Q1 rns broker note now on JLP website.
Q1 rns thanks ToT
Bring on Kabwe! Good find dk. Kabwe is going to be a big earner for many years to come and the closer we get to production the more its value should start to be reflected in the share price. However I am fairly certain this will not be the only project JLP has in Zambia, and one might do well to research the interests of the Moore family out there and how they might be able to assist in bringing something juicy to the table… Tot
Q1 rns Well I haven’t had a reply but I’ve just remembered from my last conversation that whilst they couldn’t give express consent it was up to individuals what they did with the notes, so here it is: "Q1 sets the scene for diversification & earnings build-out A busy quarter for Jubilee, not least for announcing the acquisition of the Sable Zinc Refinery in Zambia from Glencore forming a key part of the company’s plan to commence production at its Kabwe Zn-Pb-V project. Operationally, JLP delivered a robust quarter from its producing assets with a 54% increase in revenue and 57% increase in earnings. This was achieved despite some teething problems at Hernic and the full impact of the PlatCro Chrome operation not feeding through given its acquisition in mid-January. ► Q1 results hit the beat. Q1 2019 combined revenue was £6.5m, up 54% q-o-q and JLP attributable earnings were £3.2m, up 57% q-o-q. This is a clear beat on our expectations of revenue £5.7m (JLP +15%) and earnings £2.8m (JLP +13%). Results from the PGM division, (i.e. only Hernic at this stage) were robust despite some operational challenges - numbers were broadly in line with Q4 2018; revenue £3.4m (-7.8% q-o-q) and earnings £1.9m (-12% q-o-q). The chrome division buoyed by PlatCro Chrome delivered revenue £3.1m and earnings £1.3m. For a quarter that we view as “transitional”, these results are impressive. ► Hernic. Robust performance despite some challenges. Power outages interrupted production in February which compounded the delay in getting back up and running after Christmas (Dec-Jan is the main holiday/shut-down season in South Africa). The delayed January restart affected the supply of feed material at the beginning of the year. Nevertheless, the Hernic numbers were only marginally down on last quarter. JLP clearly clawed back production and importantly, operations have returned to full production. JLP reports 2,000oz for April which implies Hernic is back on track for its 6,000oz per quarter run-rate. ► PlatCro Chrome. The real success story of Q1 was the rapid implantation of PlatCro Chrome into the group. Despite not providing a full quarter (acquisition completed mid-Jan), JLP notes that the operation is contributing ahead of projections. The chrome division is represented predominately by PlatCro at this stage until DCM Fine Chrome ramps up. As such, chrome division revenue of £3.1m and earnings of £1.3m highlight the strategic and financial rational for the acquisition - PlatCro Chrome’s total acquisition price was only £8.6m. ► PlatCro PGMs. JLP reports that production from the PlatCro PGM project will commence in Q2 (May/June). JLP has been accelerating delivery of PGM-rich material from PlatCro to Northam Platinum’s Eland recovery plant. The plan remains the same, with the potential to add up to 30koz pa of PGMs (platinum and palladium dominant) which would double JLP’s total PGM production. This should transform group earnings from Q2/Q3 onwards. ► DCM Fine Chrome. The new fine chrome recovery plant was commissioned in Q1 with the first chrome concentrate being produced to target concentrate grades in January 2019 and delivered to market. Ramp-up to nameplate capacity is expected in early Q2. Whilst a relatively small operation, the plant is a critical cog in demonstrating to the industry that the recovery of fine chrome is technically and commercially possible. ► Kabwe. Whilst JLP awaits final approval from the Zambian Competition Commission for the Sable acquisition, the team has been granted access to the Sable refinery to optimise the implementation plan. There are lots of moving parts at the moment but JLP is looking at the best way to integrate the Zn-Pb-V feed from the Kabwe resource into the existing operations. In addition, discussions are underway to harness value-accretive opportunities to gain access to high-grade zinc material in the Kabwe region and increase refining capacity. Discussions are underway with various parties including Galileo Resources (AIM:GLR) and its Star Zinc project. Kabwe remains a game-changing project for JLP and we await further progress. Next quarter is shaping up to be even better and should reflect not only a full quarter from PlatCro Chrome, but also contributions from the recently commissioned DCM Fine Chrome operation and the new PlatCro PGM operation. JLP plans to move to a more detailed, consolidated operational and financial review on a six-monthly basis. We concur that this will provide more clarity going forward whilst removing the onerous process of quarterly reporting." Tot
Q1 rns guess shard said no
Q1 rns (post withdrawn by author, will be automatically deleted in 24 hours unless flagged)
Bring on Kabwe! ToT Was researching somehting else when an article came to my attention which was somewhat interesting! [link] Now who do we know with a lot of vanadium in the spoil heaps?
Lift off! It’s not exactly lifting off is it.
Q1 rns Let the dog see the rabbit
Q1 rns I think it’s more to do with Trump and his trade war Jaytee. It’s hit a lot of miners and explorers this week but it’s all brinkmanship at the end of the day and I suspect a deal will be agreed shortly. I have just received an updated note from Shard which makes very good reading. Thought I’d best ask their permission before posting though, so watch this space. Tot
Q1 rns Yes excellent summary. Makes you wonder what jlp has to do to get the sp moving, but this is AIM and we’ve seen it all before. I don’t think jlp are in favour with the MMs but it’s just my opinion
Q1 rns Good summary dk, and nice to see a couple of II scale buys during the last hour. Leon’s also put some more meat on the bones in this excellent interview:[link] Note the mention of £30m annual earnings and the very strong hint of a large copper and cobalt project coming off in Zambia with majors also mentioned in this particular context. Off to do some boat maintenance now, but level 2 is looking very strong after those two 700k buys, with orders for 850k on the bid and only 250k on the ask, so I predict a blue finish and further upward movement tomorrow. ATB, Tot
Q1 rns Hi ToT I use Investegate, who email you with any RNS’s within a minute or so of them coming out. Its’ free and to date it has been spot on. The Q1 figures were pretty much as we expected, and the April figures on Hernic PGM are a confirmation of a return to the 2,000 ounce/month level following the Q1 disruption caused by the power outages. All things being equal, this should shape up to the Q2 figures being in the £5m range with all elements either firing on all cylinders or in ramp up stage. If LC drops a further RNS regarding a further project or agreement with a major, then we will be heading for 5p pretty swiflty imho. I liked LC’s comments in relation to discussions with other feed suppliers for Kabwe, and am really happy that he seems to be clearly placing the emphasis on the fact that they will only be considered if they are beneficial to the economics of Kabwe/Jubilee. This is putting CB on notice that processing Star Zinc is not a foregone conclusion, it still has to be right for JLP. glta
Q1 rns Thanks Jaytee. I use Digital Look for alerts and it has already let me down on three RNS’s on stocks I own this week, so I’ll sign up for the alerts from Vox too. Most stocks are down today because of world trade worries ahead of the talks between USA and China, but buying seems to be kicking in here now with 3.58 just being paid. The late reported buy of 500k from 89 at 3.648 might be providing some encouragement. Let’s also not forget that LC was in London recently for talks with mining majors and those who’ve sold this morning might well get caught with their pants down if another RNS emerges from that. Firm hold for me. Tot
Lift off! [link]