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Jubilee Metals experienced a record Q1 2018, with increased platinum production as well as higher revenue and earnings compared to the previous quarter.
Jubilee Metals Group (LSE:JLP) reported record platinum production in March, as revenue and earnings continued to increase at its Hernic operations in South Africa.
In Q1 2018, Jubilee produced 4,897 ounces of platinum-group metals (PGMs), up 30 percent from Q4 2017. That includes 1,858 ounces in March, which is a record high for the company.
Leon Coetzer, chief executive at Jubilee Metals, stated, “I am very pleased with the continued operational improvements at our Hernic operations.”
“March 2018 has set a new operational high producing 1,858 ounces while our unit cost to produce a PGM ounce was at a low US$434. I expect Q2 2018 to deliver even better operational numbers as the Hernic operation continues to improve,” he added.
In addition to platinum, the company also produces palladium, rhodium, iridium, osmium and gold.
Revenue for Q1 was ZAR$44 million, up from ZAR$37 million in Q4 2017. Project earnings in the period were ZAR$18.9 million, compared to ZAR$17.5 million in the previous quarter.
The company noted that its unit cost per platinum group metal ounce of US$434 “sets the standard for the industry and illustrates the robustness of the project.”
Additionally, Jubilee’s Dilokong chrome mines project is in the process of starting production of a platinum-group metals recovery plant, with a target of 25,000 tonnes a month of feed material. The company has temporarily suspended production gear up due to “significantly” varied feed quality.
Coetzer stated, “we have temporarily suspended the processing of third party ore at DCM due to continued variation in feed quality causing operational difficulties negatively impacting our production of chrome from the on-site tailings and surface waste material.”
As of 10:05 a.m. EST on Wednesday (April 18), Jubilee Metals was down 2.36 percent, trading at GBX3.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.