TIDMJLP
RNS Number : 5831G
Jubilee Metals Group PLC
20 July 2023
Jubilee Metals Group PLC
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
Dissemination of a Regulatory Announcement that contains inside
information according to UK Market Abuse Regulations. Not for
release, publication or distribution in whole or in part in, into
or from any jurisdiction where to do so would constitute a
violation of the relevant laws or regulations of such
jurisdiction.
Operational Update for the full year to 30 June 2023
Jubilee Metals Group PLC (AIM: JLP; Altx: JBL), a leader in
diversified metals processing, with operations in Africa, today
publishes its unaudited Operational Update for the 12 months to 30
June 2023 ("FY2023").
Overview for FY2023
-- Lost time injury frequency rate (LTIFR) of 1.5 in South Africa; LTIFR of 2.36 in Zambia.
-- Strong operational performance from the South African PGM and
chrome operations exceeding guidance and reflecting the ability to
successfully navigate power and infrastructure challenges in South
Africa.
-- PGM operations recorded 42 474 oz (FY2022: 41 456 oz).
o PGM production increased 2% on FY2022, exceeding full year
guidance of 38 000 oz.
o Initial impact of power outages in South Africa addressed via
increased stock holding and installation of back-up power units at
chrome operation in November 2022.
-- Chrome production up 7% to 1 289 890 tonnes (FY2022: 1 207
947 tonnes) exceeding full year guidance of 1 200 000 tonnes.
o New 360 000 tonne per annum chrome concentrate facility
completed during June, already delivering first saleable product in
June 2023.
-- Copper production of 2 923 tonnes up 29% (FY2022: 2 269
tonnes) marginally below revised guidance of 3 000 tonnes primarily
due to previously announced H1 FY2023 power and water disruptions
in Zambia, impacting ramp-up of the Roan Concentrator.
o H1 FY2023 power and water disruptions resolved with new
privately owned water infrastructure implemented (Dec 2022).
o Expanded power infrastructure implemented (Feb 2023).
o Decision reached on the revised expansion strategy to upgrade
Roan as central processing hub to accommodate more copper waste
feed streams.
o Decision motivated by size of copper waste opportunity
presented to Jubilee.
o Upgrade scheduled to commence during Q1 FY 2024 and will be
completed over a 12-week period.
o At completion, the Roan concentrator will offer unique
processing capability in Zambia to simultaneously target a variety
of feed streams producing three products for further refining or
selling to the market.
o Cobalt refining capacity at Sable refinery remains allocated
to copper production. The decision will be reviewed depending on
the recovery in cobalt prices.
Strategy and growth projects
-- PGM Eastern Limb expansion progressing and targeting an
additional 25 000 PGM oz per annum
o Construction expected to commence during Q4 CY2023.
-- On 6 June 2023, the Company announced that it had secured a
long-term processing partnership comprising an expansion of 360 000
tonnes per annum of chrome concentrate and 10 000 PGM oz per
annum:
o The partnership offers Jubilee the opportunity to obtain
greater exposure to the chrome price and achieve higher margins
compared with the Company's existing fixed price chrome tolling
agreements; and
o Jubilee holds the option to further expand the partnership to
produce 720 000 tonnes per annum of chrome concentrate.
-- Jubilee continues to pursue further chrome expansion
opportunities and is advancing discussions to achieve an annualised
chrome concentrate production rate of 2 million tonnes (60%
expansion) by the end of the 2024 calendar year as previously
announced.
-- Roll-out of copper expansion strategy in Zambia refined to
align with the security of additional power and water
infrastructure:
o Centralised processing footprint offering significant capital
savings by enlarging Roan Concentrator and reducing the number of
new Greenfields operations required for the Northern Refinery
expansion.
o Expansion and upgrade of Roan concentrator set to commence
during Q1 FY2024 over a 12-week period and incorporates technical
enhancements to increase Roan's capability to process a wider range
of copper waste opportunities.
o At completion Roan will hold a unique ability to
simultaneously process a broad range of feed material to take
advantage of the waste opportunities on offer in Zambia.
o During the 12-week upgrade intermittent disruptions to the
Roan operations are expected.
o Total capital investment into new equipment and installation
for the upgrade is budgeted at US$ 8.5 million.
Full year Outlook FY 2024
-- PGM production stepping up to 42 000 oz.
-- Chrome operations expected to reach a new record of 1 450 000
tonnes of chrome following completion of new 360 000 tonne per
annum chrome concentrate facility announced in June 2023.
-- Targeted copper units for the full financial period doubles
to 5 850 tonnes of copper. Copper guidance is impacted by the
upgrade to the Roan concentrator expected over the next 12- weeks.
Guidance will be reviewed on the back of the successful completion
of the upgrade. We remain focussed on achieving 25 000 tonnes per
annum capability at the completion of the strategy by 2025.
Statement from Leon Coetzer, CEO :
"I am pleased to report record production figures for the year
across our entire PGM, chrome and copper operations despite
numerous external power and water challenges. These numbers reflect
a continued investment strategy in expansion opportunities across
our business which we believe will continue to bear fruit in the
short and medium term.
"In South Africa, Inyoni continues to go from
strength-to-strength. Our expansion strategy will see production
increase further in the year ahead, as evidenced by our guidance
for FY 2024 of 42 000 PGM oz and chrome production stepping up to 1
450 000 tonnes.
"The production of chrome forms a vital part of the South
African business' profitability and cost competitiveness, and I am
pleased we were able to secure more feed at more attractive,
market-linked terms in the period than our existing toll treatment
contracts.
"In that regard, we are looking to take full advantage of this
opportunity by growing production, while also looking at other
opportunities similar to this one.
"Having expanded into Zambia in 2018, our technical research and
process development work has allowed us to fully understand the
extent of the waste and non-traditional ore opportunities.
Jubilee's technical process development team has completed its
on-going test work to both increase Jubilee's ability to process a
wider range of these vast copper materials, as well as address key
operational lessons learned to date at the Roan concentrator.
"As a result, and to better capture this opportunity, Jubilee
has taken the decision to significantly upgrade its Roan
concentrator facility to offer a unique capability to target a
broader range of materials and produce three concentrate products
for both refining at Sable and direct on-sale to the market.
"Our Northern Strategy continues to progress on several fronts,
including advanced talks to secure a significant operational
refining footprint, from where we are able to establish a central
refining footprint in the area. The Jubilee team is working to
complete the on-going pilot trials to optimise the targeted process
solution for the treatment of the range of northern copper and
cobalt wastes. These results will be used to inform the capital
requirements for the project which has been delayed to August 2023.
Final test programs includes scaling up further the pilot work to a
newly constructed large scale piloting facility expected to
commence during September 2023."
The table below presents the operational performance of the
group for the year ended 30 June 2023:
OPERATIONAL PERFORMANCE 12 months 12 months % change
Unit to to
30 Jun 30 Jun
2023 FY2023 2022 FY2022
Unaudited Audited
-------- ------------- ------------- ------------
KEY UNITS OF PRODUCTION
-------- ------------- ------------- ------------
Total PGM ounces Oz 42 474 41 456 2%
-------- ------------- ------------- ------------
Chrome tonnes Tonne 1 289 890 1 207 947 7%
-------- ------------- ------------- ------------
Copper tonnes Tonne 2 923 2 269 29%
-------- ------------- ------------- ------------
20 July 2023
For further information visit www.jubileemetalsgroup.com or contact:
Jubilee Metals Group PLC
Leon Coetzer
Tel: +27 (0) 11 465 1913
PR & IR Adviser - Tavistock
Jos Simson/ Gareth Tredway/ Adam Baynes
Tel: +44 (0) 207 920 3150
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/ James Keeshan
Tel: +44 (0) 20 3368 3555
Joint Broker - Berenberg
Matthew Armitt/ Jennifer Lee/ Detlir Elezi
Tel +44 (0) 20 3207 7800
Joint Broker - WHIreland
Harry Ansell/ Katy Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618
JSE Sponsor - Questco Corporate Advisory Proprietary Limited
Alison McLaren
Tel: +27 (11) 011 9207
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