eastern states roadshow about to roll, page-2

Hi El,

We are not the only ones who like JBM so does EUROZ.

a nice read

jojo

Euroz have upgraded JBM from HOLD to BUY with a price target of $19.00. The revised price target is based on a long term sustainable earnings of $1.45/sh from 30ktpa production rate using long run nickel price of $8/lb and PER of 13x (JBM historical).

Jubilee has updated its forward production guidance, reflecting a downgrade to FY’08 from 13kt Ni to 12kt Ni. However from FY’09 onwards the outlook is upgraded relative to the prior forecasts, eg FY’09 was 16.3kt now 17.0kt Ni, FY’10 was 18kt now 22kt, FY’11 and beyond is now ~30ktpa from 20ktpa previously.

Sinclair (1.2mt grading 2.77% Ni for 34kt Ni cont) is likely to be developed as a standalone operation at a base case of 6ktpa Ni in conc. (approx half the historical Cosmos prod’n rate).

JBM's big lift in production outlook is probably due to the success at AM5 which is appearing to be a very significant nickel sulphide discovery.

Euroz state that a sustained JBM share price downside should only happen in the unlikely event of sustained nickel price weakness combined with a failure of JBM's exploration to generate the 50kt Ni target on AM5 and a failure to find any further new discoveries or resource extensions at known deposits.