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@Kaiser
You have every right to criticise my "speculation". I appreciate your attempt to explain why you don't believe that my post is correct. BUT ....
In doing so please check your facts with regard to the Eastern and Western Limbs and where exactly these limbs are located.
As you correctly point out Kookfontein Mine is located in the North West Province, fyi, so is Inyoni. They are approximately 150km's apart so about 2 hours drive by truck, so hardly cross country by any stroke of the imagination. As Dorfan pointed out, Mathews Phosa is a director of Bauba and JLP and is unlikely to have let the opportunity go to a competitor.
Thank you for your input though.
Thanks for that Extrinsic. Very useful
The announcement / article just validates my speculation regarding Bauba as being the chrome provider on the Eastern Limb.
The 30 000 tonnes lines up with Jlp's announcement, mention of the PPGM concentrator and fine chrome tailings (currently JLP are the only ones using this technology.
Hopefully the operational update will provide more meat on this bone.
JLPp
Results are more likely to come out on 15 July 2021. They prefer Thursday's for some reason.
I hear all the moaning about the share price. Relax guys and gals.
Firstly the disclaimer : This post is not meant to be investment advice.
A year ago, you could have bought as many shares as you liked at below 5p for certain. We are up to 18.5p as at close of business today. If I had told you then your investment would be worth at least 3 times what it would be today, you would gladly have accepted that.
My belief is that next year this time, based on our current trajectory, the share price will be at least three times the price it is today. Will there be bumps along the way, that will be a guaranteed yes, but hey, this is the stock market. Everyone has their own entry and exit strategy and expected price. Institutions will only buy into companies with a solid history of profits. They will also sell out to manage their portfolios. We have some solid Institutional shareholders and rock solid supporters on this BB.
In the current environment where patience is almost non-existent, enjoy the journey because the destination will be worth waiting for, especially when the Elephants are trumpeting .
GLA - DYOR
https://www.mining.com/green-copper-demand-to-average-13-annual-growth-over-next-10-years-report/
Not sure if this was posted before. Apologies if it has although it is worth repeating :D.
No other Company to make mine dumps cleaner and greener.
GLA
Does that mean the seller is done. Nice recovery :)
One needs to bear in mind that JLP doesn't operate in a vacumn. Commodity prices have come off from their highs and tech shares have gained some attention. So some of the selling is bound to be rotation of money.
Hard to watch this but we all know that there is value to the Company, it's shares and the projects set to come on stream in the next six months. Even though almost my entire (>90%) consists of JLP, I'm happy to hold. I am and have bought more shares which I will hopefully offload to someone at higher prices (circa 21p) and keep my core holding.
GLA
Thanks gkb47
China may be the biggest market but it is certainly not the only market and the fact remains that demand will out strip supply as no new Copper mines have been build or started.
Whilst I am disappointed at the SP action of late, I have been in the market long enough to know that once the numbers are out, it will be difficult if not impossible to ignore the Jubilee prospects.
Not long now - GLA
It's the market, stupid, comes to mind at a time like this.
Jubilee is less than 2 weeks to year end (drum roll.
Whilst commodity prices have come off the boil from their highs, Mikie rightly points out margins in Jubilee are still exceptionally healthy. The price of Ferrochrome has been rolled over at 156 cents a pound, which means that the demand for chrome is still there. Add the commissioning of Roan, Inyoni and the impending venture in Cyrus to the mix and then sprinkle PGM's from the Eastern Limb the outlook indeed looks rosy, irrespective of the markets stuttering.
Babe Ruth couldn't have wished for an easier pitch to score a home run.
GLA
"Furthermore, with Jubileeās spot PGM basket price six times higher than unit operating costs of US$470 per oz, then the company is guaranteed to report eye-catching record results for the financial year to 30 June 2021, and another step change in profitability in 2021/22. "
@ Dorfan
I would agree with your assertion that the numbers in Simon's article are very conservative and based on the information set out by OUR (Jlp) broker's which were ridiculously low (I'd go as far as saying totally incorrect).
My hope is that this article will at least give a positive spin to those nervous shareholders. In the meantime I am taking this opportunity to increase my shareholding by averaging upwards again.
So if you consider yourself too optimistic, consider me a complete fool.
I have no doubt that the numbers are too low. I expect more good news coming out from CMRS regarding Cyprus.
I think the saying "Buy on rumour, sell on news" has some relevance here. I won't be selling though, as always I am happy to ride it out. Has worked for me thus far and there is no reason for me to believe that delivery, delivery, delivery will not happen.
GLA and DYOR
P.S. Thanks SiesNav for the original post :). Much appreciated.
Hi Jolly1
I would suggest you put your idea of investing in Orion Minerals on the backburner for a few years. It is not and will never be the next Jubilee. The intention their is to mine copper from the old mines that have proven uneconomical due to the technology back in the day.
It is a typical AIM company that raises capital as and when it is required and is still in the process of getting the site ready for mining. As you know plenty of stuff can happen between now and when they start mining and I can assure you that most of it will not be good. Every time capital is required to be raised it results in a dilution, much of which a LOT of people here complained rightly about Jubilee. However it is the only way for Companies with no money have to raise the required capital needed to fund operations.
I do believe that it is a mine in the right base metal and will undoubtedly make profit some time in the distant future. I do believe they will be issuing significantly more shares at a discount for the forseeable future (ie 2023). They are possibly where Jlp was 3 to 5 years ago. IMO a long road ahead.
Jubilee in my opinion has significantly more upside (and is making significant profit already and still is cheap) and would be a better investment. Jubilee also have signifigantly more Copper reserves on surface (less risk).
DYOR and GLA
I think the game changer for Tjate may come, if Government passes the expropriation of land bill without compensation currently being debated in South Africa.
IMO, that if passed, will create a similar situation that BMR had with Kabwe in Zambia (when they lost their licence). Use it or lose it scenario. Hopefully it will not come to that.
@Jonah - I would agree again. My personal preference is that this is a stepping stone to setting up a base for a much larger project which will bring in the chrome tailings from the Glencore - Merafe Joint Venture (Lion project) near Steelpoort.
Inyoni would be suited for their Rustenburg operations too, so let's hope all the upgrades and new projects are leading us to a much bigger stockpile Chrome tailings to turn into PGM's. I can't see why they wouldn't want to use Jubilee's plant and machinery given the cost and expertise that Jubilee has to make them money from day 1.
I left out that it was a loss of R30m on Revenue of R110m - apologies.
Also borrowed R20m subsequently.
@Jonah
I would concur with your thoughts regarding the RNS issued by Jubilee regarding the deal. Not only do the quantities match up but Jubilee and Bauba do have a common director in Matthews Phosa, giving Jubilee an opening into the organisation.
A third factor which I believe would indicate a high probability that the deal is likely to be them, is the fact that Bauba is bleeding badly due to the low chrome prices over the past year (R30m on Revenue of R110m) . The sale of the tailings would provide much needed cashflow to the Company and obtaining a minority portion of the PGM's would certainly help their cause.
To my mind a much bigger song and dance would have been made had an agreement been reached with one of the bigger players, and the volumes acquired would have been more noteworthy.
My 2 cent thoughts.
GLA and DYOR
https://www.businesslive.co.za/bd/companies/mining/2021-06-04-watch-how-jubilee-has-expanded-its-footprint-in-pgm-rich-bushveld-complex/
If you want another boost of confidence :) - Have a Jubs weekend all
@TbT. I agree with Jonah. We all would like more information regarding the transactions but if you have been with this Company for any length of time (which is most of us), you know that LC is always very scant on information. History has taught us though that LC only does good deals, so I have no doubt that this one, even if not as financially lucrative (which I don't believe is the case, it's a money maker for sure) at this stage will set the platform for bigger better things going forward.
LC like most in here, look longer term rather than the short term blips.
GLA
@Craig - Yes, that is how Leon stumbled upon it :).
Cheers