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Company Operations Update
JUBILEE PLATINUM PLC
("Jubilee" or "the Company")
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162
Company Operations Update
Jubilee, the AIM and JSE quoted mine to metal specialist, is
pleased to report an operations update on its smelting
operation (70% owned by Jubilee), its 51%-owned Power Alt’s
award of tender to supply surplus power, the Dilokong chromite
tailings project and the Farm-in Agreement for the iron-ore
opportunity on its Ambodilafa concession in Madagascar.
Highlights
- Middelburg Smelters (RST (Pty) Ltd) breaks its previous
record by reaching a new high of 905 tonnes of metal
alloy production in July
- This record production generated unaudited sales for July
of ZAR6.6 million (GBP519,000 at current exchange rates)
- Jubilee’s 51% owned Power Alt (Pty) Ltd (“Power Alt”) in
Middelburg was awarded tender to supply 5.1MW of powerto
a third party
- Power Alt’s tender is worth an estimated ZAR12.4 million
in revenue (GBP970,000 at current exchange rates) over an
initial four-month trial period
- Agreement was reached in principle for the processing of
the platinum containing chrome tailings dump from ASA
Metals (Pty) Ltd’s (“ASA”) Dilokong Chrome Mine in the
eastern Bushveld: Drilling is planned to commence shortly
to confirm platinum content and grade distribution in
these chrome tailings
- Progress made on the Farm-in Agreement for the iron ore
opportunity on Ambodilafa concession in Madagascar and
execution is expected in the near future
- Tjate Platinum Corporation’s Board approved acceptance
of ZAR75M (GBP5.9 million) cash offer from a major mining
company for Quartzhill farm of the Tjate Platinum
project.
Leon Coetzer, CEO of Jubilee Platinum, commented: "In all
aspects of the Group's business we are moving to or
increasing revenues, while employing further cost cutting
measures. We are making good progress in consolidating our
mines to metals strategy. We are being afforded more
opportunities to progress this strategy based on the general
issues surrounding the South African platinum industry.
Simplistically, our strategy takes full advantage of mid-
term difficulties, since all our projects are short term to
production, relatively less capital intensive and utilize
the benefits of ConRoast and our small-scale mining
capability."
Jubilee Revenues
Jubilee’s unaudited revenues since the start of 2012 calendar
year continued to increase sharply mainly driven by the
Middelburg smelting operations. Revenues have more than
doubled to ZAR37 million (GBP2.9 million at current exchange
rates) in the seven months this calendar year compared with
the previous seven months. The Company expects that revenues
will be boosted further by the sale of surplus power from
Jubilee’s 51%-owned power generation plant to the national
electricity grid.
Middelburg Smelter and Power Alt (Pty) Ltd Power Plant
Performance of the new No5 furnace at the Middelburg smelting
facility continues to improve as it reached a new monthly high
of 905 tonnes of ferroalloy produced in July 2012. Management
is currently reviewing the operation of the older furnaces No3
and No4 in order to improve their profit margin achieved in
line with the performance of the No5 furnace.
Jubilee’s 51%-owned Power Alt, the company that owns the on-
site 11MW gas-fired electricity generation plant in
Middelburg, has been awarded a tender to supply 5.1MW of power
to a third party (worth an estimated ZAR12.4 million (GBP970
000 at current exchange rates) in sales to Power Alt for an
initial trial period of four months). The 5.1MW is surplus to
Middelburg’s current requirements and more may become
available following the review of Nos 3 & 4 furnaces noted
above.
Management anticipates that the sale of this surplus power
generated by the on-site power plant coupled with the improved
performance of the smelter operation will ensure that the
Middelburg smelting facility returns positive cash flows to
Jubilee.
Chrome Tailings
As announced on 13 June 2012, Jubilee was awarded the
processing tender for the recovery of platinum group metals
(“PGM”) from the tailings dam on the Dilokong Chrome Mine near
Burgersfort in Mpumalanga. The Company is scheduled to drill
the tailings dam this quarter in order to confirm the platinum
content and grade profile. The data will be used to finalise
the dam reclamation programme. This project is held through a
subsidiary company Pollux Investments (Pty) Ltd, in which
Jubilee holds a 67.5% interest.
Tjate Platinum Project
On 23 July 2012, Tjate Platinum Corporation (Pty) Ltd.’s
(“Tjate”) board approved the acceptance of the ZAR75M cash
offer (announced 4 October, 2011) from a major mining company
for the Quartzhill farm portion of its Tjate Platinum Project.
This approval clears the way for the Offeror to proceed with a
binding agreement.
Separately, Tjate still awaits acceptance from the Department
of Mineral Resources (“DMR”) of its application for a Mining
Right.
Maude Mining and Exploration (“Maude”)
Maude awaits a decision from the Department of Mineral
Resources on its application for a Mining Right on its
Bokfontein and Elandsdrift properties farms.
Madagascar Ambodilafa Project
Progress has been made with the Farm-in Agreement
(“Agreement”) formalising the heads of agreement announced 9
July 2012 with Australian based public unlisted Indian Pacific
Resources Limited (IPR) for an iron ore opportunity,
identified by IPR on the Company’s Ambodilafa concession.
While the Company expected to have concluded the Agreement by
31 July 2012, conclusion is anticipated in the near future.
The terms of the Agreement include for IPR to expend US$3
million over 3.5 years to earn in up to 90% in the iron ore
commodity. In the event that IPR discovers non-iron ore
commodities, the Company’s subsidiary, Mineral Resources of
Madagascar Sarl (“MRM”) as the owner, will have the right to
earn in up to 90% of the non-iron ore commodities on the same
terms as IPR. IPR will cover the corporate and country costs
of MRM for a minimum of six months from date of execution of
the Agreement.
Editor’s Note
ASA Metals (Pty) Ltd is a joint venture between Eastern Asia
Metals Investment Co Ltd from China and the Limpopo Economic
Development Enterprise of South Africa.
Contacts
Jubilee Platinum plc
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0) 1752 221937
finnCap Ltd
Matthew Robinson/Ben Thompson– corporate finance
Joanna Weaving – corporate broking
Tel +44 (0) 20 7600 1658
Shore Capital Stockbrokers Limited (Joint Broker)
Jerry Keen/Edward Mansfield
Tel: +44 (0) 20 7 408 4090
Sasfin Capital
Leonard Eiser/Sharon Owens
Tel +27 (0) 11 809 7500
Bishopsgate Communications Ltd
Nick Rome/Anna Michniewicz/Ivana Petkova
Tel +44 (0) 20 7562 3350
08 August 2012
Sponsor
Sasfin Capital
(a division of Sasfin Bank Limited)
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