Companies: JLP   

Jubilee Platinum shares have been firm in recent weeks. The latest news supports the case for holding on. The company has completed a scoping study on its big platinum group metals (PGM) prospect at Tjate in South Africa’s western Bushveld. On the basis of a stand-alone underground mine producing 262,000 ounces of PGM and gold a year, the study suggests an initial investment of US$400 million (£203.64 million) would produce an internal rate of return of 22 per cent. The study covered just 15 per cent of the overall Tjate area. The economics of the mine are described as ‘robust’ and Jubilee will now put together a full bankable feasibility study of the project.

The study results in a net present value for Tjate of around £150 million. That compares with a current market capitalisation for Jubilee of around £107 million. It is worth pointing out that Jubilee’s projects in Madagascar are probably worth a further £50 million-plus. Up from a recommendation price of 41.5p in March 2005 to a current 1,116p, the shares are very definitely worth holding on to.

Jubilee Platinum	AIM	£12.84m	11.75p	1.00p
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Other company articles:
Encouragement for Jubilee			11/08/2008
Drilling pleases Jubilee			21/02/2008
Uranium play joins PLUS			08/02/2008
Prospects delight Jubilee Platinum			18/01/2008
Jubilee drilling extends strike at Londokomanana			16/11/2007