Two Mining Related Stocks Under Discussion: Metal Tiger Plc and Jubilee Metals Group PLC

Two Mining Related Stocks Under Discussion: Metal Tiger Plc and Jubilee Metals Group PLC

Metal Tiger Plc

Financial Services company, Metal Tiger Plc (LON: MTR) is focused on opportunities from the undervalued natural resource. The company provides financial and business support to companies to exploit the hidden potential of natural resource interests. The company’s operations can be segregated into two business segments, namely- Metal Projects and Asset Trading.

MTR-Recent News

On 20th November 2019, the company provided an update on Cobre Pty Ltd investment. The company will be issued additional 750,000 shares at a nominal price of A$1. This issue will increase the Metal Tiger’s shareholding to approximately 15.7% (7,350,000 shares) of Cobre’s issued share capital at pre-IPO.

Earlier, the company had announced the subscription for 22,500,000 ordinary shares in Thor Mining Plc’s capital in the latter part of October 2019. These shares were for a consideration of approximately £45,000 in the placement of shares announced by Thor.

MTR-Financial Highlights for H1 FY19 for the period ended 30th June 2019

(Source: London Stock Exchange)

Due to movement in the fair value of the direct investment in equities, the company recorded a net gain on investments of GBP 6,316 thousand in the first half of the fiscal year 2019 in contrast to loss on investments of GBP 3,432 thousand in the first half of the fiscal year 2018.

The operating profit of the company was recorded at GBP 4,367 thousand in the first half of the fiscal year 2019 in contrast to an operating loss of GBP 5,110 thousand in the first half of the fiscal year 2018. The PBT (Profit before tax) of the company in the first half of the fiscal year 2019 was recorded at GBP 4,521 thousand as compared to a loss before taxation (LBT) of GBP 5,047 thousand in first half of 2018. The PAT (Profit after tax) of the company in the first half of the fiscal year 2019 was recorded at GBP 4,521 thousand as compared to a loss after taxation (LAT) of GBP 4,502 thousand in the first half of the fiscal year 2018. The basic and diluted earnings per share of the company were recorded at 0.37 pence in the first half of the fiscal year 2019 as compared to a basic and diluted loss per share of 0.41 pence in the first half of the fiscal year 2018. The cash balance of the company in the first half of the fiscal year 2019 surged to GBP 2,568 thousand from GBP 737 thousand in the first half of the fiscal year 2018.

The macro factors such as political uncertainties and Brexit, along with investor sentiments, may continue to impact the current business scenario. However, the group is confident of taking on challenges to stand among the competition.

MTR-Share price performance

On 22nd November 2019, at 16:50 AM GMT, after the market close when the share price was captured for the report, Metal Tiger Plc shares were at GBX 1.25 per share; up by 2.04 per cent as compared to the previous day closing price level. The company’s total market capitalisation was approximately £19.10 million.

MTR shares have made a high of GBX 1.79 (as on 06th December 2018) and a low of GBX 1.00 (as on 4th January 2019) in the past one year.

Jubilee Metals Group PLC

London, the United Kingdom-based Jubilee Metals Group PLC (LON: JLP) is a comprehensive metal development group and an exclusive partner to Hernic Ferrochrome Proprietary Limited. The company aims to reprocess authentic surface mine waste and materials. Its association with Hernic Ferrochrome gives it access to historic tailings and current tailings. The group started its first PGM production during March 2017.

JLP-Recent News

On 14th November 2019, the company said in a press release that it had raised £6.49 million through placing of 162,208,900 new ordinary shares in the company at a price of 4 pence per share. This has been done to support targeted growth.

Earlier in September, the group declared that the JV PGM Plant, aimed at the PGM recovery and which is supposed to improve the rich material procured from its subsidiary Windsor PGM Project (Windsor SA) has been successfully launched and is completely operational. In August 2019, which was also the 1st operational month, the Windsor PGM Project had delivered 1,346 PGM ounces of production.

JLP-Financial Highlights for FY19 period ended 30th June 2019

(Source: London Stock Exchange)

On 14th November 2019, the company released its audited results for the financial year 2019. The company’s revenue increased by 66.83 per cent to £23.59 million in FY19 as against £14.14 million in FY18. The company was able to muster positive earnings of £7.00 million in the fiscal year of 2019 as against a loss of £2.11 million in the fiscal year 2018. The company delivered a return on equity (ROE) of 10.50 per cent as compared to a negative return of 3.67 per cent in the previous year. The company’s earnings per share (EPS) was around 0.48 pence per share in FY19 as against a loss of 0.18 pence per share in FY18. The company’s cumulative project attributable earnings almost doubled to £9.87 million in FY19 as against £5.03 million in FY18.

The company recorded an operating profit of £4.87 million in FY19 along with an operating margin of 20.64 per cent as against a profit of £0.06 million in FY18. The company’s total assets increased by 47 per cent to £102.04 million, thereby strengthening the balance sheet of the company. The company’s total equity increased from £58.80 million in FY18 to £78.69 million in FY19. The company maintained a strong equity ratio of 77.11 per cent in FY19. The company generated strong cash flow from its operating activities of £4.76 million in FY19 as against a positive cash flow of £0.96 million in FY18. The company had cash balances of £18.9 million in FY19.

JLP-Share price performance

On 22nd November 2019, at 16:51 PM GMT, after the market close when the share price was captured for the report, Jubilee Metals Group PLC shares were at GBX 4.03 per share; down by0.62 per cent as compared to the previous day closing price level. The company’s total market capitalisation was approximately £81.71 million.

JLP shares have made a high of GBX 4.90 (as on 04th November 2019) and a low of GBX 2.03 (as on 22nd November 2018) in the past one year.

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