5th Jun 2019 14:55
LONDON (Alliance News) - Jubilee Metals Group PLC on Wednesday said its DCM fine chrome project in South Africa is ramping up and is targeting a significant rise in June from May with completion in July.
Shares in Jubilee were up 5.6% at 3.09 pence in afternoon trade.
In May, production at DCM exceeded 3,800 tonnes of saleable chrome concentrate due to the commissioning of the facility at DCM. Jubilee is hoping for a rise 32% to 5,000 tonnes in June with the production ramp-up phase to complete by July.
Moreover, Jubilee's PlatCro platinum group metals processing plant in South Africa has begun commissioning with a capacity of 60,000 tonnes per month.
Production of platinum group metals is to begin in June, adding around 30,000 ounces of platinum group metals per annum to Jubilee's production and doubling annualised production capacity to approximately 60,000 tonnes.
Jubilee Chief Executive Leon Coetzer said: "Adding 30,000 ounces per annum of PGM production capacity to our existing 30,000 ounces is another huge milestone for Jubilee and should significantly impact our financial performance especially with PlatCro PGM producing in the low cost quartile. This is in addition to PlatCro chrome operation, acquired in January 2019, which is already contributing to company earnings ahead of projections.
"Alongside the positive increases in chrome and PGM processing, production at our DCM fine chrome project also continues to ramp up in-line with expectations."
Jubilee's acquisition of Sable Zinc Kabwe Ltd has also been officially recommended by the Zambian Competition & Consumer Protection Commission. Jubilee announced its acquisition of the Sable Zinc refinery in Zambia in March for a GBP9.2 million consideration in stage payments.
Coetzer said: "An important part of our on-going development strategy is to diversify earnings through adding additional projects, widening metal exposure and expanding our geographic footprint. I am therefore delighted with the official recommendation from the ZCCPC in support of our acquisition of the Kabwe zinc, lead and vanadium project in Zambia from Glencore. As a result, and to utilise time efficiently during this interim phase, we continue to finalise the process design which will allow us to hit the ground running on formal completion, targeting production in Q4 2019."
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