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Positive milestones on the horizon as Jubilee beds down new acquisitions and projects

5th April 2019

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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AltX- and Aim-listed Jubilee Metals Group is optimistic of continuing profitability and productivity gains as it settles developed projects, negotiates new projects, raises necessary finance and increases output productivity.

The group believes its pipeline of projects offers significant growth potential in the short term, with active discussions under way to secure further surface processing projects as it continues its diversification of its operations and projects portfolio across borders and into base metals, nonexecutive chairperson Colin Bird says.

“Jubilee is well positioned to secure a significant position in the global metals recovery market as it continues to refine its project execution schedule for various targeted pipeline projects,” he adds, noting that major players in the industry have approached Jubilee to assist them with their tailings and other secondary deposits.

“We continue to investigate new business development concepts and are investigating a pipeline of projects, a number of which have the potential to even more significantly increase earnings and the Jubilee Metals profile.”

During the six months to December 31, 2018, the Hernic platinum group metals (PGMs) operations continued to deliver strong operational and financial results.

For the period under review, the Hernic PGMs operation achieved a unit cost per PGM ounce produced of below $400, which makes the operation one of the lowest-cost platinum producers in the industry, he says.

The operations nearly doubled PGM-ounce production to 12 288 oz during the half-year to December, with revenues increasing to £7.09- million,

despite a delayed start-up following the December break and the challenges posed by increased power outages.

Growth will be further supported by the acquisition of the PlatCro chrome operations and the commissioning of the Dilokong Chrome Mine (DCM) fine chrome operation.

DCM continued to perform well while in the process of constructing the fine chrome recovery plant, which was completed during the period under review and reached commercial production – achieving forecast recovery and concentrate grade – during March.

Jubilee acquired the PlatCro chrome operation in January 2019, which is already contributing to the group’s earnings ahead of schedule, with £900 000 contributed over January and February.

Jubilee plans to recover chrome contained in the material and process the remaining platinum- and palladium-containing material in partnership with the nearby Northam Platinum’s Eland platinum recovery plant, which is also a growth driver for the company.

The PlatCro PGMs operation aims to process up to 60 000 t/m of PGMs material, equating to a production potential of 30 000 oz/y – the equivalent of the targeted production levels at the Hernic PGMs operation.

The company accelerated deliveries of the PGMs-containing material to Eland from February 2019, with processing expected to start in May.

Meanwhile, Jubilee made a move into Zambia through the acquisition of the Sable zinc refinery for the processing of Jubilee’s zinc-, vanadium- and lead-containing material at the Kabwe project.

The refinery is located immediately adjacent to the large stockpiles of zinc, lead and vanadium that Jubilee has contracted from the BMR group.

Jubilee also acquired a 29.01% shareholding in BMR, which took its beneficial interest up to 91.5% of the Kabwe project.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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