Jojo,This certainly is/was my current no-brainer. That is why I...

Jojo,

This certainly is/was my current no-brainer. That is why I have 30% of my (and the banks) portfolio on this on. Not since CSM and nickel last spring have I seen such clearcut no-brainer as JBM.

Whilst this must be one of the few quality targets for the likes of BHP in Ni sulphides (low cost, long life, expandable), this is not why I bought.

Note the term "base case" in JBM's 30ktpa projection, note the exclusion of Anomaly 1 (only a 325 kt resource). Consider the A1 FID may not be far behind, and may be as sudden as the Sinclair announcement. Look at the current AM exploration. Look at the quality of Prospero. Consider the remaining potential for more of the same!

Look at the growth curve, 35% pa CAGR for how many years? Four shown to 30ktpa, but then add A1, plus ??? Look at the cost position!

I am not expecting rapid rerating (nickel still an off flavour and all lumped together), but a steady climb, over the next couple of years. I look at the big picture and say, where is the limit? 30ktpa?40?50? On the face of it while exploration is working out, and production plans ramping up, then why look for value below a potential of 50ktpa. Not hard to envisage imho. Therefore when someone pays for my shares on the basis of a longlife asset at 50 ktpa and 35% NPAT margin, the I may sell early. Until then I"ll take the growth (35% pa) plus divi (4+% net). Where else can get steady 40% growth for the next half decade? Why sell?

DYOR, I am very biased on this.
EL