Without doing too much research on SBSW I would highlight two points: First, it is a miner with all of the inherent risks and costs associated with that; Jubilee is not. Second they are already one of the largest Gold and Platinum producers in the world and I would be amazed if they have the growth potential that JLP has. Maybe you would like to counter those points to encourage me to dig deeper? ;)
Jubilee has joined the Zambia Mining and Environmental Remediation and Improvement Project (“ZMERIP”), a government initiative to reduce environmental health risks to the local population in critically polluted mining areas in Zambia, including the Kabwe municipality. The Company is working on remediation activities and improving environmental activities.
"As it expands its interests in Zambia, Owen says Jubilee will also be looking to employ as much local labour as possible. That will be a welcome promise in Kabwe, which is located in Zambia’s Central Province, where 10% of the population is unemployed, according to the country’s 2014 Labour Force Survey. “In terms of job creation, part of our mandate as directed by the government in Zambia is that we need to employ local people,” says Owen. “Local employment and local participation is a big part of Jubilee’s agenda here.”
“What makes the Kabwe project interesting from our perspective is that Jubilee is really looking to build an industry out of recovering this mine waste material,” says Owen. “And when I said build an industry I mean international, multi-commodity, mine waste material recovery."
So Leon has delivered again. A further 115 mt of copper and cobalt tailings that will keep Sable busy for 13 years on top of the 155 mt already secured. A quick fag packet calc says this extra resource has a NPV of approximately $2.2 billion .....and with none of the risk that mining has. Time for a re-rate surely?
The spread has widened over the last coupe of days making it appear that the price is falling slowly. In reality it is currently trading at 6.27 / 6.5, not 6.1 ... yesterday when it was showing 6.2 bid it was trading at 6.3+/6.4 . A little bit of psychology being played out here I think before the results.