Jubilee Metals Share Discussion Threads

[gsg] 20/12/2020 10:21

Rally in mining stocks seen powering into 2021, analysts say

Dec. 19, 2020 11:55 PM

Trillions of dollars in government stimulus, the COVID-19 vaccine rollout and China's insatiable demand for raw materials has convinced analysts that this year's surge in mining companies has more room to run, Bloomberg reports.

Copper prices have surged ~80% from March's pandemic lows, with Goldman Sachs and others forecasting the start of a new long-term bull market and Bank of America believing industrial metals will continue to strengthen as prospects for a COVID vaccine drive an economic rebound.

"Typically, industrial commodity prices do well when global industrial production is accelerating," says BMO analysts led by Colin Hamilton, expecting positive momentum to continue in through next year's Q1 despite the big rally.

Berenberg's Jonathan Guy sees the rally in base and bulk metals continuing into Q1 but pulling back later in the year, as sentiment looks increasingly detached from fundamentals.

Jefferies analysts led by Christopher LaFemina have a view of base metals, especially copper, for the next 12-18 months; its top picks are Freeport McMoRan (NYSE:FCX) and First Quantum Minerals (OTCPK:FQVLF), with BHP, Vale (NYSE:VALE), Anglo American (OTCQX:AAUKF), Glencore (OTCPK:GLCNF) and Antofagasta (OTC:ANFGF) also recommended.
ETFs: GDX, NUGT, SIL, GGN, DUST, XLB, COPX, SLVP, BCX

The middle class explosion happening globally and especially in Asia is the top reason for a long-term bullish view for copper, Sven Carlin says in an analysis published recently on Seeking Alpha.

[gsg] 19/12/2020 20:55

ZAMBIA’S copper production is likely to remain below one million metric tonnes for at least another three years given the persistent challenges mining companies still face, says the Zambia Chamber of Mines.

Last week, Mines Minister Richard Musukwa announced that copper production had increased to 646,111.25 metric tonnes by September 30, this year, up from 590,321.13 tonnes in the same corresponding period last year, representing an increase of over 55,000 tonnes.

But Chamber president Goodwell Mateyo observed that while the marginal increment in copper productivity in the nine-month period this year would result in increased foreign exchange earnings, the country was not likely to hit the one million metric tonne mark over the medium-term period owing to the continued operational challenges the 10 large-scale mines still faced.

Zambia has remained behind the Democratic Republic of Congo (DRC) as Africa’s second highest copper producer after the latter eventually overtook the former back in 2013 for the first time since 1988 where it produced 900,000 metric tonnes of copper, registering a sharp rise and surpassing Zambia’s 754,916 tonnes seven years ago.

“In my estimate, I don’t see us getting to that (one million tonne) target in another three years or so because you need to really significantly invest in expansion projects within the operators and with Greenfield mines. And I don’t see, even if significant investment is made to expansion projects for current operations, you’d only be able to realise that at the very least in maybe, three-five years’ time,” Mateyo said in an interview.

He outlined that Zambia’s marginal rise in copper productivity in the three quarters ending September 30 did not reveal the full story of the ongoing operational challenges some mining companies faced.

“Speaking to the production figures, I do know that, as an industry, we are approximately 50-60,000 tonnes higher than we were last year. But it’s not the whole story; much of the increased production is coming from one or two mines in North-Western Province. If you look at it in terms of all the mines, most of the mines have suffered a decline in production. So, it doesn’t tell a story with what’s happening in the rest of the industry,” Mateyo said.

He explained that the majority of mining companies were struggling to ramp up production due the need to recapitalise their assets, but faced challenges due to Zambia’s poor investment climate, characterised by high costs of production.

“A lot of them need to invest into their current operations. But it’s difficult to attract investment in this jurisdiction under the current investment climate. Most of the ‘old Copperbelt’ are high cost operations so to get them to a point where their unit cost reaches a sustainable level; you need to have significant investment into their operations. But investment will come if the climate is attractive,” explained Mateyo, who, however, said power supply to mining companies had been stable this year despite the country’s ongoing power deficit.

[deme1] 19/12/2020 20:45

Wouldn't like to be holding bank shares come Monday ;)

[lostabillion] 19/12/2020 19:38

You are very wrong robers, I hold 28m shares here and will buy double the amount I sold when the opportunity presents itself which it will imo.

There is absolutely nothing wrong with JLP but the share price will get dragged down in the short term imo which will present a short (month or so) buying opp.

[robers98] 19/12/2020 19:29

Tintin losta sold up his trading pot was his total jlp shareholding. Now he is trying to deramp to get back in at any cost.
Shame that the funds are now taking stakes in the company just as he sells out!! Maybe he should have listened to TW who clearly had his ear to the ground on funds taking positions.
Now when is the 1St uplift in copper production? Q1 2021 only a few days of 2020 left. So easy to see why there is a rush to get on-board. Imo

[lostabillion] 19/12/2020 16:01

Tintin, calm down, just airing my thoughts with a single post!

[plat hunter] 19/12/2020 15:41

Once again Moneyman... Miles off the point and letting your own prejudices dictate your field of view.Just put me on filter and have done with it.

[moneyman50] 19/12/2020 15:18

More predictions from Plathunter-must have been playing with his crystal ball again.
A few weeks ago he was telling us how much JLP was over valued and the price was about to fall,since then it’s share price has continued to rise and Slater has since built a position in JLP
Outlook for companies operating in the “Green Sector” will no doubt continue to be bright as we emerge from the Covid crisis.-demand for PGMs,copper,vanadium etc only going one way and JLP is not dependent on whether or not Barnier and Frost agree on who can fish where.
Governments will engage on large green infrastructure projects to kick start economies and demand for electric vehicles will increase massively over the next few years

[plat hunter] 19/12/2020 14:52

Losta...Huge crash coming for global stock markets, Lloyds certainly woun't be excused.DOW back at pre covid record highs, FTSE 100 only a mere discount of 15% from record highs, you could even call that a BREXIT discount. And look at BTC although that's also a 3 bearish soldier on the monthly now, that should fall out of bed in January.If anyone thinks the world has gotten over covid then they're bonkers. Stock markets are high because everyone is getting paid to stay at home and gamble. Can't be a coincidence that the earnings of spread betters have 3-5 bagged over the trailing 12 months to date.

[deme1] 19/12/2020 14:41

I camt wait to see the stream of new commers telling us how good JLP are. They will be experts from day 1 in the JLP journey.

Frog, pass me the popcorn

[gsg] 19/12/2020 14:38

I welcome all the new holders. They drown out the old fossils who have been on this bb for years who can't even remember their own porky pies.

[adejuk] 19/12/2020 14:30

how do you calc the bagger when your holding cost nothing?

[billyboy2fromiii] 19/12/2020 14:30

Losta, make your own decisions but I personally think Motley Fool is a pile of .... . BB2.

[9tintin] 19/12/2020 14:09

sb

2014 - a relative sprog then - LOL

make sure you stay the trip !!

tintin

[9tintin] 19/12/2020 14:03

Losta

I do find your massive 'U' turn in outlook with Jubilee more than a little diificult to swallow, especially as you were oh so quick to lecture others who were taking profits at lower levels - " hold for the long term" how many times did you preach that particular line on here, ad infinitum.............

Of course we can all change our minds when the picture changes and re-evaluate the merits of our stategy - that said JLP's future has never looked better and here you are de-ramping the carp out of it.

Maybe it's just me but you have 'losta' all credibility on here, and as such I think it's best to exercise the filter, so I don't have to read your garbage, don't worry you are in good company with that other loser PL.

tintin

[sb] 19/12/2020 13:52

And please .... walk away whenever you are ready ... it is of course your choice.

[sb] 19/12/2020 13:50

I have been in JLP for over 6 years tintin ... I agree it has not been an easy ride..but now we have passed the tipping point I damned if I am not riding this horse out ... There is no other business that I am aware of that has the potential that this has. You don't find opportunities like this often in an investing career..make the most of it.

[9tintin] 19/12/2020 13:39

sb

I take it you are a fairly recent convert to JLP.

I can assure you that the trials and tribulations of holding shares in this company means LTH going back to the 'old' model whereby they bought shares bought in the 2/3p region and as a result are looking at a ten bagger at 30p will have suffered enough to walk away when that time comes - after all for every £10k invested a return of £100k will mean a life of Riley for a few - hey Froggy ????

tintin

[lostabillion] 19/12/2020 13:17

Motley Fool suggesting Lloyds will double during 2021.

A worldwide lockdown which incidentally is looking reasonably likely could see JLP arrive back at 6p in the short term imo.

Now, do I hold Lloyds and wait for the doubling of the share price during 2021 or do I buy back my JLP trading pot at circa 7p?!?

Conundrums conundrums!

[sb] 19/12/2020 12:51

I meant that £1 is easily foreseeable, not that it is going to happen in the next few months...

[9tintin] 19/12/2020 12:32

£1 just around the corner,,,,,,,,,,

Can you please let me have some of whatever you are smoking.

I haven't had any good dreams lately - LOL

Absolutely pie in the sky IMO

tintin

[sb] 19/12/2020 12:18

If your price is 30p, Deme, then when we get to that you can sell....no need for the company to be sold though!

[scrappycat] 19/12/2020 12:18

Leon has stated, quite categorically if my memory is correct, that he wants to take JLP to mid cap status. Some way to go yet, but I see no reason why he will not succeed. I don't think a T/O figures in his plans, but I could be wrong, of course.