mccarthycraig256
08 Nov 2019
New broker note I have watched it but think I need to watch again. some are suggesting Leon hints at fine copper! Gonna have another watch later
the_old_trout
08 Nov 2019
New broker note Just back after a long day out and haven’t had time to view it yet but it clearly had a significant effect on the market, which is all to the good. I was surprised that there wasn’t a better reaction to the Shard note yesterday but had the courage of my convictions so the first trade of the day was mine, plus another top up around 10 am. Looking forward to another rise on the Windsor update next week, then the annual results. Still sticking with my 6.5p forecast from the three year chart for now, but might have to review it given the reception this interview has had and the strong bullish momentum which is now driving the stock. Tine for some sustenance now and a couple of glasses of red, then the interview. Have a good weekend all, Tot
whittaker.family
08 Nov 2019
New broker note What an excellent interview. A real in depth probe into Jubilee’s strategy which Leon handled it very well. The answers he gave were informative and very reassuring. Despite natural concerns about most assets having a relatively short life, I felt very confident about the long term future of the company after hearing Leon’s answers.
mccarthycraig256
08 Nov 2019
New broker note New in depth interview with Leon
the_old_trout
07 Nov 2019
New broker note You beat me to it mccarthycraig. That should get the share price moving north again. "The rationale is compelling… As well as the potential to boost revenue and earnings considerably, the deal provides multiple wins for JLP, in our view. The previous situation was that Inyoni processed the incoming tailings feed supplied by Hernic, with the first step being chrome separation before the tailings resumed their flow to JLP’s PGM recovery plant. Despite incurring the operating cost for chrome separation, JLP did not receive any chrome revenue as all chrome concentrate was returned to Hernic Ferrochrome for its own use or sale to market. This agreement rectifies that issue at no additional risk for JLP. ► … and it gives JLP control. JLP has taken control of the re-mining of tailings at Inyoni. Given that the PGM recovery step involves grinding and multi-stage floatation, the ability to control and maintain consistent feed rates is paramount for efficient operation. We think stable feed control could not only lead JLP to improve metallurgical recovery on the PGM front, but also provide the opportunity to utilise spare capacity at Inyoni and increase throughput. Naturally, a higher feed rate will increase chrome production as well as increasing downstream PGM production. Thus, the impact on PGMs is two-fold due to higherthroughput and potentially higher recovery. ► The likely impact is considerable. Whilst we are not in the position to fully update our model at this stage, it is possible to highlight the indicative impact of securing the chrome rights. Inyoni processed about 40ktpm of feed in H1 2019. The mass removal at the chrome separation stage is significant (up to 25% of the feed is turned into chrome concentrate). For arguments sake, assume it’s 22% and at a 40ktpm feed rate, this implies chrome concentrate production of 8.8ktpm. Current UG2 chrome prices are c.$150/t cif China, implying that JLP would currently receive about $90/t ex-works. Putting this together translates to $9.5m in annual chrome revenue not previously received by JLP. The important point is that this new revenue source essentially flows right down through the project P&L to the bottom line. This is because JLP already incurs the chrome operating cost as part of the PGM operations. There are some additional costs associated with the control of chrome, but these are minimal and related only to JLP now having to fetch material whereas it was previously delivered by Hernic. We estimate something in the region of a couple of dollars per tonne for these additional costs, but vastly off-set by the new revenue stream. Also, note that this excludes any contribution from fine chrome which JLP plans to implement at Inyoni."
mccarthycraig256
07 Nov 2019
New broker note jubileemetalsgroup.com Shard-Capital-JLP-7-11-2019.pdf 292.51 KB
dkok
06 Nov 2019
New broker note ToT I think we should see a solid set of financials with confirmation of very solid growth YoY, but I think if we get a good forward statement, or post year end info on recent months performance etc., plus possibly if we get another announcement for another project, then the doors will need retrieving from the neighburs driveway! dk
the_old_trout
06 Nov 2019
New broker note Maybe blowing the doors off was a little rampy but I think it is very reasonable to expect a significant improvement year on year, and enough to demonstrate that JLP is well on its way to becoming a cash cow. That’s good enough for me.
mccarthycraig256
06 Nov 2019
New broker note I can’t see the financials blowing the doors off this time around. But possibly the next load of financials
the_old_trout
06 Nov 2019
New broker note Thanks dk, I’m not sure about the market not cottoning on, although that might be the case with some, but the sp needed to take a little breather from its recent run as the RSI had become a little overheated. At 62.5 it’s now back in its box and back at the level where each recent leg up has started , so it is again a buy for me with the financial results this month set to blow the doors off, or so I am advised. ATB, Tot
dkok
06 Nov 2019
New broker note ToT This tallies with my basic thoughts. I replied yesterday to comments on LSE regarding concerns as to how the chrome purchase would be paid for, with some pople suggesting a placing etc. My view is that as the deal is structured to be paid in three tranches at monthly intervals, that Leon is pretty confident that it can be paid for from monthly income. Your figures for Inyoni, plus dilokong, plus windsor, plus eland, plus sable means that we are pretty close to the required figures as a monthly income (though the fine chrome for Inyoni wion’t be there yet), and there may be a need for small amopunts of the project finance facililty that we have to balance out the books as required. Another absolute cracker of a deal by LC IMHO, and the market just hasn’t cottoned on as yet to just how good it will be for the company, particulalry when we put in the fine chrome circuit. dk
the_old_trout
06 Nov 2019
New broker note Bullster on Advfn was crunching the numbers and says that “I am getting $120/t from Tharisas recent results, cut back a little because of recent price weakness.†Not had time to check myself His calcs below: Jubilee owns and operates a chrome and PGM processing facility at Inyoni with a processing capacity of 55 000 tonnes per month. The facility currently produces up to 9 000 tonnes of saleable chrome concentrate and 2 250 ounces of PGMs per month". Inyoni lmpy-ch 9k t @ $120/t = $1,080,000 Inyoni fine-ch 8k t @ $130/t = $1,040,000 Inyoni pgms-4e 2500 oz @ $563/oz = $1,407,500 INYONI EARNINGS PER MONTH $3,527,500 £2,734,165 Tot
dkok
05 Nov 2019
New broker note Kalan I think the historic cost/revenue on chrome will be immaterial here, because the key thing is that now that JLP get all the income from the chrome, then it is now worth them putting in the fine chrome recovery circuit which will boost the revenues significantly, and therefore the payback period will be much shorter, though I would expect that it is still in the 12-18 month ballpark. Another great RNS IMHO and I cannot understand the markets current antipathy to it. Nothing but positive IMO. dkok
KALAN
05 Nov 2019
New broker note That’s £40 not £4.
KALAN
05 Nov 2019
New broker note Don’t know if anyone can help here with a problem understanding the figures provided by JLP. The first half of 2019 saw us booking down sales of chromium concentrate at £4 per tonne when you divide the revenue by the tonnes produced. Most were expecting around £100 to £150 per tonne for the concentrate. TotalTrader suggests that the reason for this is that JLP may have booked down all production tonnage including the tonnes handed to hernic for free. It makes a big difference as at £40 per tonne payback on the £12.7 million expenditure is a little under 3 years but less than 1 year if what Total trader says is true.
