jbm --future growth...am i wrong mookie, page-9

re: jbm --future growth../blackoil Huntleys has been calling JBM a sell since at least $1.45.

26/07/2005 Prospero Comes of Age
10/05/2005 Lower Grades Hit Cosmos Production
09/02/2005 Interim Result Broadly in Line
04/02/2005 A Steady Quarter, Exploration Encourages
22/11/2004 New Decline to Access Alec Mairs Mineralisation
19/08/2004 Strong Financial Result for Jubilee
20/07/2004 Operationally Strong Quarter but Price Too Rich Again
11/05/2004 On Track to Achieve Full Year Production Target
20/02/2004 Record Half Year Result on Nickel Price Rise
22/01/2004 Sustained Nickel Price Strength Continues to Benefit
12/09/2003 Nickel Price Drives a Wave of Enthusiasm - Full Report
11/09/2003 Nickel Price Drives a Wave of Enthusiasm
18/07/2003 June 2003 Quarter
27/05/2003 March 2003 Quarter
11/09/2002 2002 FY result
11/04/2002 First half result

Dividends since then are over $1.

Cash in the Bank over $1 per share.

Huntleys are still calling JBM a sell!!!!!!

However, The wording from them is much more accomodating now :)

It's a Bullish sign imho.

Huntleys Recommendation: Jubilee Mines NL ( JBM )
Recommendation: Sell
JBM is a low cost nickel concentrate producer with operations centred on its Cosmos sulphide mine near Leinster in WA. The first class Cosmos Deeps ore body and buoyant nickel prices have combined to generate huge profits for the company. The recent Prospero discovery 4km from Cosmos may extend mine life by seven years from the current two years remaining at Cosmos Deeps. Encouraging drill results suggest additional nickel sulphide discoveries can be made. The difficulty is in determining just how much value to apply to this potential. JBM is a suitable nickel exposure only for investors with an appetite for exploration and development risk.

Event
Last Update - 26/07/2005
Compared to 3Q05, Cosmos' 4Q05 nickel production rose 16% to 2.66kt. The main contributing factor was a 19% increase in head grade to 6.2%Ni. Unit costs rose 20% to A$9.75/tonne of ore treated. Cash costs fell marginally to A$3.29/lb due to the higher grades. A new exploration decline from the bottom of the Cosmos Deeps mine to the Alec Mairs orebody has begun. It will allow more comprehensive exploration of new areas prospective for nickel sulphides.

The Prospero resource was upgraded by 80% to 1.06Mt @ 5.72%Ni for 60.6kt of contained nickel. Three rigs continue work on infill and step out drilling. Development of the Prospero decline is scheduled to begin in late July and we now include the orebody into our earnings and valuation. Preliminary test work suggests recoveries akin to Cosmos Deeps can be expected. The 5.7% nickel grade is considerably lower than Cosmos' ~8% grades and margins will be lower. The Prospero discovery has taken a degree of risk out of JBM, providing the company with breathing room to find additional orebodies. We assume a mineable reserve equivalent to 110% of the current reported resource.


Business Impact: The 4Q05 result was better than expected and we increase our FY05 earnings forecast by 4% from 61.5cps to 63.9cps. Our FY06 forecast is relatively unchanged at 60.5cps. JBM anticipates lower head grades in 1Q06 and a slight increase in cash costs. Cash and receiveables at the end of June stood at A$132m. Given Prospero's inclusion, our JBM valuation increases from A$3.33ps to A$4.50ps. Long term assumptions remain spot nickel of US$5.00/lb (a 30% premium to the 10-year average), A$/US$ of 0.72 and a 10% discount rate.

Forecast Impact: --

Recommendation Impact: Unchanged. (Last updated: 26/07/2005

Event Analysis

US$/lb A$/US$
0.56 0.64 0.72 0.80 0.88
1.75 1.73 1.36 1.08 0.85 0.66
3.50 4.02 3.52 3.13 2.81 2.48
5.00 5.76 5.03 4.50 4.02 3.66
6.75 7.78 6.80 6.05 5.44 4.94
8.25 9.51 8.32 7.39 6.65 6.05
9.75 11.24 9.83 8.74 7.86 7.15

LOL,

It's very big of Huntley's to increase their valuation of JBM.

When Huntley's start calling JBM a "BUY" I will be looking to take profits. hehehe.

Maybe when JBM is $12 :)

cheers.