Last checked at 31 Jul 2017 11:52
("Registration number: 4459850")
AIM share code: JLP
AltX share code: JBL
ISIN: GB0031852162
Jubilee Platinum Plc
("Jubilee" or "the Company")
Platinum Projects Quarterly Update - Q2 2017
Jubilee is pleased to announce its metals recovery division, Jubilee Processing's quarterly update for Q2 2017.
Highlights
HERNIC OPERATIONS
· Operation achieves design throughput in June 2017
· Operation achieves positive earnings in July 2017
· Current PGMs1 produced 1, 697 oz
1 = Platinum Group Metals (6E)
DILOKONG CHROME MINE (DCM)
· Operational earnings attributable to Jubilee of GBP 0, 39 million (ZAR 6, 50 million). (Q1 2017 GBP 0, 41 million (ZAR 6, 67 million))
· Chromite concentrate production up by 18% to 17, 659 tonnes (Q1 14, 973 tonnes)
Leon Coetzer, Chief Executive commented:
"The Hernic operation has progressed from commissioning to a fully operational business unit and has demonstrated its capability of achieving the expected design parameters. The numbers below illustrates the operation's rapid progress with the production for the month of July alone, already similar to the total PGM production for the year.
With commissioning concluded we continue to strive for operational excellence through continued optimisation of operational efficiencies.
The DCM project performed well despite pressures on chrome sale prices. We have been able to mitigate the drop in chrome prices by increasing the production output of the project. For the second half of the year we aim to further increase production through increased treatment of 3rd party ore.
I am pleased that shareholders supported us with the first upfront payment of the PlatCro Platinum project. This payment has secured all future PGM earnings from this project for Jubilee and prevented the Company from incurring further debt while first consolidating its current operations.
We are currently reviewing a number of business opportunities both in South Africa and abroad. A number of these opportunities offer the potential to continue the Company's transformation process."
Hernic overview
The Hernic project commenced operation during March 2017 with the project achieving design capacities during June 2017. The quarter 2 data below captures the commissioning and ramp-up phase of the project with the more stable PGM production for July alone matching the total PGM produced for the year. The numbers provided are limited to production and revenue and is reflective of a project during commissioning and ramp up of operations. The second half will reflect a more steady state operation with the associated performance data to allow detail scrutiny of the operational and financial performance.
The table below indicates the monthly ramp-up of the Hernic Operation for Q2 2017:
Tailings processed Tonnes | PGMs delivered Oz | Project Revenue 3 (GBP'000) | Project Revenue 1 (ZAR'000) 2 | |
Apr-17 | 22, 987 | 56 | 17 | 293 |
May-17 | 21, 987 | 123 | 53 | 901 |
Jun-17 | 35, 854 | 688 | 331 | 5, 456 |
Total Q2 2017 | 80, 828 | 867 | 401 | 6, 650 |
Jul-17 (Projected from month to date) | 38, 338 | 830 | 386 | 6,583 |
Total since project commencement in April 2017 1 | 119, 166 | 1,697 | 787 | 13,233 |
1= Revenue from the current project phase - 100% attributable to Jubilee until full capital recovery
2= Average monthly conversion rates used
3= Revenue is stated after the deduction of processing and refining charges. Revenue is projected based on expected PGM market prices and USD exchange rates
DCM overview
The DCM earnings show the resilience of the project against decreasing chrome prices. An increase in chrome production of 18% over the two quarters offset the drop in chrome prices as shown in the Jubilee attributable earnings.
The table below shows the operational performance of the DCM plant for Q1 and Q2 2017:
Chromite concentrate produced tonnes | Project revenue (GBP'000) | Project revenue (ZAR'000) | Project earnings (GBP'000) | Project earnings (ZAR'000) | Jubilee attributable operational earnings (GBP'000) | Jubilee attributable operational earnings (ZAR'000) | Jubilee working capital loan repayments received (GBP'000) | Jubilee working capital loan repayments received (ZAR'000) | |
Total Q1 2017 2 | 14, 973 | 3, 372 | 55, 223 | 2, 407 | 39, 400 | 408 | 6, 664 | - | - |
Total Q2 2017 2 | 17, 659 | 1, 348 | 22, 731 | 386 | 6, 504 | 386 | 6, 504 | 175 | 3, 334 |
Total for the financial year ending 30 June 2017 1 | 72, 804 | 9, 437 | 162, 976 | 6, 103 | 105, 398 | 1, 630 | 28, 159 | 550 | 10, 000 |
Total since project commence-ment in April 2016 2 | 95, 487 | 10, 562 | 182, 113 | 6, 921 | 119, 601 | 2, 506 | 35, 868 | 550 | 10, 000 |
1= Annual average conversion rate used for the year ending 30 June 2017
2=Average monthly conversion rates used
General
A thorough due diligence of the Australian-based copper project identified certain risks that the Company did not consider in the best interest of shareholders. The project remains of interest if approached with a different financial structure. Jubilee continues to discuss further with the key shareholders of the project the best way to interrelate on the project to the benefit of both parties.
Technical Sign-Off
Andrew Sarosi, Director of Jubilee, who holds a B.Sc. Metallurgy and M.Sc. Engineering, University of Witwatersrand and is a member of the Institute of Materials, Minerals and Mining, is a "qualified person" as defined under the AIM Rules for Companies and a competent person under the reporting standards. The technical parts of this announcement have been prepared under Andrew's supervision and he has approved the release of this announcement.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
The financial information in this announcement is unaudited.
United Kingdom
31 July 2017
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 member of the Sasfin Group)Sharon 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