Jubilee Platinum: Buy Says Midas

Share On Facebook
share on Linkedin

Jubilee Platinum (LSE:JLP), a platinum producer operating in South Africa, saw its shares soaring to a third of its’ previous close.

JLP stocks are trading at 16.35p as of press time, up by 4.125p from last Friday’s close.

An article about the potential of the company referred the share price of JLP as a “bargain” considering that the company holds a 63% interest in Tjate Mine, said to contain some 65 million ounces of platinum group elements (PGE).

Platinum is currently priced at US$1,500 per ounce.

Tjate Project

The Tjate mine is a 5,000-hectare located south of the Merensky and UG2 reefs being mined Anglo Platinum and Impala Platinum, two of the biggest players of in the industry. This is the largest undeveloped platinum projects in the world, the article said.

Technological Advantage

The investment advice mentioned exclusive rights to a smelting process acquired by Jubilee Platinum, which, according to Hart, gives JLP the edge over the current big players.

JLP holds the licence to use ConRoast, a “unique smelting” technique, exclusively until 2020. South Africa state-owned minerals technology laboratory Mintek holds the patent, which JLP plans to exploit.

The technology is able to efficiently process the ores taken from the UG2 reef and elsewhere, which contain chromium and nickel, among others. Most platinum ores now come from UG2 as resources from the Merensky reef is dwindling.

A ConRoast smelter is currently underway with plans for a second plant is being constructed by JLP to provide a processing plant for ores mined in the UG2. The smelter will be commercialized to service companies as Northam Plantinum and Sylvania Platinum in processing their finds.

Financial Estimates

Because of this technology, JLP estimates a net present value of US$1.7 billion, or US$500 million more than its US$1.2 billion assumption for its Merensky find in the 20 years total mine life.

MIDAS Verdict

The article suggest MIDAS has taken account of the prior trading history of Jubilee Platinum, saying it had been valued as high as 124p in 2007 at a time when it did not have much to offer. Now, with supply of platinum becoming scarcer along with more efficient technqiues, JBL are in a greater position.

Company Spotlight

Jubilee Platinum is a dually listed in London Stock Exchange’s Alternative Investment Market and the Johannesburg Stock Exchange in South Africa, with a primary focus on platinum and other PGE.

↑ Jubilee Platinum Tjate Project
↑ ConRoast Smelting Technology
 Company Overview

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210802 02:23:23