Jubilee Metals Group
PLC
Registration number
(4459850)
Altx share code:
JBL
AIM share code:
JLP
ISIN:
GB0031852162
("Jubilee" or "the Company" or "the
Group")
Dissemination of a Regulatory
Announcement that contains inside information according to UK
Market Abuse Regulations. Not for release, publication or
distribution in whole or in part in, into or from any jurisdiction
where to do so would constitute a violation of the relevant laws or
regulations of such jurisdiction.
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
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·
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Third quarter Lost Time Injury Frequency Rate
(LTIFR) improved to 1.45 (Q2 FY2024: 2.17).
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·
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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.
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·
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The month of March 2024 set a record monthly
production of 145 102 tonnes of chrome concentrates.
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·
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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.
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·
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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.
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·
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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.
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·
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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.
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Zambia
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·
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LTIFR increased to 1.27 in Zambia (Q2 FY2024:
0.61) due to two classified injuries reported at Sable during
January 2024.
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·
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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.
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·
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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.
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·
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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.
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·
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Jubilee executed two small-scale miners'
partnership agreements offering the potential to deliver first
material to the upgraded Roan and Sable from June 2024.
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·
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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.
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Production
guidance for the 2024 financial year
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·
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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.
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·
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Revised copper guidance of 3 250 - 4 000 tonnes
(FY2023 produced 2 923 tonnes), taking into account the delay to
complete the Roan expansion.
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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:
|
|
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Q3
FY2024
|
Q2
FY2024
|
%
change
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YTD
FY2024
|
YTD
FY2023
|
% change
|
|
PGM 6E
|
oz
|
8
339
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10
131
|
(17.7%)
|
28
583
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29
645
|
(3.6%)
|
|
Chrome
|
tonnes
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408
710
|
381
114
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7.2%
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1 126
506
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944
832
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19.2%
|
|
Copper tonnes
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tonnes
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691
|
749
|
(8.4%)
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2
374
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1
409
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68.5%
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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,
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.