Last checked at 
LONDON (Alliance News) - Jubilee Platinum PLC Monday said it has begun commissioning the third Arc furnace at its Middelburg smelter operations in South Africa, and has also submitted a scoping report for its Tajate platinum project to South Africa's Department of Mineral Resources.
The commissioning of the furnace marks the final phase of the four-phase renewal programme implemented by Jubilee at the Middelburg Smelter over the past two years. The programme's objectives were to expand and upgrade the smelter operations to establish a sustainable toll processing operation able to deliver positive cash flows to the smelter operation on the back of secured smelting contracts.
"Our focus now intensifies in-line with our stated company strategy, of bringing into production our access to platinum containing surface material, ultimately to migrate our smelter operations onto processing platinum concentrates," Chief Executive Leon Coetzer said in a statement.
Due to delays caused primarily by wet weather, the firm said the cost of its smelter renewable programme rose by GBP22,000, and it spent an additional GBP183,000 to protect the site in the future.
Jubilee said that with capacity now at 13,800 tonnes of metal a year, its smelter operation ?is expected to sustain revenue growth supported by an increase to a targeted 38% in gross profit margins, which would deliver positive smelter earnings targeting a net margin of 12%.?
Submission of the scoping report brings Jubilee step closer to getting a mining right approval for Tjate and concluding the sale of the Quartzhill portion of the project.
"The sale of Jubilee's non-core Quartzhill property is linked to the conclusion of the mining right application and granting of the mining right," Coetzer said.
The funds from the proposed sale will be used to further develop the Tjate project.
The stock was trading flat at 1.70 pence Monday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.