TIDMJLP
RNS Number : 3182E
Jubilee Metals Group PLC
17 October 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
Q3 2018
Highlights
-- Hernic project's operational earnings attributable to Jubilee
up 19% to GBP 1.92 million (up 28% to ZAR 35.52 million)
-- Hernic PGM(*) production up 4% to 6 009 ounces
-- PGM(*) production record set of 2 270 ounces in a month
-- Combined operational earnings attributable to Jubilee up 8%
to GBP 1.78 million (up 16% to ZAR 32.89 million)
-- Construction of fine chrome recovery plant at DCM progressing to schedule
-- Targeted execution strategy for the Kabwe zinc and lead project
* 6 Element Platinum Group Metals
Leon Coetzer, Chief Executive Officer, says:
"I am very pleased to report yet another solid performance by
the Jubilee team. I am equally excited with the traction gained in
the implementation of our global metals recovery strategy. We have
seen a growing demand from both small and global mining companies
to work with Jubilee in accessing the metals lost in the current
and historical mine waste.
Our Hernic project has breached our targeted 6 000 PGM ounces
produced in a single quarter. The project continues to increase
earnings as we focus to further increase the feed rate to the
facility. The operational costs for the project remain well
contained, delivering a cost of less than USD400 per produced PGM
ounce.
The construction of our fine chrome recovery plant is well
underway at our DCM plant, targeting completion by November 2018.
Once completed the fine chrome recovery plant will target the
recovery of the approximate 620 000 tonnes of chrome material
contained in the existing DCM tailings dam alone. An initial
recovery target of 52% has been set.
Our Kabwe project has seen the successful conclusion of the
research and design of the zinc recovery circuit. The new circuit
design includes pre-processing of the surface tailings to produce
an upgraded product for further leaching and refining. The refinery
will target an initial throughput of approximately 10 000 tonnes
per month ramping up to an approximate 25 000 tonnes per month at
completion of the project. The new refining circuit offers the
further potential to secure future ore supply from current zinc
explores in the region."
Hernic Project - Platinum and Chrome (South Africa)
The Hernic Project delivered another stellar performance for Q3
continuing its performance improvement quarter on quarter since
commissioning. Ounces delivered breaks through the 6 000 ounces
target set for the project for the first time since the start of
production in April 2017. Hernic Project earnings increased by 28%
in ZAR terms quarter on quarter. The project further improved on
its cost base per PGM ounce producing below USD400 per PGM ounce.
Q3 included a new record production of 2 270 PGM ounces in a single
month. We expect to further increase this production rate in line
with the focussed 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
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
---------- ---------- ------------- ------------- ------------ ---------- ------------- ------------- ---------
Total 135
Q3 2018 146 6 009 3 356 61,785 1,920 35,523 1,920 35,523 311
---------- ---------- ------------- ------------- ------------ ---------- ------------- ------------- ---------
Project
to date 673 178 24 141 13,361 233,755 6,024 106,247 6,024 106,247 407
---------- ---------- ------------- ------------- ------------ ---------- ------------- ------------- ---------
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 - Chrome (South Africa)
The construction of the fine chrome recovery project is
progressing to schedule. Commissioning of the new expanded fine
chrome recovery circuit remains on track for Q4 2018. The fine
chrome project is expected to significantly enhance revenues and
earnings for the DCM Project. The DCM fine chrome recovery plant
targets the recovery of chrome currently lost by the chrome
industry in general. This new fine chrome recovery plant also
serves as a demonstration plant to the chrome industry. Jubilee has
received several enquiries from the chrome industry to also access
the fine chrome currently lost by the industry.
Production rates at DCM have been reduced to facilitate the
construction and tie-in of the new fine chrome recovery plant. The
reduced throughput rates will continue during the construction and
commissioning of the fine chrome plant.
The table below presents the operational quarterly performance
of the DCM Project:
Chromite Project Project Project Project Jubilee Jubilee
concentrate revenue revenue earnings(2) earnings attributable attributable
produced (GBP'000)(1) (ZAR'000) (GBP'000) (ZAR'000) earnings earnings
tonnes (GBP'000) (ZAR'000)
Total
Q1 2018 9 810 1,240 20,628 245 4,080 123 2,040
------------- -------------- ----------- ------------- ----------- -------------- --------------
Total
Q2 2018 9 461 1,066 18,297 74 1,264 37 632
------------- -------------- ----------- ------------- ----------- -------------- --------------
Total
Q3 2018 8 053 592 10,824 (288) (5,278) (144) (2,639)
------------- -------------- ----------- ------------- ----------- -------------- --------------
Project
to date(3) 147 973 15,833 274,211 7,572 130,392 2,674 46,554
------------- -------------- ----------- ------------- ----------- -------------- --------------
1 = Average monthly conversion rates used
2 = Project earnings include project expenditure on plant and
equipment
3= Since April 2017
PlatCro Project - Platinum (South Africa)
The PlatCro Project remains on track for commissioning in
February 2019. The construction of the material reclamation and
dewatering plant is progressing to schedule which is targeted for
completion during Q4 2018. This plant will facilitate the ramp-up
of material delivery to the Eland platinum concentrator targeting a
rate 50 000 to 60 000 tonnes of platinum rich material per
month.
Kabwe Project - Zinc, Lead and Vanadium Project (Zambia)
As announced on 6 August 2018, Jubilee was able to ensure that
the success of the Kabwe Project remains independent of the
financial position of BMR with the option to acquire 100% of the
Kabwe Project.
Following a detailed technical and engineering review by Jubilee
of the Kabwe Project, its process development teams were able to
determine a more suitable process solution for the recovery of lead
and zinc in the surface material than the originally contemplated
acid and brine solution. The enhanced solution includes a dedicated
zinc and lead recovery circuit, initially targeting the recovery of
zinc with the discard of the zinc circuit being further processed
in the lead recovery circuit.
A phased execution methodology has been developed which targets
an initial processing rate of approximately 10 800 tonnes per month
ramping up to 25 000 tonnes per month over two further phases. The
phased implementation of the process solution links in with the
completion of the pre-processing of the surface material prior to
the zinc recovery plant as well as the implementation of the lead
recovery circuit on the back end of the zinc circuit.
Pilot runs have indicated that we are able to increase the zinc
grade through pre-processing of the surface material by more than
50% prior to introducing the material to the zinc leach circuit.
This upgrading of the feed material successfully buffers the
project's economic viability against largely fluctuating acid
prices in Zambia. The tried and tested techniques used to achieve
the significant upgrade in feed material was developed by Jubilee
initially for its chrome and PGM operations.
As part of the current strategy Jubilee is reviewing the
potential of accessing existing zinc refining capacity located near
the Kabwe Project. The relatively limited upgrade required to the
refinery would offer the potential to significantly shorten the
project execution time line for the zinc recovery circuit. Jubilee
has estimated an upgrade period of approximately 4 months to adapt
the refinery to the Kabwe material. During the interim period while
this potential is being assessed, the implementation of the
tailings re-mining facility and the pre-processing plant for the
feed material will continue at the Kabwe Project. Jubilee expects
to conclude this strategy review during Q4 2018.
United Kingdom
17 October 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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