REG - Jubilee Metals Group - Operational Update Q4 FY2024

Jubilee MetalsAnnouncement

21/08/2024 07:00

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RNS Number : 1702B  Jubilee Metals Group PLC  21 August 2024

Jubilee Metals Group PLC

Registration number (4459850)

AIM share code: JLP

Altx share code: JBL

ISIN: GB0031852162

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

 

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Operational Update Q4 FY2024

Jubilee, a diversified metals producer with operations in South Africa and
Zambia, today publishes its unaudited operational and project update for the
quarter ended 30 June 2024 (Q4 FY2024), highlighting that Jubilee exceeded
chrome production guidance and met revised copper production targets.

 

Highlights

Zambia

§ Improved safety performance achieved of 488 lost time injury free
(LTI-free) days (FY2023: 122 LTI-free days), and commensurately realising a
reduction in the LTI Frequency Rate (LTIFR) to zero (FY2023: 2.4).

§ Copper units produced for Q4 FY2024 increased by 51.7% to 1 048 tonnes (Q3
FY2024: 691 tonnes), despite operational stoppages due to construction
activities at Roan.

§ Copper units produced for the financial year increased by 17.1% to 3 422
tonnes (FY2023: 2 923 tonnes) meeting the revised guidance for FY2024 of
3 250 - 4 000 tonnes.

§ Construction and commissioning of the Roan Front-End Module were completed
during July 2024 with production of first copper concentrate announced on 12
August 2024.

o  Production of copper concentrate from the Roan Front-End Module is in
addition to the existing sulphide copper concentrate production from Roan's
mill and flotation circuit currently being traded in the market.

o  Roan's capacity is dedicated to the processing of Previously Mined
Material and Previously Processed Material.

o  Early results indicate Roan's Front-End Module achieving a 10-fold copper
grade upgrade into concentrate from Previously Mined Material meeting design
specifications.

o  These early results provide further confidence in the proposed process
design solution being developed for the Waste Rock Project in partnership with
IRH.

§ Jubilee expanded its portfolio of Open-Pit copper resources with the
acquisition and implementation of Project Munkoyo and the agreement for the
acquisition of Project G as previously announced on 24 June 2024. Both
operations contain significant copper resources that are near surface and are
currently being open-pit mined with material being delivered to Sable for
refining.

o  Project Munkoyo was brought into operation during July 2024, ahead of
schedule, with mined run-of-mine (ROM) grades exceeding 3.5% copper which is
delivered to Sable for refining.

o  Jubilee is concluding its technical review of Project G with expected
completion during September 2024. Bulk sampled mined material is being refined
at Sable as part of the technical due diligence review.

o  Jubilee has entered into further negotiations for additional Open-Pit
copper resources surrounding both Munkoyo and Project G where Jubilee targets
to implement processing hubs to upgrade the copper ROM at both locations.

§ Sable Refinery is currently being upgraded to expand its refining capacity
and copper sulphide concentrating capacity targeting to reach a combined
capacity of 16 000 tonnes per annum of copper which will be dedicated to the
concentrating and refining of Open-Pit mined copper resources.

§ The Roan Front-End Module and Concentrator, and the Sable Refinery are
expected to reach a processing capacity in excess of 25 000 tonnes of copper
per annum.

 

South Africa

§ Operations achieved 88 LTI-free days (FY2023: 177 LTI-free days),
reflecting a consistent LTIFR rate of 1.62, in line with performance from the
previous year.

§ Chrome concentrate produced for Q4 FY2024 increased by 3.2% to 421 698
tonnes (Q3 FY2024: 408 710 tonnes).

§ Chrome concentrate produced for FY2024 increased by 20.0% year-on-year,
exceeding guidance at 1 548 205 tonnes (FY2023: 1 289 891 tonnes).

§ Platinum Group Metals 6E (PGM 6E) produced for Q4 FY2024 reached 7 828oz
(Q3 FY2024: 8 339oz) driven lower by reduced PGM feed grades delivered with
higher chrome recoverable material being prioritised to benefit from
favourable chrome market conditions.

§ PGM 6E production for FY2024 decreased by 14.2% to 36 411oz (FY2023: 42
433oz) offset by the significant increase in chrome production given the
prioritisation to improved economic merits of our chrome material.

§ Jubilee's chrome operations continue to perform, with the construction of a
new chrome processing module at Thutse remaining on track for construction
completion during Q3 CY2024.

 

Production guidance for FY2025

§ Chrome concentrate production guidance is 1.65 million tonnes (6.7%
year-on-year production increase), and PGM 6E production guidance is 36 000oz
(similar year-on-year).

§ Copper units production guidance of between 5 750 tonnes (68.0%
year-on-year production increase) and 7 500 tonnes (119.2% year-on-year
production increase).

 

Statement from Leon Coetzer, Jubilee CEO:

"Jubilee continued to show strong growth in its South African and Zambian
operations with increased copper and chrome production while maintaining our
strong safety performance.

Our Zambian operations are emerging from a period of significant investment in
upgrading the Roan operations while expanding our copper resource portfolio
with the commissioning of our Munkoyo Open-Pit copper mining operation. The
upgraded Roan operation is now capable of processing Previously Mined material
through the new Front-End Module while continuing to produce copper
concentrate from Previously Processed material through the existing flotation
section. Roan's unique capabilities offer Jubilee the opportunity to grow
significantly within Zambia.

I am particularly excited by the potential to significantly grow our open-pit
copper resource portfolio to complement both our Munkoyo and Project G
operations as we target committing the expanded Sable refining capacity to
these resources.

In South Africa, our chrome production continued to deliver strong growth with
a 20.0% year-on-year increase. Our South African business utilised its
processing flexibility to prioritise chrome recoverability over PGM production
to capitalise on the buoyant chrome market while PGM prices remain depressed.
We will continue to prioritise chrome production on the back of the success of
this strategy by keeping our PGM forecast numbers stable for the coming
period.

The team's performance highlights our exceptional technical and processing
expertise, bolstered by our modular expansion strategy. The processing
efficiencies driving this success continue to create new growth opportunities
within the sector.

As we move forward, we remain committed to delivering on our growth projects
for copper in Zambia and chrome in South Africa. This successful quarter
further highlights our operational excellence, resilience, and adaptability.
With strong, mature operations in South Africa and tremendous strides taken in
Zambia, Jubilee is well-prepared to deliver a robust FY2025 performance, with
anticipated production increases across all commodities."

 

Quarterly Production results

The table below presents the unaudited operational production performance of
the group for Q4 FY2024:

 OPERATIONAL PERFORMANCE  Unit                           % change                        % change

                          Q4 FY2024           Q3 FY2024  FY2024    FY2023

 Copper units             tonne      1 048    691        51.7%     3 422      2 923      17.1%
 Chrome concentrates      tonne      421 698  408 710    3.2%      1 548 205  1 289 891  20.0%
 PGM 6E                   oz         7 828    8 339      (6.1%)    36 411     42 433     (14.2%)

 

Projects Update

Zambia

Jubilee's Integrated Copper Strategy is enabled by its proven ability to
extract value from materials often regarded by the industry as either waste or
too complex to extract economically through traditional methods.

Targeted copper resources are classed into three groups namely:

·    Medium Open-Pit Mining Operations - Acquiring open-pit resources using
Jubilee's experienced management team and refinery for processing.

·   Previously Mined Material - Processing low-grade material discarded by
other mining operations, including waste rock surrounding our processing
facilities.

·   Previously Processed Material - Processing historically processed
material such as tailings and partially processed materials, with ongoing
projects with Zambia major miners' material at Roan and Sable while also
assessing the feasibility of unlocking value to the rights over 300 million
tonnes of tailings.

The Company's Zambian copper processing operational footprint now encompasses
the Roan Front-End module with its mill and flotation circuit, collectively
referred to as the Roan Concentrator, and the Sable Refinery, which is
currently being upgraded for a combined in-country copper capacity in excess
of 25 000 tonnes per annum.

 

Roan Concentrator

The Roan Concentrator completed construction and commissioning of its new
Front-End Module in July 2024. Operations commenced on 8 August with first
copper concentrate produced on 13 August 2024. The Front-End Module is
adjacent to the existing Roan mill-and-float circuit already producing and
trading copper units.

The upgraded Roan Concentrator provides additional processing capacity
complementing the existing sulphide copper concentrate capacity at Roan to a
combined maximum design capacity of 13 000tpa of copper depending on the
copper feed grades.

The Jubilee team has commenced with the feeding of Previously Mined Material
into Roan. The material is upgraded at source before being transported to Roan
where a saleable copper concentrate is produced. The copper concentrate will
initially be refined to copper cathode at Sable until such time that Sable's
capacity is fully committed to the Open-Pit Mined Material from Project
Munkoyo and Project G whereafter the Roan concentrate will be traded on the
open market.

The Roan Front-End Module will treat predominantly Previously Mined and
Processed Material such as waste rock material. Early operational results from
the new Front-End Module confirm the capability to upgrade Previously Mined
Material grades from material such as waste rock by more than 10-fold prior to
further refining the concentrate. These early results are key to confirming
the design parameters of the process solution being developed for Jubilee's
large Waste Rock project that it has partnered with the Abu Dhabi based IRH.
Jubilee targets to incorporate the Front-End Modules into the overall
processing solution for this Waste Rock Project. Jubilee expects to finalise
the designs over the coming weeks as more results from Roan are evaluated.

 

Sable Refinery

Pursuant to Jubilee's continued resource expansion in Zambia, it is able to
upscale and upgrade its Sable Refinery to become a dedicated refiner for
processing materials from Open-Pit mining operations, including the newly
acquired Project Munkoyo.

The success in securing these targeted resources allowed Jubilee to transition
Sable into a dedicated refiner for the processing of Open-Pit mining
operations.

 

Medium Open-Pit Mining Operations

Project Munkoyo

§ Secured a 95% interest in Project Munkoyo for US$1.75 million while
continuing negotiations for the acquisition of further Open-Pit copper
resources in the region to supply a targeted regional processing hub for the
upgrade of the mined ore prior to refining at Sable.

§ Commenced operation of the Open-Pit ahead of schedule in July 2024 with the
project targeting to expand to 25 000 tonnes per month over the next 10
months.

§ Current mined ROM is averaging above 3.5% copper exceeding expectations.

§ Initial capital expenditure estimates indicate US$2.25 million over the
10-month period for the development and expansion of the Munkoyo operation.

§ Final capital expenditure numbers for a targeted regional processing hub
will be guided by the processing review of the copper resources in the region
and the successful completion of further resource acquisitions in the
surrounding area.

Jubilee has committed to various community support programmes which include
providing clean water along the Munkoyo Mine Corridor, improving community
health outcomes for the surrounding communities, while initiating educational
improvements and sustainable sanitation solutions, including solar pump
installations and improved ablution facilities at the Kabanga Primary School.

Project G

§ As previously announced on 24 June 2024, the acquisition of a 51% interest
in Project G for US$2.1 million, of an established open-pit mining operation
remains subject to the conclusion of the purchase conditions.

§ This will be settled through the issuance of Jubilee ordinary shares, on
conclusion of the purchase conditions.

§ Project G includes the refurbishment of an on-site processing facility and
targeted ramp-up to        20 000 tonnes per month of mined ore at 3-4%
copper grade.

§ An initial capital expenditure estimate for the plant refurbishment and
stabilisation of the open-pit operation is US$2.7 million with final numbers
expected as part of the current due diligence program expected to be concluded
during September 2024.

 

South Africa

The Jubilee South African team together with resource partners are progressing
with the construction of Thutse's chrome module. This initiative is part of
the continued targeted growth in chrome concentrate production towards the 2Mt
per annum goal. Construction of the new chrome module is progressing well and
is expected to be completed during Q3 CY2024. Jubilee has significantly
expanded its chrome operational capacity to process chrome ROM materials in
partnership with the resource holders of chrome mining rights under an agreed
earnings share model which offers Jubilee greater exposure to the chrome
market.

 

21 August 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 - RBC Capital Markets

Farid Dadashev/Jamil Miah

Tel +44 (0) 20 7653 4000

Joint Broker - Zeus Capital

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, an experienced management team and a pioneering Technical
Development Centre.

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