JOHANNESBURG (miningweekly.com) – Aim- and AltX-listed Jubilee has pushed its earnings into positive territory during the six months ended December 31, following the inclusion of the low-cost Hernic ferrochrome platinum and chrome tailings operations for a full six months.

The group on Wednesday posted an increase in earnings before noncash operating expenses and interest to a positive R27.2-million during the six months under review, compared with the loss of R4.06-million in the corresponding period of the prior year.

“The Jubilee team has demonstrated their commitment to excellence by delivering the Hernic project in time and on budget and ramping up the project to already achieve a unit cost per platinum group metal (PGM) ounce produced of only $382,” Jubilee CEO Leon Coetzer said on Wednesday.

Jubilee’s gross profit for the period under review increased to R41.85-million, from R16.20-million in the corresponding six-month period in 2016.

The loss a share, including noncash expenses and interest, reduced from 95c in the six months to December 2016 to 44.15c in the six months to December 2017.

During the period, revenue increased to R105.8-million, from R86.8-million in the prior comparable period.

The Hernic operation produced 6 629 oz during the six months, with the unit cost per PGM ounce produced at a record low of $382 in the second quarter.

“The Hernic project continued to deliver significant operational improvements quarter-on-quarter following the commissioning and first production in March 2017,” he said.

The Hernic project revenue for the six months to December 31 reached R63.59-million, while operational earnings were R26.06-million.

Jubilee recorded production of 26 922 t at its Dilokong chrome mine (DCM) platinum and chrome tailings operation for the six months, a reduction on the 45 956 t of saleable chromite concentrate delivered in the prior period under review.

DCM operational earnings attributable to Jubilee for the period under review were R10.79-million.

Jubilee plans to start construction on its dedicated PGM recovery plant at the DCM operation this year.