Member Info for Happydays43

I found an RNS mentioning the PGM stockpile. Just don't know how much.

"Jubilee's PGM feed stock has increased significantly on the back of the expansion of its chrome operations. The PGM containing material is produced as a by-product from the chrome operations following the recovery of chrome. Jubilee's Inyoni PGM operations are operating at full capacity and as previously announced, the Company has looked to form partnerships with existing PGM producers to utilise available processing capacities."

I don't see why the other company should benefit from the stockpile since the costs have already been paid by Jubilee. Essentially you would be giving away multi millions of £ and with very little effort put in.

I think this deal is going to come down to what happens with the mysterious stockpile of PGMs.

If Leon fails to put any reference in the Circular then I think there's cause for MAJOR concern.

Or it will be downplayed. He probably regrets saying anything.

Does that not worry you it's not in an RNS?

Yes we know it's there but if Leon hasn't stated anything in an RNS you have to ask the reason why.

I honestly don't think it will be in the Circular after hearing that.

The more I think of this 3 year payment arrangement the more ludicrous the deal becomes (if the pgm pile is included).

Here's an example that everyone should understand.

Imagine buying a multimillion pound beautiful house in the Bahamas. And the seller says to you, don't pay me all of it now.. rent it out for 3 to 4 years and just send me the income you receive. Then after 4 years you can keep the house.

On what planet does this deal make any sense?

This Circular better be very juicy or something is very very fishy.

Northern, is there an RNS from the past that talks about the stockpile of PGM material? Because I only remember someone saying something after the AGM. That Leon mentioned the figures in person. I would like to re-look at the RNS that talks about the PGM stockpiles. Any idea where it is?

Another option is take a loan like everyone else. Leon said they actually don't need much for Zambia (his words not mine).

So just take a 50 mil loan. They could pay it off over 5 years from profits and still keep their PGM and Chrome business and all their PGM stock piles... a win for everyone.

This is why I think the deal is so cheap... because it can be paid off fairly quickly just from profits.

Also the fact that the payments are generously made over three years I would expect some sort of profit share over the same period maybe reducing as the payments come in. Otherwise why give out such an incredible deal. Also debt settled by the buyer.

Also I think the share price would rally hard!!

It would certainly put investors at ease.

The fact that it wasn't mentioned worries me.

In terms of the proposed sale I would potentially vote for this if it excludes the PGM material we have stockpiled. We can then activate the Northam JV and process this over the next 7-8 years which will give up to 100k ozs per year which gives us continued exposure to the PGM upside in the medium term. Selling this material as part of the deal would not make sense at the proposed price.

I would say a big YES if this is the case. But not sure why it wasn't mentioned because they did mentioned Tjate...

With Chrome at $295 I'm guessing they paying now a premium for ROM. So if the price did fall it wouldn't be good for profits.

On the other hand PGMs would do well...

Also I would like to feel Leon is fighting for a fair price for the SA. I didn't like how he down played the SA business. Just a few months ago he was super positive... now it's burden almost.

With higher metals prices the cards should be in Leon's hands.

Look.. I don't know the ins and outs... they don't actually own any material so really the SA business could be worth very little if they had no material to process..

Let's hope this Circular comes out on Monday.

I don't know if it's that easy Dorfan. Slater are obviously on board because the FD would have had a big influence. And the FD is a Slater man.

More importantly what is the value of the Zambia business? And I don't mean the big pile of dirt no one wanted to touch for years. I'm talking current value.

My biggest fear is if Jubilee is worth 4p (market valuation) what will happen to the share price once the SA assets are gone. In terms of profits it won't be much. So what will happen to the share price??

RBC have us I think at 7.3p... but that includes the SA assets. Any idea how this all works? I can't afford to take any more paper losses here

I agree with your statement Seis.

Leon and the board obviously want the best possible price for their PGM assets so why not wait till after full year results?

More eyes will be on their SA assets too.

Why is it so important to sell now?

I can't get my head around it.

Profits from the SA assets should set a fire under the share price. I would be happy to sit on this for a awhile.

Sharewotter, that's because he issues shares to make purchases.

Does anyone know what percentage private investors have in total?

If the price continues to increase and Leon is quite happy to go through with the offer then I'll have serious concerns about the company as a whole.

Leon needs to prove to us why offer is so tantalizing??

I hope so Seis. I know I give alot unsavory comments here.

But it's built up over 14 years. I truly want the copper strategy to work for obvious reasons. What I don't want is another 14 years of empty promises.