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Platinum has quietly risen to almost $1 090 a tonne. Copper is up.
15 more days of extreme patience is required, thereafter I can start accumulating more shares.
Feeling very excited as 2023 begins ....
As 2023 begins, I wish you all a year of health, happiness and prosperity.
@SeisNav - Taken the words out of my mouth. 4p profit on a 6p warrant is still a decent profit for those holders. Doesn't take rocket science to work out SP will remain under pressure until all outstanfing warrants are in stronger hands.
GLA and DYOR
Guys and gals
I told you before and I will repeat what I said then about the SP and warrants.
The SP will remain weak until at least 19th January 2023, when the bulk of the warrants need to be exercised or will lapse. It all reality if the SP is at this kind of level it may take longer if the warrant holder exercises their option and holds onto the share to try and make more profit when the SP does take off.
The reason we have warrant holders is that certain individuals expected the SP to rise over time but do not either want to be shareholders or increase their shareholding in the Company. Their intention was ALWAYS to make a quick profit, otherwise they would have just bought more shares at that time. So unless there is a buyer for 40 million shares the supply of shares will far exceed the demand for the share thereby keeping the SP down.
The SP has nothing, at this stage, to do with the profitability of the Company which must be making a decent profit and generating cash.
No point in discussing SP until end January 2023 imo.
GLA & DYOR
Thanks for the update on the numbers.
I personally believe that $100 million profit is optimistic, but will be very happy to be proved wrong.
Load shedding both in South Africa and Zambia may prove to be problematic for Jubilee. South Africa having gone to stage 6 and looking bleak and the Kariba Dam used by both Zimbabwe and Zambia only at 4% capacity. Extract from article
"Zambia will start rolling blackouts from 15 December that will last for six hours at a stretch and only affect residential areas, Energy Minister Peter Kapala, told legislators on 2 December. "
Let's hope the sun shines in South Africa and the rain falls is Zambia and Zimbabwe.
GLA & DYOR
@ Happy
I don't believe that your assertion that shareholders would need to wait another 5 to 7 years for a dividend. Most companies have debt and still pay a dividend. A lot would depend more on the future of commodity prices and where they would be heading (as well as the entire global picture).
jubilee still has a massive overhang of cheap warrants which will be keeping the sp down imo (until the majority have been exercised by 19 January 2023).
You would imo be wise to reinvest your dividend from SLP into JLP. It is currently the strategy I am doing myself. I don't own SLP though I do hold Glencore, Kumba Iron Ore, Anglo American as I am extremely bullish on commodities. I am only buying more of one share being JLP at this stage.
The market will catch up to the fact that JLP will be making significant profit in the coming months (and years) .
Slaters and the other larger holdings also have to keep their shareholders happy and will be requesting a dividend from JLP - again my opinion.
GLA and DYOR
Charles - There is nothing the new chairman can do, it is possibly best at this stage to let the SP fall in their opinion. If you were the owner of the warrants and you were in the money, you would take the profit irrespective of the SP. They have already taken their risk and are now reaping the reward.
As minority shareholders, you have three options, one is to panic and sell out (not my recommendation) or 2) sell out and hope to buy in lower (strong possibility) or 3) sit on your hands and wait for the SP to do its thing. There are another 49 million options and warrants coming onto the market by 19th January 2023. Given the daily trade on the market that is a lot of shares to soak up. Management have no need to keep the SP up at this point. In fact, Mathews Phosa (The Vice-Chairman) took up his options on 31 May 2022 - R1 500 000 and sold them immediately they were admitted onto the market on 9 June 2022. He would know what the future holds and yet sold them for a quick buck (he did need the money to feed his lifestyle). The warrant holders are not in it for the longer term, the further the share price falls the less profit they make and if the share price falls below 6p the equivalent shares won't even come onto the market.
The SP has nothing to do with the profitability of the Company at this point. As LTS we need this period to pass through as quickly as possible and look to accumulate once all the warrants and options have been exercised or 20 January 2023, whichever occurs first.
Take an early 2 month holiday without looking at the SP and once the bulk of the warrants and options have filtered through, then one can discuss the correlation between the profit and the SP movement and movement in comparison to SLP.
Until then - I don't expect much upward movement in the SP because I am pretty confident that the SP dropping is being caused by the number of shares coming onto the market versus the demand for the shares. This as opposed to there being something sinister at the Company affecting profitability.
My thoughts only - DYOR
As an aside, let us don't forget that the agreement with Riverfort ended acrimoniously. So they will never be long term shareholders.
From the 2021 Annual report of JLP - Note 13 Legal proceedings
Other than as disclosed below, the Directors are not aware of any legal proceedings or other material conditions that
may impact on the Company’s ability to continue its mining or exploration activities.
Riverfort Global Opportunities PCC Ltd (“Riverfort”), a lender of Jubilee Processing (Pty) Ltd (“Jubilee Processing”),
a subsidiary of Jubilee, launched an arbitration against Jubilee Processing, claiming an amount under the loan
agreement entered into with Jubilee Processing during March 2016, in respect of a royalty stream they claim is due
to them. The amount of the claim has not yet been quantified by Riverfort in absolute terms and Jubilee is of the view
that their claim is spurious and without substance. All principal amounts owed to Riverfort under the loan agreement
including interest thereon have been settled in full. Jubilee will defend the arbitration vigorously as it believes that it
has a good, legitimate defense to Riverfort’s claim.
It is not mentioned as in the 2022 Annual report as part of the note to Legal proceedings.
GLA & DYOR
Happydays
At that time it was an opportunity to grow the Company significantly and JLP had virtually no money and a poor deal with Hernic.
Much has changed since then and there is no doubt in my mind that the short term dip in price will be forgotten over the long term.
Take the opportunity to buy some of the warrants/ shares that come on offer. Knowing what we know, the share price will rocket again, as it did from 3p to 20+p. We have all the right commodities, cash in the bank and vast tailings at our disposal.
It is OUR opportunity to make money, just as the warrant holders have by taking the risk when the Company was in its infancy a few years ago.
GLA and DYOR
My take is that the warrant holders are exercising them and taking the profit whilst keeping the core holdings. I am with Bluebelly on this one.
I was wrong (and naive) to think that LC would spill some beans at the AGM. The main driver of the SP will be the results which is frustrating no end in a bear(ish) market, where interest rates are rising and people are looking to take money off the table of riskier assets and putting it into banks, bonds etc.
I have done my own numbers and still maintain a biased, bullish stance on the share. No business ever went bankrupt making profit. JLP is now cash generative and making decent profit.
1.4B shares are held by institutions (according to the Jlp website.
In it for the long haul - bring on 2024
DYOR & GLA
Haven't posted in a while - not much reason to.
You have to remember that there were lots of shares and warrants issued around 3p. Those guys and gals are still in the money. so they may be offloading.
My personal feeling is that a lot more info will be coming out tomorrow at the AGM regarding the figures. LC will confirm Jubilee is now producing PGM's, Copper and Cobalt. I have no doubt that it will lift the share price. I bought more shares today, so I am betting on it.
GLA & DYOR
Thanks for the share - NatCoalKing
Really irritates me Sumo when you complain about the SP collapsing for no reason. The reasons why the SP is dropping are for external reasons beyond the Company's control.
It is like saying the floods in ****stan are due to the Russian invasion of Ukraine which caused global warming.The two have nothing to do with each other in reality.
If it were ONLY JLP falling maybe there is some case to be made. If you can't stand the dips don't invest, it is as simple as that.
The strong American dollar and high inflation are the main causes of share markets (by extension individual share prices) to fall. Not the issuing of shares, warrants, Co news etc. In fact, one should be grateful that the Company raised funds from equity rather than debt now.
You can make money when share prices go down too, it is not a one way street. I trade JLP now because investors sell on news (usually sell their winners, of which JLP would be one). Recession, inflation, floods, famine, aggressive interest rate rises, war etc all of which are bad news cause people to panic and sell shares. Read the articles about September being usually a bad month for stocks. All of the above have only indirect consequences for JLP, the only thing I know for sure is that the SP is likely to drop on this kind of news. JLP has virtually no debt (only slightly affected by interest rates hikes, but offset by currency fluctuations) operates in Zambia and South Africa (far away from war, floods and famine).
What I am and have been telling you is that the JLP share price is the only aspect of the Company which is being affected. Operations are undoubtedly unaffected (Sales and price to a small degree) but a much stronger JLP will emerge and thrive when the outlook changes. It will change and change quickly when the time comes.
Please don't create panic in other investors because of your own insecurities is what I am really trying to say.
GLA and DYOR
I have to agree with Kaiser on most of what he has said. The part I disagree with is that Dorfan is LC's biggest supporter - I am.
I do, as far as Jubilee the Company is concerned, agree fully with Kaiser's sentiment. Nothing is worse, significantly better imo. Am I concerned that the share price is below 14p - not at all, we are not a 8p company anymore, and anyone who believes we are should have sold a long time ago. But it comes down to how one views one's investment strategy. Obsession with share price alone is ridiculous. As I stated in my previous posts, Jubilee is a good buy, I still don't believe it is the best buy on the market, given the current external market conditions. That is it. There is no dividend yet and people invest their money to get a return. It comes down to that simple fact. With Jerome Powell stating that they (America) will tame their inflation with whatever tools they need, to the American investing world means raising interest rates by another 3/4 of a percent next month. We saw yesterday, all their markets dropped 3% plus. What exactly changed. The only change is that people are perceiving they can get another 3/4 of a % return on their money RISK free in a month's time. That is all. Yet SP's across the board tumbled dramatically. Understand the environment first. The difference between bad investments and good investments in my opinion, is the ability for that investment to recover after a bear market or bearish sentiment.
In a bull market people race into the market and buy any cr@p share. We are not in that space at the moment. So sit on your hands, go to the beach, park, or local pub if you can't afford to go on holiday. You and I are not going to move the share price by ourselves.
Yes, PGM basket prices are lower, copper is significantly lower than it's high, so what. Understand commodities. They are cyclical. Iron ore, which we don't have, will be the first to recover when China starts functioning "normally" (again my opinion). Other commodities, which we do have will follow. Exercise patience - that is all it takes. Trying to time the markets is the worst investment strategy ever. Trust me, I have loads of experience in losing money as a youngster that way.
If you read WH Ireland's report and believed that the SP SHOULD be 29p, then you have nothing to worry or complain about, that value is still there. It may not be reflected in the current share price, but it is there, over a longer period. JLP does tailings, we don't mine. Our resources are not getting depleted, our opportunities are just increasing.
My 2 cents worth.
GLA & DYOR
https://www.proactiveinvestors.co.uk/companies/news/917418/galileo-resources-is-just-a-few-months-away-from-generating-us10mln-cash-flow-per-year-917418.html
Certainly going to be some revenue and profit share spinoff from Zinc.
Still a great share to be in - Zambia is the lucrative fruit salad of metals for JLP.
Looking forward to much better results in 2023.
How enjoyable it is to be part of this growing company and waiting for the Elephant to trumpet.
We (being longer term shareholders) knew that JLP was not going to shoot the lights out with these results, so why expect the share price to get excited in the short term.
My personal view is that everything appears to be on track which is great news and the years ahead in my investment in JLP still look exceedingly promising.
GLA & DYOR
There is no question in my mind that JLP is a buying opportunity. Is it the best buying opportunity on the market?, like Happydays, I think not. There is not doubt, in my mind anyway, that the potential of JLP is significantly higher than most commodity stocks around, but from a return point of view there is still a waiting period.
Like Happydays, I too sold out some of my JLP to buy other commodity stocks (Glencore, Kumba Iron Ore and Sibanya Stillwater) whose share prices have fallen significantly more than JLP, and they all pay a dividend.
My personal investment strategy is to use that dividend money to buy back into JLP even if it means at a higher price. My feeling is still, that in an environment where interest rates are rising, investors will switch back into cash, and SPs will not move quickly upward.
My current view on JLP is based purely on outside events of the Company. I am still a significant shareholder of JLP and will remain one over the medium to long term.
GLA and DYOR
The current share price has everything to do with the market (it usually does) rather than the company itself imo. Commodity prices have dropped and are out of favour for the moment owing to perceived world conditions. Nothing we as shareholders or the directors can do. Company is doing extremely well, but in a market which is falling, people are going to buy shares that give them a return on their money which JLP is not doing. Either you in it for the long haul or not. I am because Jubilee's time will arrive, and like the share price moved from 2p to 12p , it will happen very quickly.
At the moment Jubilee is like Manchester United, a decent club, but only the results will find favour with the supporters.
GLA
Next RNS is how many options Tracey Kerr will receive on her appointment.
Let's just hope all these appointee's add the value that they supposedly bring.
GLA
Haven't posted for a while as their was minimal need.
Just wanted to say I that on the main the posts here even if they differ are of value. At the end of the day we are all still here to make money on JLP and in the current environment JLP has held up well.
Thanks to all those that give input backed by facts.
Results should be out within a month or two and I am sure some healthy debate will follow as always.
GLA and DYOR
Thanks to all for the figures.
https://www.miningweekly.com/article/peru-cabinet-seeks-solution-for-las-bambas-crisis-as-leftists-urge-nationalisation-2022-06-06
Interesting developments in Peru after 3 000 workers were retrenched.
GLA & DYOR