Jubilee Metals Group PLC (JLP), a metals processing company, on 9th May 2019 reported its first-quarter operations update. The company hailed the quarter as "exceptional" as quarterly operational earnings rose 57% to GBP 3.22 million, while combined quarterly revenue was up by 54% to GBP 6.56 million. The group diversified its operations into base metals and across several mining jurisdictions, and also successfully secured the funding for the implementation of its Kabwe project in Zambia. It also maintained healthy margins and grew its earnings base.
Jubilee Metals Group is a London, United Kingdom-based diversified metals recovery company. The group focuses on reprocessing of historical surface mine waste and materials with an aim to obtain long-term, low-capital intensive, low-risk commodity output from waste materials of mine surface. It holds the mining right (granted March 2017) to a primary PGM project in the Eastern Bushveld complex and has secured surface platinum-bearing tailings to recover PGMs and chromite, lead, zinc and vanadium- bearing tailings in Zambia.
In its latest operational update, the group reported that the PlatCro chrome acquisition has been completed and its earnings were ahead of management's expectations. It also said PlatCro PGM project, which is dominant in palladium and platinum, is targeted to start production in the second quarter. While DCM fine chrome project is expected to reach full design capacity of 25,000 tonnes per month in Q2 2019, the first chrome concentrate from the project was delivered to the market. The group was successful in increasing backing from institutional investors to complete funding for the Kabwe project and also increased exposure to broader commodity basket, including chrome, PGMs, vanadium, zinc and lead.
The company expects to continue its strong performance in the second quarter due to the speeding up of the Kabwe vanadium, zinc and lead project, following the acquisition of the Sable Zinc Kabwe Limited refinery in Zambia, and as the PlatCro PGM project is brought into operation at a targeted processing rate of 60,000 tonnes per month. The second quarter will be the first full quarter for PlatCro operations, which the management believes will better reflect the potential of this operation. The group is expected to potentially double current PGM ounce output over the life of the PlatCro PGM project.
The company reported that BMR no longer has an interest in the ordinary share capital of Jubilee as all shares held by BMR Group PLC have been successfully placed with a large institutional investment fund. Leon Coetzer, Chief Executive Officer, said that despite a slow operational period in January, exceptional performance of the company was achieved.
Share Price Commentary
Daily Chart as at May-10-19, before the market closed (Source: Thomson Reuters)
On 10th May 2019, at the time of writing (before the market closed, GMT 04:20 PM), JLP shares were trading at GBX 3.30, down by 0.75 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 3.75/GBX 2.02. The company’s stock beta was 1.06, reflecting roughly the same volatility as compared to the benchmark index. Total outstanding market capitalisation was around £61.29 million.
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