Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hi Frog
Leon went on record to say that they had installed generators and production would not be affected . In South Africa generators are used to replace electricity when load shedding kicks in.
Generators use diesel so production costs could rise but would hardly be a major expense.
Happydays
You can add Chrome to metals produced by Jubilee at new highs.
Sibanye is up 5.4% when I last looked.It all boils down to TRUST.Shareholders in Sibanye have no reason to doubt production of platinum but Jubilee shareholders are not in the same boat and appear to be doubting everything they have been told.
It all boils down to the company NOT issuing 3 monthly production figures and the perception that Jubilee is not producing platinum due to load shedding (which I believe is nonsense) but it would be nice for Jubilee to have announced that Inyoni is running at full steam.
What a difference that announcement would make!
Hi Mikie
It is the half yearly results announcement (of which we are aware that they are dismal) but I fear if they don't update us on production figures and possible deals nobody will believe any more that there is anything positive to come.
If my board when I controlled Merafe had acted as Jubilee now does I could never have succeeded with my successful turn around of the company.We constantly told our shareholders of progress as we went forward.
I have NO doubt that the fall of the share price is linked to a lack of trust of management who were talking the share up when the company was obviously experience difficulties. I know as I, as the biggest fan of the company, feel that distrust. We are awaiting promised figures on the 20th of this month and if they are not forthcoming I would suggest that shareholders tell management some home truths or else trust will be gone forever.
Warrants and the prices of PGM'S and copper(or cobalt) have nothing to do with the bad share performance. Platinum and Copper are close to peaks when you factor in currency gains from a weak rand and pound (to a slightly lesser extent.)
Unless management share production figures with shareholders(who are after all the owners of the company) there can be NO recovery.
I expect shareholders to ask hard questions at the meeting on the 20th(I will if I am able to attend) as I believe the board has been directly responsible for the collapse of the share price.
There is only one explanation for the low SP. Many shareholders do not trust Leon anymore.
Unless we get decent production figures out soon, I do not see any quick re-rating of the share price.
In the case of Jubilee SILENCE is not GOLDEN
In view of the article it would be nice if Leon,as promised, issued a RNS either confirming or denying if there is any truth to the details disclosed or are we back to the bad old days of non disclosure.
Come on Leon you promised to do better
The most surprising thing to me is why PGM prices were so low with most of the mines producing platinum,threatening not to go underground with load shedding now so rampant, reaching and staying at stage 6. Also from the interview with ex CEO of Eskom it appears that corruption is likewise rampant. Production from platinum mines can only fall.
Today's surge was well overdue.
aqc88
Your comments about South Africa are not accurate . I live here and presume you don't.
Yes there is crime in South Africa and the mining industry is being plagued by illegal miners who are going underground in an attempt to steal the metal being mined (platinum &gold).
They have no reason to steal from Jubilee as they cannot profit in any way by stealing tailings.
It is a sad fact that lack of jobs in South Africa is the main cause of crime but your post is so off the mark and like the rampers on this board I can only conclude you have an ulterior motive. I can reassure shareholders that they can ignore your wild and unsubstantiated claims. Thieves do not go to places where they cannot receive any financial reward.
EDZI I agree with all you said. Unfortunately I am not available tomorrow but would somebody get the production of January,possible February production and estimated 6 months production of all metals.Tell Leon to estimate conservatively to avoid another shocking day if production disappoints. It will at least give us an idea of possible revenues for the 6 months.
Thanks in anticipation
Hi Seis Nav
It hurts to feel so cheated by brilliant interviews which were not justified by the facts yet I remain positive as to the future of the company ,but as shareholders we need to now take a stand. Perhaps there is a shareholder in England that has the ear of Mr Slater,as we need somebody to tell the now unjustly inflated board that their communication skills are non existent. If there are problems shareholders need to know not in February but when they occur and what is being done to rectify the situation.
Am I justified in being critical
Groucho
While I think the fall has been overdone nobody believes Leon anymore .It is always a problem if you try to hide bad news.
I still believe the company will continue to grow but the wait will be longer.As I said I believe Leon needs better advice from someone on his board and the company needs to advise shareholders on actual progress far more frequently.
Hi Mickie
I seem to recall that Leon when announcing the deal with Samancor said that Jubilee had some sort of agreement that they would share in profits over a certain price.I therefore hope the Chrome profits will surprise to the upside.
Seis Nav
I get it -the company is in a closed period so we have to wait for figures but I believe production figures could be given.
Also while I agree PGM prices have fallen, which I mainly attribute to a rising dollar, your model while extremely helpful does not give the whole picture as in pound and rand terms the fall is NOT terrible when calculating profits in POUNDS or RANDS
I therefore am not too fussed about PGM prices.
My main problem is that I cannot do an accurate calculation without production figures.
The most puzzling part of the Jubilee story is that the board of directors appear to be oblivious to the right of shareholders to be kept updated as to the progress of the company.
Rampers are being given the opportunity to spook the market. Leon is a great engineer but in respect of keeping the market updated I feel he is being badly advised.
What has the new chairman brought to the party? Very little if anything!
I feel it is a subject that MUST be brought up at the next share holders meeting.
Much as I remain optimistic as to the future of the company the behavior of the share price is a major worry.
HG
What I know is the following regarding load shedding which is pretty bad in South Africa BUT prior to going into tailings Jubilee produced electricity which they sold to government and that was the only source of their income.So they know how to produce electricity and I do not believe that Inyoni production will be badly affected at all.In fact what I have heard is that the platinum producers have issued a ultimatum to government that until the state of load shedding improves they will not send workers under ground so you can expect mined platinum production in South Africa to drop which will send the PGM prices soaring which is certainly a bull point for Jubilee.As far as Zambia is concerned, in a rare surprise, Leon actually responded to my son's email about self same problems in Zambia that a meeting with the Zambian had gone very well.
So I don't feel that gloomy about load shedding.
Sasol is in a different situation as they deal with thousands of petrol stations which have been badly affected by load shedding so I have little doubt that their revenues have dropped.
I am hoping when results are eventually announced that shareholders will be pleasantly surprised how little load shedding has affected results.