Jubilee Metals shares hit after suspension of processing at DCM
Date: Apr 19, 2018
Listed Jubilee Metals yesterday weakened 3.85percent in early trade on the JSE to 50cents a share as the market digested news of the temporary suspension of processing at the Dilokong Chrome Mine (DCM). The company said the suspension was necessitated by the “transitional phase” of the DCM project.
“We have temporarily suspended the processing of third-party ore at DCM due to continued variation in feed quality causing operational difficulties, negatively impacting our production of chrome from the on-site tailings and surface waste material,” the company said in a production report for March.
Jubilee Metals is constructing a dedicated platinum group metals (PGM) recovery plant at DCM, with a target of 25000 tons a month of feed material.
Last September, Jubilee subsidiary Jubilee Tailings Treatment Company agreed to a partnership with DCM that included the third-party processing agreement.
The agreement was expected to boost Jubilee Metals’ balance sheet significantly.
It has afforded Jubilee Metals the right to 50percent of all earnings generated from the processing of chrome ore. Previously, the company owned no rights to chrome earnings at the outset of the DCM project.
