In 2009-10 Jubilee Platinum reported its first revenues from smelting UG2 platinum group metals (PGMs) with a high chrome content. Up until now most PGMs have been mined from Merensky reefs in the Bushveld with a low chrome content. But mining these reefs, at increasing depths, reduces margins.
So all eyes are on Jubilee’s ConRoast technology, which was acquired in October 2009. A much hotter furnace enables the company to roast UG2 PGMs with any level of chrome content - and UG2 is abundant, particularly on the eastern limb of the Bushveld. Jubilee has closed its 3.2MW development furnace in Johannesburg and is constructing a 5MW plant next to an existing smelter in Middleberg to the south. It should be followed by a 50:50 venture with South African listed Northam Platinum to build a 7MW furnace; there are also plans for a second joint venture with Sylvania Resources and possibly for three 7-10MW furnaces. The Middleberg plant will start as a toll processor of third party ore. But the game plan is to roast ore from Jubilee’s 63 per cent owned Tjate acreage covering 5,000 hectares on the eastern Bushveld. There, Impala Platinum owns mining rights down to around 600 metres and Jubilee owns the rights below that level.
JUBILEE PLATINUM (JLP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 35.25p | MARKET VALUE: | £90.0m | |
| TOUCH: | 34.5-36p | 12-MONTH HIGH: | 43p | LOW: 26.25p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 33p* | NET CASH: | £13m | |
| Year to 30 June | Turnover (£000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | - | -0.74 | -0.83 | nil |
| 2007 | - | -1.80 | -2.13 | nil |
| 2008 | - | -4.08 | -3.45 | nil |
| 2009 | - | -4.78 | -3.68 | nil |
| 2010 | 950 | -2.22 | -1.35 | nil |
| % change | - | - | - | - |
*Including intangibles of £80.7m, or 32p a share | ||||
