Platinum group metals boosts Jubilee Metals earnings
JOHANNESBURG - Jubilee Metals reported a strong rise in earnings for the six months to end December, boosted by record earnings in its platinum group metals (PGMs), chrome operations and acquisitions.
PGM operations increased its revenue by a whopping 107 percent to £16 million (R298m) while earnings doubled to £8m as the delivery of PGM concentrate increased by 82 percent to 21 082 ounces during the period.
Its Windsor PGM operations almost doubled to 100 000 tons a month and the combined PGM processing capacity expanded three-fold to 170 000 tons a month.
Chief executive Leon Coetzer said on Tuesday it had been an exceptional period for Jubilee, which included two transformational transactions while the company maintained its growth trajectory by delivering another step by increasing earnings.
“The benefit of our multi-metal strategy has been clearly demonstrated in the period supported by our leading in-house technical and operational excellence. Our PGM operations delivered record earnings on the back of increased production and metal prices while our chrome operations showed their resolve maintaining positive earnings against much softer chrome prices delivering increased output and higher efficiencies,” Coetzer said.
Chrome operations revenue increased by 35 percent to £9m despite a 30 percent drop in the Chrome metal prices.
Chrome concentration production shot up to 186 249 tons, up from 17 011 compared to last year.
As a result Jubilee posted a 74 percent increase in combined revenue to £25m and a 47 percent increase in combined operational earnings to £8m compared to last year.
In August Jubilee completed the acquisition of the Sable Refinery in Zambia and produced first copper metal in November while commencing with the construction of the zinc refinery circuit.
Jubilee said the construction of the zinc refinery circuit had progressed well and is on track to produce the first zinc concentrate during the second quarter of 2020.
The group also acquired 100 percent of the surface tailings at the Inyoni operations, estimated at 3.33 million tons as well as future PGMs tails, extending the project life and taking full control of all operational aspects and gaining 100 percent economic rights.
“The acquisition further enhanced the company’s operational earnings capability, expanding Jubilee’s operations to other geographical areas and metals. Since the acquisition the team has commenced with the construction of the zinc refinery circuit and have brought the copper refinery circuit into operation producing its first high grade copper metal in November 2019,” Coetzer said.
He added that Jubilee was consistently delivering onits strategy of diversifying earnings across multiple commodities and jurisdictions.