Diversified metals producer Jubilee Metals has kept under wraps the identity of the SA platinum group metals (PGMs) producer that will process its excess stock after interim output exceeded its processing capacity.
The group, which processes chrome and PGMs in SA and copper and Zambia, reported record chrome concentrate production in the six months to end-December, thanks to two newly commissioned processing modules at its Thutse operation near Rustenburg in the North West.
The group produced just under 975,000 tonnes of chrome concentrate in the first half, a record high for that period. Chrome production was up 36% year on year, while profit from the operations increased 31%.
Jubilee reported revenue at $141.50m for the six months ended December, up by more than a half from the previous comparable period.
Due to the surge in chrome output, Jubilee said its expanded operations produced a large amount of by-product PGM surface stock, which its processing plants were unable to handle.
“Our preference, as we have indicated before, is to partner with existing PGM producers to process this excess stock rather than investing further capital to expand our own PGM capacity,” Jubilee CEO Leon Coetzer said on Wednesday.
The group did not identify its new processing partner but said that its operation was “well known to the Jubilee team … we will work closely with them to optimise their operations to maximise the financial return”.
The agreement, which allows Jubilee to immediately start processing its excess PGM material, is set to increase the company’s production capacity by 32% compared with its previous guidance, adding about 11,500 PGM ounces a year to its existing capacity.
Jubilee is still responsible for selling the processed PGM ounces and will oversee the operational and technical performance of the processing facility. Earnings generated from the joint project will be shared equally.
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