Tothemoon,
I don't hold WPL (do COE & BHP, and did MCR until recently). I am dismayed at the lack of hc interest in the premier stories like JBM. Instead you have idoits ramping maybe/sometime stories like AGM (which I held when it was appropriately cheap).
Like LIM before it, hc posters ignoring first class, no-brainer, low risk premium proven stocks when on firesale. JBM was once too expensive for me, but loaded up the truck at a $14 average recently. Still cheap imo, but truck full.
WPL is an appropriate comparision. A resource stock trading at a much higher PE. Both have high margins, high growth from solid bases, sustained growth without much resource limitation for the next decade. JBM has a much lower cost of growth - lower exploration cost, and much lower development CAPEX with much quicker payback, eg less than a year for Sinclair. One of the results is a much higher divi yield, and no corporate or project debt for JBM. JBM warrants similiar forward valuation metrics to WPL imo, if no better. Someone will still be mining the area in 50 years imo, at much higher rates than today, and it will still be low cost production. Will WPL still be selling LNG?
If the market doesn't pay up for JBM, then it's life as an independent nickel producer will be short.
Currently JBM in ramp up, the valuation question being to where. Three months ago analysts probably said 20 ktpa. Now 30 kt, 30 kt plus, plus A1? What will we be saying in 12 months? My guess is the plan will be in place foe 40 to 50 ktpa including A1. In 5 years what will the outlook be?
Stories don't come much better, a lot of rerating to come imo. Currently only hold IGO and JBM in nickel, but half my portfolio. IGO requires a faith in management and exploration, but JBM only reading the facts and filling in the gaps - as easy as 'paint by numbers'.
DYOR
EL
JBM
jubilee mines nl
