General Discussion on Jubilee

16th Nov '09 by The Prospector

1 comment 2699 reads

Jubilee Platinum plc is a mining exploration and development company with a focus on platinum group elements (PGE) and nickel/copper.
The Company’s prime asset in South Africa is the Tjate project, in which it has a 63 % beneficial interest. The project covers some 5140 hectares and is downdip of existing Anglo Platinum’s Twickenham and Impala Platinum’s Marula operations. The project’s exploration area has been independently estimated to be a target for potentially some 65 million oz (41 million oz attributable) of PGEs (platinum group elements) and gold net of geological losses.
Jubilee is also looking to capitalise on the vast untapped mineral wealth of Madagascar, where it is exploring a number of nickel/copper/PGM projects, Londokomanana, Lavatrafo and Ambodilafa, the latter in joint venture with a major Impala Platinum Holdings (Implats) the second largest PGM producer in the world.

http://www.jubileeplatinum.com/releases/annual_report_310609.pdf

http://www.jubileeplatinum.com/releases/tjate_cpr_3rd_jse_sub_030909.pdf

http://www.jubileeplatinum.com/releases/growth_equities_260307.pdf

http://www.jubileeplatinum.com/releases/ambrian_260307.pdf

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The Prospector

16th Nov '09

It's been all go at Jubilee Platinum this year. Having successfully bid for Braemore Resources, you might have thought it had done enough for a while - but it's now announced a tie-up with Sylvania Resources, too, changing the game plan and potentially bringing forward commercial exploitation of its key Tjate prospect.

If you'd looked at Jubilee back in 2006-7 you would have seen a whole cupboardful of different prospects in South Africa and Madagascar, though it was already becoming evident that Tjate was the flagship prospect. Now, the focus is firmly on developing Tjate, while the chrome and nickel interests in Madagascar have been curtailed in order to concentrate on getting Tjate into production.

Tjate looks far too big for Jubilee to manage on its own, and I suspect the ultimate game plan is to get the resources estimate up to a decent level, get some basic small scale production going, and sell on to one of the platinum majors - Anglo American or Impala, for instance. That might work out nicely, but right now Anglo for one has other things on its plate that need to be dealt with first - and as with all corporate deals, you can't foresee either the timing or the amount any buyer will want to pay.

Meanwhile, I'm a little suspicious that the platinum price could slip back, taking Jubilee's share price with it. Half of the total platinum produced goes to make catalytic converters for the global automotive industry - which hasn't exactly had the best record over the past couple of years. Government sponsored scrappage schemes have helped sell new cars, but if we face a double dip recession my guess is we'll see another fall in new car sales - and this time governments may feel they have more important things to do with their money than prop up the car makers. That would be a threat to all platinum producers - and remember, the last time the platinum price hit the skids, Jubilee's share price crumbled.

More thoughts here: http://www.stockopedia.com/article/view/33282/jubilee-platinum

General Discussion on Jubilee

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