14th Nov 2019 14:41
(Alliance News) - Jubilee Metals PLC on Thursday said it has raised GBP6.5 million, about ZAR124.5 million, through a share placing to "support targeted growth".
Jubilee shares were 2.2% lower at 4.23 pence each in London on Thursday, giving it a market capitalisation of GBP79.2 million. Meanwhile in Johannesburg, the shares were 2.4% higher at ZAR0.87 each.
The metals processing company said it issued 162.2 million shares at a price of 4 pence each.
The proceeds of the placing will be used towards the completion of the chrome and platinum group metals transaction at Jubilee's Inyoni operations, it said.
The proceeds will also go towards the implementation of the company's targeted expansion plans which includes the Kabwe zinc, lead and vanadium refinery project in Zambia, and the roll-out of Jubilee's "successful" fine chrome solution at its DCM fine chrome operations.
"As we announced in our final results earlier today, our earnings continue to show significant growth and the addition of the chrome and platinum group metals rights at our Inyoni operation not only expands our operational footprint but holds the potential to significantly further enhance our earnings," explained Chief Executive Leon Coetzer.
Early on Thursday Jubilee reported it swung to an annual profit, helped by record production from its Inyoni platinum group metals asset in South Africa.
In the financial year ended June 30, revenue rose by 67% to GBP23.6 million from GBP14.1 million. Jubilee reported pretax profit of GBP7.9 million from a GBP2.4 million loss the year before.
Production at Inyoni rose by 38% year-on-year to 23,847 ounces, an annual record, from 17,354 ounces last year.
The newly acquired Windsor chrome operations, also in South Africa, delivered 149,272 tonnes of chrome concentrate.
South Africa's Dilokong chrome mine produced a total of 32,675 tonnes of chrome concentrate, a 29% annual fall from 46,191 tonnes.
Jubilee said: "During the initial part of the period under review chrome prices were satisfactory and platinum group metals were somewhat depressed. However, at the time of writing this report chrome prices retracted sharply but has been offset by an improving platinum group metals basket price buoyed in particular by palladium and rhodium."
By Eric Cunha; [email protected]
Updated by Evelina Grecenko; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Jubilee Metals