Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF) delivered revenues of £63.1mln and earnings of £10.3mln in the six months to 31 December 2022, as production at its platinum, chrome and copper operations in South Africa and Zambia continued.
Combined platinum group metals (PGM) and chrome sales accounted for £58mln of income, and copper sales accounted for £5.1mln.
During the period, the sales price of a basket of platinum group metals was down by 11%. This price weakness was partially offset by operational cost management and production output. The copper price was also lower.
Net cash flows from operating activities rang in at £16.9mln, up from £2.3mln in the corresponding period a year earlier. Cash at the end of the period stood at £11.7mln.
Meanwhile, work on the expansion of production on the Eastern Limb is progressing, and is expected to add an additional 25,000 PGM ounces per year to output.
This year, the company expects to produce 38,000 ounces of platinum group metals, more than 1.2mln tonnes of chrome concentrate, and 3,000 tonnes of copper.
"Our South African operations delivered a strong performance, with a 20% increase in PGM ounces versus the first half of fiscal year 2022 from own operations, while our chrome operations exceeded guidance, despite the impact of initial power interruptions,” said Jubilee chief executive Leon Coetzer in the results statement.
“Costs remained tightly under control, with PGM unit cost remaining close to US$600 per ounce. This positions our PGM operations at the bottom quartile of the industry's cost curve which is of key importance during current volatile markets. Our Roan copper concentrator is back on track, with the resumption of the ramp-up of the operations reaching 80% of full capacity," he added.
The issues around the extended water and power outages at Roan have been addressed through various interventions during February, he added.
"Jubilee has shown its resilience, acting speedily to implement solutions that address the infrastructure challenges faced at our operations during the period. The actions taken in South Africa included the implementation of back-up power units at our Windsor operations, which will be expanded over the coming period, while increasing the PGM stock held at our Inyoni operations to buffer against any prolonged power outages at our chrome operations.
In Zambia, we expanded our scope and implemented a dedicated, privately owned water infrastructure, to ensure water supply to our Roan operations, while expanding the power infrastructure and entering into a new power arrangement, that significantly enhances the security of supply to our operations. Together, these measures should mitigate against the impact of future power or infrastructure-related issues on our operations," Coetzer concluded.