Jubilee CEO Leon Coetzer
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Mine-to-metals company Jubilee Platinum, which smelts using self-generated electricity, is setting out to raise additional equity capital in both Johannesburg and London.
The London Aim- and Johannesburg AltX-listed company expects a total of 31 526 128 new Jubilee shares to be listed and admitted to trading at 26.94c a share in Johannesburg and 1.55p a share in London.
The move to raise equity capital follows Jubilee’s 47% increase in quarter-on-quarter production at the Middelburg Smelter, where operations achieved a net profit of R1.33-million in May.
In the past quarter, the company – headed by CEO Leon Coetzer – has concluded a smelter upgrade and renewal programme, which has delivered a profitable operation within a month of commissioning.
The completion of mining right application for the Tjate platinum group metals (PGM) project is also poised to unlock R75-million in cash from the sale of Quartzhill to Anglo American Platinum subsidiary Rustenburg Platinum.
An application for a mining permit for the processing of the surface material to recover PGMs has been submitted for the Dilokong tailings project, where a new processing plant is planned.
The smelting and refining unit, which makes use of ConRoast technology that is able to process material containing platinum and ferrometals, is achieving better revenues and improved gross profit margins.
In order to support the working capital of the smelter operations, the company – which has an 11 MW gas-fired Power Alt electricity plant that also supplies surplus power to South Africa’s national electricity grid – has agreed a settlement with selected creditors.