Jubilee Metals Share Chat (JLP)

Sumo, there is a very small profit share on the third party ROM, but nothing like the 40% to Windsor and ofcourse there is no profit share on our own tails, so as previously stated more PGMs produced going forward at a much higher margin. I really hope they break down the production figures to monthly amounts or at least give us the individual figures for December or January depending on when the report arrives. This will give a real guide as to what we can expect going forward. I wonder if they are waiting for the Jan figures as they are squeezing up production and want to showcase what Inyoni can do and give a good guide to production post the period under review.

Personally, I can see Cyprus becoming an important cog in the wheel, because if we can blend concentrated ROM and concentrated tails/waste from all the satellite sites dotted around the Caerus Minerals portfolio into one central processing facility, much in the same way that we do both in South Africa/Zambia then it shows that we can up sticks and take our processes and IP anywhere in the world and process it better than others, reducing the need for further mining in certain metals/minerals for a while and cleans up and ensures that tailings are stored correctly in the future, hopefully preventing another vale style tailings dam failure occurring again.

And don't get me started on the Cobalt side of the business yet, especially with the DRC's child labour problems a serious issue for both investors and manufacturers moving forward.

I am hopeful that if someone sees something wrong

Sumo,
Spot on - increase the capacity, have the ability to process multiple feed sources and increase the margin as the material doesn't have to go elsewhere to be processed.

I will take a bit of short term pain for long term gain!

Looking forward to the update specifically:
Inyoni throughput and margin
Chrome processing capacity and margin
Copper progress on Roan, Northern Strategy and Mufulira
Eastern limb?
Cyprus?
Global development

Lots to look forward to and we are now getting more tips than a Hooters waitress which will obviously help!

Northern

Let's get back to the matter at hand, hopefully we have seen the back of one negative voice and can get back to decent, fair and reasonable debate here.

As a certain someone says, there is a possibility of dilution, but as JLP positive says, not all dilution is bad dilution. If it is value accretive, if it gives us for example a MUCH better percentage term in terms of final profit/revenue, then that is good dilution, so long as it works obviously. Bad dilution is where shares are issued to keep a roof over your head and the lights on. We are past that point, in all seriousness, because we ARE making money at a pretty good rate and yes, basket prices may drop, but we are pretty broad in terms of the metals we CAN produce, with other processes in the pipeline, just waiting for the right price to be achieved. Also whilst we are in the case, basket prices can also rise too. You plan for the worst and then if it is better than that, then that is a win win all round.

Personally I do feel like with the upgrades at Inyoni will have disturbed the chain and amount of PGM's that we produced over the last 6 months abit and that despite us hitting our target, I do feel that with Inyoni expanding the PGM circuit processing to 75,000 tons a month and with Inyoni benefitting from the fine chrome circuit and expanded/better chrome facilities to make use of blended chrome streams that make their way to I yoni from the satellite sites, that the 75,000 tons of PGM processing should generate a considerable upside in terms of PGM production now that it is all commissioned and it wouldn't surprise me if we see an increased level of production for the amount of PGM's that we produce over the next 12 months.

Additionally, on other good news, in the last 6 months, we have basically doubled our chrome processing at the satellite sites and Inyoni itself, so that should give us a boost in terms of chrome produced and sold moving forward and hopefully will minimise the amount of processing that the PGM side needs, because the vast majority of the chrome will have been removed and then with the additional fine chrome extraction, it will hopefully remove any potential charges, for example in terms of a chrome penalty for someone when they smelt our PGM's, as there will hopefully only be trace amounts, like the PGM's from a none UG stream.

I am hopeful here of getting as much money in to Jubilee as I possibly can, especially whilst it is at these levels and hopefully with Project Roan only starting full production this month, the full copper results will be evident in 6 months time, giving me another 6 months to buy these shares as cheaply as possible, before it shoots upwards.

Continues on next thread.

I thought part of the intent on the upgrade of Inyoni was more stable throughput and more ownership of the resultant PGMs. No profit share?

I don't think we should become fixated on bettering our performance month on month. Last year set the bar very high. A good solid set of results is fine by me. The company is on a great trajectory and there will inevitably be ups and downs. I have a three year horizon and am relaxed and happy with my investment.

No Excuse - statements from the audited results which show the timeliness of the expansion at Inyoni:

During February 2021, Jubilee commenced with the capitalisation and expansion of the 50 000 tonnes per month Inyoni PGM plant to a 75 000 tonnes per month processing facility. This formed part of the refocusing of the Inyoni Operation to a third-party processing facility for a variety of clients;

Achieved stated target of 50 162 PGM5 ounces for FY2021 (up 23% compared with 40 743 ounces for FY2020); this was achieved during a period which included the construction and commissioning of two new chrome beneficiation facilities and the commencement of the construction of the expanded and refocused Inyoni PGM operation

The expansion project of Inyoni PGM operations including an extended recovery circuit to target a variety of feed materials, was completed during October 2021

So, there is an overlap between the two financial years for the upgrade and we've had a 75,000tpm facility since October rather than 50,000tpm

Jlp positive, thanks for your interesting comments. I also hope to see better results for the last six months but how would you account for the Inyoni expansion downtime? Surely that will impact the numbers unless there are other sources of earnings to make up the shortfall e.g copper. Appreciate your thoughts.

I find it somewhat amusing that there is a discussion regarding the 6 months results to end of December and whether JLP has done better or worse than the previous 6 months. I still believe it will be slightly better. Not shoot the lights out better, but better. The results, when published, have not disappointed for the last few years at least, quite the opposite in fact.

Only one dissenting voice who believes the share is substantially overvalued.

Bushy Tailed is clearly not an accountant otherwise he would understand that by issuing new shares (share dilution) is not necessarily a negative thing. It depends on what the proceeds are used for. Unless you are the Federal Reserve, issuing of shares will always be the cheapest cost of capital.

Quite frankly, Bushy appears to be your typical mom and pop investor, who sells his winners to make a profit and keeps his losers for fear of making a loss (or trying to prove to themselves that they were right to buy the shares they are losing money on).

JLP has proved itself to be a winner in more ways than one, those who have held on and continue to hold on, have and will undoubtedly reap the rewards as the Company continues to mature.

For those of us who want to stay for the Copper and Cobalt ride, the actual SP at the moment is completely irrelevant. Unless like me you are accumulating more shares of course. And yes, I am overweight in the share and have a strong bias, however with good reason.

As far as most of us here are concerned it is only a matter of time and patience ........

You can post where you want mikie, honestly why would I care?

both hum and shg,both quite similar in production,or was,the last time ilooked
that's the problem,when a comp aquires another asset,to develope into an extre mine
doubling production,in both cases

thisalways put downward pressure on the sp,especially,whenthe capex needed,is so high
at some point,when those other mines,are nearing production,theoretically,that sp,should re rate
one thing bird is good at,is getting assets into production,withlow capex expenditure
like kabwe,/tailings,no doubt,it'll be a fraction,of a gold plant

that's where bmn went wrong,it went downthe battery making road and the huge capex needed,had a negative effect on the sp

Again bushy, you are completely missing the point.

I will simplify it for you. HUM has 400 million shares in issue and a price of 13.15p for a market cap of 51 million from 1 producing asset with at current production levels, 2 years life of mine. Yes, that can be extended, but you paid out 11.5 million dollars in 6 months for that and firming up another asset.

You say that the bank has lent you the money to fund the amount you need to get your 51% of the mine sorted out, but what about the other 49%? Your JV partner has to fund that, but what if they don't? That's an uncertainty there.

There was illegal protests at your 1 producing asset, which could happen again in the future. Uncertainty there.

HUM is producing a lot of ounces of gold a year, for at best a 300-400 dollar profit per ounce on the unrealistically high AISC, but what if the gold price drops back down to $1,700 an ounce, you will be making at best 200-300 an ounce. Yes, it is supposition, but you specialise in that, so I will do the same here.

If there was no uncertainty, you might have a higher OE ratio, which would lead to a higher Market Cap and therefore a higher share price on the current number of shares in issue, but you don't. Your PE ratio is 3.286, Jubilee's is 8.757. Even if your PE ratio was the same as Jubilee's, your market cap still wouldn't be anywhere near Jubilee's, as it would be at £135,912,051.10. So either Jubilee is doing something really right or HUM is doing something really wrong!

I suspect that it is a bit of both in reality.

Evening Kaiser, love your post on the HUM board. Perhaps if this continues we should all go and post there. We could all discuss what happens in 2 years time!

That's the point kaiser lol

No logic to Bushy Kaiser B-he keeps saying PGM prices are lower but will not acknowledge average PGM prices this year are higher than last year.Page 7 of the accounts clearly states average PGM price for the year ended 30th June was $2248.It is now $2800 per ounce and raising having not fallen below last years average of $2248 since 30th June 2021.Assuming similar PGM output -total PGM revenue will be higher this year tan last

Bushy, yet even with 2.5 billion shares in issue, Jubilee's share price is 15.85p and Hummingbird's is 13.15p. Go figure hey! ;)

Please everyone ignore this grettin bushytail if we feed him he will keep feeding if we don't he will starve and go away good luck to us all??

Kiaser i know what is says... Difference is JLP have a history of diluting shareholders in place of debt funding, whilst hum have a history of taking bank funded debt in place of issuing shares and you didn't know what it was until i pointed it out to you. How you can claim to be factual is laughable

Less than 400 million is issue for HUM, 2.5 billion in issue for JLP.Says it all really

Also anyone can go on investopedia. com and pull something off that makes them look like they know what they are on about! ;)

moneyman, the published accounts are up to year end June 21

Like I said we've been over this many times... The basket value has dropped since year end June 2021

Bushy the PGM revenue per ounce figure is on page 7 of the published accounts document

Bushy,

We shall try this again. Can your directors issue up to TWO THIRDS the shares in the company after having it passed at the AGM? Yes they can.

Are you using the fact that Jubilee passed a resolution to issue shares up to an amount as justification for you saying that they will be doing a placing of up to 150 million? Yes, you are.

Are you saying that Hummingbird who passed a resolution of up to TWO THIRDS of the shares in the company can be issued, means that a placing isn't going to happen? Yes, you are.

Now, please can you quantify your comments please, because if both companies CAN issue shares as passed at the AGM of both companies, does that both companies can or certainly will issue shares?

Bushy-according to the accounts for the year ended 30th June 2021 the average revenue per PGM ounce was $2248.It is now circa $2800 and I believe it has not being below $2248 per ounce since 30 th June 2021 according to Tharisa weekly tweets.Year on Year how is this a fall in PGM revenue?

OMG Kaiser, you literally don't know what nominal means do you?

I'll help you out...

The nominal value of a company's stock, or par value, is an arbitrary value assigned for balance sheet purposes when the company is issuing share capital – and is typically $1 or less. It has little to no bearing on the stock's market price. For example, if a company obtains authorization to raise $5 million and its stock has a par value of $1, it may issue and sell up to 5 million shares of stock. The difference between the par and the sale price of stock is called the share premium and may be considerable, but it is not technically included in share capital or capped by authorized capital limits. So, if the stock sells for $10, $5 million will be recorded as paid share capital, while $45 million will be treated as additional paid in capital.

Bushy,

If you are going to come at me with absolute boulderdash, you better make sure that your company isn't proposing the same resolution, but by a possible even larger amount of shares.

As I have said, a reasoned debate is back and forth, with you spouting your reasons for basically telling people to sell here, with your oracle knowledge on the premise that the board passed a resolution that can allow then to issue shares, but fail to appreciate that pretty much every company does that, especially when in a development or growth phase, even your mighty company.

So you better find some better stuff, as you clearly are losing this debate BADLY.