jubilee a nickel plated target, page-5

Jubilee Mines (JBM)
Goldman Sachs JB Were
Sell recommendation 12-month target price of $12.60

FOR a company making all the right exploration moves, is debt free with close to $300 million in the bank and under the stewardship of Kerry Harmanis, a sell recommendation comes as a bit of a shock, but Goldman's local metal and mining analysts suggest the nickel market will deteriorate further and prices will keep trending downwards. "While we see the opportunity for expansion from Cosmos, Sinclair and Anomaly1, the resulting volume growth is insufficient to generate earnings growth in the short-term based on our nickel price forecast," Goldman's team said. The $12.60 target price is based chiefly on a price/earnings ratio of 10 times. Conversely, Citigroup has maintained its buy recommendation for Jubilee with a target price of $19.20. So has Southern Cross Equities, which has a price target of $20.00. Both like the exploration upside of the Jubilee story.