Member Info for Mikiesunday

So, Edzi, Frog, if the share price gets to 50/60p, they stop growing do they?

Kalan, thats a good question and there has been suggestions, there is very little difference in the contained copper price. But we do get a premium for our cathode, which must make a difference. Plus i believe our cathode will be highly sought after, especially in western markets, with its lower carbon foot print. Im convinced it will be a premium product. Plus Chambishi will give a fairly substantial cobalt opportunity, which we know Leon has eyes on. If its going cheap, i dont think Leon will be able to turn it down, with the capacity to process 50k tonnes copper per year. That would really allow them to sign up some volume of small miners. But essentially no they dont need to, but i think Leon is too ambitious not to! Copper solution will be the key that opens this door.

Gray, whilst the market appears desperate for copper in solution, it would definitely justify the purchase of Chambishi fairly early on in the accumulation process of small miners. You can see why RBC are welcoming us aboard.

Gotreal, if they keep doing with copper as they are with chrome. Its not a question of if, its more a question of when?

Strangely Gray, when your doing well and in a hot sector, the market tends to reward you! With that level of success, i wouldnt be surprised to see a PE of 12 or even higher. Still lets get back to the here and now.

@ Gray, totally agree. Can you imagine the figures if the grade is 1.5%-3%! You can bet the 50 identified, have been selected on their potential grade and ability to expand their mining licence. The beauty now is the first 25k tonnes of copper, require no capex at all. After that, modules will be required for copper solution. But, i believe its only $3M for the smaller size module. With Roan and Sable throwing out $5M plus, cash per month, expansion will be rapid. Then you’ve got the chrome expansion on top, going great guns as well.

@Nelson, you can see why the government love Jubilee. This will create stability and growth in loads of small mines. There is potentially hundreds more!

Dru- thats a great article. Clearly Ricus, is quarter backing this strategy. Seems like he really has a passion to bring processing to bring processing solutions to a sector, much in need of help. You can see the pieces of the strategy unfold. Ricus was obviously bought in for this role, maybe Jubilee have been planning this for much longer than we think. Or maybe what was considered an opportunistic chance to get some feed in before M and the IRH deal kick in has evolved into an industry opportunity that none had even given thought to?

Yep, would agree Kalan. We dont know what they’ve been processing to date. There was a load of tails that came with Sable. They have been testing a lot of samples i guess. So the cost of producing these would be completely different to a long term commercial agreement. The small scale miners are going to want their cut. But what a clever play, to set up a partnership, where we probably pay a fixed amount per ton. With an option to take control. Leon was talking about developing the mines. Extending the mines etc. I believe they are going to seriously change the scale and size of M. These arrangements allow time to decide if its worth taking control, or just keep the partnership going. They have identified 50 and you can bet, they are the ones full of further potential. I believe this is such a clever play, its going to transform mining and seriously assist the smaller miners. The modular approach was made for this. Pure genius from Leon &co.

Ardbeggar, the small miner situation is unbelievable. Jubilee can cherry pick one at a time. Set up a partnership arrangement with a buyout guarantee. No upfront costs till Roan and Sable are full. Then they will have to start building modules like they are going out of fashion. Its utopia. Better than i could have dreamt. Looks like theres no competition either in that sector as much Leon says its much overlooked. Theres over 3,000 small scale licences. Leon has identified 50.

Looks like they are building the right to buy each mine into the contract, but before they take that up i guess they pay a rate per tonne.

Yes, i noticed that number too. Definitely below$6,000 and i think he said all in. So i am guessing they are having to build in a purchase cost from the small miners. Still a very healthy margin, especially when you think a few small miners combined equate to a large mine! The cost of a large mine would be in comprehendible. This is incredible business and one that can be built one module at a time. My guess is we will be selling a lot of copper in solution.

Crikey, that was a while ago now Gray, but you know, i think the opportunity just in the small mine space, could dwarf the Elephants, on sheer volume of licences and grades! The grades are going to be so much better. Taking a combination of the elevated copper price, relatively low infrastructure cost of a module is going to allow a fairly rapid rollout. We are seeing a fairly rapid rollout in chrome now. Leon stated the next project is being prepared as the number of modules on Thutse increase. Free cash flow from here is going to increase. But the rewards in copper are much greater. Which will result in a much greater effort from Jubilee as we can now see unfolding. They have identified 50 small mines! My new buzzword is challenge 50, because if they get close to that figure, you can forget 50p, it will be much higher!

Https://www.google.com/search?q=copper+news&ie=UTF-8&oe=UTF-8&hl=en-gb&client=safari#fpstate=ive&vld=cid:4948e1a7,vid:KY4s730EosI,st:0

Sumo, i believe the target for Roan and Sable is 20-25k tonnes. Dont forget Sable takes feed direct. There was mention of some of Roans feed going to Sable, but i believe evolution and quantity of small scale miners has taken over. Both sites will be rammed with approx 5-6 small licences! They have identified 50!

Kalan, thats great news your wife is doing well. I’m pretty sure the whole board is rooting for Mrs.K. Send her our best. It will be nice to see a positive Kalan for a few weeks.

Kalan, you will see volume increase soon as they are now signing up the feed. Initially i thought the small miners were a fill in or stop gap, but it looks like they’ve evolved into a masterstroke.

Definitely Gray, if they grow the copper on this platform, earnings will be jumping, especially if the copper price keeps jumping as production jumps.

$15M, would certainly be a land mark Seis! Seems to me, most people expect the price of copper to keep rising.

Seis, that's great thanks. The chrome increase is significant if that holds through the current quarter. The copper average is increasing by the day as well, given the current copper price. Even at 300 tonnes per month and the $10kt price holds, that's a significant increase. Earnings should be around $15m for the final quarter? Whats your thoughts?

Totally agree NTD, Its becoming very apparent Neal is doing an amazing job. I get the feeling of restraint on Leon for the first time. A discipline that was much needed. He will have a thirst for income, not just potential. But we also have to commend Ollie. There is a real structure to the company and i cant help but feel his influence is reflecting in the company status. Hob nobbing with the like of RBC and IRH. Now its up to Ricus to really earn his stripes. 2 small licence agreements in the bag! A target of 50! His influence is already showing with the success so far. But still a long way short of 50! Come on Ricus its challenge 50 time!