Jubilee Metals Group PLC (LON:JLP), the AIM and AltX traded metals processing company, has today provided an update on progress at its various projects in South Africa and Zambia.Highlights:
· Successfully implementing strategy to increase production and commodity exposure to drive revenue and profitability
· PlatCro PGM (platinum and palladium dominant) processing project in South Africa, commences commissioning with 60,000 tonnes per month capacity
· Production of PGMs* expected to commence during June 2019 in tandem with Eland Platinum, adding c.30,000 PGM ounces per annum to Jubilee’s production, doubling the existing annualised production capacity to c.60,000 ounces
· Acquisition of Sable Zinc Kabwe Limited in Zambia progressing well with the technical committee from the Zambian Competition and Consumer Protection Commission (“ZCCPC”) issuing an approval notice for ratification
· DCM fine chrome project continues to ramp-up exceeding 3,800 tonnes of saleable chrome concentrate for May 2019 with a further ramp-up to 5,000 tonnes of chrome concentrate targeted for June 2019
* 6 Element Platinum Group Metals including platinum, palladium, rhodium, ruthenium, osmium and gold
Leon Coetzer, Jubilee Chief Executive Officer, says: “We continue to make excellent progress in implementing our strategy to build a world leading metals recovery business. Adding 30,000 ounces per annum of PGM production capacity to our existing 30,000 ounces is another huge milestone for Jubilee and should significantly impact our financial performance especially with PlatCro PGM producing in the low cost quartile. This is in addition to PlatCro Chrome operation, acquired in January 2019, which is already contributing to Company earnings ahead of projections. “Alongside the positive increases in chrome and PGM processing, production at our DCM Fine Chrome project also continues to ramp up in-line with expectations. The successful commissioning of our ground-breaking fine chrome circuit is testament to the team’s ability to design build and execute advanced mine waste treatment projects, to rapidly improve earnings and profitability. “An important part of our on-going development strategy is to diversify earnings through adding additional projects, widening metal exposure and expanding our geographic footprint. I am therefore delighted with the official recommendation from the ZCCPC in support of our acquisition of the Kabwe zinc, lead and vanadium project in Zambia from Glencore. As a result, and to utilise time efficiently during this interim phase, we continue to finalise the process design which will allow us to hit the ground running on formal completion, targeting production in Q4 2019.”
PlatCro operations – chrome, platinum and palladium (South Africa)
In addition to the chrome operation already contributing positively to the group chrome earnings and ahead of projections, Eland Platinum has commenced commissioning of its platinum recovery plant and targets production of PGMs from Jubilee’s PlatCro PGM material during June 2019.
The project aims to process 60,000 tonnes per month of PGM rich material in partnership with Eland Platinum capable of adding an approximate further 30,000 PGM ounces per annum to Jubilee’s production, potentially doubling Jubilee’s existing processing capacity.
Kabwe operation – zinc, lead and vanadium (Zambia)
As previously announced on 21 March 2019, Jubilee has entered into an agreement with two subsidiaries of Glencore plc to acquire Sable Zinc Kabwe Limited in Zambia.
Completion of the Acquisition was conditional upon the fulfilment of certain conditions precedent as contained in the Agreement, of which the approval from the ZCCPC remains the only outstanding CP. The official recommendation in support of the Acquisition, issued by the technical committee of the ZCCPC, is a very positive step in securing an accelerated approval from the executive board of the ZCCPC.
During this interim phase Jubilee continues to progress the project with the finalisation of the detail process design and securing further long lead items for the implementation of the feed material’s pre concentration prior to the refining of the metals at the Sable Zinc refinery. Jubilee also continues to engage with various potential suppliers of run of mine zinc rich material within the Kabwe region. The supply of such high-grade zinc material offers the potential to increase the targeted zinc units per feed ton to optimally utilise the refining capacity.
DCM operation – chrome (South Africa)
The DCM fine chrome project continues to ramp-up successfully following the commissioning of the facility during Q1 2019. The project exceeded the production of 3,800 tonnes of saleable chrome concentrate for May 2019 with 5,000 tonnes of chrome concentrate targeted for June 2019. Jubilee expects to complete the production ramp-up phase by July 2019.