Jubilee Metals Share Discussion Threads

[bullster] 09/8/2021 11:27

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The market response to the six month update was far more muted than i had expected, so i read back through the RNS.
I can highlight three areas in the RNS that could cause concern, yet through lack of detail and apparent bad communication, and maybe somewhat mitigated as time rolls on.

#1, Higher costs and a strong Rand.
#2, Missing figures from the pgm production table. The volume of tailings to be treated by the expanded Inyoni pgm plant falls below that of what was achieved in the previous six months by around 150,000 tonnes.
#3, A confusing statement that Roan would be fully commissioned in Q1 2022. We were told that Roan concentrate would be delivered in July 2020, it was, we just weren't told that it was partially upgraded concentrate.


#1, Operational project unit cost expressed as US$ per PGM ounce produced, increased over the past 6-month period, which is mainly driven higher by the strengthening South African rand to the US dollar contributing approximately US$78 dollars per ounce, as well as the associated increased transport cost to truck the PGM tailings located in the Eastern Limb to the Inyoni PGM processing plant.

#2, The construction of the expanded Inyoni PGM Operations to increase its processing capacity by 45% to 75 000 tonnes per month is complete and commissioning of the expanded operation at Inyoni has commenced.

#3, Jubilee's Project Roan copper project is progressing well with the commissioning of the integrated copper concentrator scheduled to commence in Q1 2022 targeting an annual production rate of 10 000 tonnes per annum.

Communication at JLP is one area that has never improved, it's no wonder the share price reacts as it does.

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[goingforarun] 09/8/2021 11:18

As Leon mentioned that he is spending another £35m in Capex over the next period it would be useful to back this up with an earnings potential of the investment? This might spark some interest?

[pshevlin] 09/8/2021 09:42

Hopefully we will get some news on Cyprus soon and an update from Momentum Investor. Leon also needs to be injecting some interest back into the share price. Any updates will be welcome as what we don't need is a month or two of silence no matter what great things are going on behind the scenes. On the same theme whatever happened to the coverage in the Investors Chronicle?

[sb] 09/8/2021 09:17

All of the negativity generated in the last few weeks by the "delayed announcement" merchants and the speculation of the horrors they believed were to be revealed has contributed to the malaise which has set in here. Its frightened off the pant wetters and the little speculators so we have 55 trades so far amounting to just 1.2 million shares.... At least Leon held back a number of updates on projects so there should be a few good news stories to focus the minds on the future rather than the idle speculation of the nervous, in the coming weeks.

[adejuk] 09/8/2021 08:28

we may still have our seller
we'll know when the fog clears after 9.30

[frogkid] 09/8/2021 08:23

Same, seems odd

[husbod] 09/8/2021 08:21

Just topped up at 17.10 which is the official bid price so all those trades at that price are likely to be buys rather than sells as stated by the ADVFN computer.Seems ridiculously cheap to me.

[frogkid] 09/8/2021 08:20

Agreed 1MM, would not be a surprise. Just added more after a quick 14% profit on ZPHR.

[1madmarky] 09/8/2021 07:55

Would not be surprised to see a sneaky bid come in. There's plenty of money floating around the sector and jlp are demonstrating significant growth with a large margin.

[freedom97] 09/8/2021 07:45

As the WHI broker note says:

"Incredibly net cash is forecast to reach
£64.9m in FY’22 and £156.8m (1/3 of its market
value!) in FY’23. Stripping the cash out drops the
soon-to-be prospective PE to 5.2 and then just 3.3.
I am a buyer."

[3ootuk] 09/8/2021 07:18

From Caerus
"... This will comprise both surface materials and hard rock mineralisation that can be processed in a common processing facility to which Caerus will deliver feedstock whereupon the expertise of our partners takes over the mining and processing of ore and waste materials"...

[wet your knot] 09/8/2021 07:05

JLP mentioned again in a CMRS RNS this morning, that's becoming a common occurence??

[collg] 08/8/2021 11:42

Excellent post robers98!
Such an in depth informative report.
Thank you.

[robers98] 08/8/2021 10:46

For anyone new to jlp after Fridays results the nearest prediction of future numbers would be from the WHI broker note.

[charlie9038] 07/8/2021 13:16

Just catching up on this as was away down the coast Friday, topped up before we left as impressive results, surprised the market did'nt buy into this.

In 6 months time when we hit 25p plus it will all be forgotten about.

GLA

[alpal2] 07/8/2021 09:52

jimi: Thanks for that clarification.

[tonyevo256] 06/8/2021 22:55

Lots of people had planned for months to sell on TU day expecting a spike. The spike didn't occur but the selling did, I feel they made a mistake, the spike will come next week as we get more coverage and upgrades. Well actually a little spike in the morning.

[jimipop] 06/8/2021 20:34

Alpal: JLP process the chromite. The residue is the PGM material that they process to create the lions share of their earnings. That’s why they do it (so it’s not just £1.9m). Hope that clarifies it for you.

[1madmarky] 06/8/2021 20:08

Probably more to do with non farm payrolls nearly 1m hence PMs weaken in anticipation of rate rises.

[sb] 06/8/2021 18:40

The pant wetters squealing about delays in the last week have done nothing to help the sentiment towards JLP... I hope some are feeling a little contrite today...

[katundu] 06/8/2021 17:38

"PGM Operations Update - South Africa

Jubilee's PGM operations consist of the Inyoni and Windsor JV PGM operations. The construction of the expanded Inyoni PGM Operations to increase its processing capacity by 45% to 75 000 tonnes per month is complete and commissioning of the expanded operation at Inyoni has commenced.

As announced on 3 and 4 June 2021, Jubilee's current PGM operational footprint has been largely focused on the Western Limb, a single area of the two main PGM areas in South Africa. The Eastern Limb has been a key focus of Jubilee to expand its PGM reach and operational capacity. The PGM Supply Agreements entered into give access to this area offering a platform to pursue further growth opportunities.

The PGM Supply Agreements are all based on the LG6 chrome reef known for its high Rhodium content accounting for approximately 12% of a produced PGM ounce compared with as low as 7% of other chrome reefs. The PGM Supply Agreement has secured the rights to long term PGM feed supply of an estimated 16 500 tonnes per month, with the potential of producing up to 14 500 PGM ounces per annum. The plan is to initially process the increased PGM feed at Jubilee's expanded Inyoni PGM Operations targeted for July 2021 however consideration is being given to implementing a dedicated processing facility in the Eastern Limb. The PGM Supply Agreement offers a minority earnings participation to the Chrome Mine partner allowing them exposure to the PGM values which also enhances their earnings potential. They also demonstrate Jubilee's ability to continue to grow its business by re-investing its earnings into high growth projects and by forming true partnerships with its chrome mining customers."

Looks to me as though this update was planned to go out in July and it hasn't been updated/ corrected for the August release.

[nimrod22] 06/8/2021 17:37

We either have a manufacturing/industry recovery over the next few years or we don't. If we do then the raw materials are going to cost, after a long period of mining under investment.

[leopoldalcox] 06/8/2021 17:32

This sounds like a slam dunk! Perfect for my old granny. Where can she sign up?!

[highly geared] 06/8/2021 17:18

Macro market issues driving mining and commodity stocks.

Perceived positive US Non Farm payroll results = market thinks FED has to taper QE and raise interest rates sooner = 0.6% jump in US $ index. Jump = hit to metals that are priced in $.

Copper doing ok but Plat off over 10% from highs , palladium off about 5%.

Today’s action ain’t Jlp specific.