Jubilee Metals Share Price (JLP)

staycalm I posted yesterday that I though the placing was more to do with letting some City chums in at the right price rather than any compelling need for funds (check the cash balance in the latest accounts) so it's interesting to have that confirmed.

You need to ask the skipper from ADVFN :)

Staycalm, thanks for the info from Shard. Very reassuring the placing shares will be in sticky hands! Did you ask Shard about producing a new broker note with a share price forecast after all the dramatic positive events since their note early this year?

Sumoskier, although it was not entirely clear, Leon was solely referring to the coarse chrome processing at Inyoni. Until the recent Inyoni chrome transaction, the coarse chrome was being produced by Jubilee, and all of the processing costs were being paid by Jubilee, yet Jubilee received none of the coarse chrome revenue. After the chrome transaction, for no additional processing cost the revenues for the 9000 to 10000 tonnes of chrome concentrate produced per month will now come to Jubilee. There will actually be some other costs like delivery of the raw materials to the plant, and in particular an allowance for the cost of the chrome ore material Jubilee has purchased through the transaction, but even allowing for these additional costs the coarse chrome earnings should increase by around $750,000 a month even at the current low chrome prices, assuming current volumes and efficiencies are maintained. And with no CAPEX or other development costs, this amount will fall straight through to the operational profit bottom line. However, as Jubilee is now in complete control at Inyoni, there will be further chrome earnings upside, as the intention is to take the processing rate from its current average of about 42k tonnes a month up to 50K tonnes a month, increasing the coarse chrome concentrate output by an equivalent amount. And on top of that, but after further CAPEX in a fine chrome circuit, there will be further potential upside in the overall chrome earnings at Inyoni.

Even with chrome prices at very low levels, the return on the $16m investment should be excellent by just taking into account the potential chrome earnings at Inyoni over the next 3 to 4 years. And there may also be further upside if there is extractable chrome in the 1m tonnes of tailings near to the Windsor plant. Just think what would happen if chrome prices increased by just $20 to $30 a tonne of concentrate. If that happens this deal will be seen to be unbelievably good for Jubilee.

I've spoken to Shard about the fundraising and it came out of the blue with two significant II's wanting in and approaching the company directly. They offered over £10m in total but one was told to go away so they ran with just the one for the £6.5m and I am advised that this is a very well respected name and a TR1 should follow next week, so no flippers here just disillusioned PI's selling. There should also be an update early in the new year when the figures to the end of December should be available, and of course there will be project specific upates and and when. Strong hold for me after yesterday and this morning's top ups, but I'll add some more if the share price were to drop below 4p