TIDMJLP
RNS Number : 0745V
Jubilee Metals Group PLC
19 July 2018
Jubilee Metals Group PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company")
Quarterly Operations Update
Q2 2018
Projects Highlights
-- Hernic operational earnings increased 41 % to GBP 1.61 million (ZAR 27.69 million)
-- Hernic project revenue up 25 % to GBP 3.31 million (ZAR 56.76 million)
-- Hernic PGM* production up 18 % to 5 800 ounces
-- Project earnings up 31 % to GBP 1.65 million (ZAR 28.32
million) which include GBP 0.082 million (ZAR 1.44 million) plant
refurbishment expenditure at DCM
-- Project revenue up 12 % to GBP 4.37 million (ZAR 75.06 million)
* 6 Element Platinum Group Metals
Leon Coetzer, Chief Executive Officer, says:
"The Hernic project continues to perform well. The increase in
PGM ounces produced had a significant impact on the earnings
soaring by more than 40 %. This jump in earnings reflects the low
variable cost base for the project per PGM ounce produced. The
lower feed supplies which hampered production in June has been
overcome and the project is poised to break through 6 000 ounces
per quarter.
Our operational footprint is rapidly expanding. The construction
of the fines chrome recovery plant at DCM is underway and we have
commenced with our PGM PlatCro project which targets to double our
PGM processing rate by February 2019. We have also commenced with
the construction of the zinc recovery circuit at Kabwe while the
design of the lead recovery circuit is being concluded."
Hernic Platinum and Chrome Project (South Africa)
The Hernic operation performed well during Q2 2018 continuing to
deliver increased PGM ounces at 5 800 PGM ounces delivered
resembling an increase of 18 % quarter on quarter. Project earnings
increased by 41 % quarter on quarter which reflects the low
variable cost base per PGM ounce produced of the project. Q2
included a record production of 2100 PGM ounces in a single month.
We expect to further increase this production rate in line with the
increase in reclaimed surface material delivered by Hernic.
The table below presents the comparative quarterly performance
of the Hernic project:
Tailings PGM Project Project Project Project Jubilee Jubilee Unit
processed ounces revenue revenue earnings(3) earnings attributable attributable cost
tonnes delivered (GBP'000)(1) (ZAR'000)(2) (GBP'000) (ZAR'000) earnings earnings / PGM
(GBP'000) (ZAR'000) oz
(USD)(4)
Total
Q3 2017 105 673 2 874 1.539 26.581 496 8.592 496 8.592 476
---------- ---------- ------------- ------------- ------------ ---------- ------------- ------------- ---------
Total
Q4 121 644 3 755 2.047 37.011 965 17.466 965 17.466 382
2017
---------- ---------- ------------- ------------- ------------ ---------- ------------- ------------- ---------
Total
Q1 2018 110 409 4 897 2.651 44.013 1.141 18.908 1.141 18.908 434
---------- ---------- ------------- ------------- ------------ ---------- ------------- ------------- ---------
Total
Q2 2018 119 479 5 800 3.308 56.761 1.612 27.686 1.612 27.686 397
---------- ---------- ------------- ------------- ------------ ---------- ------------- ------------- ---------
Project
to date 538 032 18 133 10.005 171.970 4.104 70.724 4.104 70.724 439
---------- ---------- ------------- ------------- ------------ ---------- ------------- ------------- ---------
1= Revenue from the current project phase - 100% attributable to
Jubilee until full capital recovery. Revenue is projected based on
latest average PGM market prices and USD exchange rates and results
are only final once final Quotational Period has passed
2= Average monthly conversion rates used
3= Project Earnings include all incurred operational costs
including management services and mineral royalties
4= Unit cost includes provision for utility overhead.
DCM Project (South Africa)
The construction of the fine chrome recovery project is
currently underway at DCM. The project targets to commission the
new expanded fine chrome recovery circuit during Q4 2018. During
this period we also increased our investment into the upgrade of
the existing DCM chrome beneficiation plant as reflected in the
financial numbers below. We are targeting to complete the fines
chrome recovery plant during Q4 2018 which holds the potential to
dramatically enhance the production of chrome at DCM.
Chrome production at DCM is expected to remain at current levels
during the construction of the fine chrome recovery plant with the
existing DCM material containing mostly fine chrome and enriched
PGMs. Jubilee continues to have positive engagements with the
Department of Mineral Resources to accelerate the approvals
required to conclude the construction of the PGM recovery
plant.
The table below presents the operational quarterly performance
of the DCM project:
Chromite Project Project Project Project Jubilee Jubilee
concentrate revenue revenue earnings(3) earnings attributable attributable
produced (GBP'000)(2) (ZAR'000) (GBP'000) (ZAR'000) earnings earnings
tonnes (GBP'000) (ZAR'000)
Total
Q3 2017 15 134 1.129 19.526 184 3.173 356 6.139
------------- -------------- ----------- ------------- ----------- -------------- --------------
Total
Q4 2017 11 788 1.254 22.858 508 9.307 254 4.654
------------- -------------- ----------- ------------- ----------- -------------- --------------
Total
Q1 2018 9 810 1.240 20.628 245 4.080 123 2.040
------------- -------------- ----------- ------------- ----------- -------------- --------------
Total
Q2 2018(1) 9 461 1.066 18.297 74(1) 1.264(1) 37(1) 632(1)
------------- -------------- ----------- ------------- ----------- -------------- --------------
Project
to date(4) 139 920 15.241 263.388 7.860 135.669 2.818 49.193
------------- -------------- ----------- ------------- ----------- -------------- --------------
1 = Includes GBP 82 000 (ZAR 1.44 million) plant refurbishment
expenditure
2 = Average monthly conversion rates used
3 = Project earnings include project expenditure on plant and
equipment
4= Since April 2017
PlatCro Platinum Project (South Africa)
Jubilee commenced delivering PGM material from its PlatCro
project to Northam Platinum's Eland Platinum operation in June with
31 000 tonnes of material delivered during June. Jubilee has
commenced with the expansion of the material sorting and
de-watering plant at PlatCro to support the targeted ramp-up of
material delivery to 50 000 tonnes per month. The target is to
build a stockpile in excess of 200 000 tonnes of PGM rich material
at the Eland Platinum concentrator prior to commencing platinum
recovery in February 2019.
Kabwe Zinc, Lead and Vanadium Project (Zambia)
As announced previously the initial construction focus of the
Kabwe project is on the zinc primary leach recovery circuit.
The enhanced process flow sheet for the Kabwe project includes a
separated zinc and lead recovery circuit which significantly
improves the flexibility of the metals recovery plant. This allows
the project team to independently execute the zinc and lead metals
recovery strategy. The decision was taken to commence with the
construction of the zinc recovery circuit ahead of concluding the
final design for the lead recovery circuit which is under design
review. The circuit design review and optimisation test work
includes work to determine the commercially optimal product purity
specifications.
This enhanced process flowsheet has been presented to the
Zambian department of mines who welcomed the significant progress
made towards executing the Kabwe project.
We expect to conclude the final design parameters for the
project during Q3 of 2018.
United Kingdom
19 July 2018
Contacts
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser
SPARK Advisory Partners Limited
Mark Brady/Andrew Emmott
Tel: +44 (0) 203 368 3555
Broker
Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7 186 9900
JSE Sponsor
Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
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END
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