Jubilee Platinum PLC Platinum Projects Quarterly Update - Q2 2017 (5880M)

TIDMJLP

RNS Number : 5880M

Jubilee Platinum PLC

31 July 2017

("Registration number: 4459850")

AIM share code: JLP

AltX share code: JBL

ISIN: GB0031852162

Jubilee Platinum Plc

("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 PGMs(1) 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 3(rd) 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       PGMs         Project          Project 
                            processed    delivered       Revenue          Revenue 
                             Tonnes         Oz        (3) (GBP'000)    (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       119, 
  2017 (1)                     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      Project     Project     Project     Project      Jubilee        Jubilee       Jubilee      Jubilee 
                  concentrate    revenue     revenue    earnings    earnings    attributable   attributable    working      working 
                   produced     (GBP'000)   (ZAR'000)   (GBP'000)   (ZAR'000)   operational    operational     capital      capital 
                    tonnes                                                        earnings       earnings        loan         loan 
                                                                                 (GBP'000)      (ZAR'000)     repayments   repayments 
                                                                                                               received     received 
                                                                                                              (GBP'000)    (ZAR'000) 
---------------  ------------  ----------  ----------  ----------  ----------  -------------  -------------  -----------  ----------- 
 Total 
  Q1 2017                          3,          55,         2,          39, 
  (2)               14, 973        372         223         407         400          408           6, 664          -            - 
---------------  ------------  ----------  ----------  ----------  ----------  -------------  -------------  -----------  ----------- 
 Total 
  Q2 2017                          1,          22,                     6, 
  (2)               17, 659        348         731         386         504          386           6, 504         175         3, 334 
---------------  ------------  ----------  ----------  ----------  ----------  -------------  -------------  -----------  ----------- 
 
 Total 
  for 
  the 
  financial 
  year 
  ending 
  30 June 
  2017                             9,         162,         6,         105, 
  (1)               72, 804        437         976         103         398         1, 630        28, 159         550        10, 000 
---------------  ------------  ----------  ----------  ----------  ----------  -------------  -------------  -----------  ----------- 
 Total 
  since 
  project 
  commence-ment 
  in April 
  2016                             10,        182,         6,         119, 
  (2)               95, 487        562         113         921         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 [phone] / Tel [phone]

Andrew Sarosi

Tel [phone]

JSE Sponsor

Sasfin Capital, (a member of the Sasfin Group)

Sharon Owens

Tel [phone]

Nominated Adviser

SPARK Advisory Partners Limited

Sean Wyndham-Quin/Mark Brady

Tel: [phone]

Broker

Beaufort Securities Limited

Jon Belliss

Tel: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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July 31, 2017 06:52 ET (10:52 GMT)