Jubilee Metals Share Discussion Threads

[nelson01] 15/3/2019 09:49

Nice one bullster....this is the kind of work our broker should be doing.

[bullster] 15/3/2019 09:18

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Let's look at DCM PMG's from the perspective of potential profit, not asset value.

From RNS, 9 June 2014:-
Jubilee executed the Access Agreement with ASA and DCM for the recovery of platinum group metals ("PGM") and Chrome from the surface tailings dam estimated at 800,000 tons of material containing an estimate of 74,000 4E PGM ounces;
DCM continues to deposit further tailings onto the surface tailings dam at an estimated rate of 8,000 to 12,000 tons per month further increasing the estimated 800,000 tons of material available for processing.

OK,

800,000t contains 74,000 PGM ounces
400,000t (conservative) added dumpings since 2014 37,000 PGM ounces
TOTAL 111,000 PGM ounces
Profit per ounce currently £458 per ounce, and rising.

TOTAL PGM PROFIT POTENTIAL £50,838,000
RISING PROFIT £340,000 PER MONTH FROM ADDED DUMPING

Don't forget the extra from 3rd party ore, every 10,000t of ore processed could add 1,000t of fresh tailings per month @ £34,000 PROFIT per 10,000t of 3rd party ore.

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[goldibucks] 15/3/2019 07:48

The upshot is they have £2m less cash than they are reporting since £2m needs to be ring fenced for 850,000 tonnes of PlatCro PGMs. That brings the cash I was forecasting at 31 December 2018 down from £7.4m to £5.4m and cash at 30 June 2019 down from £7.2m to £5.2m. I can’t see any creditor in the 2018 Annual Report for this so I’ll be picking that up with Saffery Champness. Anybody else know why they didn’t pay for the 850,000 tonnes and where the creditor is in their 2018 Annual Report got this?

[goldibucks] 15/3/2019 07:35

The £70m of net assets is a red herring because £39m represents Tjate explorations costs capitalised historically as an intangible assets. Strip that out and you get back to the current market capitalisation.

The Inventories Note 14 and Cash Flow is interesting at 30 June 2018 because it shows that they’ve only paid for 400,000 tonnes of PlatCro PGMs for £1.2m. They originally bought 1.25m tonnes of PlatCro PGMs for £3m so they’ve only paid for 1/3 of what they bought to 30 June 2018 even though they raised £3.3m at the time through a placing of 66m shares at 5p to cover the full cost of PlatCro PGMs. At the time they said “The Agreement allows for a two-stage payment over an estimated three month period following the conclusion of the Agreement” and “Financing for the acquisition secured via Placing.” So they still owe £2m for PlatCro PGMs. Presumably, they did a deal with PlatCro to delay payment or there was some condition that didn’t get met by PlatCro so they didn’t have to pay in full.

There are no DCM PGMs in inventories. I assume the cash cost price was effectively zero and wrapped up in the processing contracts they’ve entered into with ASA.

[frogkid] 15/3/2019 07:23

Also Jag/LR

[plat hunter] 15/3/2019 06:28

Aces, assets are recorded in the accounts at physical cost whilst the discussions between myself and bullster based on the implied attributable earnings.It's all very simple really, no smoke and mirrors. Just people who don't understand how basic accountancy works.For example l that pgm material we bought from Platcro.. it wont go in the books at the value that we anticipate receiving, the actual cost paid will.

[aceshi] 15/3/2019 05:57

And while we are kindly educating folks. I would like to prove to everyone that Losta is a fraudulent account. Google IDIA, and it proves exactly my point of a few weeks ago, why no sane, recreational sailer would be anywhere near Mozambique, as he ignorantly claimed to be, at this time of year. So, proven, Mr 1%is another lying ramper account. Fool.

[aceshi] 15/3/2019 05:43

Educate these people. Let's get real, there's a substantial difference between 43mil as estimated and 1, 6 mil. Without deflecting, please elaborate.

[plat hunter] 14/3/2019 22:23

Mdlos.. the PGM material at DCM is classified as 'Inventory' and was valued at 1.6 million of the the total assets of 69 million as of year end 2018.All in the audited accounts. If there's any thing else that you don't properly understand just ask.

[plat hunter] 14/3/2019 17:44

"Fiat Chrysler Automobiles NV’s recall of almost 862,520 gasoline-fueled vehicles could spur additional demand for the palladium market that’s already reeling from shortages.

Replacing the catalytic converters in these vehicles would require an additional 77,000 ounces of palladium, said Miguel Perez-Santalla, sales and marketing manager at refiner Heraeus Metals New York LLC."

[plat hunter] 14/3/2019 17:21

Nelson.

JLP's Net Assets are valued closer to 70 million. JLP is currently trading at a 50% discount to it's NAV as well as producing earnings.

There's nothing to ramp here anymore, it's all been done and fallen out of bed, people are just waiting for the bottom line now: which you can see has been improving in multiples of tens for the last 18 months.

Kabwe and Tjate talk will no longer move this, it's fundamentals only from here on out and those that don't understand them are the likely the ones that will miss out.

[choppernoel] 14/3/2019 16:34

Leon, try learn what the word honesty means.

[choppernoel] 14/3/2019 16:25

The buyer pulled out. Anglos pulled out. Leons excuse was that jubilee wanted more money. Absolute LIE.

[deme1] 14/3/2019 16:02

"Let’s conservatively value Tjate at 10 million as Jlp sold a small part of it for 5
Million a few years ago (but then decided to keep it)"

We did not decide to keep it.
The buyers pulled out!

#lemons

[bullster] 14/3/2019 15:50

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The original question came from Plat Hunter, "does anyone know the value of the pgm stock pile at DCM ?."

I used the pgm stockpile figure at the pre-finechrome extraction stage, from the January rns.
This material is ready to go into froth floatation, like as at Hernic.
We know how much profit per ounce is being achieved, so a comparison is legitimate.

p.s. the value was calculated as we expect to get it to post froth floatation stage and not a fire sale of pre-ff material.

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[nelson01] 14/3/2019 15:43

Lol...I assume the idiots on here are valuing the DCM pgms at zero and Tjate at zero
And PLatcro pgms at zero.

Let’s conservatively value Tjate at 10 million as Jlp sold a small part of it for 5
Million a few years ago (but then decided to keep it) and let’s say DCM pgms are worth about 5 million. PLatcro pgms 3million (what we pai for them). Platrcro fine chrome 10
Million (what we paid for it)

So that makes a fire sale value of 28 million usd of assets without DCM fine chrome, Hernic and Kabwe....lol...IR17;m afraid the derampers are clutching at straws.

[bullster] 14/3/2019 15:36

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Yes cost increases.

So you will want to recoup your extra outlay.

As Leon and Colin have said with Lead at Kabwe, "although we may not get it to refined level, we can still sell the upgraded lead dirt as it stands, for a profit".

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[aceshi] 14/3/2019 15:35

The value of stockpiled Pgms and using a far higher value for these calcs than what the market is currently paying.

[aceshi] 14/3/2019 15:31

We are going off at a tangent again. The point in question is how is

[goldibucks] 14/3/2019 15:31

“The value attached to the mountain of stag, has a direct relationship to the achievable value”. Absolutely, that’s why I don’t get it when Deme dismisses the value of the PGM basket price going up. If it coincides with when JLP crack open the value in the PlatCro and DCM PGM tailings, happy days!

[goldibucks] 14/3/2019 15:19

“Value increases” Cost increases, value or what the market would pay doesn’t come into it, hence you don’t revalue up or down like you might choose to do with say freehold property on your Balance Sheet.

[aceshi] 14/3/2019 15:19

I hear you, but you are missing my point. The value attached to the mountain of stag, has a direct relationship to the achievable value, of the final product.

[goldibucks] 14/3/2019 15:17

Interestingly, they show £17.6m of fully written down nickel tailings in intangibles so that’s probably where we’d expect to see tailings in the 12 months following the accounts being signed. There are no DCM tailings there so they don’t appear to be anywhere on the Balance Sheet. Presumanly, because they can’t attribute a specific cost to them from past deals.