AltX- and Aim-listed Jubilee Metals on Thursday reported that the strong performance of the first quarter is expected to be maintained in the second quarter, as the PlatCro platinum group metals (PGMs) project is being brought into production at a targeted processing rate of 60 000 t/m.

The second quarter would also see the acceleration of the Kabwe vanadium, zinc and lead project, on the back of the acquisition of the Sable Zinc Kabwe refinery, in Zambia.

Following the completion of the PlatCro chrome acquisition in mid-January, Jubilee had successfully phased in management and operational control over the project. The second quarter would be the first full quarter for this operation, and Jubilee anticipated that the half yearly update would “be more reflective of the potential of this operation”.

The PlatCro PGMs project would start producing platinum- and palladium-rich concentrates during the second quarter.

The PlatCro PGMs project had the potential to double Jubilee’s PGMs production over the life of the project.

Meanwhile, the Hernic PGMs operation, in South Africa, maintained a strong performance, despite the power outages suffered during February and the delay in reaching full operational levels following the festive period, which affected the supply of feed material during January.

Hernic returned to full operational levels, producing more than 2 000 oz of PGMs in April, at below $400/oz, to achieve attributable project earnings for the quarter of £1.91-million (R35-million).

Jubilee’s DCM fine chrome recovery plant, constructed during the fourth quarter of 2018, successfully advanced its commissioning phase during the first quarter, with the first chrome concentrate being produced to targeted concentrate grades in January and delivered to the market.

Jubilee explained that the production rate continued to be ramped up, with design throughput rates of 25 000 t/m expected to be reached early in the second quarter.

The new fine chrome recovery plant, Jubilee added, was a “significant milestone for Jubilee as it demonstrates to the industry the recoverability of fine chrome at saleable concentrate grades”.

At the Kabwe operation, the company had entered into an agreement with two subsidiaries of Glencore to acquire Sable Zinc Kabwe. Closing of the acquisition was conditional on the fulfilment of conditions precedent, and included the approval of the acquisition under the Zambian Competition Act.

Jubilee had submitted its application for the approval to the Zambian Competition and Consumer Protection Commission and said that it had had positive engagements with the Commission to further review its application.

During the interim period, Jubilee’s project team was granted access to the Sable refinery to refine the implementation plan with a view to integrating Jubilee’s vanadium, zinc and lead refining process with the existing operations at the Sable refinery once the conditions had been satisfied.

Jubilee on Thursday confirmed that it had entered into discussions with various potential suppliers of run-of-mine zinc-rich material within the Kabwe region, the supply of which offered the potential to increase the targeted zinc capacity in addition to the targeted Kabwe surface material.

One such potential supplier of zinc ore included Star Zinc, a company in partnership with Galileo Resources, with whom Jubilee was in discussions to evaluate the pre-classification at source of a high-grade zinc stream which would be suitable for further refining at Jubilee.

Commenting on the operations update, CEO Leon Coetzer said that the period showcased Jubilee’s implementation of its stated mission to grow its earnings base, while maintaining strong margins and diversifying its operational footprint into base metals and across a number of mining jurisdictions.

“The team delivered strong earnings growth, breaching £3-million, while simultaneously implementing the PlatCro chrome transaction to increase our chrome operational footprint and successfully securing the funding for the implementation of our Zambian Kabwe project,” he highlighted.

This performance, Coetzer said, was achieved despite a slow operational period in January.