REG - Jubilee Metals Group - Q1 Operational Report to 30 September 2023

Jubilee MetalsAnnouncement

01/11/2023 07:15

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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

 

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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 ended 30 September 2023 (Q1 FY2024)  Quarter ended 30 June 2023 (Q4 FY2023)  % change

                                                Unit

 KEY UNITS OF PRODUCTION

 Chrome Concentrate                             Tonnes    336,683                                      344,315                                 (2%)
 PGMs
 -  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 31 December 2023  Second week of March 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 30 June 2024        Second week of October 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 Partners Limited           Tel: +44 (0) 20 3368 3555
 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 Advisory Proprietary Limited  Tel: +27 (0) 11 011 9207
 Alison McLaren

 

 

 

 

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