Jubilee Metals Group PLC Quarterly Operations Update Q4 2018 (3706N)

TIDMJLP

RNS Number : 3706N

Jubilee Metals Group PLC

17 January 2019

Jubilee Metals Group PLC

Registration number (4459850)

AltX share code: JBL

AIM share code: JLP

ISIN: GB0031852162

("Jubilee" or "the Company")

Quarterly Operations Update

Q4 2018

Highlights

-- Combined quarterly operational earnings attributable to Jubilee up 13% to GBP 2.17 million (ZAR 40.08 million)

-- Hernic PGM(*) quarterly production sets new record up 4% to 6 279 ounces over a historically challenged festive season

-- DCM fine chrome project commenced commissioning and is delivering to specification high grade chrome concentrate

   --    PlatCro PGM Project commenced operation of its hydro-mining and dewatering facility 
   --    PlatCro Chrome transaction implemented in accordance with the sale and purchase agreement 

* 6 Element Platinum Group Metals

Leon Coetzer, Chief Executive Officer, says:

"Jubilee ended 2018 on a high, delivering record production at its Hernic operation and increased operational earnings for Q4 of 2018. This performance was achieved during a period which is generally challenged by the festive period.

I am particularly pleased with the commissioning of our advanced fine chrome plant at DCM, which is delivering chrome concentrate to target specifications since early January. The fine chrome plant is targeting the recovery of chrome from the approximate 620 000 tonnes of chrome material contained in the existing DCM tailings. We intend to implement this technology into all our other operations in the near future.

We have also concluded the implementation of the PlatCro chrome transaction as announced in December and I will further update shareholders as we increase our exposure and involvement in the operation."

Hernic Operations - Platinum and Chrome (South Africa)

The Hernic operation continues to deliver a strong performance maintaining its proud record of performance improvement quarter on quarter since commissioning in 2017. Platinum delivered increased to 6 279 for Q4 of 2018. The project maintained its low cost base producing below USD400 per PGM ounce. We continued to deliver to further increase the production rate consistent with the increase in reclaimed surface material delivered by Hernic.

The table below presents the comparative quarterly performance of the Hernic operation:

 
            Tailings       PGM        Project        Project        Project      Project      Jubilee        Jubilee        Unit 
            processed    ounces       revenue        revenue      earnings(3)   earnings    attributable   attributable     cost 
             tonnes     delivered   (GBP'000)(1)   (ZAR'000)(2)    (GBP'000)    (ZAR'000)     earnings       earnings      / PGM 
                                                                                             (GBP'000)      (ZAR'000)        oz 
                                                                                                                          (USD)(4) 
 Total 
  Q2 2018    119 479      5 800        3,308          56,761         1,612       27,686        1,612          27,686        397 
           ----------  ----------  -------------  -------------  ------------  ----------  -------------  -------------  --------- 
 Total         135 
  Q3 2018       146       6 009         3 356         61,785         1,920        35,523        1,920         35,523         311 
           ----------  ----------  -------------  -------------  ------------  ----------  -------------  -------------  --------- 
 Total         132 
  Q4 2018       037       6 279         3 737         68,807         2,173        40,078        2,173         40,078         320 
           ----------  ----------  -------------  -------------  ------------  ----------  -------------  -------------  --------- 
 Project 
  to date    805 215     30 420        17,098        302,562         8,197       146,325       8,197         146,325        389 
           ----------  ----------  -------------  -------------  ------------  ----------  -------------  -------------  --------- 
 

1= Revenue from the current project phase - 100% attributable to Jubilee until full capital recovery. Revenue is projected based on latest average PGM market prices and USD exchange rates and results are only final once final Quotational Period has passed

2= Average monthly conversion rates used

3= Project Earnings include all incurred operational costs including management services and mineral royalties

4= Unit cost includes provision for utility overhead.

DCM Operation - Chrome (South Africa)

The construction of the DCM fine chrome recovery plant has been completed with commissioning commencing during Q4 2018. The commissioning has advanced successfully with the first chrome concentrate being produced to target grades from January 2019. This new fine chrome recovery plant is a significant milestone for Jubilee to demonstrate the recoverability of fine chrome at targeted concentrate grades.

During this period production rates at DCM were reduced to facilitate the integration of the new fine chrome recovery plant. It is expected that production rates will be ramped-up to the targeted plant capacity of 25 000 tonnes per month, in the near future.

The table below presents the operational quarterly performance of the DCM Operation:

 
                  Chromite        Project       Project       Project       Project        Jubilee         Jubilee 
                 concentrate      revenue        revenue     earnings(2)    earnings     attributable    attributable 
                  produced      (GBP'000)(1)    (ZAR'000)     (GBP'000)     (ZAR'000)      earnings        earnings 
                   Tonnes                                                                 (GBP'000)       (ZAR'000) 
 Total 
  Q2 2018          9 461           1,066         18,297          74          1,264           37              632 
               -------------  --------------  -----------  -------------  -----------  --------------  -------------- 
 Total 
  Q3 2018           8 053           592          10,824        (288)        (5,278)         (144)          (2,639) 
               -------------  --------------  -----------  -------------  -----------  --------------  -------------- 
 Total 
  Q4 2018           8 958           534           9,840        (247)        (4,532)         (123)          (2,266) 
               -------------  --------------  -----------  -------------  -----------  --------------  -------------- 
 Project 
  to date(3)       156 931         16,367        284,052        7,325        125,859        2,550           44,288 
               -------------  --------------  -----------  -------------  -----------  --------------  -------------- 
 

1 = Average monthly conversion rates used

2 = Project earnings include project expenditure on plant and equipment

3= Since April 2017

PlatCro PGM Operation - Platinum (South Africa)

The PlatCro PGM project has commissioned the hydro-mining and dewatering plant during the quarter. The Company expects to commence with the delivery of PGM rich material to the Eland Platinum concentrator during January 2019. The reclamation and dewatering plant will facilitate the ramp-up of material delivery to the Eland Platinum concentrator targeting a rate 50 000 to 60 000 tonnes of platinum rich material per month.

United Kingdom

17 January 2019

Contacts

Jubilee Metals Group PLC

Colin Bird/Leon Coetzer

Tel [phone] / Tel [phone]

Nominated Adviser

SPARK Advisory Partners Limited

Vassil Kirtchev/Andrew Emmott

Tel: [phone]

Broker

Shard Capital Partners LLP

Damon Heath/Erik Woolgar

Tel [phone]

JSE Sponsor

Sasfin Capital (a member of the Sasfin group)

Sharon Owens

Tel [phone]

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January 17, 2019 03:30 ET (08:30 GMT)