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JUBILEE PLATINUM PLC - DCM Operations update - Exercise of warrants

Release Date: 06/03/2017 11:45
Code(s): JBL     PDF:  
Wrap Text
DCM Operations update - Exercise of warrants

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

DCM Operations update

Exercise of warrants




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 Q4 2016 as well as a
project update for the platinum processing project at Hernic Ferrochrome Pty Ltd (“Hernic”).



Highlights

DCM Project Q4 2016

Construction of the new tailings, post chromite removal, storage facility commenced and the
first phase of the expansion has been successfully commissioned on 25 January 2017.
These tailings contain the enriched platinum material.

The DCM Project continued production of chromite concentrate at a reduced rate during the
construction period. The production rate has been restored to previous levels during February
2017.

Chromite concentrate production during Q4 was lowered to 19 108 tons for Q4 2016
compared with 28 559 tons for Q3 2016.

Chromite project earnings increased on the back of a significantly higher chromite price to
GBP 1, 837 million (ZAR 31, 792 million) for Q4 2016 compared to Q3 2016.

Earnings attributable to Jubilee for Q4 2016 from chromite concentrate production reduced
due to the lower concentrate production and loss of incentives to GBP 0,465 million (ZAR 8,
033 million,) compared with Q3 2016.
          rd
The first 3 party chrome and platinum containing material is scheduled to be processed at
DCM during Q1 2017.



Leon Coetzer, Chief Executive commented:

“The operating results are satisfactory against the constraints of the expansion of the tailings
storage facility. The DCM Project performed to maintain production output during this
challenging construction period. The expansion of the tailings facility was completed on time
allowing the project to restore its operational throughput.

The commissioning and ramp-up of the Hernic chromite and platinum recovery plant remains
a key focus. We will provide an update on the Hernic project shortly as we start delivering
product from the operation.

The significant milestone reached with the Tjate platinum project continues to demonstrate
our aggressive pursuit to continuously advance the Company’s mission of a Mines to Metals
Company while growing shareholder value. As stated before 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



                      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)
     Q4 2016           19 108         2 754        47 662        1 837          31 792           465               8 033
    (October,
   November,
December 2016)
% change Q3 on         (33.09%)      32.01%        27.57%       18.68%          14.77%         (47.60%)           (49.43%)
       Q4

YTD since start of     62 855         5 842        104 159       4 128          73 697          1 809              32 630
 project in May
      2016



            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 and the first phase of the expansion project completed on 25 January 2017
            allowing the production rates to be restored to previous levels. The DCM Project team
            managed to continue production throughout the construction phase at a reduced production
            rate. Production rates have been restored during February 2017 on the back of the
            successful first phase tailings storage expansion. The further expansion phases of the
            project will not directly impact the production rates at the DCM Project.

            All chromite production to date at DCM continues to be from the processing of surface tailings
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            alone. The first 3 party chrome and platinum containing material is scheduled to be
            processed at DCM during Q1 2017. Stated Project earnings are net of operational cost and
            cost of chromite concentrate sales.

            Jubilee also announces that it has received notification to exercise 10 000 000 warrants at a
            price of 4.725p (ZAR75.65c) per warrant share. This exercise leaves 8 244 825 outstanding
            warrants priced at 4.725p. The exercise of the warrant shares amounts, in aggregate, to a
            cash value of £472,500 (ZAR 7,564,725).

            The warrant shares are expected to be admitted to trading on AIM and listed on the AltX of
            the JSE Limited on or about 10 March 2017 and will rank pari passu with the ordinary shares
            of the Company in issue.

            The Company's total issued share capital, after the issue of the warrant shares, will be
            1 052 360 942 ordinary shares. As the Company does not hold any 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.
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

United Kingdom
6 March 2017

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