Member Info for SeisNav

There were several tweets from HH last night regarding the load shedding situation and what they plan to do about it…

https://twitter.com/HHichilema/status/1612209921503776769?s=20&t=BospWg0s-KiVpGg1893-Xg

A bit of clarity on our situation would be good, are we suffering the 12 hour load shedding mentioned in the tweets or do we have alternatives in place?

Just as a bit of background, here’s a chart of the contribution of each element to the PGM revenue / ounce. The data is average values for each half year from H1 2021 to H2 2022 and also the current value for H1 2023:

https://tinyurl.com/2san4s8u

It’s pretty clear that the main driver in the basket has been rhodium price, the other elements have remained pretty stable. Compared to the massive spike in rhodium price in H1 2021, we are currently down about 50%. Should we really be trying to compare current values to an outlier? I don’t think so.

Here, are my numbers in case you are struggling:
https://tinyurl.com/5n9y3k58

Perhaps you can provide yours so we can pick them apart?

Maybe now Bushy has explained how we are NOT producing cobalt, he can also explain how a copper production cost of US$4,500 and a sales price of US$8,300 equates to ‘just about breaking even’….

I thought it would be interesting to see where we might be at, once everything is up and running at the stated capacities, ie, 44,000 ounces PGM’s, 12,000 tonnes Cu, 1,200 tonnes Co per year. I’m assuming the most recently stated production costs and using current metals prices:

https://tinyurl.com/5n9y3k58

Leon stated copper production costs of US$4,500 before we were producing any cobalt. There is also the sulphide leaching to take into account so production costs could come down much further than stated. Cobalt costs should also drop with economies of scale.

Time to put up or shut up BT, talk is cheap… where’s the numbers?

I’m sure Bushy is hoping that all of the remaining 6.12p warrants are taken up and sold on, that’s why he’s piping up now with the warrant expiry due in less than 3 weeks. It’s possible that dumping of more warrant shares will depress the SP more in the short term, but it’s equally possible that those warrants expire… If the price drops I’ll be buying more for sure, as I’m sure Bushy will! His name has not been mentioned here for a long time and yet immediately it was… there he was again. Clearly he monitors this board very regularly and there’s only one reason why he would be doing that… because he’s invested or planning to be! Don’t believe the hype :-)

Happy New Year to all GENUINE posters here and to the Jubilee team, lots to be excited about in 2023 even if we have to weather some short term storms first!

You might be right Northern but if so, I wish Leon had included in this RNS that the target for H2 2022 remained unchanged from the last update. Anyway, lets see what we get in the new year!

It was noticeable in the Zambia update that they confirmed the target of 1,200 Tonnes of contained cobalt per year, but made no mention of copper production targets for this financial year. It’s clear that we are going to fall short of expectations with all of the disruptions experienced this year, the question is by how much?

Having said that these ‘teething problems’ are all fixable and should not have too much impact on operations in the longer term. On the positive side, the new sulphide / mixed ore circuit could bolster our copper production for the second half of the year and we might meet or even exceed the target for the full year. I suspect Leon has avoided mentioning copper targets until they see just how much the new process will contribute… I hope he can reveal more when the next set of numbers is released.

https://www.sharecast.com/news/broker-recommendations/berenberg-keeps-jubilee-metals-at-buy-following-encouraging-update--11745302.html

“ The additional cobalt revenue offers the Company further opportunities to secure metal backed funding in support of the implementation of the Northern Refining Strategy.”

I wonder what this means? Could it be that some entity is looking to secure a source of Cobalt and is prepared to put up the funding to help with expansion? The Bezos / Gates backed KoBold Metals has just invested US$150 million to develop a copper / cobalt project in Zambia.

Those warrants were issued in 2018 when the share price was 2.4p, the last warrants were issued at the start of 2021 at a subscription price of 13p. Suggesting that the company is still issuing tens of millions of cheap warrants is just plain wrong.

My money would be on Namibia for the “new opportunities and horizons”, Nick specifically mentioned Namibia when asked about future plans in the AGM call, it was also mentioned in the Annual Report when Nick inadvertently wrote Namibia instead of Botswana… so it must have been on his mind!

He also mentioned in the AGM call that we had been approached by people interested in activities in Botswana, it could well be Khoemacau who have an exploration target adjacent to us. If we bring out decent drill results they might be interested in expanding their footprint…

Could be totally wrong of course!

What does the success or otherwise of Jetti have to do with Jubilee? Does it make our copper somehow less valuable? How much cobalt will Jetti be producing? How much Chrome? How much PGM’s?

As I said already, the tailings resources available are massive and being added to every day. There’s plenty of room for everyone. This infographic illustrates just how much tailings is out there:

https://elements.visualcapitalist.com/visualizing-the-size-of-mine-tailings/

All of this was discussed a few days ago mleshem. This is going to be a huge industry with many players involved. Jubilee can easily become a billion dollar company based on the tailings we already have in Zambia and South Africa, with plenty of opportunity to expand further and with the DRC on our doorstep. They also recently announced a breakthrough in leaching copper from sulphides rather than smelting…. Hardly sleeping! The new process will be implemented at Sable and also will inform the design of the new Northern refinery so we could start to see the benefits relatively soon.

Jubilee gave guidance of 3,000 Tonnes Cu for the first half of FY 2023 (due to water supply issues) but 10,000 Tonnes for the full year. That means they expect to produce 7,000 Tonnes in the second half of the year… maybe this new leaching process will help make up the shortfall? The inference is if they do achieve 7,000 Tonnes in the second half of the year, they should be able to produce 14,000 Tonnes per year from next year.

https://www.mining.com/gates-bezos-backed-kobold-metals-to-build-copper-cobalt-mine-in-zambia/

Hi BB2,

Yes I put the pie chart together based on numbers from here:
https://investingnews.com/where-is-cobalt-mined/ which lists the top 10 producing countries and the overall total. I just added our targeted 1,200 Tonnes contained cobalt to the total.

Roughly 15.5 million warrant shares have been exercised since the start of November, when the SP started to dip again, I think they are still being trickled into the market. There are a potential 35 million more which might be exercised before they expire in January so the SP is likely to remain depressed until that situation is resolved. If I can free up funds between now and mid January then I will be buying more JLP.

HD, this is an extract from BillyBoy2 post regarding percentage paid for contained cobalt, it was from Jubilee in reply to his enquiry:

“ Depending on the market at the time of selling, driven by cobalt supply demand dynamics (generally over two thirds of all cobalt is purchased by China and over two thirds of all cobalt is supplied by DRC), off-take agreement, type and characteristics of the product (grade, impurities...),etc., a payable percentage of the market price is applied.......

In principle, it should be cobalt metal units content (eg 1,200t) x market price x payable percentage, that gives an indication of revenue”

This is where the (approximately) 80% of market price comes from. If you check BB2 post history you can read the full reply.

No the overlay is wrong, there was a correct version of it somewhere but I can’t remember where.