Jubilee Platinum PLC Platinum Projects Quarterly Update (7467D)
July 11 2016 - 2:00AM
UK Regulatory
TIDMJLP
RNS Number : 7467D
Jubilee Platinum PLC
11 July 2016
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
11 July 2016
Jubilee Platinum PLC
("Jubilee" or "Company")
Platinum Projects Quarterly Update
Mine-to-Metals specialist Jubilee Platinum plc (AIM: JLP, AltX:
JBL) is pleased to provide, on behalf of its subsidiary, Jubilee
Tailings Treatment Company Pty Ltd ("JTTC"), a performance,
operational and financial update for the three-months' ended 30
June 2016 ("Q2"), of its chrome recovery section of the Dilokong
Chrome mine tailings project ("DCM Tailings" or "DCM Project") and
a progress update on the Hernic PGM-bearing chrome tailings project
("Hernic Project").
Highlights
DCM Project
-- Chromite concentrate production reaches a total of 15 188
tons produced to end June 2016 (7 480 tons in June 2016)
-- Project revenue generated from chromite concentrate sales to
end June 2016 of ZAR 19.1 million (GBP 1 million)
-- Project earnings of ZAR14.2 million (GBP 0.744 million) of
which ZAR 8.7 million (GBP 0.456 million) attributable to
Jubilee
-- PGM processing option with 3(rd) party processer in final
discussions offering significant project upside
-- Potential value of saleable platinum in inventory is
approximately R 399.1 million (GBP 21 million) at current platinum
prices
Hernic Project
-- Construction of the 55 000 tons per month platinum and
chromite processing plant progressing to schedule
-- Project Capital expenditure to date of ZAR 88.5 million (GBP
4.6 million) equivalent of 45% of total estimated Project
Capital
-- Commissioning of world's largest platinum recovery plant from
chrome tailings target to commence in December 2016
Leon Coetzer, Chief Executive commented:
"The DCM Project has outperformed the original design numbers
both in terms of revenue, earnings from chromite concentrate sales
and better than designed operational performance. To date early
project revenue has been generated from the sales of chromite
concentrate. The enrichment of the platinum material which is
produced by recovering chromite from the surface material and
rejecting waste has exceeded our projections due to a better than
expected chromite yield from the DCM Project, without compromising
the PGM metal recovery to the platinum material.
The Company is considering toll processing as an alternative to
building its own plant and are currently considering offers. If an
acceptable offer is received there will be no need to build a plant
and platinum revenues will be received much earlier than planned.
In the meantime we continue to increase our revenues from chrome
production and source third party feed input.
The Hernic project, which targets 55 000 tonnes per month of
tailing material proceeds on budget and on time to be the World's
largest platinum recovery plant from chrome tailings."
DCM PROJECT PERFORMANCE FOR THE QUARTER ENDING JUNE 2016
Chromite Project Project Project Project Jubilee Jubilee
concentrate revenue revenue earnings* earnings attributable attributable
tons (ZAR) (GBP) (ZAR) (GBP) project project
produced earnings earnings
(ZAR) (GBP)
------- ------------- ----------- ---------- ----------- ---------- -------------- --------------
Q2
2016 15 188 19,136,986 1,001,936 14,202,563 743,590 8,709,783 456,010
------- ------------- ----------- ---------- ----------- ---------- -------------- --------------
Q2 2016 production includes the ramp up phase with June 2016
reaching a stable production of 7 480 tons. All chromite production
to date is from the processing of platinum and chrome containing
surface tailings alone. Project earnings is net of operational cost
and cost of chromite concentrate sales.
The enriched platinum containing stream after chromite removal
is stored at site for further processing to produce a platinum
concentrate.
Jubilee is currently concluding its evaluation of either further
processing the enriched platinum material in a 3(rd) party owned
platinum processing plant or completing the construction of
dedicated platinum processing plant at DCM. If Jubilee concludes to
process the platinum material in a 3(rd) party owned plant all
equipment already secured for the DCM platinum processing plant is
transferable to the Hernic platinum processing plant.
Contacts
Jubilee Platinum plc
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0)1752 221937
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0)11 809 7500
Nominated Adviser
SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0)203 368 3555
Broker
Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300
This information is provided by RNS
The company news service from the London Stock Exchange
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