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Valid questions, especially from Percy.
An open pit at SZ with no surface rights and up to 30 stakeholders was always going to be a challenge for an AIM company and those keeping an eye out on the Zambian Mining Cadastre Portal did a good job. Overall, CB has done his best to eek out some value and time to stop flogging the dead horse and move on.
JLP have been side-stepping Kabwe Zinc/Lead for a while now that SZ has gone down the local community, artisanal route hopefully Kash-itu may be a tie-in with GLR some time in the future.
ATB
A copper cathode sheet 914mm by 914mm weighs 125kg if 12mm thick. Those rectangular sheets look longer than 914mm but maybe shorter in width. About 10 sheets per pallet so maybe a ton per pallet, at least?
Maybe there's just one pallet with mirrors around it..!!
Hello DORE123,
We have the overall grade of the resource for an in-ground guesstimate but I agree we need to know a lot more info to have a go at a more accurate value.
ATB
Hello dorfan01,
"In-ground" copper value just a little under $7.6bn, using the only grade we have at the moment, and I must stress that is in-ground..!!
ATB.
@Mikie
So glad you've brought diarylee triangles into the mix, getting bored with the Elephants..!!
I've been looking at the value of the current secured copper/cobalt in situ, and the figures are scary so I've factored in 50% recovery and I'm still not believing my eyes. I know we are looking at 1-3 years but, barring getting the virus, I can wait that long and cobalt futures are looking very good.
Of course, that's ignoring anything else JLP have on the go with platinum and chrome but I keep thinking of the future potential links with Chile and Aus, and we should never overlook the Nickel/Cobalt potential. If JLP are sniffing around DRC then who knows what might happen, the good thing is tailings have a such a short commission to revenue timescale compared to mining and the future cash available for reinvestment wherever JLP decide is, imho, the way to go. Dividends can wait for the time being.
What makes me laugh is we are valuing Kabwe and Tjate at zero value with Roan and the Elephants enough to look forward to in the short/medium term.
ATB
@dorfan01
I've always questioned whether investing on the AIM market is smart as the majority fail or are run by someone looking a bit like Woody.
Very, very occasionally you find firms like JLP.
You're aware your wording could have been a bit better but I see your overall point.
@dorfan01
I agree that there is more value in Tjate than is being allowed for in the MCap, which is good for LTHs like me still buying at these prices, and that also applies for Kabwe.
In my opinion JLP's business model will not change from tailings recovery but that doesn't stop them from, effectively, contracting the mining out to their neighbourhood specialists, in exchange for a large percentage of the resource.
I also do not see why this is being written off on the basis of the cost of a "new" mine, which from memory would be $4-500m as, again in my opinion, the resource at all 3 farms will be accessed down dip from one or both of Tjate's neighbours.
Hopefully we will find out JLP's plan for Tjate soon.
ATB.
Hello Everopeful,
I was re-watching some Leon interviews last night and I even found his comments about increased margins on the chrome very interesting. Could be looking at $20 profit per ton which is significant on it's own.
Find it quite funny that that process is only carried out to get to the PGMs and they will be making good profit from chrome extraction as well.
ATB
@dorfan01. I've just looked through your corporate experience in SA mining and found this very interesting. Your approval of JLP is, in my own opinion, an excellent endorsement of Jubilee's future. Thanks for posting.
Hello Chrismar,
I remember, many years ago, reading some material which suggested that for companies with growing revenue/earnings the PE used was in the 20-40 area. I agree the current PE seems very low, assuming JLP achieve their growth targets over the next 3 years.
I'm not suggesting the upper level of that bracket applies to JLP otherwise the SP projections get very high but your suggestion seems reasonable for the future.
CB appeared convinced JLP will be mid-market which sets a potential minimum SP target of around 30p for me.
If the market like what they see a higher PE will follow.
ATB