Mine-to-Metals specialist Jubilee Platinum plc has provided, on behalf of subsidiary, Jubilee Tailings Treatment Company, a performance, operational and financial update for the three-months’ ended 30 June 2016, of its chrome recovery section of the Dilokong Chrome mine tailings project and a progress update on the Hernic PGM-bearing chrome tailings project.
The update reveals that Chromite concentrate production at Dilokong reached a total of 15 188 tons produced to end June 2016, of which 7 480 tons was in June 2016. The revenue generated from chromite concentrate sales to end June 2016 of ZAR 19.1 million (GBP 1 million). Project earnings of ZAR14.2 million (GBP 0.744 million) of which ZAR 8.7 million (GBP 0.456 million) attributable to Jubilee. PGM processing option with 3rd party processer in final discussions offering significant project upside. Potential value of saleable platinum in inventory is approximately R 399.1 million (GBP 21 million) at current platinum prices
Construction of the 55 000 tons per month platinum and chromite processing plant, Hernic, is progressing to schedule. Project capital expenditure to date of ZAR 88.5 million (GBP 4.6 million) equivalent of 45% of total estimated project capital. Commissioning of world’s largest platinum recovery plant from chrome tailings target to commence in December 2016
“The DCM Project has outperformed the original design numbers both in terms of revenue, earnings from chromite concentrate sales and better than designed operational performance. To date early project revenue has been generated from the sales of chromite concentrate. The enrichment of the platinum material which is produced by recovering chromite from the surface material and rejecting waste has exceeded our projections due to a better than expected chromite yield from the DCM Project, without compromising the PGM metal recovery to the platinum material,” said Leon Coetzer, Chief Executive at Jubilee Platinum.