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