Jubilee Metals Share Discussion Threads

[fireplace22] 23/8/2019 10:47

Could someone please explain where JLP getting the copper ore or tailings from to process?

[gsg] 23/8/2019 10:45

The key new figure for me in the RNS is "1.26% equivalent vanadium pentoxide" of 6.4m tonnes at Kabwe.

[goldibucks] 23/8/2019 10:35

An RNS confirming the Sable acquisition has completed has no bearing whatsoever on market cap or my decision to sell. Why wouldn’t the transaction have completed? It’s paperwork. The price will fall back.

[deme1] 23/8/2019 10:27

Expect a webcast from Leon/proactive by the end of play today.

[deme1] 23/8/2019 10:26

1.3mil full ask

[undertaker] 23/8/2019 10:24

PH - Silver chart added

Goldi...lol!

[goldibucks] 23/8/2019 10:16

“the market is behaving as if Jubilee are never going to get Kabwe / Sable operational”

If you assume Jubilee have 2 years of unshared earnings left on Hernic at £8m a year and they will have to pay running costs of £6m a year to extract that value, that’s £4m of net contribution to market cap.

In Q2 19 losses on DCM pretty much offset the reduced profit at Windsor Chrome so these projects are not adding anything to the market cap.

JLP are valued at £54m at 2.9p offered, i.e. what a new investor has to pay to buy in so £50m of market cap is being covered by Windsor PGM and Kabwe. JLP paid £3m for the Windsor tailings PGM rights. How much profit are they going to make on that purchase after Northam’s processing share? Shard said £8m NAV in March. So £42m of JLP’s current market cap is being supported by Kabwe. Shard valued Kabwe at £74m in their March note so if they get Kabwe right, there is £32m of upside or about 1.7p. What happens to the market cap if Kabwe ends up like DCM (dead in the water) or Windsor Chrome (dependent on the price of chrome concentrate going up to make any money)?

If you add downside sensitivities to this mix like the Hernic deal collapsing because Samancor can’t agree an electricity supply deal with Eskom or the Kabwe ramp up being slower than expected resulting in additional short to medium term losses, it’s easy to see how the share price could fall to 1.5p-2p.

On top of that you could have ongoing losses from DCM and Windsor Chrome escalating with interest to pay on Windsor Chrome and Kabwe debt. If JLP think there is any chance that Kabwe isn’t going to deliver as planned they’ll need to add another project to the mix urgently and they won’t be able to do that with debt with their other projects having such a short life.

[deme1] 23/8/2019 10:08

A mention of us in GLR's results

"Following Jubilee Metals Group Plc's ("Jubilee") acquisition of the Sable Zinc Project at Kabwe, the Company entered into initial discussions for an offtake agreement. The obvious benefits for such an agreement would be that Galileo would not have to build a processing facility at Star Zinc, thus negating the capital cost of such a facility. Additionally, it is assumed that since the high-grade willemite (zinc mineral) ore is easily identified, a selective high-grade pit could be easily operated by contractors, again negating the need for capital expenditure on mining equipment. Thus, processing and mining will require only modest capital expenditure and the operation could be very profitable, since operating costs would be low against projected revenue for high-grade ore feed to the Jubilee's Sable Plant."

[deme1] 23/8/2019 09:54

Couple of new photos on the website ref kabwe.

referb kit arriving.

[goingforarun] 23/8/2019 09:36

Aces, whatever happens, the next 6 months will have a lot of news in it! Some good, some bad!

[aceshi] 23/8/2019 09:24

Transformational....... About to take off LOL

[bookwormrobert] 23/8/2019 08:53

Hi GSG!
Point taken.
In general, the market is behaving as if Jubilee are never going to get Kabwe / Sable operational, even though the legals are done, the finance is completed, and Jubilee know exactly what they are doing.
IMO, Jubilee will get Kabwe / Sable working. And soon. And in time the earnings from it will be huge. The bulk of the earnings will come from reprocessing the Kabwe tailings, but the Star Zinc ore will make a very nice extra source of earnings (as will Kashi'tu eventually).
(About copper at Sable I maintain an open mind. I don't understand if this is a sideline, designed to help reduce acid costs by processing smallish amounts of copper sulphide ore, or if this will become a large earnings-rich project. Too little information as yet to decide!)
All in all, at some point over the next few months the penny will drop with the market that Kabwe / Sable is a true company maker. But exactly when? I haven't got a clue.

[goingforarun] 23/8/2019 08:38

I think you should also include JLPs tiny market cap! If this is worth $5m/£4m then it should provide some upward support?

[bookwormrobert] 23/8/2019 08:25

Hi Tim!
I don't want to clog up the Jubilee board up with Galileo posts, but here's a key quote from the last GLR RNS:
"The MRE (Mineral Reserve Estimate) will allow for a 6-year life-of-mine small scale operation to produce rock mass of only 5,500t/month containing 12,000 t zinc metal per year to Kabwe. While in-house attributable revenues are projected at about USD15 million annually at current price, the annual all in cost is projected not to exceed to USD2 million."
12,000 t per year of contained zinc metal x 90% recovery rate x $2,700 per tonne (3 year average zinc price) = about $30m revenue per year. That revenue will be split (apparently about 50/50) between Jubilee and Galileo - hence the in-house Galileo revenue estimate of $15m per year for 6 years.
This is a decent sized operation which should be very profitable for both parties. It's worth researching further, especially given Galileo's current tiny market cap.

[sleveen] 23/8/2019 08:12

BMR AGM today.

[gsg] 23/8/2019 07:44

Eland
Eland’s existing infrastructure comprises a 250 000 tonne per month capacity concentrator with both PGM and chrome circuits, a large TSF and surface infrastructure. Two decline systems, Kukama and Nyala, have been pre-developed to lengths of 1 300 metres and 850 metres from surface access. These are equipped with underground dip and strike conveyors for ore transport, chairlifts for people transport, as well as electricity and water reticulation systems.

The decline systems comprise two on-reef barrels and one approximately 25 metres below reef housing the dip conveyors. The mine has been on care and maintenance since 2015. Hydro-mining and reprocessing of tailings from the TSF has commenced. Underground mining will restart in F2020.

Work at Eland during the year focused on recommissioning the chrome spirals and secondary PGM circuit in the concentrator to receive feedstock from the tailings dam for re-processing. A total of 12 676 tonnes of chrome concentrate was produced and sold. This operation will continue in the new financial year, together with the processing of purchased material to recover PGMs.

In parallel with the processing operations, a feasibility study to restart underground mining was completed, together with the refurbishment and recommissioning of fixed and mobile underground equipment in anticipation of the restart. Development of a revised mining layout will start at the Kukama shaft in F2020. In addition, preparation for a mobile tunnel borer (MTB) trial, to test its suitability for advancing the decline system, was undertaken. This, together with pre-production costs resulted in capital expenditure for the year of R371.2 million. Capital expenditure is expected to reach R400 million in F2020.

[1madmarky] 23/8/2019 05:35

77,000 tonnes between 16% and 2% or 72,000 tonnes between 22% and 8%.

The rest is less than 2%

The 2% stuff would not be viable IMHO

[plat hunter] 22/8/2019 22:35

Tim I make you're right but you're neglecting the other 430,000 tonnes. Even if that's at 1% Zinc it's another 12 million.

Taking project revenue to circa 24 million over the 6 years.

[timhigginson] 22/8/2019 22:11

bookworm robert,
there appear to be 500,000 tonnes of material of which 72,000 tonnes has a zinc content greater than 8% thus yielding a minimum of 5760 tonnes of zinc. How else do you explain the numbers? Walk me through your logic.

[plat hunter] 22/8/2019 20:17

Did I mention that I sold at 2.50 and bought back in cheaper before it hit 3.6.. Yeah I'm pretty sure you remember, you cried enough about it lol

[plat hunter] 22/8/2019 20:17

Have I forgotten? no of course not.. It hit 3.6 and from 2.06 that's pretty close don't you think?

You should follow me on other forums ACEs there's plenty on ADVFN that I partake and lots of others who know full well what I hold and trade elsewhere. Unlike you I am more than a one trick pony who got burned for everything they had. Every one here is still waiting for you to confirm what else you hold BTW no evidence of anything else in your forum history?

Nice try but try harder, you're still left wanting I'm afraid

[niloc4] 22/8/2019 20:16

Has jubilee reached that point you were talking about Mr Leon?

[niloc4] 22/8/2019 19:53

Is news imminent Leon?

[aceshi] 22/8/2019 19:30

Plat, are you so thick skinned that you have forgotten all your shouting of "multibagger" "perfect storm" and "4p next week" almost a year ago. Yet you spend all day calling posters mugs and morons and barking on about how they've burned all their cash on the aim casino. But as time goes on, I'm getting the impression that in reality you are nothing more than a loud mouth, narcissistic, small time loser who played the casino and lost big time. LOL