Jubilee Metals Share Discussion Threads

[gsg] 06/10/2020 08:48

China’s imports of cobalt metal hit a historical high in August after importers in the country looked to take advantage of noticeable arbitrage opportunities. In addition, import appetite was spurred by wide-spread expectations of stockpiling by China’s state reserve authority and the prospect of further price gains in the domestic market early in the third quarter.

[plat hunter] 06/10/2020 08:48

Jlp had their own issue... A couple of years ago the dam wall leaked at dcm.

[9tintin] 06/10/2020 08:44

Reading that article it would appear China are concerned about the prospect of sanctions being imposed to cut off their imports of base metals including copper, not good for JLP if SA were to agree to Trump's mandate on sanctions - big IF though ?

But it does indicate how external forces could affect Jubilee's business through no fault of their own.

Just when an increase in copper production is coming on line.

I wonder what Leon has to say ?

tintin

[kennyp52] 06/10/2020 08:39

Deme .. I agree to a certain extent but they are dealing with tailings and if you think tailings are totally safe then I suggest you do some homework .

We are listed in the MINING sector ?

[gsg] 06/10/2020 08:09

After United States sanctions cut off supplies of microchips for Huawei smartphones, alarm bells began to ring out across all Chinese industries deemed pivotal to the country’s future development but reliant on imported materials.

And the base metals sector is one of the key areas, according to the chairman of Zijin Mining, Chen Jing-He.

“Now we know the importance of securing the supply of microchips and food, but how about the feed for metals production - mined metals? China relies heavily on base metals imports, so if foreign sanctions cut off our supplies, it could be even worse than running out of smartphone chips,” Chen told delegates at a recent strategic development conference on gold held in Beijing.

Chen said the risk was particularly true in the Chinese copper sector, in which smelters take up more than half of the world’s total capacity, yet the country owns only 4.6% of global copper resources.

“If that day came - [of sanctions being applied to the base metals sector] - while China is still lagging behind [in terms of] mine exploration and development, the consequence would be too horrible to contemplate,” Chen said.

Zijin is one of China’s most ambitious buyers of overseas facilities and over the past five years has acquired stakes in the Democratic Republic of Congo’s biggest copper deposit Kamoa Kakula, in Serbia’s BOR copper complex and in Canadian base metals miner Nevsun.

And the cash-rich miner recently set its sights on domestic assets and, in June, bought a controlling stake in Tibet’s Qulong copper mine - China’s largest porphyry copper deposit.

This self-sufficiency drive is in line with a recent call from Beijing to “touch and feel clearly” domestic natural resources across China.

‘Know our inheritance’
Last month, China’s Ministry of Natural Resources hosted an online training session with more than 20,000 technical staff from oil giants PetroChina, Sinopec and CNOOC, along with other major resources companies.

“There has not been any nationwide inspection in the past 10 years, our database of natural and mineral reserve is no longer up to date. We have to audit and update the reserve database,” the ministry said.

In addition to oil and natural gas, the “strategic natural resources in shortage” targeted in the ministry's assessment include copper, aluminium, nickel, gold, cobalt, lithium, iron, chromium, zirconium and potassium.

State-owned enterprises and local governments have been tasked with coming to “know our inheritance” better by inspecting proven and probable mined resources and identifying “mining areas” where nobody has yet to officially claim the exploration and mining rights.

The government estimates the latter could account for at least 40% of the country's total mineral resources, including Asia’s largest untapped zinc-lead deposit at Huoshaoyun.

With the reliability of Chinese statistics long regarded as questionable, the natural resources ministry said this assessment - to be completed by the end of 2021 -must be of “high-quality” and “well-controlled” to provide a clearer picture of China's “national strength.”

The call comes at a time when it is becoming increasingly costly for Chinese companies to procure certain raw materials from overseas - including copper concentrates - due to geopolitical risks and tensions, along with Covid-19-led mine disruptions.

In summer 2020, Fastmarkets' copper concentrates treatment and refining charges index dropped to a multi-year low, reflecting the tight availability of the material on the spot market. It fell to $43.70 per tonne/4.37 cents per lb on September 4 - its lowest level since its launch in 2013.

The fall implies that Chinese smelters - the most active spot buyers - were receiving a notably thinner incomes for turning copper concentrates into refined copper.

Adding to China's woes, in June, the offshore yuan dropped to a near-record low while trade tensions between the US and China deteriorated, with the imposition of the new security law in Hong Kong lifting import costs even further.

Despite rising cost pressures, the room for Chinese copper smelters to cut concentrates imports is limited, and over the first six months of 2020, more than 10.84 million tonnes of copper concentrates were brought into the country, up 3% compared with the same period in 2019.

China’s mined copper output in January-June was up 8.4% to 800,000 metal tonnes, according to the government, which roughly translates to 2.4 million tonnes of copper concentrates, according to Fastmarkets calculations.

That means domestically mined copper will have to at least quadruple to replace the imported volumes.

Currently, the only operational copper mine in China with a copper metal output of more than 100,000 tonnes per year is the Dexing mine owned by Jiangxi Copper, while most other copper mines are either mid-sized. or privately run smaller operations.

On the long road to self-sufficiency in metal resources, China is not alone, however, and a similar approach is also being promoted in India.

The operator of India's biggest copper smelter, Birla, recently entered an agreement to source copper concentrates locally from state run mines. The move is said to be a help with achieving ‘Atmanirbhar Bharat’ - Indian prime minister Narendra Modi's term for his drive toward a “self-reliant India.”

[frogkid] 06/10/2020 07:24

Thanks Undie

[1madmarky] 06/10/2020 07:16

Go get'em slag heaps!

[deme1] 06/10/2020 06:49

Kenny, JLP is not a mining company ;)

[9tintin] 05/10/2020 22:38

Cheers guys - sort of reinforces the theory that this might go a bit lower yet.

Could be 5p by Friday - LOL

tintin

[lostabillion] 05/10/2020 21:12

9tintin, my next purchase will be circa 550-600,000 shares, not just yet though.

[goingforarun] 05/10/2020 21:06

Not sure an update is due yet? Maybe November assuming Copper is running as per timetable?

[9tintin] 05/10/2020 19:22

Interseted to hear Deme's views - maybe he has already bought back in ?

tintin

[9tintin] 05/10/2020 19:19

Seriously considering buying back in, the shares I top sliced.

The only thing holding me back is the lack of significant buying over the last week or so.

Results must be close and other news could drop at any time - so the moribund share price is a concern, I guess Losta has not topped up lately - LOL.

Will watch for a while longer as I can see this dipping below where we are now.

tintin

[pshevlin] 05/10/2020 17:40

Thanks undertaker

[adejuk] 05/10/2020 16:32

not long now

[bullster] 05/10/2020 16:17

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If the royalty is to be ringfenced imediatly, it will need reducing to account for our capex clawback clause in the contract.

I see JLP comming out on top, in all scenarios.

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[bullster] 05/10/2020 16:04

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I suppose Leon will have the responsibility of casting our 29% share of the votes in BMR.

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[plat hunter] 05/10/2020 15:58

Ring fencing the royalty against dilution is good, we own 30% of it :-P

[deme1] 05/10/2020 15:52

^^^^^^^^
lol

don't they know BMR is of no relevance anymore

[robers98] 05/10/2020 15:49

From lse board.

RE: BMR UpdateToday 09:56
Another meeting was held with BMR on 1st October, this time with wider members of the BMR Watch Committee included.

We made it clear that BMR shareholders wish to have the Royalty separated from any new listing. It’s imperative that this is done, otherwise it would dilute our interests in the Royalty. CB recognises this and will look into ring-fencing the Royalty for current BMR holders on the shareholder register. We have also requested to see paperwork on the Royalty agreement between BMR and JLP – we are confident CB can provide access to those documents. Discussions were held over the possible purchase of the Royalty by JLP, however, this isn’t something JLP would want to do at this stage and CB determined it would be more beneficial to BMR shareholders if it was sold at some point in the future instead.

BMR continues to pursue an asset acquisition and we hope they can share more information on this shortly. We also hope to have an update on progress of ring-fencing the Royalty. BMR will be required to publish any proposals via Circular for shareholder voting.