Jubilee Metals Group (LON:JLP) today announced its unaudited interim results of the Group for the six months ended 31 December 2018.
HIGHLIGHTS
Financial highlights
· Positive earnings per share for the period 0.06 pence (ZAR 0.99 cents(i)) (2017: loss of 0.025 pence (ZAR 44.15 cents))
· Profit for the period up 274 % to GBP 0.76 million (ZAR 13.17 million) (2017: loss of GBP0.44 million (ZAR 7.79 million))
· Revenue up 39 % to GBP 8.33 million (ZAR 143.92 million) (2017: GBP 5.99 million (ZAR 105.80 million))
· Gross profit up 71 % to GBP 4.04 million (ZAR 69.85 million) (2017: GBP 2.37 million (ZAR 41.85 million))
· Cash generated from operations up more than fourfold to GBP 1.17 million (ZAR 20.29 million) (2017: cash utilised in operations of GBP0.38 million (ZAR 6.77 million))
Operational and projects highlights
· PGM(ii) production up 85 % to 12 288 ounces (2017: 6 629 ounces)
· PGM revenue up 98 % to GBP 7.09 million (ZAR 130.59 million) (2017: GBP 3.59 million (ZAR 63.59 million))
· PGM operational earnings up 180 % to GBP 4.09 million (ZAR 75.60 million) (2017: GBP 1.46 million (ZAR 26.06 million))
· 17 011 tonnes (2017: 26 922 tonnes) of remaining saleable coarse chromite concentrate produced at DCM
Post period under review
· PlatCro Chrome operation acquired in January 2019 and already contributing to Group earnings, ahead of schedule, of GBP 0.9 million (ZAR 16.06 million) combined for January and February 2019
· The PlatCro PGM project accelerates deliveries of PGM containing material to Northam’s Eland platinum concentrator, scheduled to commence PGM recovery and refining during May 2019
· Jubilee completes commissioning and bringing into operation of the DCM fine chrome plant delivering saleable chrome concentrate to the market
· Jubilee executes share purchase agreement for the acquisition of Sable Zinc refinery in Kabwe Zambia
· The acquisition reduces construction time of zinc, vanadium and lead refinery by 18 months and project capital to below US$ 25 million
· Jubilee fully funded for the acquisition and completion of the project construction through a combination of project funding and equity placing
(i) Conversion rates used for revenue and earnings are at the average conversion rate for the period and for balance sheet at the spot rate at period end. Conversion rates used for capital expenditure are at current spot rates
(ii) Platinum Group Metals (6E platinum, palladium, rhodium, iridium, osmium, and gold)
INTERIM PERIOD OVERVIEW
The results for the period under review highlights Jubilee’s continued growth in earnings as Hernic continues to deliver strong operational and financial results which will be further supported by the acquisition of the PlatCro Chrome operations and the commissioning of the DCM Fine chrome operation.
Further earnings growth drivers are targeted in the near term with the acceleration in deliveries of its platinum material to Northam Platinum’s, Eland platinum recovery plant expected to start processing material in May 2019, as well as the significant move into Zambia through the acquisition of the Sable Zinc refinery for the processing Jubilee’s zinc, vanadium and lead containing material at Kabwe.
The diversification of our operations and projects portfolio across borders and into base metals, underpins Jubilee’s clear strategy to become a global, diversified processor of surface material.
Hernic PGM operations – South Africa
Jubilee operates a chrome and platinum recovery plant at the Hernic Ferro chrome operation in South Africa.
For the period under review the Hernic PGM operation achieved a unit cost per PGM ounce produced of below US$ 400, which makes the operation one of the lowest cost platinum producers in the industry. The operations nearly doubled its PGM ounce production to 12 288 PGM ounces from 6 629 PGM ounces for the comparative 6 month period, with revenues increasing to GBP 7.09 million (ZAR 130.59 million). Operational earnings increased to GBP 4.09 million (ZAR 75.60 million) (2017: GBP 1.46 million (ZAR 26.06 million)) assisted also by increased palladium prices.
The Hernic PGM operation continued to deliver strong earnings post the period under review, despite a delayed start-up following the December break and the challenges posed by increased power outages from the South African power grid. The Company expects production to return to previous levels from March 2019. Hernic delivered operational earnings of GBP1.10 million combined for January and February 2019. The Company expects to further grow the earnings potential as it targets to increase delivery of feed material to the Hernic PGM operation.
The table below presents the performance of the Hernic PGM operation for the period under review.
| Tailings processed tonnes | PGM ounces delivered | Project revenue (i)(GBP’000) | Project revenue(ii) (ZAR’000) | Project earnings(iii)(GBP’000) | Project earnings (ZAR’000) | Jubilee attributable earnings (GBP’000) | Jubilee attributable earnings (ZAR’000) | |
| Total Q3 2018 | 135 146 | 6 009 | 3.356 | 61.785 | 1 920 | 35.523 | 1 920 | 35.523 |
| Total Q42018 | 132 037 | 6 279 | 3.737 | 68.807 | 2 173 | 40.078 | 2 173 | 40.078 |
| Total H1 2018 | 267 183 | 12 288 | 7.093 | 130.592 | 4 093 | 75.601 | 4 093 | 75.601 |
| Project Summary | Revenue / PGM oz (US$) | Earnings / PGM oz(US$) |
| Total 2018 | 756 | 362 |
