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JUBILEE PLATINUM PLC - Platinum Projects quarterly update

Release Date: 21/10/2016 09:45
Code(s): JBL     PDF:  
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Platinum Projects quarterly update

Jubilee Platinum PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
 ("Jubilee" or “Company")

Platinum Projects quarterly update

Mine-to-Metals specialist Jubilee Platinum plc (AIM: JLP, AltX: JBL) is pleased to provide, on behalf of
its subsidiary, Jubilee Tailings Treatment Company Pty Ltd (“JTTC”), a quarterly performance,
operational and financial update of its chrome recovery section of the Dilokong Chrome mine tailings
project (“DCM Tailings” or “DCM Project”) for Q3 2016 as well as a project update for the platinum
processing project at Hernic Ferrochrome Pty Ltd (“Hernic”).

Highlights

DCM Project

Chromite concentrate production up 88.04% to 28 559 tons for Q3 2016 compared with Q2 2016

Project revenue generated from chromite concentrate sales up 108.22% to GBP 2.09 million (ZAR 37.36
million, 95.23% increase) for the Q3 2016 compared with Q2 2016

Chromite project earnings up 108.13% to GBP 1.55 million (ZAR 27.7 million, 95.05% increase) for Q3
2016 compared to Q2 2016

Earnings attributable to Jubilee for Q3 2016 from chromite concentrate production up 94.73% to GBP
0.888 million (ZAR 15.89 million, 82.41% increase) compared with Q2 2016

Platinum processing review completed with preferred option combining on-site upgrading of platinum
content of the material to approximately double the in-situ value prior to toll processing the platinum rich
feed material



Hernic Project

Construction of the 660 000 tons per annum platinum and chromite processing plant continues to
progress to schedule targeting commencement of commissioning in December 2016

Project Capital expenditure to end of September 2016 of GBP 7.45 million (ZAR 137.6 million) equivalent
of 71% of total projected capital. This is commensurate with the percentage project completion



Leon Coetzer, Chief Executive commented:

“The operating results are very satisfactory and show increasing performance quarter on quarter which
is reflected in our financial performance. The results are also a complement to our technical team who
have responded to numerous challenges in a positive way to achieve these results. The consistency
and reliability of our operating team augers well for the Hernic project when it commences its build up to
full commercial production.

The construction of the Hernic project remains on schedule and shareholders are invited to view the
project pictures that are updated on our website. The pictures clearly capture the process hardware that
has been installed and indicates the significant progress made as the project nears the completion of
the construction phase (Phase 2 below).




The Company continues to actively pursue projects consistent with our stated mission to increase cash
flow and enhance shareholder value. We are confident that we will shortly conclude a further acquisition
with discussions progressing favourably in other areas of acquisition and joint venture.”
     DCM OPERATIONAL AND FINANCIAL PERFORMANCE




     The DCM chromite recovery process from surface tailings alone has reached full operational stability.
     As announced previously further increases in operational throughput requires the expansion of the new
     tailings, post chromite removal, storage facility. The expansion of the facility has commenced.
     Production throughput will be constrained during the construction phase but will be restored shortly after
     the completion of the expanded tailings storage facility.


                       Chromite        Project        Project       Project        Project        Jubilee        Jubilee
                      concentrate     revenue        revenue       earnings       earnings     attributable   attributable
                         tons        (GBP’000)      (ZAR’000)     (GBP’000)      (ZAR’000)        project        project
                       produced                                                                  earnings       earnings
                                                                                                (GBP’000)      (ZAR’000)

     Q2 2016             15 188         1,002        19,137          744          14,203           456             8,710
 (May, June 2016)

     Q3 2016             28 559         2 086        37 360         1 548         27 702           888             15 887
  (July, August,
 September 2016)
% change Q2 on Q3       88.04%        108.22%        95.23%        108.13%        95.05%         94.73%         82.41%


 YTD since start of      43 747         3 088        56 497         2 291         41 905          1 344            24 597
project in May 2016


     All chromite production to date at DCM continues to be from the processing of surface tailings alone.
     Stated Project earnings are net of operational cost and cost of chromite concentrate sales.

     The platinum processing option study has been concluded with the study including the review of
     numerous processing strategies for the recovery of the platinum from the chrome tailings material. The
     options studied included on-site trials to evaluate technical solutions for upgrading the platinum content
     in the chrome tailings prior to either toll processing of concentrated platinum material or further on-site
     processing of the material in-line with the much larger Hernic project. Both laboratory and commercial
     trials were run to test the various scenarios and to determine the optimal commercial solution for
     Jubilee.

     The outcome of the trials indicated that the optimal strategy will be the combination of on-site upgrading
     of the platinum material approximately doubling the in-situ platinum content of the material to produce a
     high grade platinum feed concentrate, prior to toll processing the upgraded material to produce a final
     grade platinum concentrate. This strategy would provide both the benefits of lower committed capital as
     well as expediency in executing the strategy. Jubilee has engaged with a potential toll processor to
     conclude a commercial arrangement on this basis.




     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
JSE Sponsor

Sasfin Capital, a division of Sasfin Bank Limited
Sharon Owens
Tel +27 (0)11 809 7500

Nominated Adviser

SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0)203 368 3555

Broker

Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300




About ASA

Pollux Investment Holdings Pty Ltd (“Pollux”), a wholly owned subsidiary of Jubilee, holds the exclusive
rights to beneficiate the platinum group metals (“PGM’s”) from the platinum-containing surface material at
ASA Metals Proprietary Limited (“ASA”) (“DCM Platinum Project, Processing Agreement”).

The Company has targeted the construction of a New Processing Plant for the recovery of chrome and
PGMs capable of processing up to 35 000 tons of surface material per month. The Company executed
an addendum to the Processing Agreement (“Addendum”), whereby the Company is incentivised to
accelerate the construction and commissioning of the New Processing Plant by targeting
commencement of commissioning of the front end of the New Processing Plant early 2016. The
Addendum significantly enhances and expedites the projected profitability of the project since both the
chrome concentrate and platinum containing concentrate will now contribute to the overall profitability of
the DCM Platinum Project. The Project is the first of the Company’s Platinum Projects.



About the Hernic Project

Hernic Ferrochrome Proprietary Limited (“Hernic”) is the world’s 4th largest integrated ferrochrome
producer with an estimated 3 million tons of platinum containing material at surface while Hernic continues
to add further material to the surface stock.

The Company was selected as the exclusive party to beneficiate the chromite and PGMs contained in the
Hernic Surface Material (“the Project”) and address the project execution methodology as well as the
operational and financial performance targets. The Project is the second of the Company’s Two Projects.

The Hernic Surface Material has been independently fully drilled and assayed for chrome and PGM
content. This has resulted in an independent resource statement of 1.7 million tons, of which
approximately 90% of the resource is classified in the measured category under the internationally
recognised SAMREC code. Hernic also has access to secondary surface stocks, which it has internally
identified and could increase the surface stocks to in excess of 3 million tons through further drilling
programmes. The Project is estimated to contain total PGMs in excess of 224 000 (3PGM + Au) oz.

The Project will be the largest PGM beneficiation plant of surface chrome tailings in South Africa and is
capable of producing annual revenues of GBP 18.2 million (ZAR 400 million) at an average metal basket
price of USD 906 per (3PGM + Au) per oz. The financial and operational risks of the Project are
significantly mitigated since the material is already at surface and requires neither the cost nor the risk
associated with mining.
An extensive prefeasibility study has been concluded on the Project, which included both pilot scale and
full commercial scale trials to confirm the design and operational parameters.

The Project is to be undertaken in four phases over an 11 month period; namely

Phase one - Bankable Feasibility Study and Engineering Design. -- Completed.

Phase two - Construction of the chrome and platinum processing plant (“Processing Plant”). -- On-going

Phase three - Commissioning and Ramp up of Processing Plant to design capacity of 55 000 tons per
month.

Phase Four - Stable operation of the Processing Plant.

The Company has targeted a combined processing of platinum containing surface material over the two
projects in excess of 900 000 tons per annum.

The ZAR-based debt funding for both surface projects equates to GBP 11.5 million (ZAR 255 million)
before financing costs. The working capital required to bring the two surface projects into operation and
to achieve positive earnings is estimated at GBP 3.4 million (ZAR 75 million).



21 October 2016

United Kingdom

Sponsor: Sasfin Capital (a division of Sasfin Bank Limited)

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