# Jubilee Metals Group Ended 2018 on a high, delivering record production at its Hernic operation - Link: https://www.directorstalkinterviews.com/jubilee-metals-group-ended-2018-on-a-high-delivering-record-production-at-its-hernic-operation/412764503 - Published: 2019-01-17T08:41:25+00:00 - Author: Charlotte Edwards **[Jubilee Metals Group](https://www.directorstalkinterviews.com/company/jubilee-metals-group-plc/jlp.l)**( [LON:JLP](https://www.directorstalkinterviews.com/company/jubilee-metals-group-plc/jlp.l)), today announced quarterly operations update Q4 2018 **Highlights** · Combined quarterly operational earnings attributable to Jubilee up 13% to GBP 2.17 million (ZAR 40.08 million) · Hernic PGM* quarterly production sets new record up 4% to 6 279 ounces over a historically challenged festive season · DCM fine chrome project commenced commissioning and is delivering to specification high grade chrome concentrate · PlatCro PGM Project commenced operation of its hydro-mining and dewatering facility · PlatCro Chrome transaction implemented in accordance with the sale and purchase agreement * 6 Element Platinum Group Metals > **Leon Coetzer, Jubilee Metals Chief Executive Officer, says:** > “Jubilee ended 2018 on a high, delivering record production at its Hernic operation > and increased operational earnings for Q4 of 2018. This performance was achieved > during a period which is generally challenged by the festive period. > I am particularly pleased with the commissioning of our advanced fine chrome plant > at DCM, which is delivering chrome concentrate to target specifications since > early January. The fine chrome plant is targeting the recovery of chrome from > the approximate 620 000 tonnes of chrome material contained in the existing DCM > tailings. We intend to implement this technology into all our other operations > in the near future. > We have also concluded the implementation of the PlatCro chrome transaction as > announced in December and I will further update shareholders as we increase our > exposure and involvement in the operation.”   **Hernic Operations – Platinum and Chrome (South Africa)** The Hernic operation continues to deliver a strong performance maintaining its proud record of performance improvement quarter on quarter since commissioning in 2017. Platinum delivered increased to 6 279 for Q4 of 2018. The project maintained its low cost base producing below USD400 per PGM ounce. We continued to deliver to further increase the production rate consistent with the increase in reclaimed surface material delivered by Hernic. The table below presents the comparative quarterly performance of the Hernic operation:   | | Tailings processed tonnes | PGM ounces delivered | Project revenue  (GBP’000)^(1) | Project revenue  (ZAR’000)^(2) | Project earnings^(3)(GBP’000) | Project earnings (ZAR’000) | Jubilee attributable earnings (GBP’000) | Jubilee attributable earnings (ZAR’000) | Unit cost / PGM oz (USD)^(4) | | Total Q2 2018 | 119 479 | 5 800 | 3,308 | 56,761 | 1,612 | 27,686 | 1,612 | 27,686 | 397 | | Total Q3 2018 |  135 146 |  6 009 |  3 356 |  61,785 |  1,920 |  35,523 |  1,920 |  35,523 |  311 | | Total Q4 2018 |  132 037 |  6 279 |  3 737 |  68,807 |  2,173 |  40,078 |  2,173 |  40,078 |  320 | | Project to date | 805 215 | 30 420 | 17,098 | 302,562 | 8,197 | 146,325 | 8,197 | 146,325 | 389 |   1= Revenue from the current project phase – 100% attributable to Jubilee until full capital recovery. Revenue is projected based on latest  average PGM market prices and USD exchange rates and results are only final once final Quotational Period has passed  2= Average monthly conversion rates used 3= Project Earnings include all incurred operational costs including management services and mineral royalties 4= Unit cost includes provision for utility overhead. **DCM Operation – Chrome (South Africa)** The construction of the DCM fine chrome recovery plant has been completed with commissioning commencing during Q4 2018. The commissioning has advanced successfully with the first chrome concentrate being produced to target grades from January 2019. This new fine chrome recovery plant is a significant milestone for Jubilee to demonstrate the recoverability of fine chrome at targeted concentrate grades. During this period production rates at DCM were reduced to facilitate the integration of the new fine chrome recovery plant. It is expected that production rates will be ramped-up to the targeted plant capacity of 25 000 tonnes per month, in the near future. The table below presents the operational quarterly performance of the DCM Operation: | | Chromite concentrate produced Tonnes | Project revenue (GBP’000)^(1) | Project revenue  (ZAR’000) | Project earnings^(2)(GBP’000) | Project earnings (ZAR’000) | Jubilee attributable earnings (GBP’000) | Jubilee attributable earnings (ZAR’000) | | Total Q2 2018 | 9 461 | 1,066 | 18,297 | 74 | 1,264 | 37 | 632 | | Total Q3 2018 |  8 053 |  592 |  10,824 | (288) | (5,278) | (144) | (2,639) | | Total Q4 2018 |  8 958 |  534 |  9,840 | (247) | (4,532) | (123) | (2,266) | | Project to date^(3) |  156 931 |  16,367 |  284,052 |  7,325 |  125,859 |  2,550 |  44,288 |   1 = Average monthly conversion rates used 2 = Project earnings include project expenditure on plant and equipment 3= Since April 2017   **PlatCro PGM Operation – Platinum (South Africa)** The PlatCro PGM project has commissioned the hydro-mining and dewatering plant during the quarter. The Company expects to commence with the delivery of PGM rich material to the Eland Platinum concentrator during January 2019. The reclamation and dewatering plant will facilitate the ramp-up of material delivery to the Eland Platinum concentrator targeting a rate 50 000 to 60 000 tonnes of platinum rich material per month.     Share on: