Jubilee deal accelerates platinum project, saves eight million pounds

AIM-listed mine-to-metal specialist Jubilee Platinum has concluded a toll processing agreement with Phokothaba, a subsidiary of Platinum Australia, enabling it to process Dilokong Chrome Mine Tailings at Phokothaba's Smokey Hills Mine concentrator in South Africa.

AIM-listed mine-to-metal specialist Jubilee Platinum has concluded a toll processing agreement with Phokothaba, a subsidiary of Platinum Australia, enabling it to process Dilokong Chrome Mine Tailings at Phokothaba's Smokey Hills Mine concentrator in South Africa.

The agreement, allowing the company to process tailings at an existing plant owned by another company rather than building a processor from scratch, will accelerate the processing of tailings by 14 months and save the company around £8m.

Under the toll agreement, Jubilee Platinum has the exclusive right to process a targeted 40,000-to-50,000 tonnes of platinum-bearing tailings per month from the Dilokong Chrome Mine to produce an estimated 1,600 oz 4E (platinum, palladium, rhodium and gold) in concentrate per month for an exclusive period of eight months, with an option to extend to the period on a non-exclusive basis.

Leon Coetzer, Chief Executive Officer of Jubilee, commented: "The conclusion of these processing agreements has the effect of bringing forward the targeted processing of Dilokong Chrome mine Tailings by some 14 months as well as avoiding an estimated capital expenditure of £8m for the construction of a dedicated processing plant for the upgrading of the platinum in the tailings prior to smelting the material."

He added: "We are now funded for production of own platinum concentrates in 2013 and can accelerate the development of our next platinum assets in the western limb of the Bushveld Igneous Complex."

Jubilee Platinum's share price rose 1.67% to 7.62p at 09:47 on Friday.

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Five changes to state pensions coming next month
Pensions

Five changes to state pensions coming next month

There are several changes happening to state pensions in April. We explain what’s happening.
22 Mar 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

The Bank of England raised rates to 4.25%, its 11th consecutive increase. Does the base rate have further to go?
23 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023