JLP11 Jul 2025 09:23
When any company wants to buy any mining operations, aquiring tailings, buying waste dumpts [open cast as well] it should do proper feasibility study first, than estimate acurately ore reserves by drilling and sumpling core and deliniate real ore reserves by value.
In case of copper ore it is not that simple as it requires lots of different testing.
But Jubilee decided in Zambia to go "HURRA" and buy everything what was available and naivly bought tailings, waste dumps for millions of dollars and now sitting on this resource but doesn't know how to process it efficiently. After few years Intitutional investor sent new Financial Director to start selling those assets and call it "non core" assets ... lol. How about that?
Lots of missfortunes happened in those years [Water, Power, Roan delays] ... but clever people in Jubilee change the strategy, but again without proper research and feasibility studies they want to carry on as yesterday, but they run out of money????
So what now? Sell PGM business is the vote ..... This is the last nail in the coffin of Jubilee metals if that will happenes.
We need to sit down and avaluate business in Zambia. Stop buying opencast mines without proper feasibility studies with acuratly defined ore reserves.
Nr. 2 ... we should upgrade Sable as soon as posible and produce cathode copper there with suplies from Monkuyo and G .... and if necessary get appropriate copper ore [2.5% Cu] from outside suplier [cost effective]. It will save millions of dollars by establishing new opencast mines with building roads and power lines, transport cost will be enormous as well. In other words ... get proper joint ventures with suplier of high grade copper delivered to Sable. If margins are bit lower ... so be it.
Same time sort out Roan and Waste Dump .... WATCH THE COST!!!! ... new FD responsibility.
We need new Management in Zambia as well.
For Heaven sake please dont sell PGM business in South Africa as it will be huge provider of capital for expentions of operations and paying dividends biannualy.
Institutional Investors should think very carefully how they approach that. Time is now to stop this proposed buy .... it is not too late. If there is some fee to pay for mistakes made ... so be it.
Rather change Management than keep quiet.
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