Jubilee Metals & Penny Shares

Hi Freetraders

So normally I don’t invest in metal companies or penny shares as despite their revenue they often don’t provide dividends and often tend to fluctuate wildly. But given the fact that Jubilee Metals was originally between 2-3 pence per share and has recently gone up by 1 pence per share I thought I’d take a punt. This strategy has paid off before but I appreciate the risk.

The off putting thing is the lack of dividends and also the extremely high share capital which is a common feature of dividend stocks. Plus I don’t feel their investment page provides enough information

Has anyone got any experience in investing in Jubilee Metals and Penny Shares?

Yes, I follow them a bit. Quite interesting developments in zambian copper projects in last 2 weeks.

Here is link to a video I did on them 4 months ago: https://youtu.be/h9cKoZzVLms

Additionally Proactive Investors have reasonable coverage on Jubilee Metals and there are some interviews with Leon Coetzer the CEO knocking around on YouTube

Excellent I’ll have a look. Thank you for your post

I seem to remember that I decided to not invest in Jubilee Metals because their profits this year were just due to “one-off” revenue sources.

What are your thoughts?

Their business is project oriented which means they set up or acquire a processing facility and acquire rights to process X amount of above ground material to extract metals from. It’s true to say that each of these projects is typically finite and profit associated in a therefore not perpetuating but this also works to their advantage sometimes, whereby they acquire new rights to adjacent material and then use the existing processing facilities with limited setup costs and get really good margins as a consequence.

The most recent announcement gives them 150m tonnes of material to extract copper from and is likely to take 10-15 years to process with planned 30%+ EBIT. Getting into larger long term projects like this could be a catalyst to more consistent profits.

One thing I was really nervous about was that historically they have not had positive earnings regularly until about 18 months ago and have tried to keep focus on project pipeline to ensure they can maintain future profits

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