Fiscal responsibility... and value.28 May 2025 10:37
Whilst the messages in that RNS could have been put forward far more clearly, the one thing that stands out is a new determination to be fiscally prudent by liquidating non-core assets for re-investment and partnering to avoid or reduce capex. There are also a few nuggets in the news: at Munkoyo, "Nine smaller pits have also exposed a shallow copper reef. ..." so an upgrade to the resource potential and "The Company is in advanced discussions with a potential mining partner to form a collaborative agreement to combine their exploration and mining skills with Jubilee's processing expertise." recognising that actually mining is not core to what Jubilee does and others can do it better as well as shoulder the capex costs of a mining operation. "The Project G mining operations are adjacent to an existing mining operation, as well as a new developing mine, which offers the potential to collaborate on the implementation of a central processing unit." Many hands make light work... "We continue to pursue aggressively further near surface mining opportunities on the back of the success achieved at the Munkoyo operations and the potential offered by Project G, with execution of two further option agreements..." So they continue to build the high quality resource base to ensure longevity of production. The projected life of a copper mine typically contributes the majority of the project’s value. The exact proportion depends on aspects like geology, grade, costs, discount rate, and risk assumptions, but basically LOM is a primary lever in copper mine valuation. We are mining copper grades of 2.5%+....
Global Benchmarks (2024–2025):
Average copper grades for operating mines: ~0.5% Cu
New development projects: often
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