Jubilee Metals Share Discussion Threads

[dafrog] 16/5/2022 16:27

Excellent sharehunter. I've attended many jlp meetings but unable this time. Appreciate your briefing.

[2vdm] 16/5/2022 16:24

Have I missed something here? I thought that was a great RNS and yet the reaction appears to be muted. What will it take to make this fly?

[thesharehunter] 16/5/2022 15:55

I’ll try

[frogkid] 16/5/2022 15:53

Do you mind posting this on the other place ?

[thesharehunter] 16/5/2022 15:51

No. 7/8 people plus legal team. Not many people just for this meeting.

[leslee] 16/5/2022 15:50

Thanks theshareshunter. Much appreciated.

[undertaker] 16/5/2022 15:45

Great report, thx ShareHunter.Did it look like insti investors were in attendance?

[frogkid] 16/5/2022 15:38

Thanks theshareshunter,

[frogkid] 16/5/2022 15:36

I was reading the wrong RNS, good job I wasn't able to attend !

[thesharehunter] 16/5/2022 15:36

Yes. They had to re-issue the RNS when they announced the original date to correct it for today

[frogkid] 16/5/2022 15:33

'ang on. So it was today !?

[thesharehunter] 16/5/2022 15:26

Went to my first general meeting. A (very) rough transcription of the meeting follows.
Jubilee general meeting 16/05/22

Nick Taylor-non exec present
Leon Cotzier CEO by video link

Special resolutions need 70% to pass
1 -to issue share capital- passed 96%
2- to permit hybrid shareholder meeting- 98.92%For

Overview by Leon

Jubilee offered technical expertise to miners. Jubilee educated themselves by looking at what was left after processing and WHY. What was wrong with the system? Was it inefficient or was it due to the type of process?
Looking at Chome- 1)all PGMs are rejected by the system and 2) there is inefficiency of the process or things were being ejected by the system- 70% of the remaining chrome is due to it being ejected by the system.
So jubilee addressed the inefficiency but also looked at the process. They also sorted out how to get the PGMs.

At INYONI, they found that they could build a large central facility allowing material from a whole host of entities. This was 1) cost effective and 2) caused no reliance on any one entity.
In 2021 they rebuilt the facility to cope and doubled its ability. “No other such facility in the world!!”
JLP now 4th largest chrome producer in SA but no mine!
Chrome is the BY-PRODUCT and offsets the PGM costs.
Jubilee have disincentivised their clients by being better, faster and cheaper than doing it themselves. This gives a constant stream of fresh material for their PGM business
And today, they are no longer reliant on their Joint Venture( which they had to share 40% off)
INYONI is fully commissioned and at full volume. “No one else can produce PGM oz so cheap” : $450/ oz compared with the selling price of $2200
Targeting to end all JV by 2023

Looking to the Eastern limb. They have secured the clients and have secured the feed. Looking to build a new facility so as not to need transport costs to west(440km).
Transport costs only TEMPORARY. (Weakened rand is buffering costs but diesel increases will come through. Use modern trucks to cut diesel costs)
Looking at decommissioned processing facilities. Time line depends on concluding negotiations but then 8-10 month build time.

ZAMBIA
Split into “North” and “South” but not really geographically. The town of Ndole splits the two and is a “bottle neck” as only one road between the areas and goes through here.

South- Sable- is able to take multiple materials. Allows for the small miners to process their materials. This fulfilled a promise to the government for small miner empowerment.
Potential for $120million per annum with very good margins.
Now the biggest employer in Kabwe and soon in Ndole

The North is a much,much bigger picture.
Looking to repurpose facilities ( and quite a few available due to their own strife)
How to fund it?
all of their South African operations are debt free and so the complete balance sheet is available
The earnings are sustainable( not exposed to any one client)
Can now leverage
The northern projects are aimed at commissioned in 18months?

At Sable they have trialled the cobalt circuit. It is implemented and is ready to do the same on the northern side which is more cobalt rich. The cobalt at sable will be material coming from the northern side until that is up and running on its own. Expect cobalt to start in July

I’m Zambia, there is 1.9 billion tons sitting at surface. More than in mines!
Ready to seize the opportunity.
First mover advantage

Nothing prevents looking at other metal groups especially the “energy metals”

Question was posed about other jurisdictions:
“Zambian waste is better quality than most Chilean mines!” And DRC is better than Zambia.
So opportunities have to be something good to detract from Zambia or be strategic.

Cyprus - took a back seat to Sable and Project Roan but the results are now back and on the table. “The Grades excite us”. It is also strategic as it’s looking at copper and gold.

Some interesting info on costs:
Acid has gone up from $100/ tonne to $300/tonne BUT due to JLP innovations, the price increase is ameliorated to only %30 compared to other producers. Prices are going up but our costs less so. A bit of a win for JLP compared to other producers.

Why resolution 1?
Leon answered “prudent in this environment. No plan for it but if for whatever disasterous events, good to have it”. “No one predicted Ukraine or China issues this time last year”.

TJATE
Keeping up all licences etc… and being transparent with the government on the plans. Well above the agreed community work and green credentials.
Actively looking for investors, be-it a sale or other. No plans to mine.

Kabwe- discussing on re-starting zinc circuit with the improved prices.
Lead is very toxic. Are partnering with the world bank on plans. Have already identified low zinc areas and are “capping”; them to help with the toxicity. “good will”
Vanadium always under review but prices so volitile.

Leon did commit to 3 monthly “project”; updates but not financial ones. In a rapidly growing company, down time to upgrade facilities etc… would skew the results too widely.

[frogkid] 16/5/2022 15:25

Weird you thought it was today, I did too, it's tomorrow

[undertaker] 16/5/2022 15:23

Anyone attend the GM today?

[sb] 16/5/2022 15:09

What makes you say that robers?

[ginko3] 16/5/2022 15:09

Seems more likely the shares are needs as part of a merger deal with the other company wanting shares as part of the deal otherwise why not go to the banks for funding

[robers98] 16/5/2022 15:00

Track down a mothballed chrome processing unit on the eastern limb. Should be cheaper than taking out a company with plants on the eastern limb. But seems like the banks won't stump up 100% of the funds.

[catsick] 16/5/2022 14:55

This update all seems to be a hell of a lot of jam tomorrow, Just the Chrome at 1.2 million tons a year is now trading up at 288 usd a ton represents double last year's revenue, then add on copper cobalt and pgms as well and it just gets silly, even if they get to half these projections and prices plunge it still looks cheap

[tonyevo256] 16/5/2022 14:54

Yes...there is an expectation of further dilution so hence no rush to buy...but JLP usually make great deals in hindsight.

[frogkid] 16/5/2022 13:55

I suppose the share price will be pegged back until tomorrow when we will know what the deal is...

[philby1] 16/5/2022 13:25

Onwards and upwards from here Tony. Despite the lowly share price I've never felt more confident about JLP's prospects. Still trying to get my head around the future earnings potential from cobalt alone, the numbers are staggering.

[tonyevo256] 16/5/2022 13:21

I have always said I will stay invested here so long as the company proves it's plans for growth.. today I am even more reassured that my money is in good hands..

[timhigginson12] 16/5/2022 12:24

All of the above plus Tjate, DCM, and what happened to the Zinc/Vanadium and the lead/cobalt circuits which were due to come on stream in May 2021? I had those pencilled in for $44m with a margin of 30%.

I know that the locals brought a case against the dump perpetrators so maybe that has held matters up.