jubilee platinum marks mine-to-metals, page-3

G'day Hotfire

Just had another look at this stuff and information on the Jubilee Platinum website: http://www.jubileeplatinum.com/

So we have production to start again at the Smokey Hills plant in early December. I'm sure it's better for us to have a plant for sale that is operating, rather than just sitting there! The ~$70m plant has real strategic value. The replacement value is probably double that now - so I still think we'll come out of all of this with something (unless we get screwed by Macquarie!)

I now get the feeling that Jubilee Platinum is now the front runner to buy us out! I'm guessing a debt swap and reconstruction of PLA capital? So many synergies and Jubilee has the Tjate Project (next door to Implats’ Marula) which they could start chipping away at through the Smokey Plant?

It's a Toll Processing Agreement (which I can find any information on yet). 'Toll' suggests to me either a lump sum payment or a p/t agreement. Still, has to be cash-flow positive and gives our old workers a job too! Good for local relations.

To recap: Key terms of the MOU:
Phokathaba (PLA) will commit the full capacity of the Concentrator to Pollux for the processing of Material for a minimum period of 8 months (“Exclusivity Period”), the Exclusivity Period will commence 30 (thirty) days after the Effective Date of the MOU - being 08 November 2012, during which period the Parties will conclude the Phokathaba Agreement and due diligence.

Jubilee has 800,000 t of Dilokong chrome mine platinum-bearing tailings to run through the concentrator at PLA’s Smokey Hills Plant.

Jubilee is targeting a tailings processing rate of up to 50,000 t/month. Thats 150,000 t/quarter, which means the pant would be operating at full steam!! Which would be interesting because as you and I know, PLA's management had a lot of problems trying to get output up to this level!!! Something to keep an eye on I think!

So 800,000 t of tailings at 50,000 t/month equates to 16months of production and this deal only has an 8 month (“Exclusivity Period”). Interesting?

Another interesting fact is that Jubilee will be using its exclusive ConRoast process at the PLA’s Smokey Hills Plant. I'm guessing they would need to invest a little in new Plant on site to get this up and running? Any thoughts on this aspect of the deal and what it might mean for an eventual play for PLA (and or PLA's assets)?

What do you think?

Over to you...

Gus