(Alliance News) - Jubilee Metals Group PLC on Thursday announced it had entered a further long-term platinum group metals feed supply agreement with an unnamed chrome mining customer.
This expands the London-based metals processing company's PGM operations to the eastern limb of the PGM-rich Bushveld complex in South Africa.
Chief Executive Leon Coetzer said: "To date, Jubilee's current PGM operational footprint has been largely limited to the Western Limb of the mineral rich Bushveld complex, a single area of the two main PGM areas in South Africa This new long term PGM supply agreement announced today are of significant strategic value to Jubilee and expand our operations onto the Eastern Limb which provides the platform to source further growth opportunities."
The agreement is seen delivering an additional 16,500 tonnes of PGM feed per month.
In addition, Jubilee has acquired outright 255,000 tonnes of PGM containing chrome tailings.
Jubilee's 80,000 tonnes per month chrome beneficiation facility, near the Inyoni PGM operations in the Bushveld complex, has entered the final stages of commissioning to reach full production by the end of June.
"We have already demonstrated that the improved efficiencies across our chrome and PGM operations resulted in record production and sustained earnings growth at the South African operations and we expect this to continue at pace. With a total processing capacity of 250,000 tonnes per month of chrome ore and tailings, this will play a key role in providing a continued sustained chrome and PGM feed," Coetzer added.
Jubilee shares were up 2.3% at ZAR3.62 each in Johannesburg on Thursday morning, and were up 2.4% at 18.44 pence each in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Jubilee Metals (JLP)