Jubilee Metals Share Discussion Threads

[sb] 31/10/2022 10:43

SLP is at the same price it was at in January 2021; JLP is at the same price it was at in December 2020. One of them has carried out a massive investment program to diversify the company and build a platform for extraordinary growth in metals which are known to be key to the future of the global economy...the other has given some money back to shareholders as they have little idea what else to do with it. I know which I would rather be in, being a long term investor.

[deme1] 31/10/2022 10:34

I agree with Husbod, and having been here for an age, I would say I'm entitled to that opinion.

As for the "Why waste your breath" comment. you understand this is a BB, so why waste your finger movements would be more apt 😉

[danieldanrichardson] 31/10/2022 09:31

Stupid comment. Why waste your breath

[goingforarun] 30/10/2022 14:58

Pity they didn’t provide a valuation? Not that it really matters in the current market!

[888icb] 30/10/2022 10:23

IC AIM 100 - JLP BUY RECOMMENDATION
64. Jubilee Metals
In mining circles, it seems that targeting specialist metals is becoming a more lucrative option than going all out for volume. At least that’s the impression you get as we get to grips with the prospect of a lower-carbon future. Jubilee Metals (JLP) certainly seems to have taken a considered long-term view of where markets are headed.
In the first six months of 2022, the metals processing and recovery company increased its Zambian copper production by 14 per cent to 1,388 tonnes, thereby driving net copper earnings by 30 per cent to £4.2mn. With one eye on the energy transition, Jubilee has also approved the development of a cobalt refining circuit at its wholly-owned Sable site in the Zambian Copper Belt.
For now, however, the company’s core operations still revolve around platinum group metals (PGMs), where prospects are set fair, at least on the pricing front. Analysis from Edison suggests that PGM prices for South African producers will average $2,520 an ounce (oz) between 2022 and 2030, or 2.5 times the pre-2019 average. Financial performance, specifically relating to costs, should improve on the back of a strategy to maximise the processing of historical tailings in-house, rather than via third-party channels.
Despite short-term volatility in metals pricing and the usual execution risks in Africa, the company’s lowly rating is rather hard to justify. Buy.

[pshevlin] 29/10/2022 16:01

Forget filter. Ban him/it!

[petersinthemarket] 29/10/2022 09:29

another one for the filter

[tonyevo256] 28/10/2022 21:28

NAV is actually 4.84 according to the report...even better than I thought...

[adejuk] 28/10/2022 17:32

patience = wealth

[tonyevo256] 28/10/2022 16:15

P.E is 16 but we all know why..
Cash is 16m+....debt is zero....NAV is around 4.5p....looking damn healthy

[aaspell] 28/10/2022 15:18

Well the final accounts to end of June show 16 Mill in cash at year end and the October presentation also quotes 16 mill in cash & cash equivalents

[pshevlin] 28/10/2022 15:18

From current earnings. That position was at end of June and I'm not sure where they got the net cash position from and what is accounted for before it is calculated. Anyone help who is good at balance sheets?

[dilip40] 28/10/2022 12:51

ic showing p e ratio 16 advfn 6.3 which is correct

and net cash only £4.4m

how is jlp going to finance the zambia and eastern limb projects

[pshevlin] 28/10/2022 12:17

I'm not sure what the comparison with CAML is relevent to. Do they actually own the stock they are processing and if it has never been processed before what are the grades of Cu in the ore? I'm a bit bemused by that.No way JLP can get the processing cost down to 1500$ a ton of cathode so it's very misleading.

[adejuk] 28/10/2022 10:52

i hope for an interim on copper and cobalt before mid jan.

[lights out] 28/10/2022 10:14

Might get a pic of some cobalt on Twitter before then..

[tonyevo256] 28/10/2022 10:08

Usually mid Jan...

[haughtonhoney] 28/10/2022 09:57

When is the update due Tony?

[tonyevo256] 28/10/2022 09:40

Most investors are just looking at the bottom line without deeper research...the 6 month update will show a better bottom line...so I will be adding until then taking advantage of investors laziness...

[888icb] 27/10/2022 22:38

IC Buy Recommendation in this weeks Magazine:
“ Jubilee Metals expansion outweighs profit hit
Higher capital expenditure means cash profits were down in the most recent financial year, but short-term PGM prospects and new copper capacity bode well for the company
Alex Hamer

Jubilee Metals sees cash profits fall on stable revenue
Metals prices uncertain but lower debt and operating costs can help maintain margins
Platinum and palladium might have questionable supply dynamics moving into the second half of the decade, but they are still priced high enough for Jubilee Metals (JLP) to prosper. The group reprocesses tailings (waste products) to extract platinum, palladium and chrome, and spent heavily on expanding capacity in the 12 months to 30 June. This knocked earnings – cash profits fell by a quarter, to £36.7mn – but this is not a bad result after capital spending climbed over 50 per cent, to £31mn.
These projects included a plant refurbishment in South Africa and the construction of a new processing operation in Zambia to produce a concentrate from tailings, which is then turned into copper cathode. Given the 2022 financial year covered a time when copper was trading at almost $10,000 (£8,646) a tonne, this was a good time to be ramping up production.
In September, the Roan plant hit nameplate capacity and Jubilee had said it would produce 10,000 tonnes of copper in the current financial year, compared with 2,604 tonnes in 2022. However, “persistent interruptions in the supply of water and electricity” mean it has cut the first-half guidance to 3,000 tonnes.
The advantage of reprocessing waste ore is costs are significantly lower than digging up the rock yourself. Jubilee managed to cut net costs further in the financial year as well, to $408 per platinum group metal (PGM) ounce, a 10 per cent drop, and to $5,076 a tonne for copper, a 6 per cent drop. The copper cost will likely fall significantly from this point, after the ramp up is done – Central Asia Metals (CAML), which extracts copper from ore mined but not processed, has a cash cost of under $1,500 a tonne. These are slightly different measures but Jubilee clearly has some ground to make up.
On the PGM market, the short-term prospects are good. The automotive industry’s recovery means demand is coming back for palladium, while supply issues for both platinum and palladium mean prices have stayed fairly strong. Further out, PGMs will be driven by the hydrogen market. Macquarie Bank sees light and heavy vehicle hydrogen take up as a 2030s story, leaving a demand gap as passenger vehicles shift to electric this decade.
Jubilee trades at a discount to CAML, at a price/earnings ratio of 5.9 times against 6.5 times as per FactSet, which is fair as the more established company pays a dividend. Following Simon Thompson’s lead, we are positive on this company’s investment case. Buy.
Last IC View: Buy, 16p, 8 Feb 2022
JUBILEE METALS (JLP)
ORD PRICE: 11.7p MARKET VALUE: £312mn
TOUCH: 11.4-11.8p 12-MONTH HIGH: 18p LOW: 11p
DIVIDEND YIELD: nil PE RATIO: 16
NET ASSET VALUE: 7.6p* NET CASH: £4.4mn