I've recently started buy to JML shares as I think it's the type of company which will survive the hard times and bounce back strongly when sustained high metal prices return.
Regarding the quarterly figures, Zinc production cost definitely includes both Ag and Cu credits (see footnote to Table 1).
It might be useful to estimate their net operating cash flow at various Zn prices (assume annualised Zn production of 31200t, which is 4 x 7844t, and 0.33$/lb cost):
@0.65$/lb and 0.70 USD/AUD: Net cash flow = AUD 31m @0.80$/lb and 0.80 USD/AUD: Net cash flow = AUD 40m @0.50$/lb and 0.60 USD/AUD: Net cash flow = AUD 14m
Company is debt free (I think). 8-10 year mine life at Jaguar / Teutonic Bore The stockman project appears to be high grade and valuable? Current market cap = $127m
I wouldn't be surprised if this company does well in the next year or two.
Cheers.
JML Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
