TIDMJLP
RNS Number : 5332L
Jubilee Metals Group PLC
16 May 2022
Jubilee Metals Group PLC
("Jubilee" or the "Company")
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
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Jubilee Metals Group PLC
("Jubilee" or "the Company" or "the Group")
Company Update:
Investment Programme Delivers Significant Growth Across PGM and
Copper Operations
Jubilee Metals Group PLC, a leader in metals processing with
operations in Africa (AIM: JLP/Altx: JBL), is pleased to provide a
performance update of its new and expanded fully integrated South
African Inyoni PGM and Chrome Operations and its Zambian Southern
Copper Strategy, which involves integrating the Sable Copper and
Cobalt refinery with the newly constructed copper concentrator,
Project Roan. This new and significantly enlarged operational
footprint follows an investment programme implemented over the past
12 months of GBP 39.5 million (ZAR 786 million).
HIGHLIGHTS
South Africa
-- Jubilee's new and expanded Inyoni Operations ("Inyoni") is
already exceeding design throughput targets reaching 86 000 tonnes
per month of chrome and PGM containing run-of-mine ("ROM") feed,
together with 40 000 tonnes of PGM containing historical tailings
material, placing Jubilee on course to achieve its PGM ounce
production target of 44 000 ounces per annum through its 100% owned
Inyoni alone (previous max design capacity 30 000 ounces),
replacing any reliance on existing PGM recovery joint ventures
-- The Company's significantly increased chrome ore
beneficiation capacity to in excess of 220 000 tonnes per month
(previously 140 000 tonnes per month) of ROM feed and tailings,
allows the Company to sharply increase the production of chrome
concentrates from the various feed streams as an offset cost to its
PGM production costs; Jubilee targets to produce 1.2 million tonnes
of chrome concentrate per annum
-- Inyoni continuous to ramp-up production rates targeting full
production rates during May 2022 and delivered 8 018 PGM ounces
from Inyoni operation in calendar Q1 CY2022, an increase of 75%
when compared with Inyoni's average production rate of the previous
two quarters despite refilling of the operational pipeline after
start-up. With the completion of the ramp-up if Inyoni during May
2022 Jubilee expects to achieve the 43 000 PGM ounce guidance for
the financial period end to June 2022
-- On a chrome by-product credits basis, Jubilee's net cost to
produce an ounce of PGM during Q1 CY2022 was US$ 433 per ounce
excluding transport costs of US$ 198 per ounce, which transport
cost will be reduce significantly once the Company's eastern limb
expansion strategy to establish a PGM processing footprint in the
eastern limb is successfully implemented
Zambia
-- Significant milestones achieved in the delivery of the
Southern Copper Refining Strategy in Zambia, which targets to
produce up to 12 000 tonnes of copper units per annum including a
cobalt by-product from certain cobalt-containing feed streams:
o Project Roan commissioning activities are nearing conclusion
with the official hand-over of the new copper concentrator to the
operational team. The ramp-up of the concentrator is expected to
reach design capacities during July 2022, which targets the
processing of 830 tonnes of copper in concentrate per month for
refining at Sable
o Project Roan has to date created local employment
opportunities to almost 600 people as part of the construction and
operational team. The project has brought investment, employment
and opportunities for local service providers to the region
o Jubilee's Project Roan and Sable Refinery combined has offered
employment and contractor opportunities to more than 800 people,
the most of which are long term, while Jubilee has prioritised
local supply of services often working with local companies to
assist in developing the required services to create a sustainable
support infrastructure
o In addition to the copper refining capacity at Sable, the
construction of a cobalt refining circuit at the site is underway
and expected to commence commissioning during June 2022
o Initial design capacity able to produce up to 1 200 tonnes of
cobalt per annum which has the potential to add significant
revenues to the Southern Copper Refining Strategy (current cobalt
prices c. US$ 81 000 per tonne (source LME))
Leon Coetzer, CEO of Jubilee, commented: "The Jubilee team was
bold in its plans to expand and optimise the South African and
Zambian operations, however a confident, but prudent approach to
the deployment of our GBP 39.5 million investment programme has
already resulted in the delivery of significant results for the
Group.
"Rolling out our business case across multiple countries,
operations and commodities has enabled us to de-risk, capture
economies of scale, and also provided exposure to numerous value
points throughout the recovery and metal processing chain. In
addition, our expanding production profile and the economies of
scale it provides, offers insulation from the inflationary
pressures smaller operators are facing, enabling Jubilee to
maintain a cost per PGM ounce produced when fully accounting for
the chrome by-product production credits resulting in a net cost of
below US$ 450 per PGM ounce when excluding transport cost. Our
eastern limb expansion strategy holds the additional benefit of
significantly reducing transport cost of material from this region
which makes up the bulk of current transport cost.
"I am extremely proud of the Group's performance over the past
12 months, which is testament to the dedication and innovation of
our operational teams. Despite the various issues which we have
faced over the previous two years, including, at times, intense and
prolonged supply chain disruptions mostly due to Covid, the Jubilee
team has risen to the challenge and has delivered on its objectives
on schedule, and on budget.
"Crucially, and in line with our goals to promote sustained,
inclusive economic growth, the Southern Copper Refining Strategy
has resulted in significant job creation, with total jobs filled in
Zambia reaching near 800 during the last 12 months. We have
prioritised the sourcing of skills and services from our local
communities and have, in many instances, partnered with local firms
to assist in their growth and development to offer a sustained
service to our projects. With the completion of the construction of
Project Roan we now look to accelerate our investment program into
the Northern Refining Strategy targeting the Luanshya, Kitwe and
Mufulira area.
"As we emerge from this phase of significant growth and
sustained financial performance, and I look forward to providing
further updates as our various new projects hit their targeted
output in the coming weeks and will be fully reflected in the next
financial reporting period."
Further Information
South Africa
During early 2021 at Inyoni, the Company's primary PGM recovery
circuit, Jubilee launched a project to create a new fully
integrated and significantly expanded Inyoni operations. By way of
a reminder, the project would deliver a fully integrated multi feed
chrome and PGM beneficiation circuit that comprised:
-- a new run-of-mine chrome beneficiation plant ("OBB") with a
design capacity of 80 000 tonnes per month (previous decommissioned
facility historically averaging 45 000 tonnes per month) of mined
chrome and PGM containing ore from various suppliers to
Jubilee;
-- an expanded fine chrome beneficiation circuit able to process
up to 45 000 tonnes per month (previous 35 000 tonnes per month) of
historical chrome and PGM tailings;
-- a renowned ultra-fine chrome ("UFC") processing plant capable
of processing up to 30 000 tonnes per month to maximise the
recovery of the chrome prior to recovering the PGMs; and
-- expansion of the Inyoni PGM circuit capable of processing up
to 75 000 tonnes per month (previous 45 000 tonnes per month) of
tailings produced by the chrome beneficiation circuits which
increases Inyoni's PGM capability to 44 000 PGM ounces per
annum
The new Inyoni operations would, on completion, target the
processing of multiple feed sources to maximise the extraction of
chrome as a by-product to produce a high quality PGM rich feed to
the new upgraded and expanded Inyoni PGM plant, representing a
first for the industry. The expanded operations would also reduce
Jubilee's reliance on JV arrangements, such as the Windsor PGM JV,
to grow its financial and operational performance.
The total allocated capital for the integrated chrome and
expanded PGM recovery facilities was GBP 20.5 million (ZAR 408
million) targeted to be implemented over 11 months to carefully
plan the commissioning of the new and expanded chrome and PGM
circuits with the existing operations.
The project culminated in the commissioning of Jubilee's proven
UFC facility in February 2022 following the commissioning of the
new expanded Inyoni PGM circuit during November 2021, bringing to
completion the new fully integrated chrome and PGM recovery
circuits. The UFC facility is able to recover ultra-fine chrome
from the PGM feed stream further enhancing the PGM feed grade,
while producing additional saleable chrome as a by-product at
virtually no additional operating cost.
The success of this new world class facility is delivering early
results in the operational performance for Q1 2022 with Inyoni's
chrome and PGM production increasing materially. The OBB facility
has exceeded its throughput targets achieving a record processing
of 86 000 tonnes of ROM ore in a single month since its
commissioning in October 2021 adding to the existing Windsor and
Windsor 8 chrome beneficiation plants to reach a processing record
of 190 000 tonnes of ROM ore in a single month.
At Inyoni alone, chrome production remains on target. PGM ounce
production continues to increase after first replenishing the
in-process PGM pipeline that was drained as part of the capital
project. Inyoni is expected to reach its 3 500 PGM ounce monthly
target for May 2022 and delivered 8 018 PGM ounces in Q1 2022, an
increase of 75% when compared with Inyoni's average production rate
of the previous two quarters despite refilling of the operational
pipeline after start-up.
The increased throughput and production rates of the integrated
Inyoni Facility has the added benefit of further dilution of cost
to cushion the current inflationary pressure on operating costs.
Cost per PGM ounce produced excluding transport cost is US$ 669
(transport cost currently US$198 per PGM ounce) and when fully
accounting for the chrome by-product production credits results in
an effective cost per PGM ounce produced of below US$ 450
(excluding transport cost). Jubilee's targeted eastern limb PGM
expansion strategy will significantly reduce transport cost of feed
material from this region while expanding overall PGM production.
Jubilee is in advanced discussions to secure an existing mothballed
PGM processing footprint capable of being repurposed by
Jubilee.
With the Inyoni ramp-up expected to be completed during May
2022, the Company expects to achieve its guidance of 43 000 PGM
ounces for the full financial period despite the interruptions
caused by the implementation of the new integrated and expanded
Inyoni operations.
Zambia
The first phase of Jubilee's copper strategy in Zambia includes
the implementation of its Southern Copper Refining Strategy which
targets to produce up to 12 000 tonnes of copper units per annum
including a cobalt by-product from certain cobalt containing feed
streams.
The strategy integrates the upgraded Sable Refinery with Project
Roan, a new copper concentrator processing both ROM copper ore as
well as tailings to produce copper concentrates for refining at
Sable (10 000 tonnes per annum), which complements the existing
supply of third-party feed to Sable Refinery (2 000 tonnes per
annum). The integrated Southern Copper Refining Strategy's capital
allocation was c. GBP 19 million (ZAR 378 million) .
Jubilee's project execution team broke ground for the
construction of the new copper concentrator, Project Roan, in June
2021 and, despite the challenges caused by the COVID 19 pandemic
and its effect on supply chains, the team was able to commence
testing of certain equipment within seven months and completed all
construction activity within 11 months, a remarkable achievement.
Commissioning activities have been further frustrated with the lack
of availability of certain electronic equipment, largely due to
increased supply chain pressures out of Europe. Through innovative
engineering by the team, these have been overcome and commissioning
activities remain on track to commence ramp-up of the plant during
May 2022. Project Roan is expected to complete the ramp-up of the
operations, which targets 830 tonnes of copper per month, during
July 2022.
In addition to the copper refining capacity at Sable, Jubilee
has approved the implementation of a cobalt refining circuit at
Sable able to produce up to 1 200 tonnes of cobalt per annum. The
new cobalt circuit is expected to commence commissioning during
June 2022. At current prices of cobalt of c. US$ 81 000 per tonne
of cobalt, this exciting project holds the potential to add
significant revenues to the Southern Copper Refining Strategy.
Crucially, and in line with Jubilee's goals to promote
sustained, inclusive economic growth, the Southern Copper Refining
Strategy has resulted in significant job creation, with total jobs
filled in Zambia reaching near 800 during the last 12 months.
Jubilee has prioritised the sourcing of skills and services from
local communities and have, in many instances, partnered with local
firms to assist in their growth and development, which also offer a
sustained service to our projects.
16 May 2022
For further information visit www.jubileemetalsgroup.com or contact:
Jubilee Metals Group PLC
Colin Bird/Leon Coetzer
Tel +44 (0) 20 7584 2155 / Tel +27 (0) 11 465 1913
Nominated Adviser - SPARK Advisory Partners Limited
Andrew Emmott/James Keeshan
Tel: +44 (0) 20 3368 3555
Broker - Shard Capital Partners LLP
Damon Heath/Erik Woolgar
Tel +44 (0) 20 7186 9900
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
Sharon Owens
Tel: +27 (11) 011 9212
PR & IR Adviser - Tavistock
Jos Simson/ Gareth Tredway/Charles Vivian
Tel: +44 (0) 207 920 3150
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