27/01/2004 - 21:00

Jubilee performance proves anything but an anomaly

27/01/2004 - 21:00

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SHAREHOLDERS in Jubilee Mines look set to receive another generous dividend payment after the WA nickel miner last week foreshadowed a “spectacular” half-year financial position.

Jubilee’s share price jumped by about 17 cents to $4.43 after the company released its second quarter activities report last week.

In the report, Jubilee Mines executive director Kerry Harmanis said the results would be achieved because of recent high world nickel price and consistent operational performance.

Stock in the company has risen almost 50 per cent since July last year on the back of 14-year highs in the nickel price. 

The result, in line with Jubilee’s company policy, will pave the way for a high interim dividend expected in early March.

Last financial year Jubilee recorded an all-time high half-yearly profit of $16.9 million, paying shareholders an eight-cent interim dividend.

The 2003 half-yearly result represented a 241.5 per cent increase on the $4.949 million net profit for the previous corresponding period.

Mr Harmanis told WA Business News he did not have the final results for the current interim period, however he said the company was currently sitting in its best-ever financial position.

“This is the most we have had together,” Mr Harmanis said.

The key now for Jubilee is to find more resource, he said.

Production ceased mid-way through last year at Jubilee’s rich Cosmos open pit but continued with the underground mining of the Cosmos Deeps nickel resource, located beneath the old open pit.

Cosmos Deeps contains about 37,000 tonnes of nickel metal and currently has about four years left in production.

Mr Harmanis is confident of a significant discovery soon, now that the exploration team is in place and ready to fully realise the enormous potential in the company’s tenements.

Jubilee’s new exploration manger, Peter Langworthy, described the company’s projects as some of the most prospective holdings for komatite nickel sulphide deposits in the world. 

Mr Harmanis said the Anomaly #1 mineral system, just south of the Cosmos mine, was shaping up as the most promising of the company’s prospects.

He said an initial $2 million would be spent on scoping the system and it would be known in June whether a full mine feasibility study would be conducted on Anomaly #1.

“I am actually very confident but you just don’t know till you have got it,” Mr Harmanis said.

“I would say one way or another in a higher nickel price regime Anomaly #1 will be a project rather than not be a project, To put that in context, we are confident it will be, but is not yet.”

Mr Harmanis said very encouraging results had been received from further drilling at Cosmos Deeps, which could extend mine life.

 

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