Last checked at 6 Mar 2017 09:45
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
6 March 2017
Jubilee Platinum PLC
("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.
· The first 3rd 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."
Chromite concentrate tons produced | Project revenue (GBP'000) | Project revenue (ZAR'000) | Project earnings (GBP'000) | Project earnings (ZAR'000) | Jubilee attributable project earnings (GBP'000) | Jubilee attributable project earnings (ZAR'000) | |
Q2 2016 (May, June 2016) | 15 188 | 1,002 | 19,137 | 744 | 14,203 | 456 | 8,710 |
Q3 2016 (July, August, September 2016) | 28 559 | 2 086 | 37 360 | 1 548 | 27 702 | 888 | 15 887 |
Q4 2016 (October, November, December 2016) | 19 108 | 2 754 | 47 662 | 1 837 | 31 792 | 465 | 8 033 |
% change Q3 on Q4 | (33.09%) | 32.01% | 27.57% | 18.68% | 14.77% | (47.60%) | (49.43%) |
YTD since start of project in May 2016 | 62 855 | 5 842 | 104 159 | 4 128 | 73 697 | 1 809 | 32 630 |
DCM OPERATIONAL AND FINANCIAL PERFORMANCE
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 alone. The first 3rd 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 CoetzerTel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913Andrew SarosiTel +44 (0)1752 221937
JSE Sponsor
Sasfin Capital, a division of Sasfin Bank LimitedSharon OwensTel +27 (0)11 809 7500
Nominated Adviser
SPARK Advisory Partners LimitedSean Wyndham-Quin/Mark BradyTel: +44 (0)203 368 3555
Broker
Beaufort Securities LimitedJon BellissTel: +44 (0) 20 7382 8300