REG - Jubilee Metals Group - Operational Update for full year to 30 June 2023

Jubilee MetalsAnnouncement

20/07/2023 07:00

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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")

 

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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 to         12 months to         % change

                          Unit   30 Jun 2023 FY2023   30 Jun 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
(http://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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