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Quarterly Operations Update
Jubilee Metals Group PLC
(“Registration number: 4459850”)
AIM share code: JLP
AltX share code: JBL
ISIN: GB0031852162
(“Jubilee” or “the Company”)
Quarterly Operations Update
Tjate Project - issue of shares
Jubilee is pleased to announce 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 PGM1 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)
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.”
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:
Jubilee Jubilee
Tailings PGM Project Project Project Project Unit cost
attributable attributable
processed ounces revenue 1 revenue2 earnings3 earnings / PGM oz
earnings earnings
tonnes delivered (GBP'000) (ZAR'000) (GBP'000) (ZAR'000) (USD)4
(GBP'000) (ZAR'000)
Total Q2
80 828 808 459 7.604 (110) (1.928) (110) (1.928) 901
2017
Total Q3
105 673 2 874 1.539 26.581 496 8.592 496 8.592 476
2017
Total Q4
121 644 3 755 2.047 37.011 965 17.466 965 17.466 382
2017
Total Q1
110 409 4 897 2.651 44.013 1.141 18.908 1.141 18.908 434
2018
Project to
418 554 12 333 6.697 115.209 2.492 43.038 2.492 43.038 458
date
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 3rd 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 Jubilee Jubilee
Project Project Project Project
concentrate attributable attributable
revenue revenue 1 earnings2 earnings
produced earnings earnings
(GBP'000) (ZAR'000) (GBP’000) (ZAR’000)
tonnes (GBP’000) (ZAR’000)
Total Q4
11 788 1.254 22.858 508 9.307 254 4.654
2017
Total Q1
9 810 1.240 20.628 245 4.080 123 2.040
2018
Project to
130 460 14.175 245.090 7.891 134.405 2.819 48.560
date
1= Average monthly conversion rates used
2 = Project earnings include project expenditure on plant and equipment
Tjate Project - issue of shares
Further to the announcement on 2 March 2017 and pursuant to a Deferred Share
agreement (“Agreement”) with the historically disadvantaged shareholders (“Beneficiaries”)
of black economic empowered New Plats (Tjate) Proprietary Limited, a shareholder in Tjate
Platinum Corporation Proprietary Limited ("Tjate"), a total of 4 464 880 new Jubilee
Ordinary shares of 1 pence (“Shares”) will be issued to the Beneficiaries.
Tjate has executed a mining right with the Department of Mineral Resources in respect of
the Project comprising the Farms Dsjate 249 KT, Fernkloof 539KS and Quartzhill 542 KS,
situated in the Magisterial District of Sekhukhune in the Limpopo Province of South Africa.
This achieves the third of four hurdles set out in the Agreement, the details of which were
previously announced on 6 May 2009.
The Shares will be issued as fully paid and rank pari passu in all respects with the existing
ordinary shares, including the right to receive all dividends and other distributions declared
on or after the date on which they are issued.
Application will be made for the Shares to be admitted to trading on AIM and to be listed on
the AltX of the JSE Limited, which is expected to take place on or about 20 April 2018
(“Admission”).
Following Admission, the Company's total issued share capital will comprise 1 310 992 791
Ordinary Shares. As the Company does not hold any Ordinary Shares in treasury, this figure
may be used by shareholders in the Company as the denominator for the calculations by
which they will determine if they are required to notify their interest in, or a change to their
interest in, the share capital of the Company following Admission.
United kingdom
17 April 2018
This announcement contains inside information for the purposes of Article 7 of EU Regulation
596/2014.
The financial information in this announcement is unaudited.
Contacts
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0)1752 221937
JSE Sponsor
Sasfin Capital, (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
Nominated Adviser
SPARK Advisory Partners Limited
Mark Brady/Andrew Emmott
Tel: +44 (0) 203 368 3555
Broker
Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7 186 9900
Date: 17/04/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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