REG - Jubilee Metals Group - Operational and Projects Update Q2 FY2024

Jubilee MetalsAnnouncement

23/01/2024 07:00

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RNS Number : 5911A  Jubilee Metals Group PLC  23 January 2024

Jubilee Metals Group PLC

Registration number (4459850)

Altx share code: JBL

AIM share code: JLP

ISIN: GB0031852162

("Jubilee" or "the Company" or "the Group")

 

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Operational and Projects Update Q2 FY2024

Jubilee, a diversified leader in metals processing with operations in
Africa, is pleased to announce an operational and projects update to 31
December 2023 ("Q2 FY2024"). The Group has delivered a robust Q2 operational
performance and remains on track to deliver against the production guidance
for the 2024 financial year ("FY2024").

Operational highlights

·    Q2 FY2024 production figures:

o  Chrome concentrate production increased by 13.2% setting a new quarterly
production record of 381 114 tonnes, (Q1 FY2024: 336 683 tonnes) benefiting
from the Thutse Project reaching full production targets.

o  Inyoni's PGM production was maintained at 10 131 oz in what is
traditionally a slower quarter (Q1 FY2024: 10 113 oz), with no third-party
production in the period.

o  Copper cathode and copper in concentrate production reached 749 tonnes (Q1
FY2024: 934 tonnes). The production was achieved despite the operational
disruptions at Roan as part of the ongoing upgrade project which is set to
significantly increase copper production during the current half year
period.

·    Lost Time Frequency Injury Rate (LTFIR) for Zambia improved to 0.61
(Q1 FY2024: 2.36). LTFIR for South Africa was 2.17 (Q1 FY2024: 1.44).

Key Projects highlights

·    Jubilee has elected to expand the Thutse Project with the addition of
a further 50 000 tonnes per month feed processing module, following the
successful completion of the first chrome module during August 2023. The
potential expansion will move us nearer to our objective of producing 2.1
million tonnes of chrome concentrate per annum.

·    Roan copper concentrator was brought back into operation during
December 2023 to reduce the impact of the front-end upgrade project start-up
being postponed due to the delay in the delivery of a critical electrical
components due to the ongoing logistics constraints at ports across South
Africa.

·    Roan will continue to operate at approximately 50% of full capacity
while an alternative solution is being pursued to source the electrical
components which includes the option to locally manufacture the components. A
9 weeks delay is expected to the upgrade of the Roan project.

·    The development of Project M (Monkoyo Copper Resource) near Jubilee's
Sable Refinery is progressing to schedule with the first test material from
this exciting copper resource expected to be delivered to the Sable refinery
during Q4 FY2024. The material forms part of the development of detailed
surface copper resource definition, which offers the potential of a long-term
quality copper supply to Sable Refinery from early in the 2025 calendar year.
 

·    The accelerated development of the newly secured large copper waste
rock asset is being progressed along various work streams. This includes the
development of a more detailed resource definition, undertaking bulk
processing trials of the source material by Jubilee Technical Services ("JTS")
to confirm detail designs of the processing units, and the securing of
manufacturing capacity for plant and equipment.

·    The expansion of the sulphide copper recovery circuit at the Sable
Refinery is progressing to schedule with installation expected to commence
during Q3 CY2024 which aligns with the expected near-term increase in copper
concentrate delivery from the various copper expansion projects.

Leon Coetzer, CEO commented:

"In the face of a dynamic and challenging global market, Jubilee has continued
to demonstrate resilience and adaptability, delivering a strong operational
performance in the second quarter of the 2024 fiscal year. Our commitment to
operational excellence and strategic growth is evident in our robust
production figures and sustained progress across key projects.

"We are particularly proud of the significant increase in chrome concentrate
production setting a record for Jubilee. The targeted expansion of our Thutse
project brings us closer to reaching our strategic goal of 2.1 million tonnes
of chrome concentrate per annum. Our chrome operations are capable of funding
the expansion capital from its cash generation, and the commencement of the
Thutse expansion is subject to internal capital and funding approval
processes.

"In Zambia the team were able to grow our copper output despite the
operational interruptions caused by the Roan front-end upgrade and associated
import delays. The team is working tirelessly to overcome the delay and will
continue to operate Roan at a reduced capacity during this time.

"I am excited by the early indications from both our Project M and newly
secured large waste rock asset. Both projects offer significant growth
opportunities anchored by a large copper resource. We will keep shareholders
updated on the development of both projects.

"Safety remains a core value at Jubilee, and we continue our unwavering
commitment to the health and safety of our workforce to continuously improve.

"In conclusion, Jubilee is well-positioned to continue its growth trajectory.
Our operational achievements, strategic expansions, and strong market presence
underscore our resilience and adaptability in a complex global landscape. We
remain committed to delivering value to our stakeholders and playing a pivotal
role in the sustainable development of the metals processing industry."

Projects Update

South Africa

Thutse complex

The Group is making progress in negotiations to establish additional
Life-of-Mine ("LOM") partnerships. Concurrently, the Company is focusing on
expanding its chrome operations through the implementation of one additional
processing module. This initiative is part of the Company's strategic plan to
achieve a future annual chrome concentrate production milestone in excess of 2
million tonnes per annum. This expansion will be approximately US$6 million,
funded through cash generated by the chrome operations, the commencement of
the project is subject to our internal capital and funding approval processes.

The success of the Thutse Project has motivated the further expansion of the
Thutse operations by implementing a further 50 000 tonnes per month feed
processing unit at Thutse. This expansion takes Jubilee a step closer towards
achieving a targeted 2.1 million tonnes per annum of chrome concentrate. It is
expected that the additional chrome module will be implemented during Q3
CY2024 and is capable of producing an additional 300 000 tonnes of chrome
concentrate per annum.

Zambia

Historical Waste Rock Dump in Zambia

As announced during November 2023, Jubilee secured one of the largest copper
waste rock assets on surface in Zambia and has formed a strategic partnership
with Abu Dhabi based International Resources Holding RSC Limited ("IRH").

Jubilee executed a binding funding term sheet with IRH to form a dedicated
special purpose vehicle ("SPV") through which both the acquisition of the
copper waste rock asset and implementation of the processing solution will be
funded. According to the terms of the funding term sheet, IRH and Jubilee will
aim to complete the implementation of the SPV and associated appointments by
31 January 2024. IRH will provide the necessary capital through equity and
loans, subject only to IRH completing its due diligence. Jubilee will design,
implement, and operate the Waste Rock Project, set to commence in Q1 CY2024.
With a total projected investment of around US$50 million, this venture
highlights Jubilee's commitment to delivering cost-effective and
environmentally sustainable mining solutions.

The accelerated development of the Waste Rock Project is being progressed
along various work streams which includes the development of a more detailed
resource definition, processing trials undertaken by JTS to confirm the
designs of processing units and securing manufacturing capacity for plant and
equipment.

Project Roan

The upgrade of Roan currently underway includes the implementation of a 50 000
tonnes per month modular unit, which allows Roan to simultaneously process
multiple feed sources. JTS is currently completing a review of various
additional feed sources near Roan which is in addition to the previously
announced approximate 6-year off-take agreement of unprocessed copper ROM
material discarded as mined waste. The upgraded Roan is perfectly positioned
to uniquely capitalise on the opportunities on offer.

Project Roan, through these key upgrades, is poised for a significant
operational rebound.

The Roan front-end upgrade has suffered delays in completion due to delayed
delivery of an imported critical electrical component caused by logistical
challenges at South African ports. JTS has been able to bring unaffected
sections of Roan back into operation to reduce the impact of the delays. JTS
has approached local manufacturers in South Africa to produce the component as
an emergency measure which is expected to be completed within 8 weeks. Until
completion, Roan will continue to operate by processing selectively suitable
material.

During this period overall production rates are capable of being maintained in
excess of 600 copper units per month before offering the opportunity to
increase to beyond 1 000 tonnes per month once Roan returns to full
production.

Sable Refinery Upgrade

JTS has completed the design work for the expansion of the sulphide copper
recovery circuit at the Sable Refinery, in anticipation of the expected
near-term increase in copper concentrate delivery from the various copper
expansion projects. Construction is expected to commence during Q3 of
CY2024.  The project forms part of Jubilee's strategy to expand the Sable
Refinery's capacity to produce up to 16 000 copper units per annum.

Project M

As announced on 1 November 2023, Jubilee secured its first LOM copper ore
off-take agreement from an existing mining company ("Project M" short for
Monkoyo). Project M seeks to emulate the success of the South African modular
chrome expansion roll-out drive, to process copper containing ore, deemed as
waste by current or previous operators.

The team has undertaken significant work at Project M over the past quarter,
with the first sample material from the extended open pit material expected to
be delivered to Sable Refinery in May 2024 as part of the development of
detailed copper resource definition. Project M offers the potential to be a
sustained long term supplementary copper supply for Sable refinery by early
2025 calendar year.

At completion, Project M will include the implementation of a further copper
processing module of approximate 35 000 tonnes per month feed processing
capacity. The project forms part of the targeted roll-out of the copper
modular units across the Zambian projects which mimics the success achieved
through the modular roll out of the chrome units in South Africa.

 Mufulira Slag Project

The Mufulira Slag project targets the processing of all historical slag waste
from the Mufulira smelter operations under a joint venture agreement with
Mopani Copper Mines ("MCM"). JTS has commenced the joint technical review of
the project to create a processing solution that is environmentally friendly.
More information about the project will be available once JTS concludes this
initial technical review.

Production guidance for the 2024 financial year

The chrome and PGM production guidance remains unchanged at 1.45 million
tonnes of chrome concentrate and 42 000 PGM ounces for the current financial
year ending June 2024.

Copper guidance remains at 5 850 tonnes, pending confirmation of the
manufacturing timeline of the electrical component delaying the front-end
upgrade of the Project Roan.

 

The table below presents the unaudited operational performance of the group
for Q2 FY2024:

  OPERATIONAL PERFORMANCE   Unit   Q2         Q1         % change  Q2       % change

                                    FY2024     FY2024              FY2023   Q2 FY2024 on Q2 FY2023

 KEY UNITS OF PRODUCTION
 PGM ounces                 Oz     10 131     10 113     0.2%      11 088   (9%)
 Chrome tonnes              Tonne  381 114    336 683    13%       274 390  39%
 Copper tonnes              Tonne  749        934        (20%)     562      33%

 

 

23 January 2024

 

For further information visit www.jubileemetalsgroup.com
(http://www.jubileemetalsgroup.com) , follow Jubilee on Twitter
(@Jubilee_Metals) or contact:

Jubilee Metals Group PLC

Leon Coetzer (CEO) /Neal Reynolds (CFO)

Tel: +27 (0) 11 465 1913

 

Nominated Adviser - SPARK Advisory Partners Limited

Andrew Emmott/James Keeshan

Tel: +44 (0) 20 3368 3555

 

PR & IR Adviser - Tavistock

Jos Simson/ Gareth Tredway

Tel: +44 (0) 207 920 3150

 

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 (0)11 011 9207

 

About Jubilee Metals Plc

Jubilee is a low-cost, diversified producer, specialising in the recovery of
metal from previously overlooked resources, such as unprocessed historical
waste rock, run-of-mine materials and tailings in South Africa and Zambia. The
Company's low-capex, modular processing facilities are deployed close to these
various types of material, producing high grade concentrates for sale or
further refining to finished metal at the Company's downstream facilities.
Production currently consists of chrome, copper and platinum group metals
(PGMs). The modular processing facilities offer a platform for growth and the
rapid expansion of its operational footprint. Jubilee's success is derived
from operational excellence, a highly experienced management team and a
pioneering Technical Development Centre.

 

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