TIDMJLP
RNS Number : 4407Y
Jubilee Metals Group PLC
09 May 2019
Jubilee Metals Group PLC
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
Jubilee Metals Group PLC
Quarterly Operations Update Q1 2019
Jubilee Metals Group ("Jubilee" or the "Company"), the AIM and
AltX traded metals processing company, is pleased to announce its
operational update for Q1 2019.
Highlights
-- 57% increase in quarterly operational earnings to GBP 3.22 million (ZAR 58.85 million)
-- 54% increase in combined quarterly revenue up to GBP 6.56 million (ZAR 119.90 million)
-- PlatCro chrome acquisition completed and contributing to
Company earnings ahead of projections
-- PlatCro PGM* project (platinum and palladium dominant)
targeted to commence with production in Q2 2019
-- First chrome concentrate from DCM fine chrome project
delivered to market with production ramp up expected to reach full
design capacity of 25 000 tonnes per month in Q2 2019
-- Exposure to wider commodity basket, including chrome, PGMs, vanadium, zinc and lead
-- Increased backing from institutional investors secured to
complete funding for the Kabwe project
-- Successful secondary placement of all Jubilee shares held by
BMR Group PLC to institutional investors
* 6 Element Platinum Group Metals including platinum, palladium,
rhodium, ruthenium, osmium and gold
Leon Coetzer, Chief Executive Officer, says:
"The period has been exceptional for Jubilee, showcasing the
implementation of our stated mission to grow our earnings base,
while maintaining strong margins and diversifying our operational
footprint into base metals and across a number of mining
jurisdictions.
The team delivered strong earnings growth breaching GBP 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. This performance was achieved despite a
notoriously slow operational period in January.
Our DCM fine chrome project is a remarkable achievement,
delivering its first saleable chrome concentrate to the market. I
look forward to the team achieving full design throughputs on the
back of this success during the next period. "
Consolidated operational financial review for Q1 2019
Q1 2019 has seen continued delivery by the Jubilee team bringing
into operation a further two projects, with the acquisition of the
PlatCro chrome operation and the commissioning of the DCM fine
chrome project.
This strong performance is expected to continue in Q2 2019 as
the PlatCro PGM project is brought into production at a targeted
processing rate of 60 000 tonnes per month and the acceleration of
the Kabwe vanadium, zinc and lead project, following the recent
acquisition of the Sable Zinc Kabwe Limited ("Sable Refinery")
refinery in Zambia.
The table below presents the operational revenue and earnings
performance for Q1 2019.
Jubilee Jubilee
Project Project attributable attributable
revenue revenue earnings earnings
PGM (GBP'000) (ZAR'000)(1) (GBP'000) (ZAR'000)
Q4 2018 3,737 68,807 2,173 40,078
----------- -------------- -------------- --------------
Q1 2019 3,443 62,959 1,908 34,993
----------- -------------- -------------- --------------
Jubilee Jubilee
Project Project attributable attributable
revenue revenue earnings earnings
CHROME (GBP'000) (ZAR'000)(1) (GBP'000) (ZAR'000)
Q4 2018 534 9,840 (123) (2,267)
----------- -------------- -------------- --------------
Q1 2019 3,117 56,945 1,309 23,854
----------- -------------- -------------- --------------
Jubilee Jubilee
Project Project attributable attributable
revenue revenue earnings earnings
COMBINED (GBP'000) (ZAR'000)(1) (GBP'000) (ZAR'000)
Q4 2018 4,271 78,647 2,049 37,811
----------- -------------- -------------- --------------
Q1 2019 6,560 119,904 3,216 28,847
----------- -------------- -------------- --------------
1 = Average monthly conversion rates used
Reporting timetable going forward
With the rapidly widening project footprint in terms of mining
jurisdictions, and commodity basket, as well as an active expansion
plan, the Board has, in consultation with a number of major
shareholders, concluded that it will in future present a more
detailed consolidated operational and financial review on a six
monthly period while continuing with a more frequent project
update. As the business continues to mature, the Board believes
this will provide shareholders with a more detailed view of the
Company's operational and project performance.
PlatCro operations - chrome, platinum and palladium (South
Africa)
Following completion of the acquisition of the PlatCro chrome
operation in mid-January 2019, the Company has successfully phased
in management and operational control over the project. The chrome
operation has already contributed positively to the group chrome
earnings ahead of projections as the Company continues to drive
efficiencies and enhance performance.
Importantly, Q2 2019 will be the first full quarter for this
operation, and a more detailed operational and financial
performance will be provided in the half yearly update, which the
Company believes will be more reflective of the potential of this
operation. The PlatCro PGM project is expected to commence with the
production of platinum and palladium rich concentrates during Q2
2019, and holds the potential to double Jubilee's current PGM ounce
production over the life of the project.
Hernic PGM operations - platinum and chrome (South Africa)
The Hernic PGM operation 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 2019. The
operations have returned to full operational levels producing in
excess of 2 000 PGM ounces for April 2019.
The Company maintained the operation's low cost base producing
at below USD400 per PGM ounce sold, to achieve an attributable
project earnings for the quarter at GBP 1.91 million (ZAR 35
million).
DCM operation - chrome (South Africa)
Jubilee's ground breaking DCM fine chrome recovery plant,
constructed during Q4 2018, has successfully advanced its
commissioning phase during Q1 2019, with the first chrome
concentrate being produced to target concentrate grades in January
2019 and delivered to market.
The production rate continues to be ramped up with design
throughput rates of 25 000 tonnes per month expected to be reached
during early Q2 2019. This new fine chrome recovery plant is a
significant milestone for Jubilee as it demonstrates to the
industry the recoverability of fine chrome at saleable concentrate
grades.
Kabwe operation - zinc, lead and vanadium (Zambia)
As previously announced on 21 March 2019, Jubilee has entered
into an agreement with two subsidiaries of Glencore plc (the
"Agreement") to acquire Sable Zinc Kabwe Limited (the "Sable
Refinery") in Zambia (the "Acquisition").
Closing of the Acquisition is conditional upon the fulfilment of
certain conditions precedent as contained in the Agreement,
including the approval of the Acquisition under the Zambian
Competition Act. Jubilee has submitted its application for the
approval of the Acquisition to the Zambian Competition and Consumer
Protection Commission (the "Commission") and has had positive
engagements with the Commission to further its review of the
application.
During this interim period, Jubilee's project team has been
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 condition relating to the Approval by the Commission as
noted above has been satisfied.
Jubilee has entered into discussions with various potential
suppliers of run of mine zinc rich material within the Kabwe
region. The supply of such high grade zinc material offers the
potential to increase the targeted zinc refining capacity in
addition to the targeted Kabwe surface material. Jubilee would only
consider such processing opportunities if they are value accretive
and further enhances project operating margins. Each of these
opportunities are carefully considered both commercially and
technically by Jubilee and ranked based on potential value addition
to the Kabwe Project.
One such potential supplier of zinc ore includes Star Zinc a
company in partnership with Galileo Resources PLC ("Galileo").
Jubilee is in discussions with Galileo to evaluate the
pre-classification at source of a high grade zinc stream which
would be suitable for further refining at Jubilee.
General
Jubilee is pleased to announce that the Company has successfully
facilitated the placement of all Jubilee shares held by BMR Group
PLC ("BMR") with a large institutional investment fund. BMR no
longer has an interest in the ordinary share capital of Jubilee.
This relates to the 2018 transaction whereby Jubilee acquired
29.01% of BMR as announced on 15 January 2018. The acquisition
consideration at the time was satisfied through a combination of
cash and the issue of new Jubilee shares.
United Kingdom
9 May 2019
Contacts
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser
SPARK Advisory Partners Limited
Andrew Emmott/Vassil Kirtchev
Tel: +44 (0) 203 368 3555
Broker
Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7 186 9900
JSE Sponsor
Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
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END
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