New broker note




This tallies with my basic thoughts. I replied yesterday to comments on LSE regarding concerns as to how the chrome purchase would be paid for, with some pople suggesting a placing etc. My view is that as the deal is structured to be paid in three tranches at monthly intervals, that Leon is pretty confident that it can be paid for from monthly income.

Your figures for Inyoni, plus dilokong, plus windsor, plus eland, plus sable means that we are pretty close to the required figures as a monthly income (though the fine chrome for Inyoni won’t be there yet), and there may be a need for small amopunts of the project finance facililty that we have to balance out the books as required.

Another absolute cracker of a deal by LC IMHO, and the market just hasn’t cottoned on as yet to just how good it will be for the company, particulalry when we put in the fine chrome circuit.



Thanks dk, I’m not sure about the market not cottoning on, although that might be the case with some, but the sp needed to take a little breather from its recent run as the RSI had become a little overheated. At 62.5 it’s now back in its box and back at the level where each recent leg up has started , so it is again a buy for me with the financial results this month set to blow the doors off, or so I am advised.


I can’t see the financials blowing the doors off this time around. But possibly the next load of financials


Maybe blowing the doors off was a little rampy but I think it is very reasonable to expect a significant improvement year on year, and enough to demonstrate that JLP is well on its way to becoming a cash cow. That’s good enough for me.



I think we should see a solid set of financials with confirmation of very solid growth YoY, but I think if we get a good forward statement, or post year end info on recent months performance etc., plus possibly if we get another announcement for another project, then the doors will need retrieving from the neighbours driveway!




You beat me to it mccarthycraig. That should get the share price moving north again.

"The rationale is compelling… As well as the potential to boost revenue and earnings considerably, the deal provides multiple wins for JLP, in our view. The previous situation was that Inyoni processed the incoming tailings feed supplied by Hernic, with the first step being chrome separation before the tailings resumed their flow to JLP’s PGM recovery plant.
Despite incurring the operating cost for chrome separation, JLP did not receive any chrome revenue as all chrome concentrate was returned to Hernic Ferrochrome for its own use or sale to market. This agreement rectifies that issue at no additional risk for JLP.

► … and it gives JLP control. JLP has taken control of the re-mining of tailings at Inyoni. Given that the PGM recovery step involves grinding and multi-stage floatation, the ability to control and maintain consistent feed rates is paramount for efficient operation. We think stable feed
control could not only lead JLP to improve metallurgical recovery on the PGM front, but also provide the opportunity to utilise spare capacity at Inyoni and increase throughput. Naturally, a higher feed rate will increase chrome production as well as increasing
downstream PGM production. Thus, the impact on PGMs is two-fold due to higherthroughput and potentially higher recovery.

► The likely impact is considerable. Whilst we are not in the position to fully update our model at this stage, it is possible to highlight the indicative impact of securing the chrome rights. Inyoni processed about 40ktpm of feed in H1 2019. The mass removal at the chrome separation stage is significant (up to 25% of the feed is turned into chrome concentrate). For arguments sake, assume it’s 22% and at a 40ktpm feed rate, this implies chrome concentrate production of 8.8ktpm. Current UG2 chrome prices are c.$150/t cif China, implying that JLP
would currently receive about $90/t ex-works. Putting this together translates to $9.5m in annual chrome revenue not previously received by JLP. The important point is that this new revenue source essentially flows right down through the project P&L to the bottom line. This
is because JLP already incurs the chrome operating cost as part of the PGM operations. There are some additional costs associated with the control of chrome, but these are minimal and related only to JLP now having to fetch material whereas it was previously delivered by
Hernic. We estimate something in the region of a couple of dollars per tonne for these additional costs, but vastly off-set by the new revenue stream. Also, note that this excludes any contribution from fine chrome which JLP plans to implement at Inyoni."


New in depth interview with Leon


What an excellent interview. A real in depth probe into Jubilee’s strategy which Leon handled it very well. The answers he gave were informative and very reassuring. Despite natural concerns about most assets having a relatively short life, I felt very confident about the long term future of the company after hearing Leon’s answers.


Just back after a long day out and haven’t had time to view it yet but it clearly had a significant effect on the market, which is all to the good. I was surprised that there wasn’t a better reaction to the Shard note yesterday but had the courage of my convictions so the first trade of the day was mine, plus another top up around 10 am. Looking forward to another rise on the Windsor update next week, then the annual results. Still sticking with my 6.5p forecast from the three year chart for now, but might have to review it given the reception this interview has had and the strong bullish momentum which is now driving the stock.

Time for some sustenance now and a couple of glasses of red, then the interview.

Have a good weekend all,


I have watched it but think I need to watch again.
some are suggesting Leon hints at fine copper!

Gonna have another watch later


Just watched it and was blown away by the quality of the interviewer’s well informed probing and the fact that not only did Leon have an answer for everything, he explained it all in very clear terms, with the confidence of a man who knows he’s discovered/pioneered something akin to the Holy Grail, resulting in a veritable cash cow for us shareholders. The great thing is unlike CB he’s still in his prime and with his ever growing reputation as the master of metallurgy and environmental improvement the deals will keep on coming, with strong political support for the latter.

And yes he did mention fine copper, and if you look at the new presentation on the company website you will also see that Sable Zinc has already produced its’ first sheets of copper. Well done team JLP.


Chillie was mentioned as a location JLP have shown interest. I wonder how well a fine copper project would go down over there.


Chillie is something I add to stir fries. I think you meant Chile, which along with South Africa is one of the world’s largest producers of copper. The model JLP have produced for processing tailings can of course be readily exported to any mining domain and I think the terms will get better as JLP’s reputation grows.


Jubilee doing well whilst others struggle


Windsor update should be forthcoming this week


Stonking rns imo

Windsor PGM production is huge


“Our fine chrome capability now has the potential to be rolled out into the whole of the chrome industry and we expect it to be applicable to other commodities where fine material has been judged to be irrecoverable”.

Fine copper anyone


It’s always nice when results exceed expectations and it has become blindingly obvious that JLP has become a cash cow with a very real prospect of dividends being paid in the future. Expect to see steady growth in the share price from here in line with a continued ramp up in production rather than a one day wonder. Well done to all at JLP and especially to Leon who has clearly been working his socks off these last few years.



Another placing

Typical JLP, they cannot help themselves.
I do hope they refrain from buying anymore projects or tailings UNTIL THEY CAN FUND OUT OF CASH ! ! ! !