Member Info for marineclark

Jubilee Metals expansion outweighs profit hit

Higher capital expenditure means cash profits were down in the most recent financial year, but short-term PGM prospects and new copper capacity bode well for the company

by Alex Hamer

Jubilee Metals sees cash profits fall on stable revenue

Metals prices uncertain but lower debt and operating costs can help maintain margins

Platinum and palladium might have questionable supply dynamics moving into the second half of the decade, but they are still priced high enough for Jubilee Metals (JLP) to prosper. The group reprocesses tailings (waste products) to extract platinum, palladium and chrome, and spent heavily on expanding capacity in the 12 months to 30 June. This knocked earnings – cash profits fell by a quarter, to £36.7mn – but this is not a bad result after capital spending climbed over 50 per cent, to £31mn. ..........

Yesteday's market cap was 190 million, so 10 million placing is a 5 percent dilution. price has dropped 16.5 percent, so I would say Maximus3, that you got a 10 percent discount on your purchase. Not bad, not bad at all.

Placings suck, but in the realm of AIM they are common. It was a small placing, and so far has resulted in a 15 percent price drop, which after the 30 percent rally still leaves a higher price than a week ago. Glad the placing happened after the news though and not before it.

I've seen 20 percent drops on supposedly good farmout out news(CHAR), so the 15 percent drop this morning , while not nothing, is it really worth getting that stressed over? . Though I guess if you had bought as 22p and or much higher than today's price you would nursing serious losses, and that 15 percent loss todays is the straw that broke the camels back.

Price is near multi year lows, and what better way to accumulate then now after the pullback. Will be interesting to observe the price action over the next few days.

GL, and dont risk more than you can afford to lose. DYOR.

Gotreal, that is correct :)

(Sharecast News) - Analysts at Canaccord Genuity initiated coverage on silver and gold miner Hochschild Mining at 'buy' with a 145.0p target price on Thursday, stating its Mara Rosa project was a "potential catalyst for turnaround".

Hochschild Mining operates three gold mines located in Peru and Argentina and is currently in the process of constructing its fourth mine located in Brazil, which Canaccord Genuity believes could be at "a profitability inflection point" for the first time in three years.

Canaccord thinks 2023 will mark an adjusted underlying earnings low of roughly $200.0m, driven by weak production at its Inmaculada and Pallancata mines but also higher costs across all operations. However, the analysts also noted we were "almost at the point" where 2023 was in the rearview mirror.

"Production guidance for 2024 given at the recent capital markets day was much stronger than we anticipated at Mara Rosa - we think reflecting management confidence in the ramp-up ahead. We forecast 70k oz of production in 2024, below guidance of 83-93k oz. Overall, this leaves our 2024 attributable production forecast at 331k oz vs guidance at 343-360k oz," said Canaccord.

"We forecast operating costs to remain high in 2024, as well as capex. For this reason, we forecast peak net debt in mid-2024, followed by a significant deleveraging to occur from 2H24 all the way into 2026. We also use a conservative gold price forecast of sub-US$2000/oz until 3Q25, which we think provides some potential upside to our forecasts should gold prices hold."

The Canadian bank also reckons that the first gold pour and commercial production at Mara Rosa should provide two strong near-term potential catalysts for Hochschild in the first and second quarters of 2024, respectively.

Reporting by Iain Gilbert at Sharecast.com

Chartwise, this share has the character of trending for long periods. It's been in a downtrend for the last 18 months, but I see we in the beginnings of trend reversal, so the uptrend could last quite a while when it gets going. That's why I don't recommended selling for the quick buck here as price appears to have bottomed . Realistically, in 2/3 years back to 22p is acheivable as long as the conditons are right.

As for 120p, that would be a 20 bagger from here, which is not unheard of... I have seen 100 bagger shares, look at SQZ, providing you bought perfectly at the bottom.

Price is currently consolidating but still early days.... after touching resistance around 7p. Volume has dropped off which is a good consolidation sign, indicating buyers are willing to hold rather than take the quick buck . Would expect a few weeks at these levels before next move up, so by christmas is perhaps a little wishful:)

3cardbrag,

Its a tough game trading/investing, I don't blame people for taking profits when they can. And for some shares, such as JOG, where the catalyst was a farmout, it made good sense to sell on the news. I sold for a quick 30 percent profit. I was expecting 100 percent, but the price wasnt quite behaving as I expected mid day/afternoon and seem to be struggling so I decided to exit. Char was also another farmout imminent, and I was in that also expecting a 2 bagger, but that reacted poorly on the open so I sold immediately, it then plunged 20 percent within a few days.

That said, I do have some standards when it comes to selling, I don't try to deramp after I sold so that I can buy back in cheaper. I just move on to another share and in time the price will most of the time have pulled back anyway for a rentry.

Back to to subject of when to sell, Without a crystal ball, its never going to be easy to know when to sell. But one thing is sure, if one is always taking the quick buck, the multibaggers will not be possible. One can of course, compound quick profits over time to effectively multi-bag but takes a lot of skill to do this. There are technical ways(charts) to help in deciding when to sell, but charts aren't perfect, far from it.

Here, the price has largely down because of PGM prices, but if they should recover, then should be back to 22p in no time. The copper news, could be the game changer here, and the market reacted highly positively to the news. If both work out, 22p could be taken out easily, but even it not, at current price thats a still a good multibagger, to be had I reckon,

Price has held up well regardless. There was resistance at this level anyway, so did expect price to at first stall then consolidate at these levels. Its all good. Some here who sold out wishing that the price will drop for re-entry. And that's fair enough, if it does it does, and gl to them.. will have to wait and see. My feeling is that they wish they hadn't sold so early, if there is more instituation buying they will tend to do it over days/weeks so it will be interesting to see the price action in that period.

I see next resistance at around 10p-11p. This is a medium term hold for me, so can wait for a few months or longer for price target to be reached.

As discussed price still near mutiyear lows. Feel free to take profits but don't sell up and then start deramping so you can hope to buy back in cheaper. That's what's skanks do.

Price has touched initial resistance and there will be some profit taking here, but price should consolidate around here for a short period before the next move higher towards 10p and beyond. GLA> and DYOR.

Bushy you've sold, have a bit of class and stop the deramping so you can buy back in cheaper and go spend your profits on a some bushmeat or whatever takes your fancy.

Lol. Looks like Bushy sold out too early and wants back in, trying to lower the price by deramping. Best thing to do is to just buy back in, we all knows its going to keep on going up, so buying higher or a little higher than the price you sold would still be a work.

...its like selling the golden goose.

Its as I thought, if the big guns are adding, I would not be selling even one share here.

There's nothing wrong in taking quick profit for shares that are volatile,risky, and near multi year highs, but selling at multi-years lows such as JLP, is at, is the quickest way to miss out on much larger profits to come.

IMagine selling for 20/25 percent and missing out on 100/200 percent?

Its possible insitutions are topping up, may get an RNS in the next few days.

Price closed near highs yesterday, a bullish sign that momentum would continue tommorow, as it is doing. I have initial resistance here at 7p, which is being broken but would need confirmation. Next resistance sits around 10p.

As the say far, far away, the force is strong in this one....

Fair point... maybe just retail investors then..

Sure they did they were selling right at the top when it was 21p.

Also massive volume today... if the instituations are buying back in could see some serious price action upwards in the coming days.

Some intra day selling earlier, but price is looking to close new highs, a strong sign of things to come. Nothing wrong selling at 20 percent, except when it goes up 100 percent or more a few weeks, months down the line.