LONDON – Jubilee Metals’ PGM operations consist of the Inyoni and Windsor JV PGM operations. The construction of the expanded Inyoni PGM Operations to increase its processing capacity by 45% to 75 000 tonnes per month is complete and commissioning of the expanded operation at Inyoni has commenced.
Jubilee’s current PGM operational footprint has been largely focused on the Western Limb, a single area of the two main PGM areas in South Africa. The Eastern Limb has been a key focus of Jubilee to expand its PGM reach and operational capacity. The PGM Supply Agreements entered into give access to this area offering a platform to pursue further growth opportunities.
The PGM Supply Agreements are all based on the LG6 chrome reef known for its high Rhodium content accounting for approximately 12% of a produced PGM ounce compared with as low as 7% of other chrome reefs.
The PGM Supply Agreement has secured the rights to long term PGM feed supply of an estimated 16 500 tonnes per month, with the potential of producing up to 14 500 PGM ounces per annum. The plan is to initially process the increased PGM feed at Jubilee’s expanded Inyoni PGM Operations targeted for July 2021 however consideration is being given to implementing a dedicated processing facility in the Eastern Limb.
The PGM Supply Agreement offers a minority earnings participation to the Chrome Mine partner allowing them exposure to the PGM values which also enhances their earnings potential. They also demonstrate Jubilee’s ability to continue to grow its business by re-investing its earnings into high growth projects and by forming true partnerships with its chrome mining customers.
In addition to the PGM Supply Agreement, Jubilee has also acquired outright a further 255 000 tonnes of PGM containing chrome tailings (equivalent to approximate production of 12 300 PGM ounces) produced from the processing of LG6 chrome reefs which further increases Jubilee’s existing surface PGM tailings.
PGM revenue for H1 2021 is up 29% to GBP 47.2 million from H2 2020. PGM attributable operational earnings for H1 2021 is up 38.2% to GBP 36.5 million from H2 2020.
Operational project unit cost expressed as US$ per PGM ounce produced, increased over the past 6-month period, which is mainly driven higher by the strengthening South African rand to the US dollar contributing approximately US$78 dollars per ounce, as well as the associated increased transport cost to truck the PGM tailings located in the Eastern Limb to the Inyoni PGM processing plant.