REG - Jubilee Metals Group - Zambia Copper and SA Business Proposed Sale Update

Jubilee MetalsAnnouncement

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RNS Number : 1962U  Jubilee Metals Group PLC  06 August 2025

 

Jubilee Metals Group PLC

Registration number: 4459850

AIM share code: JLP

Altx share code: JBL

ISIN: GB0031852162

('Jubilee' or 'the Company' or 'the Group')

 

 

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Zambia Copper Portfolio Update and

Update on proposed sale of SA business

 

Jubilee, a diversified metals producer with operations in South Africa and
Zambia, is pleased to provide an update on its copper portfolio in Zambia and
the implementation of its integrated production strategy. The Company
continues to establish itself as a comprehensive copper producer, encompassing
exploration, mining, concentrating, and cathode refining capabilities.

Jubilee's copper strategy has leveraged experiences and expertise from its
South African processing business. Whilst the Company's South African
operations are reliant on third party feed supply, Jubilee has acquired
extensive copper resources in Zambia and developed a three-pillar diversified
platform on the back of its growing presence in Zambia, with significant
growth potential that includes:

1.   Integrated mine-to-metals business: Jubilee's Sable refinery (Sable)
together with its nearby Munkoyo open-pit copper mine (Munkoyo) and Project G.
In addition, Jubilee has secured extensive further exploration rights.

·    Munkoyo and Project G are being developed to be the anchor source of
copper material for cathode production at Sable.

·      Further large-scale exploration properties secured to expand
Jubilee's copper resource base.

·     Munkoyo is a series of nine open-pits. Resource drilling is
underway to establish the potential of combining these pits into one large
open-pit operation offering greater flexibility and scale.

 

2.   Processing of third-party copper feedstock: Jubilee's Roan concentrator
(Roan).

·     The upgraded Roan is fully operational reaching 384 tonnes of
copper units for the month of July 2025 alone, proving the sustainability of
the new upgraded processing solution.

·      Roan concentrator produces copper concentrate from
non-traditional feedstocks. Copper sulphide concentrates are being sold into
the market and copper oxide concentrates are refined at Sable.

·     Dedicated copper leaching circuit targeted to enhance copper
margins and recoveries and avoid reliance on the Sable's leaching and refining
capacity.

 

3.   Processing of Jubilee acquired surface stockpiles and tailings dumps:
Jubilee's rights to the Large Waste Tailings dump which contains in excess of
240Mt is the priority asset.

·     Completed a review of total surface stock portfolio to rank vast
surface resource portfolio based on potential returns offered and ease of
implementation.

·  Monetisation programme underway to sell lowest ranking non-core tailings
assets with approximately US$18 million deal value already transacted over the
past six months.

H2 FY2025 summary

·      The upgraded Roan concentrator is fully operational and
capitalised and exceeded its targeted production for the month of July 2025
reaching 384t of copper units for the month of July 2025 and is ahead of the
targeted production rate of 350t in August 2025.

·     Munkoyo open pit operation's drilling program has commenced with
the initial 8 drill holes completed in partnership with an established mining
and exploration company. Drilling results are being reviewed by a competent
person and the results will be released in due course.

·      Early indication from the drilling campaign suggests the
potential to combine pits 2 to 4 into a single large open pit to offer
increased mining flexibility and increased throughput to sustain the targeted
high-grade ROM of between 6 500 to 8 500tpm at 2.5% Cu.

·    The new pit designs factored in the drilling results of the copper
sulphide ore body discovery below the near surface copper oxide layer
currently being targeted.

·     Discussions are in progress with an established mining and
exploration partner to implement the further expanded Munkoyo and develop
Project G while undertaking an exploration program of the newly secured
exploration properties within the area.

·    Copper production for H1 FY2025 was severely impacted by the power
and infrastructure challenges, previously reported. Roan was placed under care
and maintenance for an extended period while power security was resolved and
process upgrades successfully completed to allow for the simultaneous
processing of high-grade copper materials and tailings.

·      On the back of a successful Roan restart, copper units production
for H2 FY2025 reached 757 tonnes (H1 FY2025: 1 454 tonnes) (Guidance for H1
FY2026 of 2 300 tonnes) with annual production for FY2025 reaching 2 211
tonnes (Guidance for FY2026 of 5 100 tonnes)

Zambia production guidance for FY2026

·      Copper unit production guidance for H1 FY2026 of 2 300 tonnes
and 5 100 for the full year FY2026.

·     Further capital dependent projects which are currently underway
and being targeted to commence within FY2026, offer the potential to increase
annual copper production by approximately 10 000 tonnes as follows:

o  Onsite Munkoyo processing unit - 1 440 tonnes per annum;

o  Project G processing unit - 1 320 tonnes per annum;

o  Refining at Roan  - 2 544 tonnes per annum; and

o  Two processing modules at the Large Waste Tailings dump - 5 500 tonnes
per annum.

Statement from Leon Coetzer, Chief Executive Officer:

"I am pleased to report significant progress across our Zambia portfolio which
has in place all the assets we need to maintain the momentum on our copper
expansion strategy. By dedicating our existing processing capacity at Roan to
a combination of third-party sourced higher-grade mined material and process
tailings while advancing our Munkoyo and Project G mining operations to feed
an expanded Sable, we are building a robust and stable copper production
profile. In addition, we are expanding our copper exploration footprint and
advancing our Large Waste project.

The energy related challenges we faced earlier this year, though difficult,
have helped us emerge with a clearer, more focused strategy backed by secure
power supply and higher value material supply agreements. This operational
focus, prioritising run-of-mine and previously mined materials, closely
resembles the successful evolution of our South African chrome and PGM
operations albeit with an integrated portfolio of our own feedstock supply.

We are excited to leverage our unique capabilities in processing transitional
copper reefs, available in vast quantities, and look forward to delivering
clear guidance on our production under new supply agreements in the coming
months. This also fits into our thinking of seeking a mining joint venture
partner at our mineral assets to ensure management's focus can remain on
processing. Our commitment remains to scale operations in a non-dilutive,
capital-efficient, and sustainable manner as we advance toward our medium-term
targets."

Production performance Q4 FY2025

The table below presents the unaudited operational production performance of
copper for the half year ending 30 June 2025 and includes guidance for 2026.

 OPERATIONAL PERFORMANCE          H1       H2       % change  Guidance    FY2024  FY2025  % change  Guidance

                                  FY2025   FY2025             H1 FY2026                             FY2026

  Copper                  tonnes  1 454    757      (47.9%)   2 300       3 422   2 211   (35.4%)   5 100

Zambia projects update

Integrated mine-to-metals business: Sable Refinery together with nearby
Munkoyo and Project G

Sable is undergoing an expansion to, at completion, offer an annual processing
capacity of approximately 14 000 tonnes of copper units. This expansion is
targeted for completion in Q1 CY2026. The expansion will accommodate increased
production from the nearby Munkoyo, Project G, and other near-surface
third-party opportunities in the area, as well as copper oxide concentrate
from Roan. The Company estimates approximately US$5.5 million of capital
investment required for the expansion at Sable.

Munkoyo to date was operating a single pit with a mining rate of 80 000tpm. Of
this, approximately         3 500tpm of high-grade ROM (of approximate
2.5% Cu) is delivered to Sable. A resource drilling program has commenced to
upgrade resource confidence and optimise open-pit design. Munkoyo consists of
9 initial test open pits of which only pit 5 was developed to mine and deliver
the initial copper ore to Sable. Eight drill holes have been completed of
varying depths to test lithology and continuity. Early indication from
drilling results has pleasingly delineated the presence of copper sulphide
beneath the existing oxide material.

The Company is exploring the potential to merge the satellite pits into one
large open pit which will provide increased flexibility and productivity for
supplying Sable. The Company has temporarily halted mining at Munkoyo for July
and August 2025 while the extended pit design is completed based on the
drilling results and will recommence ore delivery to Sable from September 2025
in addition to the current production from Roan.

Production will commence targeting 4 500tpm ramping up to 8 500tpm. At the
targeted grade this equates to approximately 200tpm of copper units delivered
to Sable in addition to the production from Roan.

An on-site processing plant is being planned at Munkoyo. Discussions are in
progress with an established mining and exploration partner to implement the
further expansion at Munkoyo. This plant will be designed for the low-grade
ROM that incorporates a copper leaching, solid liquid separation, and copper
precipitation circuit. The implementation of the first copper processing unit
at Munkoyo is targeted for commissioning by the end of Q2 CY2026 and offers an
increase in copper units by a further 120tpm to reach 320tpm (3 840 tonnes per
annum).

Resource drilling at Project G will commence during Q2 FY2025 to afford the
time to complete the Munkoyo pit expansion and drilling. The project benefits
from existing infrastructure and potential for collaboration on a central
processing unit due to its proximity to other mining operations.

The Company is in advanced discussions to establish a joint venture operating
partner to conduct exploration, development and mining of its various mineral
assets. Such a partnership agreement will allow Jubilee to focus on its core
processing capabilities while its partner accelerates the implementation of
the mining solution and expanded exploration program.

Processing of third-party copper feedstock: Roan Concentrator: Cash-generating
treatment hub

Roan is an independent, cash-generating processing facility that produces both
copper oxide and copper sulphide concentrate from waste, tailings, and
previously mined material. The copper sulphide concentrate is sold via
off-take agreements and the copper oxide concentrate is delivered to Sable for
the production of copper cathode. The Company is underway with a study to
install a US$2.5 million copper refining stage at Roan to offer greater
flexibility and further enhance margins. The refining step will also seek to
recover the copper lost in the super fine fraction.

Following the upgrade of Roan and successful trials earlier in the year, the
Company has secured a feedstock supply agreement with a nearby third-party
operation, targeting a minimum grade of 1.4% Cu.

The main focus at Roan has been to restart operations following the shut down
during Q1 of CY2025 due to the previously announced infrastructure challenges.
Trials and tests to reconfigure and upgrade the plant to enable it to treat
high grade ore and tailings is fully completed with Roan meeting its
operational targets for July 2025 and well on track to exceed its targeted 350
tonnes of copper units for August 2025.

Large Waste Tailings dump portfolio

In recent years, Jubilee has secured rights to vast quantities of surface
tailings and low grade mined rock dumps in Zambia. Through its research and
testing, Jubilee has characterised these resources and grouped them into
immediate and longer-term potential (+5 years from production) and ranked the
opportunities. All longer-term and low-ranking resources have been classed as
non-core and a sale process has been initiated. In total the Company has
concluded transactions of approximately US$18 million worth of non-core
surface assets since the start of the year, with discussions underway for
further disposals of non-core surface tailings assets.

The Company has prioritised the Large Waste project (in excess of 240 million
tonnes). Jubilee is looking to roll out a series of 25 000tpm modular
processing units on-site, based on the design implemented at Roan. One unit is
capable of producing 2 250tpa of copper units. The Company is seeking a
partner to contribute US$25 million towards the funding and implementation of
the project to accelerate the roll-out of the processing footprint under a
non-dilutive partnership agreement. Jubilee is well advanced in negotiations
to replace the initially targeted partnership pursued with an Abu Dhabi based
group.

The project will ultimately include a dedicated upgrading, copper recovery and
refining solution due the vast resource able to carry the investment
requirement over time. The initial modular units will produce a saleable
upgraded copper product which offers the potential that the project self-funds
the investment requirements over time through early revenues generated from
the sale of this material. The Company successfully executed an initial trade
of the material earlier in the year demonstrating the inherent value of this
exciting project.

Combined these well-defined projects offer the potential to advance Jubilee
copper portfolio in Zambia.

Update on the Proposed Disposal

The Company also informs Shareholders that, following announcements on 6 June
and 10 July 2025, the Definitive Agreements for the disposal of its Chrome and
PGM Operations in South Africa are in near final form. A circular containing
full details of the Proposed Disposal, including a notice of general meeting
will be posted to Shareholders in the week commencing 11 August 2025.

 

 

6 August 2025

 

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

Jubilee Metals Group PLC

Leon Coetzer (CEO)/Jonathan Morley-Kirk (FD)

Tel: +27 (0) 11 465 1913 / Tel: +44 (0) 7797 775546

 

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 - Zeus Capital

Harry Ansell/Katy Mitchell

Tel: +44 (0) 20 7220 1670/+44 (0) 113 394 6618

 

Joint Broker - Shard Capital Partners LLP

Erik Woolgar/Gareth Burchell

Tel +44 (0) 207 1869900

 

JSE Sponsor - Questco Corporate Advisory Proprietary Limited

Alison McLaren

Tel: +27 63 482 3802

 

Financial Advisor to the proposed transaction

Absa Corporate and Investment Bank, a division of Absa Bank Limited

Craig Brewer

Tel: +27 83 303 0980

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