TIDMJLP
RNS Number : 0987L
Jubilee Metals Group PLC
17 April 2018
Jubilee Metals Group PLC
("Registration number: 4459850")
AIM share code: JLP
AltX share code: JBL
ISIN: GB0031852162
("Jubilee" or "the Company")
Quarterly Operations Update
Tjate Project - issue of shares
Jubilee is pleased to announce an operations update for its
metals recovery division, Jubilee Processing Proprietary Limited
("JPL") for Q1 2018.
Highlights
-- Hernic sets new high for March 2018 producing 1 858 PGM ounces
-- Hernic PGM(1) production for Q1 2018 up 30 % to 4 897 ounces
-- Hernic unit cost per PGM ounce produced USD 434
-- Hernic operational earnings increased 18 % to GBP 1.14 million (ZAR 18.91 million)
-- Hernic project revenue up 30 % to GBP 2.65 million (ZAR 44.01 million)
-- JPL operations revenue up 18 % to GBP 3.90 million (ZAR 64.64 million)
-- JPL operations earnings up 4 % to GBP 1.26 million (ZAR 20.95 million)
1 = Platinum Group Metals (6E platinum, palladium, rhodium,
iridium, osmium, and gold)
Leon Coetzer, Chief Executive commented:
"I am very pleased with the continued operational improvements
at our Hernic operations. March 2018 has set a new operational high
producing 1 858 ounces while our unit cost to produce a PGM ounce
was at a low USD 434.
I expect Q2 2018 to deliver even better operational numbers as
the Hernic operation continues to improve.
Our DCM operation is going through a transitional phase as we
gear up to execute the PGM project. We have temporarily suspended
the processing of 3(rd) party ore at DCM due to continued variation
in feed quality causing operational difficulties negatively
impacting our production of chrome from the on-site tailings and
surface waste material.
It is an exciting period for Jubilee as we expand our
operational reach. Our projects team has a busy time ahead as we
look to execute the PlatCro PGM project, DCM PGM project and the
Kabwe project."
HERNIC OVERVIEW
The Hernic operation continues to deliver improved results
quarter on quarter. The unit cost per PGM ounce produced of USD 434
sets the standard for the industry and illustrates the robustness
of the project. March 2018 delivered 1 858 PGM ounces which is the
highest ounces delivered to the refinery in any month to date.
The table below presents the comparative quarterly performance
of the Hernic operation:
Tailings PGM Project Project Project Project Jubilee Jubilee Unit
processed ounces revenue revenue(2) earnings(3) earnings attributable attributable cost
tonnes delivered (1) (ZAR'000) (GBP'000) (ZAR'000) earnings earnings / PGM
(GBP'000) (GBP'000) (ZAR'000) oz
(USD)(4)
--------- ---------- ---------- ---------- ----------- ------------ ---------- ------------- ------------- ---------
Total 80
Q2 2017 828 808 459 7.604 (110) (1.928) (110) (1.928) 901
--------- ---------- ---------- ---------- ----------- ------------ ---------- ------------- ------------- ---------
Total 105
Q3 2017 673 2 874 1.539 26.581 496 8.592 496 8.592 476
--------- ---------- ---------- ---------- ----------- ------------ ---------- ------------- ------------- ---------
Total 121
Q4 644 3 755 2.047 37.011 965 17.466 965 17.466 382
2017
--------- ---------- ---------- ---------- ----------- ------------ ---------- ------------- ------------- ---------
Total 110
Q1 2018 409 4 897 2.651 44.013 1.141 18.908 1.141 18.908 434
--------- ---------- ---------- ---------- ----------- ------------ ---------- ------------- ------------- ---------
Project 418 12
to date 554 333 6.697 115.209 2.492 43.038 2.492 43.038 458
--------- ---------- ---------- ---------- ----------- ------------ ---------- ------------- ------------- ---------
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 overview
The DCM project is gearing up to commence construction of the
PGM recovery plant. The plant design target is set at 25 000 tonnes
per month of feed material to the chrome and PGM recovery plant.
Processing of 3(rd) party ore at DCM has been suspended temporarily
during this time due to significantly varying feed quality
resulting in plant operational constraints which also negatively
impacts the processing of on-site tailings and surface waste
material as reflected in the project numbers.
Phase 1 of the fine chrome recovery circuit has been completed
with the design and construction underway of an enlarged fine
chrome recovery circuit to enhance the recovery of chrome prior to
the recovery of the PGMs.
The table below presents the operational quarterly performance
of the DCM operation:
Chromite Project Project Project Project Jubilee Jubilee
concentrate revenue revenue earnings(2) earnings attributable attributable
produced (GBP'000) (1) (GBP'000) (ZAR'000) earnings earnings
tonnes (ZAR'000) (GBP'000) (ZAR'000)
---------- ------------- ----------- ----------- ------------- ----------- -------------- --------------
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
---------- ------------- ----------- ----------- ------------- ----------- -------------- --------------
Project 130
to date 460 14.175 245.090 7.891 134.405 2.819 48.560
---------- ------------- ----------- ----------- ------------- ----------- -------------- --------------
1= Average monthly conversion rates used
2 = Project earnings include project expenditure on plant and
equipment
Tjate Project - issue of shares
Further to the announcement on 2 March 2017 and pursuant to a
Deferred Share agreement ("Agreement") with the historically
disadvantaged shareholders ("Beneficiaries") of black economic
empowered New Plats (Tjate) Proprietary Limited, a shareholder in
Tjate Platinum Corporation Proprietary Limited ("Tjate"), a total
of 4 464 880 new Jubilee Ordinary shares of 1 pence ("Shares") will
be issued to the Beneficiaries.
Tjate has executed a mining right with the Department of Mineral
Resources in respect of the Project comprising the Farms Dsjate 249
KT, Fernkloof 539KS and Quartzhill 542 KS, situated in the
Magisterial District of Sekhukhune in the Limpopo Province of South
Africa. This achieves the third of four hurdles set out in the
Agreement, the details of which were previously announced on 6 May
2009.
The Shares will be issued as fully paid and rank pari passu in
all respects with the existing ordinary shares, including the right
to receive all dividends and other distributions declared on or
after the date on which they are issued.
Application will be made for the Shares to be admitted to
trading on AIM and to be listed on the AltX of the JSE Limited,
which is expected to take place on or about 20 April 2018
("Admission").
Following Admission, the Company's total issued share capital
will comprise 1 310 992 791 Ordinary Shares. As the Company does
not hold any Ordinary Shares in treasury, this figure may be used
by shareholders in the Company as the denominator for the
calculations by which they will determine if they are required to
notify their interest in, or a change to their interest in, the
share capital of the Company following Admission.
17 April 2018
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
The financial information in this announcement is unaudited.
Contacts
Jubilee Metals Group 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 member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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