why Leon who said in the video that it was quite complicated should not only be presenting on Thursday but should let the market know more

[sleveen] 06/11/2019 10:40

Agreed included within the Hernic PGM deal last week is the 1m tonnes @ Windsor

"Acquires all rights to a further circa. one million tonnes of PGM rich material located close to its Windsor chrome operations"


Yesterday's deal is chrome only at Inyoni for 16m, not great IMV.

[eblitz1] 06/11/2019 10:38

Hi Plat and everyone else.
Can you help me with this latest RNS as I am on the fence at the moment. I agree with everyone that the first RNS re getting all the PGM's plus a million tonnes near Northam was too good to be true. I agree that we are not at any risk because we are getting the rough chrome anyway. I agree that with putting the fine chrome element in it will help enormously with the quality of the PGM's together with putting more on the bottom line for little oost. All good so far. For packaging and PR purposes if you look at the 2 deals as you have already said we are paying $21million for this.

Leon has not helped at all in the way he has stated the payment schedule and getting the lats bit of monies which is why others are getting worried about a placing which will to my mind not happen. I think the bottom line is the market thinks that we have overpaid. It's the packaging of the deal. If Leon had stated we have paid $15million for the PGM's and $6 for the chrome the market would love it especially if we get much more than $15 million back just on the 1 million tonnes bu Northam.It also as you have stated shown the cash that we are generating

I just have not got excited on the second part of the deal and need help quantifying it

Can you help

[sleveen] 06/11/2019 10:29

From 15/12/2015 RNS:

" The Hernic Surface Material has been independently fully drilled and assayed for chrome and PGM content. This has resulted in an independent resource statement of 1.7 million tons, of which approximately 90% of the resource is classified in the measured category under the internationally recognised SAMREC code. Hernic also has access to secondary surface stocks, which it has internally identified and could increase the surface stocks to in excess of 3million tons through further drilling programs. The total Project is estimated to contain PGM ounces in excess of 224 000 (3PGM + Au) oz."

So potential 3m tonnes in total unprocessed, JLP has been operating Hernic around 2.5 years processing about 1.3m tonnes leaving 1.7m tonnes unprocessed (PGMs + FC) and 630k tonnes processed containing the fine chrome.

[billyboy2fromiii] 06/11/2019 10:09

Hi Sharenotes,

Can you please expalin your comments regarding the Repo Market, and the appearance of MBS. I keep haring about the Repo Market but am struggling to understand it. Is this potentially a bad thing for general equity markets. I keep reading that the long running Bull market will soon come to and end. Could the Repo Market be the trigger for a 2008 style crisis? Apologies to others for the off topic question. Regards, BB2.

[sleveen] 06/11/2019 10:09

Undie I had hoped you could find a chrome chart as I couldn't.

PH explanation for the lack of one sounds right to me.

[plat hunter] 06/11/2019 09:39

You'll not find a reliable one Undie... Chrome is an over the counter jobbie, unlike the other metals quoted on the likes of Kitco.It's more about who you can sell it too and for how much.. Commercial relationships and commercial arrangements rather than a secondary market that you can trade liquid futures on.

[the bull] 06/11/2019 09:37

Is this the usual shorting before the share issue that comes with Colins companies

[plat hunter] 06/11/2019 09:36

All due respect Sleeven but I think you're judging the chrome tailings a little harshly. Chrome is a low margin high volume game yet, I was under the impression that the chrome tailings we have purchased is untreated surface waste and thus will undoubtedly be PGM rich too.less than 2 years ago that we needed a placing just to truck the Northam material, now we're spending circa 5 million a month out of cash for new projects and material.Cash generation here is out of this world and every deal struck will just increase the margins and revenue accordingly.

[undertaker] 06/11/2019 09:30

Chrome chart - if you can provide me a link - I'll add.

I don't see chrome on Kitco.com