Mike, I believe you are in the correct general direction with...

Mike,

I believe you are in the correct general direction with your comments that WSA will be a low-cost/high margin miner and hence the reason why we have all filled up on them, however you're making quite a few errors with the JBM comments.

Your comments on JBM grades and costs must be made in the context of where they were mining at the time (eg. lately has been a transition period from Cosmos Deeps to let's say the "outer" Alec Mairs and Tapinos deposits - make no mistake, when they were in the guts of Cosmos and Cosmos Deeps, the grades were up there with WSA stuff and costs halved

- Sinclair is at shallow depth so grades/costs must be taken in that context
- the 0.7% stuff was Anomoly 1 which was/will be left on the backburner for yrs given evrything else they have

Not being critical - I think it's great that you are taking the time to dig for info and try and attatch a resultant valuation - just that some of those valuations are let's say 'skewed' through JBM numbers not being used to form the correct picture

When WSA told us the cash cost figure a few mths ago, I looked back through JBM's figures myself - don't know if this will format properly or if indeed anyone is interested but may help someone
- don't forget to cross-reference them with the production story at the time:

Financial Statistics at June 30, 2007 (Unaudited) 1, 2

Revenue/Costs – A$’000

June

Quarter

Financial

Year

Sales Revenue (including FOREX adjustments) 72,297 ¹ 400,080 ¹

Mine Costs (21,429)¹ (83,569)¹

Amortisation and Depreciation (5,123) (22,141)

Royalty (2,356)¹ (11,378)¹

Administration – Corporate (net) 1,570 1,048

Unit Costs – A$/lb Payable Ni

June

Quarter 2

Financial

Year 2

Mining 1.52 1.24

Milling 1.00 0.62

Administration 0.90 0.59

Transport 0.17 0.14

Smelting/Refining (net of by-product credits) 3.35 2.55

Cash Operating Unit Cost 6.94 5.14

Royalty 0.99 0.59

Amortisation, Depreciation and Rehabilitation 1.61 1.24

Total 9.54 6.97

*************************************

Financial Statistics at June 30, 2006 (Unaudited) ¹

Revenue/Costs – A$’000 June Quarter Financial

Year

Sales Revenue (including FOREX adjustments) 148,978 ¹ 261,437 ¹

Mine Costs 37,439 ² 75,324

Amortisation and Depreciation 6,953 27,666

Royalty 3,958 6,991

Administration – corporate (net) 1,558 ³ 9,624 ³

Unit Costs – A$/lb Payable Ni June Quarter Financial

Year

Mining 0.73 0.90

Milling 0.34 0.38

Administration 0.28 0.29

Transport 0.09 0.08

Smelting/Refining (net of by-product credits) 1.38 1.38

Cash Operating Unit Cost 2.82 3.03

Royalty 0.32 0.26

Amortisation, Depreciation and Rehabilitation 1.01 1.17

Total 4.15 4.46

********************************

Financial Statistics at June 30, 2005

Revenue/Costs – A$’000 June Quarter Year to Date

Sales Revenue 56,911 230,603

Mine Costs 21,146 72,311

Amortisation, Depreciation and Rehabilitation 5,625 21,133

Royalty 1,540 6,429

Administration – corporate (net) 1,536 1,621

Exploration 7,221 23,201

Unit Costs – A$/lb Payable Ni June Quarter Year to Date

Mining 0.98 0.83

Milling 0.37 0.33

Administration 0.29 0.26

Transport 0.08 0.07

Smelting/Refining (net of by-product credits) 1.31 1.28

Royalty 0.26 0.25

Amortisation, Depreciation and Rehabilitation 1.02 0.92

Total 4.31 3.94

*******************************************

Financial Statistics at 30 June 2004

Revenue/Costs – A$’000 June Quarter Year to Date

Sales Revenue 67,140 235,371

Mine Costs 16,964 62,360

Amortisation/Depreciation 4,631 15,857

Royalty 1,332 4,996

Administration - corporate 256 399

Exploration 821 6,792

CAPEX – Cosmos Deeps 1,084 11,068

CAPEX – Cosmos South 613 2,181

Unit Costs – A$/lb Payable Ni June Quarter Year to Date

Mining 0.52 0.51

Milling 0.24 0.26

Administration 0.23 0.21

Transport 0.07 0.07

Smelting/Refining 1.47 1.46

Royalty 0.20 0.20

Amortisation/Depreciation 0.68 0.63

Total 3.43 3.34

*************************

QUARTERLY REPORT

FOR THE PERIOD ENDED June 30, 2003

Another milestone was reached late in the quarter, with the first ore produced from underground. The Ilias Decline reached the target elevation for the first cross-cut at the end of May, with the first round fired in the 9995 level cross-cut on 4th June. The first Cosmos Deeps underground ore was accessed on June 16th at the top of the orebody, and a total of 4,684 tonnes at 8.15% nickel was hauled to the surface for the quarter.

Mining in the open pit occurred between the 338.5m RL and the 320m RL during the quarter, approximately 155m below surface. Although the operating area has decreased as mining of the open pit nears completion, operations were well managed, with safe and steady progress being maintained. It is planned to complete the mining of the open pit by the end of July 2003, with the final floor at 307m RL, and a ‘goodbye cut’ to the 303m


Revenue/Costs – A$’000
June Quarter
Year to Date

Sales Revenue
58,013
153,612

Mine Costs
15,745
56,308

Amortisation/Depreciation
3,714
13,095

Royalty
924
3,974

Administration - corporate
759
3,289

Exploration
1,358
5,555

CAPEX – general
2,339
2,864

CAPEX - Cosmos Deeps
5,275
18,272

CAPEX – Cosmos South
153
153

Unit Costs – A$/lb Payable Ni
June

Quarter
Year to Date

Mining
0.28
0.27

Milling
0.23
0.29

Administration
0.13
0.13

Transport
0.07
0.07

Smelting/Refining
1.34
1.41

Royalty
0.16
0.16

Amortisation/Depreciation
0.55
0.52

Total
2.76
2.85



*********************************************************************************************************************************************************************************************************************

Performance statistics to 30th June 2002 are as follows:

Production Statistics June Quarter Full Year Project to Date

Ore Mined – tonnes 36,283 134,182 289,728

Nickel Grade - % 8.19% 8.59% 8.45%

Ore Treated – tonnes 33,700 130,354 279,465

Nickel Grade - % 8.26% 8.68% 8.45%

Nickel Recovery - % 96.9% 96.6% 93.4%

Concentrate Produced - dry

tonnes 13,883 56,440 116,223

Plant Availability - % 97.4% 96.7% 96.3%

Unit Costs – A$/lb Payable

Ni

June

Quarter

March

Quarter

Full Year Project to

Date

Mining 0.29 0.31 0.31 0.47

Milling 0.30 0.28 0.31 0.33

Administration 0.19 0.18 0.14 0.15

Transport 0.07 0.06 0.07 0.07

Total Mine Costs 0.85 0.83 0.83 1.02

Smelt/Refine 1.46 1.48 1.45 1.41

Total Production Costs 2.31 2.31 2.28 2.43

Royalty 0.15 0.13 0.13 0.12

Amortisation/Depreciation 0.60 0.59 0.57 0.64

Total Costs 3.06 3.03 2.90 3.19

In the pit, mining occurred between 375mRL and the 365mRL during the quarter

(approximately 100 - 110 metres below surface). Operations were uneventful.

**************************************************

Performance statistics to 30th June 2001 are as follows:

June Quarter Project to Date

Ore Mined tonnes 27,033 155,547

Nickel Grade 9.33% 7.63%

Ore Treated

tonnes 29,415 149,111

Nickel Grade 9.87% 8.24%

Nickel Recovery 96.2% 90.5%

Concentrate Produced

(dry tonnes) 14,423 59,786

Concentrate Grade 19.4% 18.6%

Plant Availability 94.3% 92%

************************************************************************

Details to the June 30th 2000 are as follows:

June Quarter Year to Date

Actual Forecast Actual Forecast

Ore mined

Tonnes

29,829 20,276 29,829 20,276

Nickel grade 5.36% 3.52% 5.36% 3.52%

Ore treated 18,734 20,276 18,734 20,276

Nickel grade 5.27% 3.52% 5.27% 3.52%

Nickel

Recovery

77.0% 65.8% 77.0% 65.8%

Concentrates

produced (dry)

4,970 3,319 4,970 3,319

Nickel grade 15.3% 14.3% 15.3% 14.3%

Plant

Availability

97% 93% 97% 93%

First ore was mined from the Cosmos pit in April and grades of the ore mined and milled

during the quarter have been approximately 25% higher than the reserve grades.

EXPLORATION

Exploration undertaken during the June Quarter has focused solely on the Cosmos Deeps

massive nickel sulphide deposit through an on-going program of diamond drilling. This

work has comprised both expanding the known limits of the deposit by drilling the along

strike and up / down dip extensions, as well as in-fill drilling in order to obtain samples

for metallurgical test work and to confirm internal grade and width continuity.

During this period, Jubilee completed 11 primary diamond drill holes and 10 sampling

wedge holes, for a total of 7,065 metres. Down hole directional and electromagnetic

(EM) surveys have also been carried out. Significant analytical results received since the

end of the March Quarter are tabulated as an attachment to this report.

Of the 20 primary holes completed, 12 have intersected massive nickel sulphides of

economic significance, and a further 3 have intersected mineralisation of either sub-grade

or of minor width. Mineralisation has been intersected between 450 – 600m below

surface. It is located directly beneath the northeast quadrant of the open pit, at a depth of

about 300m below the planned base of the pit.