Thanks MiningNet.newsJubilee tees up generous September...

Thanks MiningNet.news

Jubilee tees up generous September dividend

Sarah Belfield


Wednesday, July 21, 2004
JUBILEE Mines is planning to pay another "generous dividend" later this year after the nickel miner completed 2003-04 with cash and receivables of $148 million on the back of production of just over 12,000 tonnes of nickel.

Jubilee is believed to be on track for a net profit of the order of $100 million.

Jubilee's Cosmos nickel mine in Western Australia produced 3,230t of nickel in the June quarter, at cash costs understood to total around $2.50-2.60/lb.

On current reserves Cosmos has around three years life left, with the company expanding its exploration budget from $8 million to $12 million.

During the quarter, Jubilee announced a resource estimate for the nearby Anomaly 1 deposit of 36 million tonnes grading 0.74% nickel for around 270,000t of contained nickel, including a higher-grade 14Mt at 0.98% nickel for around 136,000t.

Later drilling at Anomaly 1 intersected significant mineralisation approximately 150m below the boundary of the current resource, suggesting the deposit remains open down-plunge with the potential for extensions or repetitions to the south, according to Jubilee.

However the company has deferred a decision to initiate a bankable feasibility study on developing Anomaly 1, after discovering the high grade 1200 zone at Cosmos.

Meantime a new zone of disseminated nickel sulphide was identified at Anomaly 3, approximately 5km south of Cosmos, while diamond drilling continued at the Emu Lake joint venture with partner Image Resources.

Jubilee shares were up 5c to $4.46 in midday trade, have risen 10c yesterday.