Jubilee Metals Share Discussion Threads

[eblitz1] 16/11/2019 13:13

Hello Glitter
Nice to hear from someone new. Your point about having an FD is good and will be challenged at the next AGM. May I also say that your point repeated about Leon going is something you could say about most small Companies and to me it's not really worth drilling down on. Nowday's the PLC's call it succession management so the Company can still operate and I see no different situation here. It would be physically impossible for Leon to do everything in the 5 areas that JM operate in at the moment plus do all the other work like meeting the city going to China and looking after Government people. I think your digging a hole that you don't need to look into but I fully understand that you were burnt in another Company Good Luck

[glitter2] 16/11/2019 13:04

Thanks GSG for your helpful reply. Knowing Leon puts you at an advantage.
I used the word depart in a wider sense. I was invested in IQE when their finance officer was killed in a cycling accident and the shorters moved in and the share price halved, so are you able to speculate on how the 200 staff would cope in his absence for whatever reason?
Able to carry through the fully operational projects successfully
Able to replicate existing projects to similar projects
Able to use what has been learned from Leon to extrapolate to other metals or mixtures of different concentrations.
You paint a picture of Leon determined to see his skills enabling Jlp to flourish but are they not at a point where the opportunities are there to be taken immediately worldwide and either Jlp miss out or worse overextend themselves.
Leon appears to be a technical genius but I am not so sure about his financial expertise so would love to see a finance officer appointed.

[gsg] 16/11/2019 12:22

Sleveen.

I would counter that argument with:

Why would some of the most reputable II's be loading up with large stakes in JLP if the company is a constant dilution scam?

IMO PI's are letting red mist cloud their judgement, however each to their own.

[scrappycat] 16/11/2019 12:08

Sleveen,

Bye. Good luck. Personally, I think the company know what they are doing, far better than Tiger thinks he knows what they are doing.

[sleveen] 16/11/2019 11:59

Tigerbythetail view via LSE:

The problem is that this isn't the end of it - not even nearly. After the Inyoni / Hernic deal, the company is now horribly financially overextended and more equity will have to be raised shortly. Jubilee simply do not generate anything like enough genuine free cash flow to self-finance this rate of expansion, and it's clear that they have trouble raising loan finance (this should be a serious red flag to investors).
In particular:
1. The convertible loans issued as part of the Kabwe financing package can now be expected to convert to equity. As I see it, the company has no way of paying these off.
2. The company has spent the equity money raised for Kabwe on Inyoni / Hernic. So either the Kabwe zinc / vanadium circuit gets pushed back or the raise will have to be repeated.
3. Finally, the company is still talking about copper projects. If this happens, this will also have to be financed by new equity.
This is no way to run a sensible business. Really, it's all a bit of a scam on existing shareholders.
Anyway, I'm out. Good luck to everybody, but I think you'd do better elsewhere. Unless the chrome price (currently at historic lows) increases dramatically in the next few months (unlikely, IMO, given China's slowdown), this company is going to issue new shares again and again and again..

[scrappycat] 16/11/2019 11:31

As a business man, to take a company from the pits of AIM, to a FT mid cap, would be one hell of an accolade. It looks odds on that Leon will achieve this. He has had one hell of a struggle to keep the company afloat, and I cannot imagine that he would not want to be there to see it fulfil its destiny.

[robers98] 16/11/2019 10:04

The technical team that has got us to this position has been put together by Leon. When he had started putting together his team it was at a time that the majors were cutting staff in this area.
By being small and in charge of your destiny has given him positives and negatives. But now as you are about to conclude further deals and are clearly respected in the industry and in Zambia. Why wouldn't you see this through to a conclusion. Especially with 23m in share based payments. Imo

[1madmarky] 16/11/2019 09:44

JLP is leon's baby... can't see him leaving until he has achieved what he wants to achieve.

[glitter2] 16/11/2019 09:30

What would the future of jlp be if Leon was to depart? Leon appears to have the skill to get more out of a tailings dump than rivals so not only is this a case of being in the right place at the right time for Jubilee but even more so perhaps for Leon.
So does anyone know how easy it would be for a big company to incentivise Leon to use his knowledge elsewhere?
Usually there is some clause in a contract to prevent “buying the person rather than the company” but these are rarely enforced or not worth the legal expense and delay.
The recent round of visits in London for the placing will have been an opportunity for Leon to demonstrate his value as much as emphasise the great future for the company.
I am 80 so read rather than post and I appreciate the recent mega increase in standard of posts here, thanks to all! I have been here since conroast, Wendy Durham and Tjate so have shares bought at 30p. I have bought lots more at 2.5p which is less silly.
Over the years the kindest comments I can make is that both Colin and Leon seem to have the right attributes to survive and make deals in Southern Africa. Integrity clarity of reporting, the whole truth and perhaps loyalty don’t feature highly.
The recent success has been on the back of favourable metal prices and huge pressure from environmentalist and the likes of the church commissioner to withdraw investment unless cleaning up and safety are addressed.
I would love to think that I have misjudged Leon and Colin and that we really are intent on becoming a midcap company, appointing a reputable finance officer and Leon buying some share would help, but I think lightly reinforced expansion and shop window dressing prior to a takeover or Leons departure are more likely over the next year.

[deme1] 16/11/2019 08:57

What does FC achieve at DCM?

[lostabillion] 16/11/2019 06:56

Share placing’s are only a disappointment if a company is using the money simply to keep the lights on.

This placing will pay for itself many times over as the money is being used to roll out the fine chrome technology to Inyoni & Windsor amongst other things.

This in turn will mean that JLP can squeeze even more value out of their tailings at practically no extra cost.

That income goes straight to the bottom line.

Frustrating to have a placing yes but look what it’s going to achieve in extra income.

Bullster, time to put pen to paper and try to educate investors with earnings projections from what we know at this moment.

I recommend viewing yesterday’s Crux interview too.

I was thinking the share price could hit 20p during this coming year and progress to 40p by the end of 2021 but the speed of JLP’s growth and the revenue figures being banded around suggest my prediction could be considered conservative.

[1madmarky] 16/11/2019 05:05

Shot - I believe that the fine chrome is a 25kt month unit. So I'd say they will be putting 2 in at both sites.

[robers98] 15/11/2019 22:43

From the annual report.

'Since acquisition, Jubilee has invested in upgrading the processing capacity and efficiency of the operation. The site will soon include Jubilee’s ground-breaking fine chrome recovery process as well as having the ability to produce a range of speciality chrome products. The Windsor Operation is set to establish a new benchmark for chrome recovery efficiencies in the industry'

Several points with this when it will be operational, what speciality products.

I think major chrome players must be close to wanting this for their use.

[shotbybothsides] 15/11/2019 22:43

So the fine chrome plants at Windsor and Inyoni should be up and running in Q1 , but I can't see or remember hearing what size they will be. The DCM plant has a capacity of 25KT of feed per month - anyone know what capacity the two new ones will have ?

[mikebolle1] 15/11/2019 21:54

A year or so back somebody on this board explained to me the effect of dilution. He/she made use of the slice of cake, as an example, which I understood. I understand that, because of placings, the slice in my hand gets smaller.
Now, since December 2018 there were a few (annoying) placings, which caused my slice to reduce even more: 1) 10 Dec '18 saw a 52 493 438 share placing and the share price on the jse was 45 cents on that day. 2) 21 March '19 saw a 491 814 444 placing while the share price was 50 cents. 3) 14 November '19 the dreadful 162 208 900 placing at a share price of 86 cent, on the jse.
Now, yes my slice decreased in size since December '18 (1 363 486 229,00 issued shares vs 2 017 509 573,00) but during the same period, the value of the slice in my hands increased from 45 to 86 cents. (Bullster can do the %-calculations).
Now again: In Dec '18 that slice was baked with only Platinum and some other PGM stuff, but in Nov '19 that slice is made of PGM stuff with Chrome linings and I can dip it in some Acid stuff. Soon it will be a mixture of PGM's, Chrome, Lead, Zinc....and Vanadium and not too long from now, that slice will be served on a copper plate with fine Chrome decorations.
So, do I care that my slice got smaller...you must be joking! The cake got bigger and better. That slice is earning some serious money now, Dec '18 I had to pay for it myself. Sorry for the long post... but common...this company is really doing great!

[plat hunter] 15/11/2019 21:45

"Storing energy in hydrogen 20 times more effective using platinum-nickel catalyst"Https://www.sciencedaily.com/releases/2019/11/191114141244.htm

[plat hunter] 15/11/2019 21:22

Nail on the head Krypton, couldn't agree more. That's how it's done though... 30p will still be a ten bagger for most here regardless of the number of issuance. Go and check how BMN 10 bagged

[robers98] 15/11/2019 21:03

Good time to join the market as a chrome producer.

[kryptonsnake] 15/11/2019 21:02

Where does it say anything about Kabwe?


Net cash from investing activities

2018 - 1.7 million
2019 - 13.4 million

Net cash from financing activities

2018 - 2.6 million
2019 - 20.9 million


Just shows how much Jubilee are fleecing investors for money to spend on assets. That's a massive jump in spending on assets and Leon is only just getting started


I fear more dilution to come


LOLsss

[gsg] 15/11/2019 20:45

The global ferrochrome market size is anticipated to reach USD 28.83 billion by 2030, expanding at a 4.6% CAGR during the forecast period, according to a new report by Grand View Research, Inc. The market is mainly driven by demand from booming stainless steel industry especially in Asia. Stainless steel industry accounts for roughly more than 75% of the FeCr consumption in the globe. China, being the largest stainless steel producer is therefore also the biggest consumer of FeCr.

[sleveen] 15/11/2019 20:29

FFS read the accounts timmy.

It's a Kabwe bonus.

[bullster] 15/11/2019 18:39

.
.

timhigginson,

Where has this talk of a £5m clawback come from ?

.
.

[the skipper] 15/11/2019 18:21

Leon has had part of his salary paid in options for several years and now has 23 million exercisable at various prices from 1 to 6p. As far as I can establish from the annual report he now receives his salary in full and received no options last year.