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JLL - Jindalee Lithium

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56gsa

56gsa

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There have been a couple posts on JRL and its pricing compared with NTA, particularly its holding in EME. Perhaps this has flown under the radar? But that may be because the directors of JRL are flying so low...

Certainly the NTA discount has been considerable as highlighted on page 1 of JRLs last annual report. JRL sp should be approx 40% of EMEs sp based just on JRLs holding in EME. So on close today JRL should have been $1.52 instead of $1.30. JRL also hold 2.7m URA shares + cash so sp should be even greater.

Now this gives zero value to other projects - but from what i can find there hasn't been much activity on these and while JRL directors claim they are looking for more projects they haven't been too successful!

Other projects:

Gold
Yilgangi (Newcrest earning 70%)
Kirkalocka (Equigold earning 60%)

Nickel
Mt Gibb (JRL 20% free carried)
Kilkenny (GME earning 70%)
Bow River (JRL 100%)

Iron Ore
Joyners Find (GWE earning 60%)


Any others looked at JRL?
 
I've held JRL for a month or so now, did a little research on it but then focused my time on EME. At the time it was at a good discount to it's NTA which it still is, but at even more of a discount now.

JRL's holding in other companies are:

EME - 10,000,000 x 4.75 (last traded price as I write this) = $47,500,000

EMEO - 5,000,000 x 4.49 (last raded price) = $22,450,000

URA - 2,704,000 x 0.80 (last traded price) = $2,163,200

Total value of these shareholdings alone = $72,113,200

Plus cash at end of December of $3,854,000

Plus exercise of unquoted options (see below) $1,971,250

Total value of tangible assets = $77,938,450

Total JRL shares on issue 29,869,775 (quoted on the market) plus 5,225,000 unquoted options at various exercise prices of 30c, 35c and 45c.

Total shares = 35,094,775

Share price $1.47

Market cap = $51,589,319.25

NTA per share is $2.20.

Therefore JRL is trading at a discount of about 33% to it's NTA and that doesn't take into consideration the other projects that 56gsa mentioned earlier.

Anyone have anything to add to this? Anyone actually looked at the projects at all?

The problem with JRL and EME is that they are very thinly traded, and the price swings a lot.
 
deftfear said:
I've held JRL for a month or so now, did a little research on it but then focused my time on EME. At the time it was at a good discount to it's NTA which it still is, but at even more of a discount now.

JRL's holding in other companies are:

EME - 10,000,000 x 4.75 (last traded price as I write this) = $47,500,000

EMEO - 5,000,000 x 4.49 (last raded price) = $22,450,000

URA - 2,704,000 x 0.80 (last traded price) = $2,163,200

Total value of these shareholdings alone = $72,113,200

Plus cash at end of December of $3,854,000

Plus exercise of unquoted options (see below) $1,971,250

Total value of tangible assets = $77,938,450

Total JRL shares on issue 29,869,775 (quoted on the market) plus 5,225,000 unquoted options at various exercise prices of 30c, 35c and 45c.

Total shares = 35,094,775

Share price $1.47

Market cap = $51,589,319.25

NTA per share is $2.20.

Therefore JRL is trading at a discount of about 33% to it's NTA and that doesn't take into consideration the other projects that 56gsa mentioned earlier.

Anyone have anything to add to this? Anyone actually looked at the projects at all?

The problem with JRL and EME is that they are very thinly traded, and the price swings a lot.
Click to expand...

U will find that the market always discounts the value of minority shareholdings. The holding company can always sell the shares and put the money into developing its own projects and "enhance" shareholder value. So do u want an investment conmpany or a resource company?
 
I basically bought it because of eme, looks like it could be a near term producer of Uranium. The shares are held in escrow till September I think and I wouldn't be suprised if there was an inspecie distribution of JRL's holdings in EME. They could also look at selling all the shares to PDN which would give it effective control of the birgyli project and seeing their buying spree of late I don't think that is out of the question.

Yes they could sell the shares in eme, but it can't happen anytime soon so I saw this as a cheap way of buying eme shares and getting them at a discount.
 
OMG stop the presses!! this is hot !! JRL have made an announcement on their other projects - this is the first since 28 Nov 2005 (apart from info in qrtly reports etc) - those directors are really working overtime although they did keep the same title as the one 1.5 years ago!

not that impressive re gold drilling so thats maybe why we don't hear from them much...

still, as noted above, they are running large discount to NTA atm (ever larger than Jan07) - i like deftfears suggestion that they may sell EME holding to PDN when they come out of escrow in Sept - trouble is the directors would then have to work to do something with the proceeds - oh no, thats right, they can just do in specie distribution!

i don't hold but maybe this is a sign the directors have read the latest "PR for dummies" and we could see a rise??
 
AS of today's close the NTA is now around 2.57 and still has a discount of around 33% to the Share price. Does anyone know if they are allowed to sell their shares in EME if a takeover is made if the shares are still held in escrow? Could be a problem to any potential takeover if they cant.
 
I've done up a basic excel file which can calculate the NTA of JRL (with input of EME, EMEO and URA current share price) The firgures are slightly old now, need a new quarterly cash flow report to come out to update it.

As usual it is trading at a reasonable discount to it's NTA. It should receive some GWE shares when it floats (about 250,000 going off the last substantial shareholder statement) but it wont have much of an affect on NTA.

Was a little disapointed with EME going up so much today and little action from JRL, but such is life.
 

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Agree.
JRL is the discount entry into EME.
Market is inefficient but i believe OVER TIME that JRL will be trading closer to its value.
 
JRL assets

10million EME shares @ $7.60 = $76,000,000
5million EMEO options @ $6.35 = $31,750,000
2,174,000 URA shares @ $0.79 = $1,717,460

Cash = $9million

Value of other assets = 0

Total = $118,467,746

JRL shares outstanding = 29,865,775

Value per JRL share = $3.97 (with assigning 0 to JRL other assets)

(JRL close today $2.47)

Pretty compelling discount
 
EME share price has risen a further 8% today.JRL is poised to shoot soon in my opinion. The board is looking at selling their share in EME and has suggested that this deal is being looked at closely. It has been two weeks since the announcement and a further announcement should be out soon.

We could be looking at $3.50 in the next week or two should this proceed.
 
jmclean1 said:
EME share price has risen a further 8% today.JRL is poised to shoot soon in my opinion. The board is looking at selling their share in EME and has suggested that this deal is being looked at closely. It has been two weeks since the announcement and a further announcement should be out soon.

We could be looking at $3.50 in the next week or two should this proceed.
Click to expand...
JMc, you need to provide some more analysis for you targets here. FA and/or TA. Cheers.
 
i agree on this one, i have been getting set for a number of weeks here.

EME has exploded, now trading at 8.14

again to reiterate what nizar has stated:

JRL owns

EME 10 million shares @ $8.14 = $81 400 000
EMEO 5 million options @ $7.50 = $37 500 000
URA 2.174 million shares @ $0.80 = $1 739 200

Cash $9 million

Without valuing any other JRL assets

Total = $129 639 200


JRL shares outstanding = 29,865,775

Value per JRL share = $4.34

This is not placing any value whatsover on any of JRL other projects. this value keeps increasing every day due to EME been significantly re-rated.
 
JRL looking good, very tightly held still lacking volume for sellers.

with EME and URA increasing everyday its looking better and better.

YT what is your take on this one?
cash and asset valuations put this one well over $4, currently tradin under $3 this stock has lots of room to move.

i will start to put a valuation on JRL other projects
 
also interesting to note that JRL hold almost 40% of EME shares, meaning they have a great blocking stake in EME.

so if majors start looking at EME a possible entry would be through JRL.

EME have uranium deposit in NT
 
DJ i have looking at this one for a while.

The only concern i have in the short term is BOTH EME and JRL are looking toppy and have been on great runs.
 
agree nizar would like to see some consolidation at these levels.

JRL has small market cap though of 75 million and tight register
 
j4mesa said:
I know that you are a short termer Niz...
What's your view on the long term ????
Click to expand...

Long term its a winner.
Those JRL shares are in escrow until september, and will act as a blocking stake for a takeover (Denison is on the register of EME)

And EME are already drilling TWICE as many holes this time as Denison, we all know EME's uranium is high grade, now all we need them to do is increase the resource.

And remember Blgri is in N.T, no political dramas.

All the above in my opinion, only :2twocents
 
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