Jubilee Platinum rises as South African production improves

Jubilee Platinum’s Middelburg operations maintained performance in the fourth quarter meeting the targeted throughput and gross profit margins.

The announcement on Monday, 9 March 2015, also stated that:

• Unaudited revenue for the Middelburg operations rose by 10.12% on the previous three months and metal production increased to 2,282 tonnes – up from 2031 tonnes in the third quarter.
• Unaudited gross profit for the Middelburg operations rose by 25.22% on Q3 on margins of 44% exceeding the targeted gross margin of 38%.
• Unaudited net profit for the Middelburg operations rose to ZAR2.53m – up from ZAR1.31m in Q3.

Chief executive Leon Coetzer said: The Middelburg operations have maintained its performance meeting the targeted throughput and gross profit margins. We will continue to strive to further optimise the operations by reducing the variable cost per metal ton produced while containing the operations overhead. We look forward to concluding a 5 year extended power purchase agreement with the national energy provider of South Africa while simultaneously increasing the power supplied to the national grid. The targeted increased power sales, together with the further improved smelter operations, are targeted areas to further enhance the operations earnings.

He added that Jubilee continues to invest into the two platinum surface processing projects at ASA and Hernic as it accelerates these projects to bring them into production.

The platinum surface processing projects will allow Jubilee to produce low cost platinum concentrates for further processing at the smelters in the near term. The two projects will target a combined throughput of approximately 80 000 tonnes per month of platinum containing surface material.

These projects have the potential of significantly transforming Jubilee into a low cost platinum producer from surface operations underpinned by the Tjate platinum exploration project.