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.

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