REG - Jubilee Metals Group - Zambia Projects Update

Jubilee MetalsAnnouncement

06/02/2025 07:00

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RNS Number : 1609W  Jubilee Metals Group PLC  06 February 2025

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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Zambia Projects update

High grade copper resource acquisition supported by equity

 

Jubilee, a diversified metals producer with operations in South Africa and
Zambia, announces progress on restarting its Roan operations following stable
power delivery, as well as the processing of new higher-grade copper feed
material, in order to accelerate the production of copper.

As announced on 20 January 2025, Jubilee has implemented a new power agreement
after the national power outages had a material impact on the Company's copper
production for the months of December 2024 and January 2025.

In support of the Company's accelerated copper production strategy Jubilee has
prioritised the processing of new higher-grade copper feed material while
reviewing the option to trade, where appropriate, a portion of the vast
quantity of surplus lower grade stocks it currently holds and that do not form
part of the Company's short to medium term production plans.

The Roan operations offer the unique ability to process simultaneously both
high-grade mined material as well as previously processed tailings materials.
This affords Jubilee the ability to significantly enhance its copper
production at increased operating margins and recoup some of the lost
production time.

In support of this strategy Jubilee has agreed to invest into securing rights
to an initial 200 000 tonnes of copper material with an expected copper
content of approximately 1.6% copper, which is available immediately for
processing at Roan, which is equivalent to more than double the waste material
currently being processed. Jubilee holds the option to increase the initial
200 000 allocation of copper material with the potential to secure a
long-term feed supply of this high grade material.

Highlights:

·    Jubilee implements strategy to accelerate copper production on the
back of stable power and secured new high grade copper material at an expected
feed grade of approximately 1.6% copper. The present copper content of
processed material is c. 0.7%.

·    Roan holds the capacity to process up to 45 000 tonnes per month if
all capacity is dedicated to the new high grade copper material, following the
successful ramp-up of operations during November 2024. Initially 30 000
tonnes  per month of Roan's capacity will be allocate to this high grade
material.

·    Roan will commence processing of the new high grade material within
the next week.

·    The Company is evaluating the potential to operate Roan on this
higher grade material at full production of 45 000 tonnes per month for an
extended period exceeding 3 years.

·    Under the terms of the agreements the copper material is settled
through a part payment by Jubilee's Zambian operations and a payment of
US$2.70 million (£2.17 million) to be settled through the issuance of 51 774
429 new Jubilee ordinary shares (Shares) at a price of 4.20 pence per share,
subject to lock in provisions of up to 180 days.

·    In addition, Jubilee is concluding final details of the due diligence
on the Large Waste Project with expected conclusion of the transaction as per
the terms of the agreement during March 2025.

Statement from Leon Coetzer, Jubilee CEO:

"Our years of investment to transform the Roan concentrator to a position that
allows it to uniquely process both run-of-mine and waste copper material
simultaneously, is once again vindicated by the ability to opportunistically
secure high grade adjacent resources. These high grade resources have already
been tested within our facility confirming its quality and metallurgical
performance.

While the downtime experienced due to the power outages at Roan had a material
negative impact on our production over the past couple of months, the Jubilee
team has demonstrated their ability to immediately react to the challenges
faced. We have secured a stable power supply which has allowed us to bring
Roan back into operation and have secured higher grade material which provides
an immediate opportunity to recoup part of the lost production and enhance
cash flows within a short period of time.

The investment support from Jubilee to its Zambian operations ensures that we
capture this opportunity and increase our copper production as we accelerate
our Zambia operations' recovery from the operational interruptions.

Our Zambian copper strategy remains robust on the back of a vast resource base
of copper material already at surface together with two operating Open-Pit
mining operations and a fully operational processing and refining footprint.
We are reviewing several opportunities to liquidate for value certain of the
non-core lower grade assets.

Copper guidance will be reviewed following a four to six week operational run
on the new material."

Admission and total voting rights

The Shares are expected to be admitted to trading on AIM and listed on the
Altx of the JSE Limited on or around 12 February 2025 (Admission) and will
rank pari passu with the ordinary shares of the Company in issue.

The Company's total issued capital, after the issue of the Shares, will be
3 065 640 251 ordinary shares. As the Company does not hold any shares in
treasury, this figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
share capital of the Company following Admission.

 

06 February 2025

 

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) / 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 - 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 63 482 3802

 

About Jubilee Metals Group Plc

 

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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