Member Info for marineclark

Https://www.theguardian.com/environment/2024/oct/08/britons-urged-to-dig-out-unwanted-electricals-to-tackle-copper-shortage

Also

https://www.youtube.com/watch?v=ISQP3K79y6A&t=123s

transcript of first part:

Nothing in this podcast is intended as investment advice and the people in this podcast may hold positions in the stocks they talk about. Do not buy any investment based solely on a tip or recommendation. Please do your own research.

Welcome Leon from Jubilee Metals. Obviously, there was an announcement this morning saying that we were going to have a raise. So, give us an idea. I mean, I want to say something about raises first, not about your raise but about raises in general. People, investors understand that companies list on stock markets to raise capital to improve their businesses. They wouldn’t be on the stock market otherwise. So, the minute UK investors think raise, it’s bad, it’s bad, it’s bad. Think again, because it’s not bad. The US market does not think like that and the vast majority of other markets all around the world do not think like this. We are sort of trained to say a raise is a really bad thing. Well, it’s not if you’re employing that capital in any business that is going to be a better return than the capital that you’ve produced. You’re going to be beneficial to all of your shareholders. Anyway, that’s the end of my rant, Leon. But, tell us about Jubilee and what we’ve done and why we’ve done it and then hopefully people can understand.

Thank you, Kevin. Yeah, thank you for the opportunity. And yes, of course, capital raises are never welcomed by our shareholders in general, but I fully agree it’s what you use the capital for that needs to be unpacked. In this particular case, the background to the raise starts with the transaction we announced on Tuesday this week. To put that transaction in perspective, we have announced that we’ve acquired the biggest waste rock surface copper resource that exists in Zambia and in southern Africa. We’ve acquired that resource and that resource, which stretches nearly 8 square kilometers, contains more than 350 million tons at 1% copper. That means it’s three and a half million tons of copper in that resource. You can therefore imagine the magnitude of an operation that can be sustained by that resource. We can scale to 30, 40, 50, even 60,000 tons of copper per annum for many years into the future on that resource.

So, with that resource, we coupled a transaction with the International Resources Holdings Company, a subsidiary of the extremely large International Holdings Corporation out of Dubai. This company has got a very key strategy. It’s announced through its mining division, the IR copper being one of the central metals it’s pursuing. It wants to get, you know, it’s targeting growths of north of a million tons of copper per annum. It wants to achieve that through two initiatives: one, the acquisition of copper-producing companies like they announced with the acquisition of Mopani Copper, the jewel in Zambia, and they don’t stop there. They

Https://jubileemetalsgroup.com/corporate-videos-2024/

Check out the following videos:

Jubilee Overview September 2024 for a good overview.

Jubilee Metals Group CEO Leon Coetzer on Powering Growth and Expanding Copper Production in Zambia. Explains the power issues in Zambia. Most of Zambia powered by Hydro, and the bad droughts were therefore causing significant

power outages, affecting first phase of copper production. Have now secured private power to supplement exisiting power via hydro. I hope this private power is solar powered.

Lot more videos to watch in this section.

The FIL Investment Advisors (UK) Ltd holding was 3.82 percent of ownership, whast the threshold for notification?

I think someone here posted the percentage ownership changes of Fil funds and it seemed to show it wasnt Fidelity selling at all. Forgotten who. Its' probably on the Fidelity website somewhere. As posted earlier, funds with low asset worth e.g 8 £million are not cost effective to manage so are closed.

The high volumes traded would suggest institutional selling, but 4.6p is holding regardless. Don;t want to jinx it though.

Don't forget WH Ireland’s fair value estimate of 11p a share.

Fair value likely to double the following year.

March 2023, Investor chronicles

"There have been challenges in Zambia, too, as both water and power issues led management to reduce copper production guidance from 10,000 to 3,000 tonnes, having delivered only 1,149 tonnes in the first half. On a positive note, operations there are now running back at 80 per cent of the 12,000-tonne production capacity after interventions and infrastructure upgrades, and should ramp up to full capacity in May"

Just catching up on the news here, but now that power issues and water? are now fixed, then copper produciton should be back to full production....

"The plan is to target annual production of 24,000 tonnes of copper units at a cost below $4,000 per tonne, or less than half the current spot copper price. Although IRH will provide the $50mn capital required by the partnership, Jubilee raised £13mn (at 5.5p per share) in an oversubscribed placing in December 2023. This was mainly to fund the initial payment of $1.75mn, due under the agreement for the acquisition of the copper waste rock dump, progress resource and process design ($4.5m) and expand the sulphide recovery circuits at its Sable refinery to accommodate increased sulphide concentrate production from newly acquired projects ($5.7m)."

I was going with the figures given by ST from IC. Was just keeping it simple with focus just on copper.

Fidelity in Aug 2024 closed down a UK fund(water sector), of 8 million in assests because it was becoming too small to manage cost effectively.

FIL Investment Advisors (UK) Ltd. has 115 million shares left(worth 5 million at today's price) as of 3 sept 2024. They also have a international fund of 266 million shares but that holdings hasnt been updated in a year so that cant be the fund.

As discussed 80 million shares traded on avarage a month. A month has paased since 3 Sept. Assuming all the selling was FIl, then we could be nearing the end of the selling.

JLP curent P/E(TTM) ratio is 9.5 based on current price of 4.6p and EP/S of 0.0049GBP

At 25k tonnes of copper, generating revenues of 250 million per annum, with profit margins >50 percent , earnings at least 125 million per annum. Gives EPS of 0.04GBP. Assuming P/E ratio of 10, then price will be 40p.

However, depending on sentiment than PE/ ration could be 20. SLP has P?E ratio currently of 25. So price could even be 80p.

In time, this could become a major, at 300k tonnes of annum per year. Unlike JSE, where the capital expenditure, and decomminsion costs was bonkers, copper production seems quite stable to me. I personally have fully loaded, and at these prices, I would be selling the kitchen sink to get at the early stage,before the rest of the world cottons on.

So... we could millionaires in 5 years? well, lot better odds than the lottery... haha

...potential 300K+ tonnes of copper per annum, in 5 years.... copper prices going higher....there just isnt enough copper to meet demands...

Corection, 300k tonnes of copper, will become a major by then.

...Within 5 years 100k tonnes of copper production....

Skip to 53.50 mins on audioboom for possible copper production levels this time next year and in two years..

...Dont fully expect(Oct 25) 25k tonnes of copper this time next year, maybe you do, but I dont, but I think if you make a big step, and I can see that is probably going to happen , then the following year(Oct 26) I think will exceed 25k tonnes if all goes to plan...

Exciting times ahead..

Ahh, but did you add in tranches near key support levels?

Graham, price has not dropped below 4.6p since 2020, and bounced off it twice already, It was only in May that the price reached 9p, so to say to wont see 6p+ again is quite imaginative. PGM's price stopped falling long ago, and is priced in.

Now, as for the fund closing down, and selling, well some might see that as a buying opportunity. I remember when this went to 9p, I wished I had bought 4.6p, right at the bottom. Now, my wish has come true.

Thanks Gotreal for your post.

One copper module produces 2k per annun. We need 12 modules to get to 24k. As the tech is modular, I presume we could, cash allowing, make 5 modules or more in parallel, as cash piles grows with each module running.

Edzi, chart is all my work, no one elses. I can promise no animals were harmed.

Gotreal, what's your forecast for copper production in 2025 and then 2026?

I'm watching the price very closely at these key levels. Note that the long term downtrend has ended coinciding with the PGM price stablising, albeit at much lower price. I will only invest in companies where I see mutibagger potential, and copper is that driver for me, which is why I freehand drew the lines in the future.

You would be suprised how predicitive charts can be, in the short/medium term. Long term fundamentals will rule.

Https://acrobat.adobe.com/id/urn:aaid:sc:EU:ef044315-3110-4d23-b88a-ef7a54b26333

No one is saying that 25k annual production of copper is going to happen overnight. Assuming 7k in 2025, that's already almost a third of the target. A 100 percent profit in 12 months is definately a lot better than a sticking it in bank, thats for sure. By all means, wait a bit longer in case this go lower, but no reason not to add in tranches. as noted, this has a tendency to go up 30 percent in a week. I'm not in this for the PGM's, that's a big bonus if it ever fully recovers,

Its all about the copper for me. Copper demand is only going to push up the price, for a long while yet.

Each copper module cost 3 million, for annual produciton of 2k, for revenues of 20 million. Sounds a bargain to me. Once we are fully scaled up, the wait would have been worth it. But don't need to wait for the summit, the ride up should see good profits on the way up.

Zambia copper strategy, Aug 2024

https://jubileemetalsgroup.com/wp-content/uploads/2024/08/07082024-Zambia-Strategy-August-2024-1.pdf