Wrap Text
Quarterly Operations Update Q4 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
Q4 2018
Highlights
• Combined quarterly operational earnings attributable to Jubilee up 13% to GBP 2.17
million (ZAR 40.08 million)
• Hernic PGM* quarterly production sets new record up 4% to 6 279 ounces over a
historically challenged festive season
• DCM fine chrome project commenced commissioning and is delivering to specification
high grade chrome concentrate
• PlatCro PGM Project commenced operation of its hydro-mining and dewatering
facility
• PlatCro Chrome transaction implemented in accordance with the sale and purchase
agreement
* 6 Element Platinum Group Metals
Leon Coetzer, Chief Executive Officer, says:
“Jubilee ended 2018 on a high, delivering record production at its Hernic operation and
increased operational earnings for Q4 of 2018. This performance was achieved during a period
which is generally challenged by the festive period.
I am particularly pleased with the commissioning of our advanced fine chrome plant at DCM,
which is delivering chrome concentrate to target specifications since early January. The fine
chrome plant is targeting the recovery of chrome from the approximate 620 000 tonnes of
chrome material contained in the existing DCM tailings. We intend to implement this
technology into all our other operations in the near future.
We have also concluded the implementation of the PlatCro chrome transaction as announced
in December and I will further update shareholders as we increase our exposure and
involvement in the operation.”
Hernic Operations - Platinum and Chrome (South Africa)
The Hernic operation continues to deliver a strong performance maintaining its proud record
of performance improvement quarter on quarter since commissioning in 2017. Platinum
delivered increased to 6 279 for Q4 of 2018. The project maintained its low cost base
producing below USD400 per PGM ounce. We continued to deliver to further increase the
production rate consistent with the increase in reclaimed surface material delivered by
Hernic.
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 revenue earnings3 earnings PGM oz
earnings earnings
tonnes delivered (GBP'000)1 (ZAR'000)2 (GBP'000) (ZAR'000) (USD)4
(GBP'000) (ZAR'000)
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
Total Q4
132 037 6 279 3 737 68,807 2,173 40,078 2,173 40,078 320
2018
Project to 805 215 30 420 17,098 302,562 8,197 146,325 8,197 146,325 389
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 Operation - Chrome (South Africa)
The construction of the DCM fine chrome recovery plant has been completed with
commissioning commencing during Q4 2018. The commissioning has advanced successfully
with the first chrome concentrate being produced to target grades from January 2019. This
new fine chrome recovery plant is a significant milestone for Jubilee to demonstrate the
recoverability of fine chrome at targeted concentrate grades.
During this period production rates at DCM were reduced to facilitate the integration of the
new fine chrome recovery plant. It is expected that production rates will be ramped-up to
the targeted plant capacity of 25 000 tonnes per month, in the near future.
The table below presents the operational quarterly performance of the DCM Operation:
Chromite Project Jubilee Jubilee
Project Project Project
concentrate revenue attributable attributable
revenue earnings2 earnings
produced (GBP'000) earnings earnings
(ZAR'000) (GBP’000) (ZAR’000)
Tonnes 1 (GBP’000) (ZAR’000)
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
Total Q4 8 958 534 9,840 (247) (4,532) (123) (2,266)
2018
Project to 156 931 16,367 284,052 7,325 125,859 2,550 44,288
date3
1 = Average monthly conversion rates used
2 = Project earnings include project expenditure on plant and equipment
3= Since April 2017
PlatCro PGM Operation - Platinum (South Africa)
The PlatCro PGM project has commissioned the hydro-mining and dewatering plant during
the quarter. The Company expects to commence with the delivery of PGM rich material to
the Eland Platinum concentrator during January 2019. The reclamation and dewatering 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.
United Kingdom
17 January 2019
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
Vassil Kirtchev/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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