Jubilee Metals Share Discussion Threads

[deme1] 13/8/2020 11:35

WHI View: The deal shows the opportunities within South Africa which we highlighted in our full note (08/07/2020) and the potential to increase profits further from its operations in country. This is a meaningful addition to Jubilee’s chrome production raising production from ~55kt/month (from Windsor and Inyoni) to ~85kt/month. At some point in the chrome cycle this additional production will become very meaningful and Jubilee is primed to take advantage.

In our view, the key thing that today’s news provides is not only the strategic move to lock in a positive margin for its chrome operations in a time when the industry peers battle to maintain positive margin but more importantly and with significant earnings potential is the increased access to the PGM-rich tailings where Jubilee is making its biggest profits at the moment – this agreement guarantees security of supply of that material.

We make no changes to our forecasts today as we consider the additional production, but note that this will have a positive impact on earnings.

W H Ireland 13/08/2020

[deme1] 13/8/2020 11:35

WH Ireland note : Jubilee announces today it has both acquired a new chrome processing facility in South Africa (Windsor 8) from a private group in South Africa and arranged an offtake agreement that fully fills its existing Windsor Chrome circuits for the next three years. Jubilee will operate Windsor 8 and make circuit changes to maximise recoveries – Jubilee commits to spending £0.44m to upgrade the plant but is entitled to this (plus interest) back before sharing earnings form the JV on a 70:30 basis with its JV partner.

“Windsor 8” is located ~50km from Windsor towards Rustenburg along the Western Limb of the Bushveld complex in the heart of the Bushveld chrome resources – extending Jubilee’s reach for further potential parcels of additional material further west.

Under the agreement Jubilee will have sufficient material to produce 40kt/month chrome concentrate from its existing Windsor circuits.

It will also add a new plant – “Windsor 8” to its portfolio. This new plant has the capacity to produce an additional 35kt/month chrome and is “strategically located to provide Jubilee with more opportunities to secure further third party ROM supply and associated PGM material”. At the current low point in the chrome cycle Jubilee has locked in a margin on the chrome concentrate produced, but will gain access to any upside.

[1madmarky] 13/8/2020 11:30

Groucho posted on LSE
"Windsor 8” is located ~50km from Windsor towards Rustenburg along the Western Limb of the Bushveld complex in the heart of the Bushveld chrome resources – extending Jubilee’s reach for further potential parcels of additional material further west.

[avatar333] 13/8/2020 11:04

Good morning all.

[plat hunter] 13/8/2020 10:55

Search the thread for "BBI" Martin

[freedom97] 13/8/2020 10:46

JBL leading the way again today on good buying, up 6.67%. Buyers in UK held back letting daytraders out. Now buyers joining the party. ;-)

[shotbybothsides] 13/8/2020 10:44

Don't mention the Russians !

Still haven't forgiven them for robbing me at Timan Oil & Gas years ago

[martinfrench] 13/8/2020 10:43

anyone got a split of overall group PGM percentages sold to the mkt ?

like pt 60%, pd 15% etc....

[deme1] 13/8/2020 10:35

shot


It has always been the case that Leon does not say much from fear the Russians are listening in lol

[shotbybothsides] 13/8/2020 10:23

hxxps://soundcloud.com/user-596578261/vsa-capital-morning-miner-130820


VSA Capital
@VSACapital
·
1h
Today's morning miner looking at Atalaya Mining,
@CamlMetals
in the copper space,
@Jubilee_Metals
in PGMs and
@PrimeMiningCorp
and
@CaledoniaMining
in gold.
all with
@AmonkMonkey
and
@DoubleOD2
#mining #markets #investing


The guys on the podcast seem to like Jubilee and can see good growth but the line - " You do not get a lot of news or chatter from them - the management are not always easy to get a hold of " is disappointing ,as directors they should be shouting this company's story out from the rooftops - we have been saying for years PR needs to improve !

[fozdad] 13/8/2020 10:23

GFAR, agreed, we can be processing the DCM feedstock (ex fine chrome) at Inyoni whilst the fine chrome plant is being re-assembled.

I think the muted response to today's RNS is because people are just reading Chrome and at the moment, it isn't the most exciting of metals.

But the big picture is the growing sources of PGM material.

Windsor (being processed by Northam)
1 million tons tailings dump at Bokone
DCM
The 2 new sources announced today
Other 3rd party contracts

Leon isn't going to want to continue to give away 40% of earnings to Northam and as he stated previously, Northam may not be in a position to process our material in 2-3 years time, so we are building up enough material to justify a major expansion of our facilities at Inyoni, where we will enjoy 100% of earnings

[kryptonsnake] 13/8/2020 10:18

Sell at 5.5

Buy back at 4p

It's coming


LOLsss

[goingforarun] 13/8/2020 10:13

Onto DCM announcement then!

[deme1] 13/8/2020 10:08

Frog

I wish I had that much pull lol.
Me trading a £20 - £25k pot should have no bearing on the share price

Leon already let this news out of the bag a day or two ago.

[danieldanrichardson] 13/8/2020 10:01

Conspicuous by his absence this morning

[adejuk] 13/8/2020 09:02

who's keeping a lid on this?

[frogkid] 13/8/2020 08:54

Don't forget your midge cream skip

[1madmarky] 13/8/2020 08:53

The Windsor chrome deal is a ~fixed margin. This means a ~guaranteed level of income for 3 years. You can borrow against that.

[the skipper] 13/8/2020 08:46

Thanks for the reminder Bullster. Another great deal by management here and proof positive that they are delivering exponential growth here. This has to be reflected in a higher p/e ratio imo and it's good to see the gap fill dealt with early doors before the bigger fish start adding.

Up in Bonnie Scotland touring and fishing at the moment. Binoculars at the ready for some Osprey spotting today and all is good in the world. Well done to all at JLP and those who have patiently supported her through thick and thin.

[juju44] 13/8/2020 08:34

Gaps get filled and this one isn't taking long

[9tintin] 13/8/2020 08:30

No follow through on the RNS.

Gapped up - peeps selling into the news.

Deme just missed his call by a day - unlucky!

6p ? I don't think so LOL

tintin

[bullster] 13/8/2020 08:29

.
.

Bullster - 23 Jan 2020 - 22:23:32 - 18240 of 26059 Mighty Oaks from Tiny Acorns (Moderated) - JLP
.
.
The Skipper,

JLP has finally acquired those tailings but not in the name of Maude Mining, our subsidiary company.

The original joint venture with Benhaus Mining never came off.
.
.

--------------------------------------------------------------------



Bullster - 03 Nov 2019 - 14:03:38 - 15756 of 18240
Mighty Oaks from Tiny Acorns (Moderated)
.
.

The decision to install fine chrome plant, at the Windsor Chrome Operation has had a shot in the arm. Jubilee Metals is set to sign a deal that will allow it to acquire a one million tonne tailings dump at the Bokone Mine at Bokfontein.

Located close to Windsor Chrome, the dump formerly owned by Hernic Ferrochrome and now a subsidiary of Samancor, can be trucked the short 2.7 mile journey for processing then onto Eland for pgm extraction, a further 6.5 miles by road.
By extracting a further 8% of chrome by way of fine chrome extraction Windsor will generate extra earnings, cut down on transport cost and supply a better upgraded feed to the pgm extraction process.
Fine chrome at Inyoni or Morula Mine is also inevitable.

.
.

[billyusa] 13/8/2020 08:27

I can see Anglo,Vedanta and Mitsubishi joining the bidding war,Glencore for the win IMO