Wrap Text
Operations update Q3 2018
Jubilee Metals Group PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company")
Quarterly Operations Update
Q3 2018
Highlights
Hernic project’s operational earnings attributable to Jubilee up 19% to GBP 1.92 million (up 28%
to ZAR 35.52 million)
Hernic PGM* production up 4% to 6 009 ounces
PGM* production record set of 2 270 ounces in a month
Combined operational earnings attributable to Jubilee up 8% to GBP 1.78 million (up 16% to ZAR
32.89 million)
Construction of fine chrome recovery plant at DCM progressing to schedule
Targeted execution strategy for the Kabwe zinc and lead project
* 6 Element Platinum Group Metals
Leon Coetzer, Chief Executive Officer, says:
“I am very pleased to report yet another solid performance by the Jubilee team. I am equally
excited with the traction gained in the implementation of our global metals recovery
strategy. We have seen a growing demand from both small and global mining companies to
work with Jubilee in accessing the metals lost in the current and historical mine waste.
Our Hernic project has breached our targeted 6 000 PGM ounces produced in a single
quarter. The project continues to increase earnings as we focus to further increase the feed
rate to the facility. The operational costs for the project remain well contained, delivering a
cost of less than USD400 per produced PGM ounce.
The construction of our fine chrome recovery plant is well underway at our DCM plant,
targeting completion by November 2018. Once completed the fine chrome recovery plant
will target the recovery of the approximate 620 000 tonnes of chrome material contained in
the existing DCM tailings dam alone. An initial recovery target of 52% has been set.
Our Kabwe project has seen the successful conclusion of the research and design of the zinc
recovery circuit. The new circuit design includes pre-processing of the surface tailings to
produce an upgraded product for further leaching and refining. The refinery will target an
initial throughput of approximately 10 000 tonnes per month ramping up to an approximate
25 000 tonnes per month at completion of the project. The new refining circuit offers the
further potential to secure future ore supply from current zinc explores in the region.”
Hernic Project - Platinum and Chrome (South Africa)
The Hernic Project delivered another stellar performance for Q3 continuing its performance
improvement quarter on quarter since commissioning. Ounces delivered breaks through
the 6 000 ounces target set for the project for the first time since the start of production in
April 2017. Hernic Project earnings increased by 28% in ZAR terms quarter on quarter. The
project further improved on its cost base per PGM ounce producing below USD400 per
PGM ounce. Q3 included a new record production of 2 270 PGM ounces in a single month.
We expect to further increase this production rate in line with the focussed increase in
reclaimed surface material delivered by Hernic.
The table below presents the comparative quarterly performance of the Hernic project:
Project Project Project Jubilee Jubilee Unit cost /
Tailings PGM revenue revenue earnings Project PGM oz
attributable attributable
processed ounces (GBP'000) (ZAR'000) (GBP'000) earnings (USD)
earnings earnings
tonnes delivered (ZAR'000)
1 2 3 (GBP'000) (ZAR'000) 4
Total Q1
110 409 4 897 2,651 44,013 1,141 18,908 1,141 18,908 434
2018
Total Q2
119 479 5 800 3,308 56,761 1,612 27,686 1,612 27,686 397
2018
Total Q3
135 146 6 009 3 356 61,785 1,920 35,523 1,920 35,523 311
2018
Project to 673 178 24 141 13,361 233,755 6,024 106,247 6,024 106,247 407
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 Project - Chrome (South Africa)
The construction of the fine chrome recovery project is progressing to schedule.
Commissioning of the new expanded fine chrome recovery circuit remains on track for Q4
2018. The fine chrome project is expected to significantly enhance revenues and earnings
for the DCM Project. The DCM fine chrome recovery plant targets the recovery of chrome
currently lost by the chrome industry in general. This new fine chrome recovery plant also
serves as a demonstration plant to the chrome industry. Jubilee has received several
enquiries from the chrome industry to also access the fine chrome currently lost by the
industry.
Production rates at DCM have been reduced to facilitate the construction and tie-in of the
new fine chrome recovery plant. The reduced throughput rates will continue during the
construction and commissioning of the fine chrome plant.
The table below presents the operational quarterly performance of the DCM Project:
Chromite Project Project Jubilee Jubilee
Project Project
concentrate revenue earnings attributable attributable
revenue earnings
produced (GBP'000) (GBP’000) earnings earnings
(ZAR'000) (ZAR’000)
tonnes 1 2 (GBP’000) (ZAR’000)
Total Q1
9 810 1,240 20,628 245 4,080 123 2,040
2018
Total Q2 9 461 1,066 18,297 74 1,264 37 632
2018
Total Q3 8 053 592 10,824 (288) (5,278) (144) (2,639)
2018
Project to
date 147 973 15,833 274,211 7,572 130,392 2,674 46,554
3
1 = Average monthly conversion rates used
2 = Project earnings include project expenditure on plant and equipment
3= Since April 2017
PlatCro Project - Platinum (South Africa)
The PlatCro Project remains on track for commissioning in February 2019. The construction
of the material reclamation and dewatering plant is progressing to schedule which is
targeted for completion during Q4 2018. This plant will facilitate the ramp-up of material
delivery to the Eland platinum concentrator targeting a rate 50 000 to 60 000 tonnes of
platinum rich material per month.
Kabwe Project - Zinc, Lead and Vanadium Project (Zambia)
As announced on 6 August 2018, Jubilee was able to ensure that the success of the Kabwe
Project remains independent of the financial position of BMR with the option to acquire
100% of the Kabwe Project.
Following a detailed technical and engineering review by Jubilee of the Kabwe Project, its
process development teams were able to determine a more suitable process solution for
the recovery of lead and zinc in the surface material than the originally contemplated acid
and brine solution. The enhanced solution includes a dedicated zinc and lead recovery
circuit, initially targeting the recovery of zinc with the discard of the zinc circuit being
further processed in the lead recovery circuit.
A phased execution methodology has been developed which targets an initial processing
rate of approximately 10 800 tonnes per month ramping up to 25 000 tonnes per month
over two further phases. The phased implementation of the process solution links in with
the completion of the pre-processing of the surface material prior to the zinc recovery plant
as well as the implementation of the lead recovery circuit on the back end of the zinc circuit.
Pilot runs have indicated that we are able to increase the zinc grade through pre-processing
of the surface material by more than 50% prior to introducing the material to the zinc leach
circuit. This upgrading of the feed material successfully buffers the project’s economic
viability against largely fluctuating acid prices in Zambia. The tried and tested techniques
used to achieve the significant upgrade in feed material was developed by Jubilee initially
for its chrome and PGM operations.
As part of the current strategy Jubilee is reviewing the potential of accessing existing zinc
refining capacity located near the Kabwe Project. The relatively limited upgrade required to
the refinery would offer the potential to significantly shorten the project execution time line
for the zinc recovery circuit. Jubilee has estimated an upgrade period of approximately 4
months to adapt the refinery to the Kabwe material. During the interim period while this
potential is being assessed, the implementation of the tailings re-mining facility and the pre-
processing plant for the feed material will continue at the Kabwe Project. Jubilee expects to
conclude this strategy review during Q4 2018.
United Kingdom
17 October 2018
Contacts
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
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
JSE Sponsor
Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
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