Jubilee Metals Group plc (LON:JLP) the topic of conversation when Analyst Paul Smith at WH Ireland joins DirectorsTalk.
Q1: Paul, Jubilee Metals Group has announced its first copper shipment to Sable from project Roan, just how significant is this for the company?
A1: Very significant Darren. In our opinion the copper division of the company in Zambia will rival that of the chrome-PGM division in South Africa in terms of revenues and profits over the next few years. These two divisions, in two different commodities and in two different jurisdictions are a real benefit, and differentiator against peers, for the company.
Q2: Has this affected your forecast in any way?
A2: We maintain our copper forecasts for the company going forward and anticipate them reaching a 25kt/yr copper cathode capacity in FY 2023. This includes the further expansion of the Roan project and the commissioning of Elephant 1 project supplemented by third-party providers. With the potential addition of Elephant 2, with the additional copper (and cobalt) units, they will be in a strong raw material supply position in country.
Q3: What do you hope to see next from the company?
A3: We expect more of the same: solid project execution based on what Leon, the CEO, calls “the Jubilee way”. We have been impressed with the way the company moves quickly, manages its own projects and delivers – and see this whole capability being a real strength for the company.
Q4: How do you view the outlook for Jubilee Metals Group?
A4: We have a very positive outlook for them. The company is delivering a copper project into a copper price bull run, after expansion of the PGM division into record high prices, which, all-in-all, is a great achievement for Jubilee. Profits and earnings should continue to rise with the company able to fund its own expansions without recourse to the equity markets. Now is a great time to be a JLP shareholder.