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Jubilee Metals feels the benefit of the ramp-up at Hernic project

The Hernic project continued to deliver significant operational improvements quarter-on-quarter following the commissioning and first production in March 2017
Mining operations
Capital expenditure on the Hernic project totalled £12.94mln

Jubilee Metals Group PLC (LON:JLP) turned a profit before non-cash operating expenses and interest in the second half of 2017.

Profit for the period was £1.54mln versus a loss the year before of £233,000, although once operating costs, including depreciation and share-based payments are factored in the profit turned into a loss of £267,000, which still represented a significant improvement on the previous year's loss of £581,000.

Revenue rose to £5.99mln from £4.85mln, with revenue from the Hernic project in the period clocking in at £3.59mln.

READ: Jubilee Metals almost doubled quarterly earnings at Hernic platinum operation

Platinum group metals (PGM) production at the Hernic ferro chrome platinum and chrome tailings operation in the second half of 2017 was 6,629 ounces, with the unit cost per PGM ounce produced achieving a record low in the fourth quarter of US$382, making the project one of the lowest cost producers in the industry.

PGM production in the first two months of 2018 totalled 2,949 ounces.

At the Dilokong chrome mine platinum and chrome tailings operation, 26,922 tonnes of saleable chromite concentrate was produced in the reporting period.

Operational earnings attributable to Jubilee eased to £610,000 from £960,000 the year before.

“The Jubilee team has demonstrated their commitment to excellence by delivering the Hernic project in time and on-budget and ramping up the project to already achieve a unit cost per PGM ounce produced of only US$382.  These numbers demonstrate the return on investment offered by Jubilee's strategy for metals recovery from surface waste and stockpiles,” said Leon Coetzer, the chief executive officer of Jubilee.

“Jubilee's project pipeline includes further surface projects containing platinum and chrome and we have expanded our reach into Zambia by securing a position in the surface lead, zinc and vanadium project at Kabwe. We are actively pursuing further potential projects to include further metals such as cobalt and copper into our pipeline,” Coetzer said.

Shares in Jubilee opened 1% higher at 2.93p.

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