# Jubilee Metals Group PLC Q&A: Quarterly Operations Update (LON:JLP)

- Link: https://www.directorstalkinterviews.com/jubilee-metals-group-plc-qa-quarterly-operations-update-lonjlp/412749648
- Published: 2018-04-20T08:33:55+01:00
- Author: Amilia Stone

**[Jubilee Metals Group](https://www.directorstalkinterviews.com/company/jubilee-metals-group-plc/jlp.l)
PLC** ([LON:JLP](https://www.directorstalkinterviews.com/company/jubilee-metals-group-plc/jlp.l))
Chief Executive Officer Leon Coetzer caught up with DirectorsTalk for an exclusive
interview to discuss their quarterly operations update

 

**Q1: We saw this morning Jubilee Metals’ operations update, what were your standout
numbers from the quarter’s production?**

**A1**: I suppose the most information in that ops update is around Hernic and its
production numbers to dispel any concerns that the market or shareholders might 
have had on our Hernic project’s ability to meet each design targets. We’ve broken
1,860 ounces in a single month and nearly touched on 5,000 ounces of platinum group
metals (PGM) dispatched to the refinery. For that month alone, of March, we specifically
highlighted that number to indicate that the majority of those ounces for the quarter
was in fact made up in March indicating that the project is well on its way to reach
its targeted ounce profile.

I think if you look deep into the numbers, you’ll note that those ounces this first
quarter to 2018, the platinum ounces, were made of lower tonnage of throughput into
our plant which if you then calculate the actually true efficiency improvement of
how many platinum ounces are being recovered per tonne processed, you’ll note that
it’s into the 40% improvement of efficiency.
 So, a significant jump in this quarter
on efficiency improvement which is vitally important when you look at what is the
potential of delivering platinum ounces when you push up throughput. Efficiency 
is the driver in the platinum business so very satisfied on the Hernic project. 
Of course, along with that is to be able to break £1 million in net earnings from
our project in a quarter alone from Hernic, another milestone from that project.

One will note, of course, that operational cost per platinum ounce was slightly 
up in the period and that purely was driven by one-off costs coming through in the
first quarter of the new year which includes the salary increases, it included a
relatively large accrual for a deposit payment for utilities and power. So, once
you stripped out those one-off costs, we’re back down to below $400 an ounce which
is, if not the lowest platinum producer in the world of platinum ounces.

So very very happy with those numbers coming through.

 

**Q2: Does that mean then that we can expect the same from next quarter?**

**A2**: Yes, of course. I think what is important in those numbers is that the significance
of the improvement of the first quarter really flowed through to the latter part
of the quarter, so it was really brought in towards the end of February and March
which gives brilliant momentum for the next quarter.

So, yes, I’m definitely looking forward to delivering equally good numbers for the
coming quarter, to be able to basically continue that growth we’ve shown now quarter
on quarter. Equally important too, to actual deliver those numbers at a platinum
unit cost, a PGM ounce of around about $400 which will relate, of course, into a
significant earnings jump for Q2.

So yes, I believe that we definitely as a Board are pushing hard to continue the
improvement we’ve shown quarter on quarter but this time round, deliver those improvements
at a lower cost.

 

**Q3: What is the plan at the DCM project with regards to growing project earnings?**

**A3**: Yes, the DCM project is of course disappointing for Jubilee Metals and for
the shareholders because although we are delivering positive earnings, they’re not
really growing at the stage. DCM is finding itself in a very interesting position
where we announced to the market that we are moving into the construction phase 
to build a platinum recovery plant alongside the chrome recovery plant. To be able
to do that we have to now focus on removing what we call the ‘fine chrome’ out of
the feed material to prepare it for the platinum recovery.

So, we are going to see Q2 for DCM to have similar numbers to Q1 before we see the
dramatic acceleration from earnings coming through from the fine chrome removal 
and of course, from the platinum recovering circuit coming into DCM.

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