JBM jubilee mines nl

ferret's stock to watch: jubilee mines nl

  1. 2,131 Posts.

    Sydney - Thursday - January 13: (RWE)


    Portfolio investors should have at least one major mining stock
    in their portfolio.
    It would be hard to go past Jubilee Mines NL.
    Initially it's been gold but in the last two years nickel has
    become the company's main driving force.
    That's why drilling assays from the Prospero prospect, 4.5
    kilometres south of Cosmos this week contained some very important news
    for shareholders.
    It confirmed Jubilee's belief that the Prospero area is a
    significant zone of high grade mineralisation which has high potential
    for the delineation of mineral resources.
    Initial interpretation of a downhole electromagnetic geophysical
    survey in BJD082b indicates a strong off-hole conductor which is
    currently being modelled.
    This conductor will be drill tested shortly.
    The mineralisation at Prospero remains open in all directions,
    and is part of an extensive high grade mineralised system currently
    outlined by drilling over a strike length of at least 1 kilometre.
    Currently, one diamond drill rig is operating at Prospero with a
    second drill rig commencing drilling in the next few days.
    Jubilee's exploration and development activities in other areas
    also show encouraging results.
    Development of the Alec Mairs exploration decline has now been
    This now provides underground drilling positions for resource
    delineation of the Alec Mairs deposit, and ongoing exploration of
    adjacent areas.
    Two underground drill rigs are now in position and drilling has
    In November 2004 Jubilee undertook a previously announced 3,000
    metre reverse circulation percussion drilling program on the Acra
    Prospect located 100 kilometres east of Kalgoorlie.
    This initial reconnaissance program was designed to provide
    important geological information on this highly prospective area.
    Assay results from this exploration program have yet to be
    Field exploration at Acra, including mapping and rock chip
    sampling, has recommenced with multi-purpose drill rigs due to arrive on
    site by the end of the month.
    At Kathleen Valley reverse circulation percussion drilling has
    recommenced at the Five Creeks Prospect to test for southern
    extensions of WMC's Yakabindie nickel sulphide deposits which are
    situated immediately north of Jubilee Mine's northern tenement boundary.
    The drilling is also designed to test coincident EM geophysical
    conductors and anomalous rock chip/soil anomalies which may be indicative
    of high grade massive nickel sulphide mineralisation.
    At Bannockburn (70pc- Base Metals) a large program of aircore
    drilling has recommenced to evaluate the lithogeochemical nature of the
    prospective ultramafic sequences in areas of transported cover.
    Reverse circulation percussion drilling designed to test
    previously identified EM geophysical conductors and any anomalies
    identified from the aircore drilling program is planned to commence mid
    to late February.
    The details contained in the report this week have been compiled
    by Mr Peter Langworthy, who is a Member of The Australasian Institute of
    Mining and Metallurgy (AUSIMM) with 18 years of experience in the mining


    Shares of Jubilee yesterday fell 6c to $4.56. Rolling year high
    has been $5.03 and low $3.10. Dividend is 45c yielding an attractive 9.87
    per cent.

    Summarising Jubilee's 17th year as a listed public company,
    chairman Mr Kerry Harmanis said it was the most successful year to date,
    operationally, financially and on the share market.
    The record after tax profit of $95.1 million reinforced Jubilee's
    position as one of the most profitable resource companies in Australia.
    "This outstanding performance enabled the payment of a 25-cent
    final dividend, fully franked for the first time, and increased the full
    year payout to 45 cents, which continues Jubilee’s record of maximising
    the level of returns to shareholders.
    "Between mid-2000 when operations at Cosmos commenced and June 30
    this year, Jubilee has generated gross sales revenue of over $640.5
    million and net profits after tax of $190 million, representing total
    earnings per share of $1.55 per share.
    " From these substantial earnings, $109 million or 88 cents per
    share has been returned to shareholders by way of dividends representing
    a dividend payout ratio of around 57 per cent.

    One of WA's biggest listed companies

    "Our share price has continued its strong performance throughout
    the past year enabling us to maintain our market capitalisation in excess
    of $500 million which places us as one of the largest listed companies in
    Western Australia.
    "This market confidence reflects the strong nickel market, but
    also reflects the quality of our key asset, the Cosmos Nickel Mine, and
    the performance of our management team," Mr Harmanis declared.
    During the past year, the company completed a successful
    transition to underground operations, on time and below budget, which
    secures Jubilee's future as a profitable nickel producer until at least
    The current share price also reflected Jubilee's 2004 exploration
    program which was designed to underpin the long-term future of the
    The company's faith in exploration was rewarded with the
    discovery of the new high grade massive sulphide nickel deposit, Alec
    Mairs, earlier this year.
    "We are excited by the opportunity that Alec Mairs presents and
    have commenced an exploration decline to define the deposit, take a bulk
    sample and explore this immediate highly prospective area.
    "The delineation of the Anomaly 1 deposit during the year into a
    substantial resource containing around 270,000 tonnes of in situ nickel
    also provides Jubilee with an exciting new development opportunity into
    the future.
    "Also, during the last year or so, Jubilee has moved to take some
    corporate positions
    in promising junior explorers, such as Northern Star Resources and
    Pioneer Nickel.
    Such moves complement our long term growth strategies.
    The chairman told shareholder that Jubilee was well placed to
    continue to benefit from the strong market conditions,
    whilst remaining focused on continued growth and shareholder value.
    " Firstly again, I would like to confirm that our chosen primary
    growth path is organic growth through our nickel ground, with the highest
    grades in the world, top quality exploration division, and supported by
    our strong cash flows.
    "So Cosmos and surrounds will again will be the main focus of our
    activities, although we are always on the lookout for good properties
    such as Acra.
    " Meanwhile, looking to the current year and ahead we will at
    this stage maintain our nickel output at 11,500 – 12,000 tonnes of nickel
    "We will experience a marginal increase in mining costs due to
    the utilisation of cut and fill methods for part of the orebody and of
    course some minor impact from increasing fuel costs.
    "We are on track for another excellent year with our profit for
    the year dependent on the nickel price.
    "We intend to maintain our generous dividend policy with payments
    to shareholders to remain fully franked due to the tax credits we have
    accumulated, Mr Harmanis promised. .


    Jubilee Mines is one of the success stories of the Australian
    mining industry.
    Originally founded as Jubilee Gold Mines NL in 1987, the company
    initially focussed on gold exploration in the Kathleen valley area of
    Western Australia, located about 30 kilometres north of Leinster.
    In 1997, Jubilee expanded its operations to include base metals
    exploration – a move which was rewarded with the almost immediate
    discovery of the Cosmos nickel sulphide orebody.
    This discovery resulted in a market re-rating of Jubilee and
    marked the commencement of an exciting exploration and development phase
    which culminated in April 2000 with the commissioning of a new, low-cost
    nickel mining and processing operation.
    The Cosmos Nickel Project is located in the Kathleen Valley area,
    approximately 30km north of Leinster in Western Australia.
    In its first two years of production, the Cosmos nickel project
    generated sales revenue of AU$251m with operating profit of AU$77m and
    net profit after provision for tax of AU$47m.
    The Cosmos nickel project currently has reserves until 2008.
    There is also considerable exploration potential for Jubilee to expand
    on existing resources and to make discoveries around the Cosmos system or
    within one or more of its exploration projects.
    Jubilee has reactivated its gold exploration on its Kathleen
    valley project where it has obtained encouraging first phase results at
    Mossbecker and Main Rd Pit.
    In September 2002 Jubilee Mines NL paid a maiden unfranked final
    dividend of 15 cents, based upon the excellent year at the Cosmos Nickel
    Jubilee is a focused mining and exploration company committed to
    high efficiencies and generous returns to shareholders by a strong,
    committed and balanced team.
    On November 29, 2004 Jubilee Mines NL and Pioneer re-confirmed
    the the formation of the Acra Joint Venture whereby Jubilee can earn up
    to a 75 per cent interest by spending $6.9 million in the Acra Project.
    Jubilee is also now a 9.9 per cent shareholder in Pioneer.
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