announcement out, page-2

re: announcement out/macquarie Macquarie: JBM - Dividend Could Reach 22c!
15/07/05

Jubilee Mines (JBM) has increased the size and grade of its Prospero nickel resource again, increasing contained nickel by 17% to 60.6kt. Based on Macquarie's estimate, high-grade resources in the Cosmos region now total over 100kt of nickel. Macquarie have upgraded their expected earnings for JBM and now believe that JBM shareholders could be rewarded with a final dividend payment of $0.22 on 26 August 2005.

JBM's Prospero deposit continues to increase in size and grade with three diamond rigs in operation. The previous resource at Prospero (released just six weeks ago) contained 51.9kt of nickel at an average grade of 5.4%.

With several new high grade intersections, both internal to the prior resource envelope and also extending the resource down-dip, the new resource estimate contains 60.6kt of nickel at a grade of 5.72%.

The increased resource at Prospero mean that high grade resources in the Cosmos region now total around 100kt of nickel. Macquarie believe that with a resource base of this size, JBM has the potential to develop Prospero in parallel to mining Cosmos Deeps/Alec Mairs and expand its processing plant.

Given the high grade of Prospero, a plant expansion from 150kt to 300kt per annum would not be expensive. Macquarie anticipate development capital (decline and plant expansion) to be around $40m, with the ability to increase nickel output from the current level of 11-12kt to around 20kt per annum.

JBM remains Macquarie’s preferred Australian nickel stock as it offers the best exposure to high nickel prices and exploration success in our coverage universe. The rapid pace of exploration in the Cosmos region is unlikely to let up, with an exploration budget for FY06 of around $9m.

In addition, JBM is expected to reward shareholders with another large final dividend. Macquarie have increased their final dividend forecast to 22cps, representing 75% of 2H05 earnings. JBM currently has cash and receivables in excess of $120m or 98cps. The final dividend is expected to go ex on 26 August 2005.

Macquarie maintain an outperform recommendation and a price target of $7.50.

Traders looking for maximum exposure to short-term movements in the JBM share price should consider the following equity warrants for a high-risk, high-return strategy.

Investors and traders looking for short to medium-term leveraged exposure to the JBM share price should consider Macquarie Instalments for a higher risk, higher return alternative to direct share investment.

http://www.egoli.com.au/egoli/egoliWarrantsPage.asp?PageID={DB481FA2-D7D3-40C9-829E-4088CEB97963}

Personally I disagree with Macquarie's dividend forecast, instead I expect 25 cents inline with last years.

By the way JBMWMI is now trading at a DISCOUNT not a premium.

If I had money to convert the warrants I would buy heaps more!!!!!

But I don't :)

Cheers.