TIDMJLP
RNS Number : 0098S
Jubilee Metals Group PLC
01 November 2023
Jubilee Metals Group PLC
("Jubilee" or "the Company" or "the Group")
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
Dissemination of a Regulatory Announcement that contains inside
information according to UK Market Abuse Regulations. Not for
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or from any jurisdiction where to do so would constitute a
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jurisdiction.
Q1 Operational Report to 30 September 2023
Jubilee Metals Group PLC (AIM: JLP/Altx: JBL), a diversified
leader in metals processing with operations in Africa, is pleased
to announce its first quarter operational report to 30 September
2023 ("Q1 FY2024"). The Group has delivered a strong Q1 operational
performance and remains on track to deliver against the production
guidance for the 2024 financial year ("FY2024").
Operational Highlights
-- Q1 FY2024 production figures achieved were:
o Production of chrome concentrate increased to 336,683 tonnes
(Q4 FY2023: 344,315 tonnes). Chrome production rates are expected
to continue to increase with the additional processing capacity
provided by an additional chrome processing module, completed in
August (the "Thutse Processing Module").
o Inyoni's PGM production increased to 10,113oz (Q4 FY2023:
9,350oz), with no third-party production in the period. The PGM
production rate is expected to further benefit from the increased
feed rate from the Thutse Processing Module operating at design
capacity.
o Copper cathode and copper in concentrate produced was 934
tonnes (Q4 FY2023: 653 tonnes). Project Roan's upgrade which
commenced in September 2023, has necessitated the stoppage of the
feed classification circuit which will disrupt processing at Roan
for 16-weeks until December 2023.
-- Lost Time Frequency Injury Rate (LTFIR) for South Africa
improved to 1.44 (Q4 FY2023: 1.5). While The LTFIR for Zambia
improved to 2.36 (Q4 FY2023: 2.37).
-- The average chrome revenue per tonne of US$85 (Q4 FY2023:
US$86 per tonne) is influenced by the percentage of fixed chrome
margin tonnages processed. The increased margins from the new
partnership agreements are expected to reflect stronger through the
current quarter. The average chrome cost per tonne remained flat at
US$75 (Q4 FY2023: US$74 per tonne).
-- The average PGM revenue per ounce increased to US$1,031 (Q4
FY2023: US$976). Cost remained tightly under control with the
average PGM cash cost per ounce, excluding chrome credits of US$875
(Q4 FY2023: US$855).
-- The average copper revenue per tonne of US$6,588 (Q4 FY2023:
US$6,860 per tonne) reflects the increase of copper sulphide
concentrate sales from the Roan concentrator, while the average
copper cost per tonne increased marginally to US$4,907 (Q4 FY2023:
US$4,802 per tonne).
Project Highlights
South Africa
-- Jubilee has elected to further expand the chrome operational
footprint by an additional 450,000 tonnes per annum feed process
capacity using its existing modular approach.
o The expansion allows for the construction of an additional
chrome process module to be added to the current Thutse
operations.
o The expansion will increase Jubilee's chrome processing
footprint to 9 chrome processing modules and increase the total
chrome processing capacity to 1.7 million per annum.
o The expansion of the chrome processing footprint remains
contingent upon our continuing capital allocation evaluation and
assessment of prospective funding arrangements.
-- The Group continues to advance discussions to conclude a
further Life-Of-Mine ("LOM") partnerships and expand the chrome
operations via the roll-out of additional processing modules as it
targets 2 million tonnes of concentrates per annum in the
future.
Zambia
-- Zambia copper gathered further momentum with the securing of
the first LOM copper ore off-take agreement from an existing mining
company ("Project M"), as opposed to copper tailings offtakes
contracts signed in the past. Project M seeks to replicate the
success of the South African modular chrome expansion roll-out
drive, which seeks to process copper containing ore, deemed as
waste by current or previous operators.
o The copper processing modules will be trialled and tested at
the same in-house development centre in South Africa where the
chrome modules are currently manufactured.
o The copper process modules specifically target the processing
of Run-Of-Mine ("ROM") ore that has not been previously processed,
as opposed to tailings. In many cases, this ROM material has been
rejected to mine waste dumps due to the type of copper
contained.
o Copper processing module designs range from 20,000 to 50,000
tonnes per month feed supply, capable of being delivered and
commissioned within an eight-month period.
o Jubilee holds the capacity to execute 3 modules in parallel at
an estimated capital investment of US$6.5 million per module
(capital estimate based on a 50 000 tonnes per month module).
o Each 20,000 tonnes per month module is expected to produce the
equivalent of 3,000 tonnes per annum of additional cathode.
o Jubilee's project team is expected to complete the selection
of the optimum process module capacity for Project M within the
next 6 weeks with deployment within 8 months following the
conclusion of the capital allocation decision.
-- Project Roan's upgrade currently underway includes the
implementation of a 50,000 tonnes per month processing module,
specifically targeting the previously announced approximate 6-year
offtake agreement of unprocessed copper ROM material discarded as
mined waste.
-- During the period, Jubilee was awarded the Mufulira Slag
project to develop the processing of all historical slag waste from
the smelter operations under a joint venture agreement with Mopani
Copper Mines ("MCM"). The commercial terms of the joint venture are
currently being negotiated and are expected to be finalised once
the sale of MCM is completed which is subject to a well-publicised
formal sale process.
-- Jubilee signed a technology exclusive partnership agreement
for the development and implementation of a copper recovery
solution called Glycine Leaching Technology for the processing of
historical copper tailings with Draslovka Mining Solutions
o The partnership brings together two exceptionally skilled
technical teams to work together on unlock the value from this vast
resource in an environmentally friendly way.
o The partnership specifically targets the processing of copper
and other base metal historical tailings in Zambia with a potential
of extending the work to the Democratic Republic of the Congo.
o The technology partnership with Draslovka builds on the latest
encouraging results achieved from the upscaled extended continuous
trial runs that followed the earlier laboratory batch trials.
o Calculated copper extraction of more than 80% of copper in
tails has been achieved from the continuous Glycine Leaching
Technology trials applying a modified reagent recipe.
o Jubilee's technical services is working closely with the
Draslovka team to unlock the vast potential offered to recover
copper from these low-grade tailings generated from past processing
of copper ROM.
o Jubilee's engineers are currently completing the commercial
review of the tailings recovery project which will inform the
decision to implement further upscaled industrial scale trials.
-- The process development program for the processing of
historical tails continue to show progress with results from the
upscaled extended continuous trial runs confirming the encouraging
results from the earlier laboratory batch trials.
o Calculated copper extraction of more than 80% of copper in
tailing has been achieved from the continuous Glycine Leaching
Technology trials applying a modified reagent recipe.
o Jubilee's engineers are currently completing the commercial
review of the tailings recovery project which will inform the
decision to implement further upscaled industrial scale trials.
Statement from Leon Coetzer, CEO:
"I am pleased to present our operational report for the first
quarter of FY2024. Our robust operational performance was supported
by new long-term supply agreements which allocates higher quality
feed material to our operations, allowing us to better leverage our
current production capacity, and affirm our growth trajectory in
chrome concentrate, PGMs, and copper.
"Jubilee continues to challenge industry norms by breaking
through technical barriers and implementing solutions that extract
value from materials and ore sources that were previously regarded
by others as waste or too complex.
"With the Thutse chrome project performing to expectation and
offering further growth potential with the addition of Jubilee's
9(th) chrome module, we anticipate consistent growth in chrome and
PGMs.
"Our operating presence in Zambia together with the expansion of
our leadership teams have allowed us to solidify our copper
expansion strategy, by implementing key lessons learnt and
integrating the modular expansion of our copper production profile
that has achieved such great success in South Africa.
"Our Zambian strategy is grouped into two categories of copper
materials namely unprocessed copper waste from mining activities
and historical processed copper tailings. Our growth in each of
these categories of copper materials is independently driven. I am
particularly excited by the roll-out of our copper processing
modules specifically targeting the copper waste materials while our
technical team continues their work to unlock the copper value in
historical processed tailings using Glycine Leaching
Technology.
"Safety remains a top priority, as evidenced by the improved
Lost Time Frequency Injury Rate in both South Africa and
Zambia.
"Our upcoming ventures, from the potential expansion of our
chrome operations to our first life-of-mine copper ore off-take
agreement, reinforce our strategic vision. Partnerships with
companies like Mopani Copper Mines and Draslovka underscore our
focus on growth and innovation.
"In conclusion, our improved operational margins across segments
highlight our team's efforts and strategic foresight. I remain
extremely optimistic about Jubilee's future and the trajectory on
which the Company is headed".
Production guidance for the 2024 financial year
-- 1.45 million tonnes of chrome concentrate
-- 42,000 PGM ounces
-- 5,850 tonnes of copper, weighted to the second half of the
financial year, given limited production in Q2
Quarterly Operational Performance
QUARTERLY OPERATIONAL PERFORMANCE (UNAUDITED)
Quarter Quarter % change
ended 30 ended 30
September June 2023
2023 (Q1 (Q4 FY2023)
Unit FY2024)
---------- ----------- ------------- ---------
KEY UNITS OF PRODUCTION
---------- ----------- ------------- ---------
Chrome Concentrate Tonnes 336,683 344,315 (2%)
---------- ----------- ------------- ---------
PGM s
---------- ----------- ------------- ---------
- Inyoni Oz 10,113 9,350 8%
---------- ----------- ------------- ---------
- Third party Oz - 3,439 (100%)
---------- ----------- ------------- ---------
- Total PGM ounces Oz 10,113 12,789 (21%)
---------- ----------- ------------- ---------
Copper cathode and copper in concentrate Tonnes 934 653 43%
---------- ----------- ------------- ---------
UNIT REVENUE
---------- ----------- ------------- ---------
Revenue per chrome tonne US$/t 85 86 (1%)
---------- ----------- ------------- ---------
Revenue per PGM ounce US$/oz 1,031 976 6%
---------- ----------- ------------- ---------
Revenue per copper tonne US$/t 6,588 6,860 (4%)
---------- ----------- ------------- ---------
UNIT COSTS
---------- ----------- ------------- ---------
Cost per chrome tonne US$/t 75 74 1%
---------- ----------- ------------- ---------
Cost per PGM ounce (excluding chrome
credits) US$/oz 875 855 2%
---------- ----------- ------------- ---------
Cost per copper tonne US$/t 4,907 4,802 2%
---------- ----------- ------------- ---------
OPERATIONAL MARGIN
Gross profit margin per chrome
tonne % 12.7% 13.5% (6%)
Gross profit margin per PGM ounce % 15.2% 12.3% 23%
---------- ----------- ------------- ---------
Gross profit margin per copper
tonne % 25.5% 19.5% 31%
---------- ----------- ------------- ---------
EXCHANGE RATES
---------- ----------- ------------- ---------
Average presentation currencies US$/GBP 1.27 1.25 1%
---------- ----------- ------------- ---------
Average functional currency South
Africa ZAR/ US$ 18.63 18.65 0%
---------- ----------- ------------- ---------
Average functional currency Zambia ZMW/ US$ 19.50 18.82 4%
---------- ----------- ------------- ---------
Investor Calendar
Details Dates
Second Quarter Operational Report Second week of February
2024
------------------------
Interim results for the period ended Second week of March
31 December 2023 2024
------------------------
Third Quarter Operational Report Second week of May 2024
------------------------
Fourth Quarter Operational Report Second week of August
2024
------------------------
Audited results for the year ended Second week of October
30 June 2024 2024
------------------------
Annual General Meeting Second week of November
2024
------------------------
1 November 2023
For further information please contact:
Jubilee Metals Group PLC Tel: +27 (0) 11 465 1913
Leon Coetzer (CEO) / Neal Reynolds
(CFO)
PR & IR Adviser - Tavistock Tel: +44 (0) 20 7920 3150
Jos Simson/ Gareth Tredway
Nominated Adviser - SPARK Advisory Tel: +44 (0) 20 3368 3555
Partners Limited
Andrew Emmott/ James Keeshan
Joint Broker - Berenberg Tel: +44 (0) 20 3207 7800
Matthew Armitt/ Jennifer Lee/ Detlir
Elezi
Joint Broker - WHIreland Tel: +44 (0) 20 7220 1670/
Harry Ansell/ Katy Mitchell +44 (0) 113 394 6618
JSE Sponsor - Questco Corporate Tel: +27 (0) 11 011 9207
Advisory Proprietary Limited
Alison McLaren
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