| Tue 27 Mar 2012, 8:00 | | JBL - Jubilee Platinum Plc - Trading Statement |
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JBL
JUJLP
JBL - Jubilee Platinum Plc - Trading Statement
JUBILEE PLATINUM PLC
AIM: JLP
JSE: JBL
Registration number: 4459850
ISIN: GB0031852162
("Jubilee")
TRADING STATEMENT
In terms of the Listings Requirements of the JSE Limited, a listed company is
required to publish a trading statement as soon as it becomes aware that the
financial results for the next period to be reported on will show a 20% or more
difference from those of the previous corresponding period.
Jubilee is expecting a decrease in loss per share and headline loss per share
of between 55% and 75% for the interim period ended 31 December 2011 compared to
that of the previous comparative period.
Shareholders are referred to the following extract from the interim results for
the six months ended 31 December 2011, which extract has been included to
explain the above decrease in loss per share and headline loss per share:
HIGHLIGHTS IN THE PERIOD UNDER REVIEW
- Company produced its initial platinum containing alloy for export, in
March 2012 and will continue to increase the production of this material.
- The new 5MVA furnace commissioned at Middelburg became operational in
November 2011 with the Middelburg operation reaching a record production of
774 tonnes of ferroalloy in January 2012 and 818 tonnes in March 2012.
Ramping up of the operation continues in order to reach targeted full
production of 1200 tonnes of alloy per month.
- The Middelburg site continues to increase revenues and generating cash flow
in line with the ramp-up of the operation since November 2011.
- Company focussed on advancing current and several new opportunities for
ConRoast including potential rights to chromite tailings, existing joint
ventures, securing prospecting and mining rights for its PGM-bearing
chromite deposits in the western Bushveld.
- Tjate/Jubilee received a cash offer of ZAR75 million for Quartzhill farm
portion of the Tjate platinum deposit - Quartzhill is considered not being
core to Tjate`s long term mining plan.
- A Mining Right Application has been submitted for the Tjate Platinum
project.
- Jubilee concluded a drilling program for new samples on the Leinster nickel
sulphide tailings for testwork at Mintek South Africa.
The Company raised GBP4.422 million through a placing of 31 585 714 new Jubilee
oridnary shares with major insitutional investors at a price of 14 pence
(ZAR1.72).
CHAIRMAN`S REPORT
Dear Shareholder,
The Company operated in a challenging six months period ending 31 December 2011
making significant positive progress in the implementation of its Mine-to-Metal
business strategy.
In the period under review:
The Company on behalf of its subsidiary Tjate Platinum Corporation (Pty) Ltd
("Tjate Platinum") received a ZAR75M cash offer from a major mining company for
the Quartzhill farm, a portion of the Tjate Platinum`s Project. This offer
represents a premium of nearly double the pro-rated original purchase price for
the farm, which is not core to Tjate Platinum`s long-term mining plan for the
project. This offer, which Jubilee is recommending to Tjate Platinum
shareholders, is subject, inter alia, to the approval of 80% of Tjate Platinum
shareholders, regulatory approvals and due diligence by the offeror. The offer
is a vindication of Jubilee`s acquisition of a substantial interest in what is
arguably the largest undeveloped block of platinum in the eastern Bushveld.
The Company awaits the Department of Mineral Resources` ("DMR") acceptance of
Tjate Platinum`s application for a mining right.
Applications for other Jubilee projects being considered by the DMR include
mining right applications by the Company`s subsidiary Maude Mining and
Exploration for platinum to portions on Elandsdrift and Bokfontein farms; and a
prospecting right for platinum and chromite in a separate venture for farms
comprising more than 64 other portions of the Bokfontein farm.
The Company`s new ferroalloy smelting furnace (5MVA AC) in Middelburg became
operational in November 2011 with the Middelburg operation reaching in January
2012(post interims) a record 774 tonnes of ferroalloy production and a new high
in March 2012 of 818 tonnes of ferroalloy. This steady progress in production
ramp up of the new furnace reflects the successful use of improved refractory
materials for the furnace shell lining and tap blocks resulting in materially
less corrosion of the linings and in turn less furnace downtime. The increase in
production has resulted in a strong increase in revenues generated by the
operation (from November 2011 and post interims). The management continues to
ramp up production towards its targeted design output of 1200 tonnes ferroalloy
per month.
The Company continued its dialogue with Northam Platinum under its Memorandum of
Understanding to establish a joint venture to evaluate the construction of a
dedicated 5MW DC arc furnace facility using ConRoast technology specifically to
smelt concentrate produced from Northam`s developing Booysendal mine in the
eastern Bushveld.
The Department of Economic Development, Environment and Tourism issued the
Company`s subsidiary Jubilee Smelting and Refining (Pty) Ltd. ("JSR") in
Middelburg with an Atmospheric Emission Licence in respect of its current and
submitted new planned operations. JSR`s smelter operation is now fully permitted
for the implementation of the ConRoast process and associated refining of the
PGM containing alloy. This, together with maximising cash flow from the
ferroalloy smelting process, significantly advances JSR`s medium term mission
for the implementation of the complete ConRoast platinum smelting process and
further strengthens its position in negotiations in sourcing PGM-rich chromite
tailings.
The Company has continued to assess and enter into dialogue with owners of near-
term PGM-rich chromite mining and tailings retreatment opportunities. Jubilee is
in a unique position to avail itself of these opportunities due to its ability
to process platinum concentrates containing high chrome values. The Company has
submitted a bid for the processing of a platinum-bearing chromite tailings
opportunity and expects the outcome of the bid to be announced within Quarter 2
of 2012. Processing of own platinum concentrates significantly enhances the
business model for the Company.
In Madagascar, the Company`s 2011 planned drilling programme for the Ambodilafa
project has been delayed due to difficulties with the local drilling contractor.
The Company continues to review its strategic options for continued exploration
in the country.
Jubilee`s Australian subsidiary, Braemore Nickel (Pty) Ltd ("Braemore")
concluded a drilling program on the Leinster nickel sulphide tailings to obtain
fresh samples for testwork at Mintek South Africa, in order to refine the
scoping flowsheet on the Nickel Tailings Project.
During the period under review, the Company made a loss attributable to
shareholders of GBP3,347,944 compared to a loss of GBP1,252,442 in the six
months ended 31 December 2010. The loss per share for the period under review
was 1.24 pence against a loss of 0.76 pence for the interim period ending 31
December 2010. Of this 1.24 pence loss per share, depreciation accounted for
0.27 pence per share.
In October 2011, the Company raised GBP4.422 million gross through a placing
with major institutions of 31,585,714 new ordinary shares of 1 pence each in the
Company at 14 p per share representing a 12% premium to the then prevailing
market price.
The information in this trading statement has not been reviewed or reported on
by Jubilee`s auditors. The interim results announcement is expected to be
published on or about 30 March 2011.
Johannesburg
27 March 2012
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 27/03/2012 08:00:01 Produced by the JSE SENS Department.
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