REG - Jubilee Platinum PLC - Quarterly Operations and Financial update <Origin Href="QuoteRef">JLP.L</Origin>

Jubilee MetalsAnnouncement

06/09/2014 18:34

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RNS Number : 7809M
Jubilee Platinum PLC
21 July 2014 
 
Registration number (4459850) 
 
AltX share code: JBL 
 
AIM share code: JLP 
 
ISIN: GB0031852162 
 
21 July 2014 
 
Jubilee Platinum PLC 
 
("Jubilee" or the "Company") 
 
Quarterly Operations and Financial update 
 
Jubilee, the AIM-quoted and AltX quoted Mine-to-Metals specialist, is pleased
to announce an operations and financial update for the Middelburg operations
("Middelburg") for the second quarter of 2014 (Q2). The Company is also
updating shareholders regarding the sale of the Quartzhill property owned by
Tjate platinum Corporation Pty Ltd ("Tjate"). 
 
Highlights 
 
·      Unaudited revenue for Middelburg up 44.89% Q2 on Q1 
 
·      Unaudited gross profit for Middelburg up 11.14% for Q2 and exceeding
the targeted 38.00% 
 
·      Unaudited net loss for Middelburg Q1 of ZAR 2.691 million (GBP 0.151
million) converted to a net profit of  ZAR 1.247 million (GBP0.070 million) in
Q2 
 
·      Production up 47% 
 
·      Platinum smelting targeted for Q3 2014 
 
Leon Coetzer, CEO of Jubilee, says: 
 
"The Company continues to make significant progress in all of its current and
projected activities. The final hurdle for the submission of the Environmental
Management Program, as part of the Tjate mining right application, has been
overcome and submission is targeted for the end of July 2014 which will
conclude the submission requirements by the Department of Mineral Resources. 
We are working closely together with Anglo Platinum for the conclusion of the
sale of Quartzhill, linked to the Tjate mining right." 
 
"The Company is meeting all the challenges presented by the current operating
environment and remains fully confident in the developing business model and
the opportunities it presents." 
 
Middelburg Smelter 
 
Unaudited revenue in South African Rand (ZAR) terms increased by 44.89% to ZAR
17.839 million (GBP 1.001 million) from Q1 to Q2. 
 
Unaudited gross profit in Rand terms increased by 11.14% to ZAR 7.255 million
(GBP 0.407 million). The Middelburg Operations achieved its targeted gross
profit margin of 38.00% by reporting a gross profit of 40.67% for Q2. 
 
Unaudited net loss of  ZAR 2.691 million (GBP 0.151 million) in Q1 converted
into a profit of ZAR 1.247 million (GBP0.070 million).  This improvement is
driven by the Middelburg operations turning profitable on the back of the
conclusion of the renewal program of the smelter operations with growing
positive earnings being recorded for both May and June 2014. 
 
To date the Company has been able to counter the impact on operations caused
by the prevailing national strike of employees associated with the National
Union of Metal Workers of South Africa by increasing the power sales to the
National Electricity Provider of South Africa.  The Company is currently
reviewing options to further upgrade the power line infrastructure connecting
the Company's power plant to the national grid, to allow increased power sales
to the National Electricity Provider of South Africa. 
 
Revenues and gross profit 
 
Below is a table of unaudited external combined revenues, gross profits and
cash flow of the Middelburg Operations achieved for Q2 2014 compared to Q1
2014. 
 
                    ZAR         GBP*       ZAR          GBP*                
 Total revenue      17 839 979  1 000 672  12 312 725   690 640    44.90%   
 Gross Profit       7 255 078   406 949    6 528 005    366 166    11.14%   
 Net profit/(loss)  1 247 138   69 954     (2 691 060)  (150 946)  146.30%  
 
 
Net profit/(loss) 
 
1 247 138 
 
69 954 
 
(2 691 060) 
 
(150 946) 
 
146.30% 
 
* Average conversion rate is used for the relevant quarter 
 
ConRoast and Platinum Processing 
 
The Company is currently concluding final recipe optimisation test work on
platinum-containing material secured for the smelting at its Middelburg
operations.  The smelter trials are scheduled to be concluded over the next 5
days which is aimed to establish the optimum chemical additions for the
smelting of this material originating from platinum refining waste.  The
confirmation test work will be used to conclude the financial parameters for
the processing of the material at the Middelburg operations.  Depending on the
financial parameters the Company has targeted to commence processing material
during Q3 of 2014. 
 
The targeted processing of the platinum-containing material is in line with
the Company's stated strategy to migrate the Middelburg operations onto the
processing of higher value material on the back of the successful renewal
program. 
 
The Company is also pleased to announce that a current platinum producer has
appointed an engineering & project management firm to conclude a definitive
feasibility study for the implementation of a 10MW furnace at their property. 
The study is expected to be concluded over the next 3 months. 
 
Shareholders should note that the financial information contained in this
announcement has not been reviewed or audited by the Company's auditors. 
 
Contacts 
 
Jubilee Platinum plc 
 
Colin Bird 
 
Tel +44 (0) 20 7584 2155 
 
Leon Coetzer 
 
Tel +27 (0)11 465 1913 
 
Andrew Sarosi 
 
Tel +44 (0) 1752 221937 
 
JSE Sponsor 
 
Sasfin Capital, a division of Sasfin Bank Limited 
 
Sharon Owens 
 
Tel +27 (0) 11 809 7500 
 
NOMAD 
 
finnCap Ltd 
 
Matthew Robinson/Ben Thompson - corporate finance 
 
Tel +44 (0) 20 7220 0500 
 
BROKER 
 
Daniel Stewart and Company PLC 
 
Paul Shackleton / David Coffman 
 
Tel: +44 (0) 207 776 6550 
 
This information is provided by RNS
The company news service from the London Stock Exchange