Metals processing company Jubilee Metals’ share price on the JSE rallied by more than 10% on Thursday morning, while its shares on the LSE rose by nearly 7%, after it reported strong growth in earnings for the financial year ended June 30.

The Aim- and AltX-listed company reported earnings of £7-million, or R128-million, compared with a loss of £2.1-million, or R37-million, incurred in the year ended June 30, 2018.

This translated to earnings of 0.48p apiece, or 8c apiece, in the reporting year compared with a loss of 0.18p apiece, or 3c apiece, in the prior year.

Jubilee, in the year under review, produced 181 947 t of chrome concentrate and 23 847 oz of platinum-group metal (PGMs).

Production was mainly driven by the company’s Inyoni PGM and chrome beneficiation facility, in South Africa, previously known as the Hernic Operations, with contributions from new production facilities having been brought on line during the year under review.

Inyoni produced 23 847 oz of PGMs, compared with the 17 354 oz produced in the prior year.

The Windsor chrome operation, also in South Africa, delivered 149 272 t of chrome concentrate. This operation subsequently delivered 5 337 oz of PGMs post-year-end.

The DCM fine chrome operation, in South Africa, produced 32 675 t of chrome concentrate, compared with the 46 191 t produced in the prior year.

“Jubilee has successfully expanded and diversified its earnings base across metal groups and mining jurisdictions, targeting surface material previously discarded or overlooked due to inherent process inefficiencies in the mining industry.

“Jubilee has unlocked significant value from these surface assets by leveraging its in-house technical expertise and process development capabilities to implement fit-for-purpose, cost-effective and cutting-edge process solutions,” said CEO Leon Coetzer.

Chairperson Colin Bird noted that, through the successful implementation of a defined strategy, the company had significantly expanded Jubilee’s operational, jurisdictional and earnings footprint.

“This has resulted in a current portfolio of five operations in South Africa and Zambia, a defined and valuable metal inventory, exposure to a broad commodity basket that includes PGMs, chrome, copper, lead, zinc, vanadium and cobalt and a sharp swing from an operating loss to an operating profit to £4.87-million.”

Meanwhile, the company has raised £6.49-million, or R124.4-million,  through a placing of about 162-million new ordinary shares at a price of 4p e apiece.

The placing shares represent about 8% of the enlarged issued share capital. The proceeds of the placing will be used towards the completion of the chrome and PGM transaction at the company’s Inyoni operations and to implement the company’s targeted expansion plans, which includes the Kabwe zinc, lead and vanadium refinery project, in Zambia, and the rollout of the company’s successful fine chrome solution at its DCM fine chrome operations to all of its operations, including Inyoni and Windsor.

“This placing which was significantly oversubscribed was carefully considered by Jubilee to support the acquisition of its chrome and PGM rights at Inyoni while maintaining its capital roll out plan. As we announced in our final results, our earnings continue to show significant growth and the addition of the chrome and PGM rights at our Inyoni Operation not only expands our operational footprint but holds the potential to significantly further enhance our earnings," Coetzer stated.