Jubilee Platinum: Possible platinum price recovery on the cards
When platinum prices surge, the shares of companies remotely connected with platinum follow, no matter what their fundamentals. That includes Jubilee Platinum, which has made a bottom-line loss every year since at least 2009, but whose shares move sharply on a whiff of good news. In March, Jubilee’s shares jumped about 50% in two days, to 128c, after it announced the mining right for its Tjate platinum mine project had been executed. Within two months the shares had returned to their previous 60c-75c trading range. Tjate has a resource of about 22.3moz of platinum group metals (PGMs) and the original plans were to build a mine producing about 310,000oz/year. This would cost billions of rand, well beyond Jubilee’s current capacity. Its market capitalisation is just under R800m.