Jubilee’s DCM continues to outperform original estimates

JOHANNESBURG (miningweekly.com) – Chromite concentrate production at Aim-listed Jubilee Platinum’s Dilokong chrome mine (DCM) tailings project reached 9 670 t in July, a 29% month-on-month increase.

Jubilee, led by CEO Leon Coetzer, on Thursday said the project continued to outperform the original design numbers both in terms of revenue and earnings from chromite concentrate sales, as well as operational performance.

“Increased production month-on-month is very encouraging for the company and endorses previous decisions to focus on chrome and platinum. The enriched platinum material stockpile continues to grow and we are progressing options to turn the stockpile to cash,” said Coetzer.

An option study into toll processing as an alternative to building a plant at DCM will be finalised soon. If the study proves successful and Jubilee does not need to build a dedicated platinum processing plant, the company expects to receive platinum revenues a year earlier.

Meanwhile, DCM’s revenue from the sale of chromite concentrate is 33% higher month-on-month at R12.1-million, bringing overall revenue generated since the start of the project in April to R31.2-million.

HERNIC
Construction at Jubilee’s 660 000 t/y Hernic platinum and chromite processing project continues to progress on schedule for commissioning in December.

Jubilee has spent R108.1-million, or 55% of the total estimated project capital, to date.

“August and September will show accelerated visual progress on site, as the large platinum flotation units are being positioned onto the completed civil structures,” said Coetzer.