Shares in Jubilee Metals Group PLC (LON:JLP) rose by more than 5% in early trade as the company’s Hernic operation in South Africa turned in record platinum group metals production numbers.
In March, Hernic produced 1,858 ounces of platinum, bringing to a close a healthy quarter in which total production was up 30% to 4,897 ounces.
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What’s more, the unit cost per platinum group metal ounce produced was just US$434, allowing for significant margin on prevailing platinum and palladium prices.
As a result of all this, operational earnings from Hernic increased by 18% to £1.14mln.
"I am very pleased with the continued operational improvements at our Hernic operations,” said Leon Coetzer, chief executive of Jubilee.
“I expect the second quarter of 2018 to deliver even better operational numbers as the Hernic operation continues to improve.”
He also commented on the company’s other major project, the Dilokong operation, also in South Africa, as well as operations further afield.
“Our DCM operation is going through a transitional phase as we gear up to execute the PGM project. We have temporarily suspended the processing of 3rd party ore at DCM due to continued variation in feed quality causing operational difficulties negatively impacting our production of chrome from the on-site tailings and surface waste material. It is an exciting period for Jubilee as we expand our operational reach. Our projects team has a busy time ahead as we look to execute the PlatCro PGM project, DCM PGM project and the Kabwe project."