Hey guys,
macquarie are confident to give JBM a $9 price target from latest press.
Like ive said b4, now that WMC is gone, JBM has taken its place as the fundies' main nickel exposure in our market.
What people are forgetting is that this company is a 'gem' - 'its special'.
Why??? Because of the nature of the nickel - massive sulfide and VERY high grade. The highest grade out there!
Thats the difference;
Logic only dictates that there is a highly probable propensity for the company to discover more nickel of a similar HIGHEST GRADE nature within time.
So far prospero for example is of similar high grade massive sulfide nature to cosmos (although not quite as high overall yet)
There have been some pretty HUGE drill hits there though and the resource is increasing, so its only a matter of time
Go read what Kerry Harmanis said in his last interview describing the geology around cosmos to be unique massive sulfide 'oceans of nickel' or something to that effect.
A director last bought quite a few at $7.25 or so from memory.
Harmanis and co arent worried; You can see that these guys know what theyre onto with the land they have to explore.
It may only be a single mine, single commodity stock, but remember: JBM is not like all the rest, its 'special'. Kinda like comparing michael jordan to the rest of the ball players in his era.
Its got the market cap, the earnings history, the dividends, enormous amt of cash in the bank which can be used for expansion; the right management, and without a doubt the highest probable propensity to yield more high grade discoveries similar to cosmos. T
Thats why fund-managers flock to this for nickel exposure and they dont mind paying the 'premium' - go ahead and add up the total amount youve received in divvys over the last few yrs and you see that the divvy alone would attract all the fundies investing long-term sticky money on top of the blue sky exploration potential.
Theyre talking about 15-20,000 tonne expansion now, so do the maths. What about anomaly 1 also????!??!!
Harmanis has said that hes excited!!! Theyre in a position where theyre making sooooooooooo much money, that when more major HIGH GRADE discoveries are made, they can easily finance all the growth!
With 18 million put forth for exploration, and the ability to increase the exploration budget from strong cash flow I think that it is only a matter of time given the 'special' nature of their tenement!
Be patient cause everything is in place, the stars are aligned for much more 'growth' in this stock as long as they keep finding more nickel.
I wouldnt bet against em!
JBM
jubilee mines nl
