Jubilee Metals buys 'strategic' platinum-group metals tailings

Africa-focussed Jubilee Metals announced the acquisitions of strategic platinum-group metals (PGM) tailings on Thursday, and updated the market on its South African chrome and PGM operations.

The AIM-traded firm said it had entered into a further long-term, more-than-10 years life-of-mine PGM feed supply agreement with a chrome mining customer, expanding its PGM operations to the Eastern Limb of the PGM-rich Bushveld Complex.

In addition, it said it had acquired 255 000 tonnes of PGM-containing chrome tailings outright, further increasing its existing surface PGM tailings.

Jubilee also reported progress at its South African chrome and PGM operations where, in line with its chrome strategy, final stages of the commissioning of the chrome beneficiation plant had been entered, with completion expected on time by the end of the second quarter.

“To date, Jubilee's current PGM operational footprint has been largely limited to the Western Limb of the mineral rich Bushveld complex, a single area of the two main PGM areas in South Africa,” said chief executive officer Leon Coetzer.

“This new long-term PGM supply agreement announced today are of significant strategic value to Jubilee and expands our operations onto the Eastern Limb which provides the platform to source further growth opportunities.”

Coetzer said the new supply agreement also demonstrated the company’s ability to “win and form partnerships” with key chrome mining clients, adding that the firm was “excited” to replicate the success of its Inyoni operation in the Eastern Limb region.

“We have already demonstrated that the improved efficiencies across our chrome and PGM operations resulted in record production and sustained earnings growth at the South African operations and we expect this to continue at pace.

“With a total processing capacity of 250,000 tonnes per month of chrome ore and tailings, this will play a key role in providing a continued sustained chrome and PGM feed.”

At 1323 BST, shares in Jubilee Metals were up 2.77% at 18.5p.