Metals processing company Jubilee Metals’ share price on the JSE rallied by more than 10% last week, 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 into 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 173 54 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 owing 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 of £4.87-million.”

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

The placed 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 include the Kabwe zinc, lead and vanadium refinery project, in Zambia, and the roll-out of the company’s successful fine chrome solution at its DCM fine chrome operations to all 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.