TIDMJLP
RNS Number : 1643N
Jubilee Platinum PLC
21 October 2016
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
21 October 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 quarterly
performance, operational and financial update of its chrome
recovery section of the Dilokong Chrome mine tailings project ("DCM
Tailings" or "DCM Project") for Q3 2016 as well as a project update
for the platinum processing project at Hernic Ferrochrome Pty Ltd
("Hernic").
Highlights
DCM Project
-- Chromite concentrate production up 88.04% to 28 559 tons for Q3 2016 compared with Q2 2016
-- Project revenue generated from chromite concentrate sales up
108.22% to GBP 2.09 million (ZAR 37.36 million, 95.23% increase)
for the Q3 2016 compared with Q2 2016
-- Chromite project earnings up 108.13% to GBP 1.55 million (ZAR
27.7 million, 95.05% increase) for Q3 2016 compared to Q2 2016
-- Earnings attributable to Jubilee for Q3 2016 from chromite
concentrate production up 94.73% to GBP 0.888 million (ZAR 15.89
million, 82.41% increase) compared with Q2 2016
-- Platinum processing review completed with preferred option
combining on-site upgrading of platinum content of the material to
approximately double the in-situ value prior to toll processing the
platinum rich feed material
Hernic Project
-- Construction of the 660 000 tons per annum platinum and
chromite processing plant continues to progress to schedule
targeting commencement of commissioning in December 2016
-- Project Capital expenditure to end of September 2016 of GBP
7.45 million (ZAR 137.6 million) equivalent of 71% of total
projected capital. This is commensurate with the percentage project
completion
Leon Coetzer, Chief Executive commented:
"The operating results are very satisfactory and show increasing
performance quarter on quarter which is reflected in our financial
performance. The results are also a complement to our technical
team who have responded to numerous challenges in a positive way to
achieve these results. The consistency and reliability of our
operating team augers well for the Hernic project when it commences
its build up to full commercial production.
The construction of the Hernic project remains on schedule and
shareholders are invited to view the project pictures that are
updated on our website. The pictures clearly capture the process
hardware that has been installed and indicates the significant
progress made as the project nears the completion of the
construction phase (Phase 2 below).
The Company continues to actively pursue projects consistent
with our stated mission to increase cash flow and enhance
shareholder value. We are confident that we will shortly conclude a
further acquisition with discussions progressing favourably in
other areas of acquisition and joint venture."
DCM OPERATIONAL AND FINANCIAL PERFORMANCE
Chromite Project Project Project Project Jubilee Jubilee
concentrate revenue revenue earnings earnings attributable attributable
tons (GBP'000) (ZAR'000) (GBP'000) (ZAR'000) project project
produced earnings earnings
(GBP'000) (ZAR'000)
------------- ------------- ----------- ----------- ----------- ----------- -------------- --------------
Q2 2016 15 188 1,002 19,137 744 14,203 456 8,710
(May, June
2016)
------------- ------------- ----------- ----------- ----------- ----------- -------------- --------------
Q3 2016 28 559 2 086 37 360 1 548 27 702 888 15 887
(July,
August,
September
2016)
------------- ------------- ----------- ----------- ----------- ----------- -------------- --------------
% change
Q2 on Q3 88.04% 108.22% 95.23% 108.13% 95.05% 94.73% 82.41%
------------- ------------- ----------- ----------- ----------- ----------- -------------- --------------
YTD since
start of
project
in May
2016 43 747 3 088 56 497 2 291 41 905 1 344 24 597
------------- ------------- ----------- ----------- ----------- ----------- -------------- --------------
The DCM chromite recovery process from surface tailings alone
has reached full operational stability. As announced previously
further increases in operational throughput requires the expansion
of the new tailings, post chromite removal, storage facility. The
expansion of the facility has commenced. Production throughput will
be constrained during the construction phase but will be restored
shortly after the completion of the expanded tailings storage
facility.
All chromite production to date at DCM continues to be from the
processing of surface tailings alone. Stated Project earnings are
net of operational cost and cost of chromite concentrate sales.
The platinum processing option study has been concluded with the
study including the review of numerous processing strategies for
the recovery of the platinum from the chrome tailings material. The
options studied included on-site trials to evaluate technical
solutions for upgrading the platinum content in the chrome tailings
prior to either toll processing of concentrated platinum material
or further on-site processing of the material in-line with the much
larger Hernic project. Both laboratory and commercial trials were
run to test the various scenarios and to determine the optimal
commercial solution for Jubilee.
The outcome of the trials indicated that the optimal strategy
will be the combination of on-site upgrading of the platinum
material approximately doubling the in-situ platinum content of the
material to produce a high grade platinum feed concentrate, prior
to toll processing the upgraded material to produce a final grade
platinum concentrate. This strategy would provide both the benefits
of lower committed capital as well as expediency in executing the
strategy. Jubilee has engaged with a potential toll processor to
conclude a commercial arrangement on this basis.
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
About ASA
Pollux Investment Holdings Pty Ltd ("Pollux"), a wholly owned
subsidiary of Jubilee, holds the exclusive rights to beneficiate
the platinum group metals ("PGM's") from the platinum-containing
surface material at ASA Metals Proprietary Limited ("ASA") ("DCM
Platinum Project, Processing Agreement").
The Company has targeted the construction of a New Processing
Plant for the recovery of chrome and PGMs capable of processing up
to 35 000 tons of surface material per month. The Company executed
an addendum to the Processing Agreement ("Addendum"), whereby the
Company is incentivised to accelerate the construction and
commissioning of the New Processing Plant by targeting commencement
of commissioning of the front end of the New Processing Plant early
2016. The Addendum significantly enhances and expedites the
projected profitability of the project since both the chrome
concentrate and platinum containing concentrate will now contribute
to the overall profitability of the DCM Platinum Project. The
Project is the first of the Company's Platinum Projects.
About the Hernic Project
Hernic Ferrochrome Proprietary Limited ("Hernic") is the world's
4th largest integrated ferrochrome producer with an estimated 3
million tons of platinum containing material at surface while
Hernic continues to add further material to the surface stock.
The Company was selected as the exclusive party to beneficiate
the chromite and PGMs contained in the Hernic Surface Material
("the Project") and address the project execution methodology as
well as the operational and financial performance targets. The
Project is the second of the Company's Two Projects.
The Hernic Surface Material has been independently fully drilled
and assayed for chrome and PGM content. This has resulted in an
independent resource statement of 1.7 million tons, of which
approximately 90% of the resource is classified in the measured
category under the internationally recognised SAMREC code. Hernic
also has access to secondary surface stocks, which it has
internally identified and could increase the surface stocks to in
excess of 3 million tons through further drilling programmes. The
Project is estimated to contain total PGMs in excess of 224 000
(3PGM + Au) oz.
The Project will be the largest PGM beneficiation plant of
surface chrome tailings in South Africa and is capable of producing
annual revenues of GBP 18.2 million (ZAR 400 million) at an average
metal basket price of USD 906 per (3PGM + Au) per oz. The financial
and operational risks of the Project are significantly mitigated
since the material is already at surface and requires neither the
cost nor the risk associated with mining.
An extensive prefeasibility study has been concluded on the
Project, which included both pilot scale and full commercial scale
trials to confirm the design and operational parameters.
The Project is to be undertaken in four phases over an 11 month
period; namely
ü Phase one - Bankable Feasibility Study and Engineering Design.
-- Completed.
ü Phase two - Construction of the chrome and platinum processing
plant ("Processing Plant"). -- On-going
ü Phase three - Commissioning and Ramp up of Processing Plant to
design capacity of 55 000 tons per month.
ü Phase Four - Stable operation of the Processing Plant.
The Company has targeted a combined processing of platinum
containing surface material over the two projects in excess of 900
000 tons per annum.
The ZAR-based debt funding for both surface projects equates to
GBP 11.5 million (ZAR 255 million) before financing costs. The
working capital required to bring the two surface projects into
operation and to achieve positive earnings is estimated at GBP 3.4
million (ZAR 75 million).
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLIFVDIFLLFIR
(END) Dow Jones Newswires
October 21, 2016 03:45 ET (07:45 GMT)
Jubilee Metals (LSE:JLP)
Historical Stock Chart
From Apr 2024 to May 2024
Jubilee Metals (LSE:JLP)
Historical Stock Chart
From May 2023 to May 2024