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It was interesting to note that TW on his ************* website has just raised the target price for Jubilee from 9p to 16p. After the interview with Leon in July on Mineprophets, TW saw the light to the potential here over the at least the next two years. I am pleased to see he still believes that there is a lot more SP growth to come after the recent surge in the SP. He needs a lesson on what is in a PGM basket though. Forecasting £70m profits in 2021 and £100m for 2022 he mentions the surging platinum, palladium and copper prices, However the key metal for the big profits now being forecasted for 2021 is rhodium, which although only makes up 8% of the PGM basket by volume, makes up around 50% by value.. This little unknown metal is in deficit at the moment and forecasted to stay that way . The current and anticipated continuing very high prices are making a major contribution to funding Jubilee's exciting and rapidly developing copper strategy in Zambia.
Thank you Visitor and others for sharing the details of your financial calculations to forecast profits for 2021. Pleasing and reassuring you are all in the same ballpark.
https://www.youtube.com/watch?v=zgb6oy0OJM0
Many thanks to tones on Tharisa board for posting the above link. The potential for prices of metals linked to the green energy revolution to soar is explained. Certainly makes one think that Tjate is definitely in play now. Becoming more convinced that the recent post resuLt Q&A webcast not being made available is linked to perhaps Leon and Colin saying too much about Tjate discussions.
Jubilee booked £3m of copper cathode production in their revenue shown in note 3 of the 2020 annual accounts on page 67. I believe this was solely from the copper tailings on site at the Sable refinery. More details of what is currently happening will be released in the January operational update. The target production figures towards the 25000 tonnes goal in 3 to 4 years are being refined all the time as the feasibility studies on the copper tailings projects are undertaken. I am expecting a more detailed announcement about the copper production targets also within the operational update in mid January as well as a 4th copper tailings project to be announced by the year end.
A steady just over a 20% increase in the share price in 3 days, and there has not been any specific company news. Yes metal prices are continuing to strengthen but what is really behind the strong buying this week. Surely one or more large investors are accumulating. Could it be institutional funds or could it be that Tjate is really now in play? Asked at the Master Investor Show today about the missing Q&A webcast after the annual results. No proper reply! Radio silence.
Even allowing for the Xmas shutdown, if the current PGM basket price is maintained to the end of December, I would not be surprised to see over £35m operational earnings announced in mid January for the half year.Amazing. And the large copper projects still to come with Roan ramping up through the first 6 months of 2021
Yes I had been pondering on what a copper unit was? I shall ask at master Investor show tomorrow. My best guess is it is a copper equivalent tonne where the cobalt part of the production has been adjusted into equivalent copper tonnes.
MikieS I was wondering exactly the same thing. Surely Tjate was the only really confidential thing that was being discussed. Unfortunately I made no notes thinking the video would be available shortly after the broadcast.Leon is I believe available on the Master Investor show sometime on Friday or Saturday and hopefully he can be asked about the missing broadcast.
The current Jubilee processing strategy of tailings dumps was agreed by the Board in 2013. The non effluent policy has been present as far as I can remember. The developing green agenda for the 2020's and the way investors and investment funds might divert into companies with the right green credentials is probably a bit of luck. Being in the right metals for the green energy revolution is not luck though. Jubilee now needs to make better PR use of their marvelous green position especially when the processing and clear up of the Kabwe and Kitwe dumps are into their stride.
The copper strategy has been brilliantly thought out and just needs good execution now. The next 12 months should financially derisk the strategy, and should see a significant positive impact on the share price. One of my big concerns about the copper strategy was the ability to fund it without significant dilution. The surge in PGM prices (from a timing perspective certainly fortunate) is making the $100m investments in known projects look quite easily fundable, so that particular issue is quickly going away. Who would have thought Jubilee would have little problem in funding $100m CAPEX just a year ago? In fact if the current PGM basket price is maintained for a few more months the funding of the 3rd copper project might even be possible out of cash alone! At the moment everything seems to be going Jubilee's way, and they have carved out a fabulous strategic position in Zambia. Its almost too good to be true. Let's hope it continues to be so.
The 250,000 tonnes is the maximum projected chrome ore capacity per month of all the known processing plants Jubilee own and manage for 3rd parties from Q2 2021. The amount of ore being processed will be a key driver of the chrome earnings going forward as the majority of the ore will be processed on tolling terms, significantly reducing the risk from volatile chrome concentrate prices. The 136,122 figure I believe was the total chrome concentrate tonnage produced in the last quarter. When the chrome operations are up to full capacity from Q2 2021 my understanding is the chrome concentrate target will be around 90K tonnes per month based on the RNS's on the chrome projects issued in August.
Couldn’t agree more TBTT
TBTT read the RNSs dated 13 and 24 August 2020. 100000 tonnes of ROM chrome ore per month does not come from one or two small chrome ore mines.Combined with the chief executives answers after recent presentations it does not take a lot of working out the supply source is almost certainly Samancor. You may be right historically about Jubilees chrome ore supplies but you are certainly not right going forward.
Couldn't agree more Jonah. The presentation of the company seems to have improved and is far more professional. Key points are clearly coming through in interviews with Leon and in the presentational material. At last the story can speak for itself without silly hype. Lets hope it continues on Wednesday. Please keep Colin away! The website is improving but when will the projects part be updated and presented properly with Gallery pictures with a little text to explain what we are looking at? On the operations side over the last year there has only been one significant disappointment. The valuable high grade PGM tailings at DCM still do not have an updated strategy to monetise them ( remember the ridiculous "in the bank" Colin statement from 2 years ago). Otherwise the management have played a blinder. The last 12 months has seen a transformed company with an exciting high growth sustainable long term future. A bit of luck with the booming PGM basket price has also been on their side. Long may it continue.
TBTT you are out of touch again re Jubilee. Over half of the chrome ore they will be processing comes from SAMANCOR run of mine. A large part of the remaining portion comes from tailings which they own, not from small chrome ore miners.