Jubilee’s projects make financial progress
The share price jumps 11% on the JSE after the producer says it is making gains in a range of metals
Jubilee Metals Group gained financial ground with its two key operations and is doing the groundwork to grow further in a range of metals after years of trying to get a foothold in platinum in SA.
The results pushed Jubilee’s share price on the JSE up as much as 11% before it subsided to a gain of 2%, or 1c to 47c, giving the company, which is also listed in London, a R614m market capitalisation.
Jubilee, which has changed its name from Jubilee Platinum, reported a narrowing of its attributable loss to £283,000 for the six months to end-December compared with a loss of £515,000 in the year before.
Further up the income statement, however, the company reported revenue of £5.99m, up from £4.85m the year before and it notched up gross profit of £2.4m compared with £906,000 before.
Depreciation and share-based payments of £1.8m eroded the firm’s financials and contributed to the loss.
Jubilee conducted a rights issue after the interim period, raising £4.5m, topping up its £2.5m cash balance at the end of December.
It spent £14m in the period on its chrome and platinum group metals recovery plants.
“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,” said CEO Leon Coetzer. “We are actively pursuing further potential projects to include further metals such as cobalt and copper into our pipeline.”
At the Hernic Ferrochrome platinum and chrome tailing retreatment operation, which was commissioned in March 2017, output was 6,629oz of six platinum group elements, with Jubilee pointing out that at a cost of $382/oz in the December quarter it was “one of the lowest-cost producers in the industry”.
The project generated £3.6m in revenue and operational earnings of £1.46m.
Jubilee has spent a total of £13m at its Hernic project, which has delivered 2,949oz of the six platinum group metals in the first two months of 2018.