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Jubilee Metals Group Plc

Jubilee Metals Group PLC set new production highs up 30%

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.”

 

Jubilee Metals Group PLC LON:JLP this morning gave DirectorsTalk 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)

 

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

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.