REG - Jubilee Metals Group - Operational Update Q3 FY2024

Jubilee MetalsAnnouncement

18/04/2024 07:00

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RNS Number : 1404L  Jubilee Metals Group PLC  18 April 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 Update Q3 FY2024

Expansion of Strategic Small-Scale Mining partnerships in Zambia

Jubilee Metals Group PLC, a leading diversified metals processor in Africa
with significant operations in South Africa and Zambia, today publishes its
Operational Update and production figures for the quarter ended 31 March 2024
("Q3 FY2024") and also provides an update on its rapidly expanding
partnerships with small-scale copper miners in Zambia.

Highlights

South Africa

 ·       Third quarter Lost Time Injury Frequency Rate (LTIFR) improved to 1.45 (Q2
         FY2024: 2.17).
 ·       Record Q3 FY2024 chrome production of 408 710 tonnes achieved (Q2 FY2024: 381
         114 tonnes), despite being a quarter traditionally known for lower production
         rates due to the January holiday period.
 ·       The month of March 2024 set a record monthly production of 145 102 tonnes of
         chrome concentrates.
 ·       Year-to-date (9 months to 31 March 2024) chrome concentrate production
         increased by 19.2% to reach 1 126 506 tonnes compared to 944 832 tonnes for
         the prior year comparative period.
 ·       Construction of a second chrome processing module at Jubilee's Thutse Project,
         with a design capacity to produce 300 000 tonnes of chrome concentrates per
         annum, remains on track for completion in August 2024.
 ·       Jubilee's fixed margin chrome tolling agreements which are in addition to the
         processing of Jubilee's own resources, have been further extended to 2027,
         recognising Jubilee's processing excellence.
 ·       Platinum Group Metals 6E ("PGM 6E") production quarter-on-quarter reduced to 8
         339 oz (Q2 FY2024: 10 131 oz), mainly due to reducing available stock of lower
         grade feed material. The year-to-date PGM 6E production was 3.6% lower at
         28 583 oz compared to 29 645 oz for the comparative period.

 

Zambia

 ·       LTIFR increased to 1.27 in Zambia (Q2 FY2024: 0.61) due to two classified
         injuries reported at Sable during January 2024.
 ·       Copper production during the quarter has been impacted by the scheduled
         construction activities at the Roan concentrator (Roan) and Sable refinery
         (Sable) with 691 tonnes (Q2 FY2024: 749 tonnes) of contained copper in cathode
         and concentrates (Contained Copper) produced, while in process copper
         inventory increased to 192 tonnes which is expected to continue increasing
         following the commissioning activities at Roan.
 ·       Year-to-date copper production increased by 68.5% to reach 2 374 tonnes (1 409
         tonnes for the prior year comparative period) supported by the accelerated
         expansion of the operations prior to the expansion of Roan.
 ·       The expansion of Jubilee's Roan copper concentrator (Project Roan) is set to
         deliver increased production during the current quarter targeting an annual
         capacity of 13 000 tonnes per annum of copper. Project Roan has experienced a
         6 week delay in the delivery of the final electrical components. This will
         impact the completion of the commissioning of the final circuits and based on
         the latest delivery schedules, the team is set to conclude assembly and
         commissioning by the end of May 2024.
 ·       Jubilee executed two small-scale miners' partnership agreements offering the
         potential to deliver first material to the upgraded Roan and Sable from June
         2024.
 ·       Jubilee is in advanced discussions to conclude three further copper
         partnership agreements to potentially secure a total of five small-scale
         copper mine partnership agreements, which combined would offer the potential
         to deliver copper units that far exceed the installed 16 000 tonnes per annum
         copper processing and refining capacity in Zambia.

 

Production guidance for the 2024 financial year

 ·       The chrome and PGM production guidance remains unchanged at 1.45 million
         tonnes (FY2023: 1.2 million tonnes) of chrome concentrates, and 40 000 - 42
         000 PGM 6E oz (FY2023 produced 42 433 PGM 6E oz) for the current financial
         year ending June 2024.
 ·       Revised copper guidance of 3 250 - 4 000 tonnes (FY2023 produced 2 923
         tonnes), taking into account the delay to complete the Roan expansion.

 

Statement from Leon Coetzer, Jubilee CEO:

"Our South African chrome operations have delivered an exceptional
performance, setting new record production levels for both the quarter and our
monthly output for March 2024. The team's performance speaks to our renowned
technical and processing capabilities supported by the modular expansion
approach. The processing efficiencies underpinning this performance continues
to offer additional growth opportunities in this sector.

We remain firmly committed to replicating the success of this modular
expansion strategy at our Zambian Operations. I am encouraged by the team's
ability to overcome the final frustrating logistical difficulties that have
challenged the completion of Project Roan. Project Roan offers us the ability
to significantly step-up our copper production in Zambia within the current
quarter.

Project Roan and the expansion of Sable are supported by our rapidly growing
footprint of secured copper resources. These resources include the increased
feed sources from small-scale partnership agreements in addition to the
already secured long term feed supply to Roan.

Our large surface copper Waste Rock Project continues to develop in
partnership with International Resources Holding RSC Limited (IRH) from Abu
Dhabi. The potential of these projects combined sets Jubilee on a path to far
exceed its initial target of 25 000 tonnes per annum of copper over the next
two years.

Jubilee is well-positioned to continue its growth trajectory. Delivering on
another successful quarter, highlights our operational excellence, resilience
and adaptability. With robust operations in South Africa and a solid
foundation for growth established in Zambia, Jubilee is well-positioned to
deliver a strong Q4 performance, with production increases expected across all
commodities."

Quarterly production results

The table below presents the unaudited operational performance of the group
for Q3 FY2024:

 

                         Q3 FY2024    Q2 FY2024   % change  YTD         YTD      % change

                                                            FY2024      FY2023
 PGM 6E         oz      8 339        10 131       (17.7%)   28 583      29 645   (3.6%)
 Chrome         tonnes  408 710      381 114      7.2%      1 126 506   944 832  19.2%
 Copper tonnes  tonnes  691          749          (8.4%)    2 374       1 409    68.5%

 

South Africa

Jubilee's chrome business delivers a strong performance in the quarter under
review owing to increased operational efficiencies, and Jubilee's modular
expansion approach. The construction of the second Thutse chrome processing
module, with a capacity to produce 300 000 tonnes of chrome concentrates per
annum, remains on track for completion in August 2024 and will bring Jubilee a
step closer to achieving its targeted production of 2.1 million tonnes of
chrome concentrate per annum.

Additionally, the extension of the chrome tolling agreements through to
February 2027, securing a total processing feed capacity of 2.4 million tonnes
per annum in relation to fixed margin feed, speaks to the acknowledgement by
the industry of Jubilee's operational excellence and capabilities. The Group's
PGM 6E operation performance was slightly down quarter on quarter owing to a
variability in feed grade however, this has been offset by a very strong
quarter of chrome concentrate production.

Zambia

Jubilee remains focused on achieving low-cost, near-term production growth and
expanding operations in Zambia to exceed 25 000 tonnes per annum of Contained
Copper through innovative modular processing technology.

The first modular expansion is currently being completed as part of Project
Roan which is set for completion during the current quarter. The technologies
deployed in the modular units have proven very successful in upgrading the
copper ores produced by the small-scale miners in Zambia offering Jubilee the
opportunity to partner with the owners of these operations to upscale their
operations while securing copper bearing material for further refining by
Jubilee. This largely unexploited sector offers Jubilee the potential to
rapidly deploy its modular copper processing units across a large number of
current mines assisting both the sustainability of the small-scale miner as
well as offering exponential growth in the refining of these copper units.

Waste Rock Project

As previously announced, Jubilee and IRH entered into a binding framework and
joint venture agreement in December 2023 for the implementation of the Waste
Rock Project, which targets the processing of in excess of 260 million tonnes
of copper containing surface material. Under the binding framework and joint
venture agreement, IRH has elected to exercise its right to form the dedicated
joint venture through which the project will be implemented. The project
targets to initially implement four modular processing plants, holding a
combined processing capacity of 2.4 million tonnes per annum capable of
producing more than 20 000 tonnes of copper in concentrates per annum.

As per the agreement with IRH, Jubilee is undertaking a detailed resource
definition to confirm the material reclamation strategy and location of the
targeted processing units.

Project Roan Upgrade

The assembly of the new front-end modular unit at Roan is scheduled to
commence commissioning and ramp-up during May 2024. This will expand the
overall capacity of Roan to produce up to 13 000 tonnes of Contained Copper
per annum.

The completion of the upgrade has been frustrated by the delay in the delivery
of the final electrical components due to logistical challenges and based on
current delivery schedules, has delayed the completion of the project by six
weeks expected to the end of May 2024. This delay impacts the forecasted
copper tonnes for the FY2024 period as the full impact of the upgrade will
only be seen during the month of June 2024.

Sable Refinery Upgrade

Sable's sulphide circuit expansion is expected to commence during Q3 CY2024.
This upgrade is set to expand Sable's capacity to produce 16 000 tonnes per
annum of Contained Copper.

Zambia Small-Scale Mining Partners

Project Munkoyo forms part of Jubilee's commitment to work with small-scale
miners in Zambia and to convert their operations into sustainable long term
copper operations. Project Munkoyo remains on-track to deliver initial copper
ore to Sable in September 2024. Project Munkoyo is expected to commence with a
300 000 tonnes per annum mining operation that could potentially deliver an
additional 4 500 tonnes per annum of contained copper to Sable for refining.
The further expansion of Sable will be determined based on the completion of
the copper resource definition.

Jubilee has successfully completed two additional small-scale copper mines
partnership agreements with one near Sable while the other is located within a
10 km radius of Roan. The project scope includes the extension of the current
open-pit and surface operations and the inclusion of a modular copper
processing unit to produce copper oxide concentrates suitable for further
refining. The project near Roan will utilise the existing front end modular
unit at Roan.

Both projects have immediate copper bearing material available from
early-stage test work which will either be processed at Roan or refined at
Sable as part of Jubilee's due diligence review. The transactions afford
Jubilee the right to secure a majority ownership interest in both operations
capped to a maximum amount of US$3 million following the completion of the due
diligence period.

Initial estimates indicate that the two additional projects could potentially
contribute a further 240 000 tonnes per annum of copper bearing material for
processing at Sable and Roan.

18 April 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

 

Public Relations and Investor Relations adviser - Tavistock

Jos Simson/Gareth Tredway

Tel: +44 (0) 20 7920 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

 

Jubilee is a low-cost, diversified producer, specialising in the recovery and
processing of metals from previously overlooked resources, such as unprocessed
historical waste rock, Run-Of-Mine materials and tailings in Zambia and South
Africa. 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 copper, chrome, and Platinum
Group Metals (PGMs). The modular processing facilities offer a platform for
growth and the rapid expansion of Jubilee's operational footprint in Zambia
and South Africa. Jubilee's success is derived from operational and technical
excellence, a highly experienced management team and a pioneering Technical
Development Centre.

 

 

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