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Jubilee Metals Group

Jubilee Metals makes steady progress towards substantial PGM production

Snapshot

  • Recovers platinum and other metals from tailings
  • Has contracts with miners in South Africa and Zambia
  • Annual production forecast to rise to 60,000oz PGMs
platinum

Quick facts: Jubilee Metals Group

Price: 4.1 GBX

Market: AIM
Market Cap: £76.07 m
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What it does

Hernic (SA)

Hernic is world’s 4th largest integrated ferrochrome producer with an estimated 3.2mln tonnes of Platinum rich material at surface, with an additional 17 000 tonnes being added.

Jubilee Metals PLC (LON:JLP)  is exclusive partner to recover PGMs.

DCM (SA)

Jubilee holds exclusive right to all PGMs currently at surface and from future mine production plus a 50% profit share on all chrome recovered.

Estimated 700 000 tonnes of Platinum and chrome rich material at surface.

PlatCro (SA)

Some 1.45mln tonnes of Platinum rich material at surface that is rising by an estimated 12,000 tonnes per month.

Target of 60,000 tonnes per month processing rate

Northam to fund refurbishment of platinum recovery circuit

Kabwe lead, zinc and vanadium (Zambia)

About 6.4 mln tonnes surface material containing an estimated 356 843 tonnes of zinc and 351 386 tonnes of lead.

Tjate Platinum Project (SA)

Targeted exploration 70 M oz PGMs over three farms

 

How it’s doing

For the 12 months ended 30 June, the AIM-listed firm reported a pre-tax profit of £7.9mln compared to a £2.4mln loss in the prior year as revenues surged to £23.6mln from £14.1mln.

Incomes were boosted by record production at the company’s platinum group metals (PGM) project at Inyoni in South Africa, where output rose to 23,847 ounces from 17,354 in 2018.

Jubilee added that the figures included just one full month of production at its Windsor operation, also in South Africa, which had already “exceeded expectations” for the month of September by delivering 5,337 PGM ounces, more than double that produced in the same period by Inyoni.

 

What the boss says, Leon Coetzer, chief executive:

“Jubilee has successfully expanded and diversified its earnings base across metal groups and mining jurisdictions, targeting surface material previously discarded or overlooked due to inherent process inefficiencies in the mining industry.

Jubilee has unlocked significant value from these surface assets by leveraging its in-house technical expertise and process development capabilities to implement fit for purpose, cost effective, cutting edge process solutions. Jubilee has incorporated a zero-effluent policy in its processing designs, resulting in the natural rehabilitation of these historical surface waste materials. The Company has a distinct expansion plan aimed at utilising its team, diversifying commodity and jurisdictional exposure to build cash flow and maximise the international opportunity.”

“The increased global awareness and focus on mine tailings globally continues to drive renewed interest from both governments and corporates to decrease the global footprint of legacy mine waste and reduce the environmental risk this poses. This creates ideal opportunities for Jubilee to engage in mine waste reduction through reprocessing, which meets local environmental obligations, whilst also realising economic benefit.”

With the shares trading at 4.7p as of 14 November 2019, Jubilee carries a market cap of £80.2mln.

 

Executive interview

Inflexion points

  • Record production at Inyoni project
  • Kabwe plant commissioning underway
  • New agreement at Hernic to acquire 100% of the rights to earnings from the current and future PGM tailings
  • First sales PGM concentrate expected from Platcro during August
  • Platcro output of 30,000 oz will double Jubilee’s output

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Watch

Jubilee Metals to see 'significant step-up in earnings' with Hernic deal

Jubilee Metals Group PLC (LON:JLP) CEO Leon Coetzer speaks to Proactive London's Andrew Scott following an agreement they've reached with Hernic Ferrochrome Pty Ltd to acquire 100% of the rights to earnings from the current and future tailings produced at the Hernic Project in South...

3 weeks, 1 day ago

3 min read