Platinum Projects Quarterly Update – Q2 2017




Jubilee Platinum PLC

Registration number (4459850)

AltX share code: JBL

AIM share code: JLP

ISIN: GB0031852162

(“Jubilee” or “the Company”)

Platinum Projects Quarterly Update – Q2 2017

 

Jubilee is pleased to announce its metals recovery division, Jubilee Processing’s quarterly update for Q2 2017.

Highlights

HERNIC OPERATIONS

·     Operation achieves design throughput in June 2017

·     Operation achieves positive earnings in July 2017

·     Current PGMs1 produced  1, 697 oz

1 = Platinum Group Metals (6E)

DILOKONG CHROME MINE (DCM)

·     Operational earnings attributable to Jubilee of GBP 0, 39 million (ZAR 6, 50 million). (Q1 2017 GBP 0, 41 million (ZAR 6, 67 million))

·     Chromite concentrate production up by 18% to 17, 659 tonnes (Q1 14, 973 tonnes)

Leon Coetzer, Chief Executive commented:

“The Hernic operation has progressed from commissioning to a fully operational business unit and has demonstrated its capability of achieving the expected design parameters. The numbers below illustrates the operation’s rapid progress with the production for the month of July alone, already similar to the total PGM production for the year.

With commissioning concluded we continue to strive for operational excellence through continued optimisation of operational efficiencies.

The DCM project performed well despite pressures on chrome sale prices. We have been able to mitigate the drop in chrome prices by increasing the production output of the project.  For the second half of the year we aim to further increase production through increased treatment of 3rd party ore.

I am pleased that shareholders supported us with the first upfront payment of the PlatCro Platinum project.  This payment has secured all future PGM earnings from this project for Jubilee and prevented the Company from incurring further debt while first consolidating its current operations.

We are currently reviewing a number of business opportunities both in South Africa and abroad. A number of these opportunities offer the potential to continue the Company’s transformation process.”

Hernic overview

The Hernic project commenced operation during March 2017 with the project achieving design capacities during June 2017.  The quarter 2 data below captures the commissioning and ramp-up phase of the project with the more stable PGM production for July alone matching the total PGM produced for the year.   The numbers provided are limited to production and revenue and is reflective of a project during commissioning and ramp up of operations.  The second half will reflect a more steady state operation with the associated performance data to allow detail scrutiny of the operational and financial performance.

The table below indicates the monthly ramp-up of the Hernic Operation for Q2 2017:

Tailings  processed

Tonnes

PGMs delivered

Oz

Project Revenue 3(GBP’000)

Project Revenue 1(ZAR’000) 2

Apr-17

22, 987

56

17

293

May-17

21, 987

123

53

901

Jun-17

35, 854

688

331

5, 456

Total Q2 2017

80, 828

867

401

6, 650

 

Jul-17 (Projected from month to date)

38, 338

830

386

6,583

Total since project commencement in April 2017  1

119, 166

1,697

787

13,233

1= Revenue from the current project phase – 100% attributable to Jubilee until full capital recovery

2= Average monthly conversion rates used

3= Revenue is stated after the deduction of processing and refining charges.  Revenue is projected based on expected PGM market prices and USD exchange rates

 

 

DCM overview

The DCM earnings show the resilience of the project against decreasing chrome prices.    An increase in chrome production of 18% over the two quarters offset the drop in chrome prices as shown in the Jubilee attributable earnings.

The table below shows the operational performance of the DCM plant for Q1 and Q2 2017:

Chromite concentrate produced

tonnes

Project revenue (GBP’000)

Project revenue (ZAR’000)

Project earnings (GBP’000)

Project earnings (ZAR’000)

Jubilee attributable operational earnings (GBP’000)

Jubilee attributable operational earnings (ZAR’000)

Jubilee working capital loan repayments received (GBP’000)

Jubilee working capital loan repayments received (ZAR’000)

Total Q1 2017 2

14, 973

3, 372

55, 223

2, 407

39, 400

408

6, 664

Total Q2 2017 2

17, 659

1, 348

22, 731

386

6, 504

386

6, 504

175

3, 334

Total for the financial year ending 30 June 2017 1

72, 804

9, 437

162, 976

6, 103

105, 398

1, 630

28, 159

550

10, 000

Total since project commence-ment in April 2016  2

95, 487

10, 562

182, 113

6, 921

119, 601

2, 506

35, 868

550

10, 000

1= Annual average conversion rate used for the year ending 30 June 2017

2=Average monthly conversion rates used

General

A thorough due diligence of the Australian-based copper project identified certain risks that the Company did not consider in the best interest of shareholders.  The project remains of interest if approached with a different financial structure.  Jubilee continues to discuss further with the key shareholders of the project the best way to interrelate on the project to the benefit of both parties.

 

 

Technical Sign-Off

Andrew Sarosi, Director of Jubilee, who holds a B.Sc. Metallurgy and M.Sc. Engineering, University of Witwatersrand and is a member of the Institute of Materials, Minerals and Mining, is a “qualified person” as defined under the AIM Rules for Companies and a competent person under the reporting standards. The technical parts of this announcement have been prepared under Andrew’s supervision and he has approved the release of this announcement.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

The financial information in this announcement is unaudited.

United Kingdom

31 July 2017

Contacts

Jubilee Platinum plc

Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Andrew Sarosi
Tel +44 (0)1752 221937

JSE Sponsor

Sasfin Capital, (a member of the Sasfin Group)

Sharon Owens
Tel +27 (0)11 809 7500

Nominated Adviser

SPARK Advisory Partners Limited
Sean Wyndham-Quin/Mark Brady
Tel: +44 (0) 203 368 3555

Broker

Beaufort Securities Limited
Jon Belliss
Tel: +44 (0) 20 7382 8300