TIDMJLP
RNS Number : 1947X
Jubilee Metals Group PLC
24 April 2023
Jubilee Metals Group PLC
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
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COMPANY UPDATE
Jubilee Metals Group PLC (AIM: JLP; Altx: JBL), a leader in
diversified metals processing, with operations in Africa, is
pleased to provide an update on its South African operations and
its Zambian projects for the quarter ended 31 March 2023 ("Q3
FY2023").
Q3 FY2023 OVERVIEW
Operations
-- Lost time injury frequency rate (LTIFR) of 1.0 in South
Africa; LTIFR of 2.3 in Zambia
-- 11 437 PGM oz were sold with PGM operations performing on
target recording 9 019 PGM oz, from own operations, plus an
additional 2 418 PGM oz, through the sale of stock under its JV
Partnership agreement
-- Chrome production of 310 721 tonnes, remains on track to
reach full year guidance of 1.2 million tonnes
-- Contribution from chrome by-product credits to the PGM
operations more than doubled on the back of stronger chrome
production with cost per PGM oz (after chrome by-product credits)
dropping to US$383 per PGM oz
-- Upwards momentum in platinum and palladium prices during the
current period, with chrome and copper prices remaining
resilient
-- Southern Copper Refining project ramp-up resumed end of
February, with a stable supply of water and power fully
restored
-- 494 tonnes of copper sold with a further 202 tonnes of
equivalent copper held in copper concentrate and metal as stock at
the end of the period
-- The flexibility of Sable Refinery offers the ability to pivot
between copper and cobalt production to rapidly respond to changing
market fundamentals. Flexibility used to maximise copper equivalent
production units
o Copper production prioritised due to cobalt prices reducing by
76% from the year's high
o 110 tonnes of Cobalt hydroxide produced prior to pivoting to
copper with a further 70 tonnes of equivalent cobalt units held in
stock
Strategy and growth projects
-- Good progress made with discussions to secure a further PGM
processing footprint in the Eastern Limb, targeting an additional
25 000 PGM oz per annum and expected to commence construction in Q4
CY2023
-- Ramp-up of copper operations at Roan Concentrator in Zambia
progressing well with full output now expected in May 2023
-- Final design reviews for the Northern Refining Strategy are
underway to confirm the implementation schedule and required
investment with further information to be provided to the market by
the full year close in June
Full year Guidance FY2023
-- PGM oz guidance remains unchanged at 38 000 PGM oz with the
potential of upwards revision depending on South Africa's power
supply outlook
-- Chrome operations expected to exceed guidance of 1.2 million
tonnes of chrome concentrate supported by stronger chrome prices
during Q3 FY 2023
-- Copper guidance remains unchanged at 3 000 tonnes
STATEMENT FROM LEON COETZER, CEO:
"Our South African operations continue to deliver a strong
performance recording 9 019 PGM oz from own operations and 2 418
PGM oz through our JV partnership agreement, for the quarter
January to March. The ounces sold under the JV agreement stem from
excess stock held at Inyoni with its capacity fully utilised under
the current agreements. This places our South African operations on
track to meet and potentially exceed the full year guidance of 38
000 PGM oz. Our chrome operations once again exceeded its
operational targets recording 310 721 tonnes of chrome concentrate
and are therefore expected to exceed our full year guidance of 1.2
million tonnes. The continued supportive chrome prices over the
past quarter translated into a more than doubled chrome by-product
credit in our PGM business, which calculates to a cost per PGM oz
of US$383. This confirms the strength of the South African
operation's integrated chrome and PGM business model.
"The ramp-up of operations at the Roan copper concentrator and
integration with the Sable refinery resumed from the end of
February and recorded 494 tonnes of copper units sold for Q3 FY2023
with a further 202 tonnes of copper held in stock at Roan. The
leadership of our Zambian operations team has been strengthened to
ensure that the team is better structured to deliver on the
expected performance targets, with results already seen.
"Final design reviews for our Northern Refining Strategy are
underway to confirm the implementation schedule and required
investment. I hope to provide further clarity on this at the
completion of the revised capital program which is expected by the
full year close in June."
KEY OPERATIONAL NUMBERS
COMBINED OPERATIONAL PERFORMANCE 3 months 6 months
to to
Unit 31 Mar 2023 31 Dec
2022
(Q3 FY2023) (H1 FY2023)*
Unaudited Unaudited
-------- -------------- ---------------
KEY UNITS OF PRODUCT
-------- -------------- ---------------
PGM ounces:
-------- -------------- ---------------
* Inyoni Facility Oz 9 019 18 208
-------- -------------- ---------------
Oz 2 418 -
* Third party JV
-------- -------------- ---------------
Total PGM ounces Oz 11 437 18 208
-------- -------------- ---------------
Chrome tonnes Tonne 310 721 634 111
-------- -------------- ---------------
Copper tonnes Tonne 494** 915
-------- -------------- ---------------
Copper tonnes held in stock Tonne 202 280
-------- -------------- ---------------
UNIT REVENUE
-------- -------------- ---------------
PGM revenue per ounce US$/oz 1 285*** 1 453
-------- -------------- ---------------
Chrome revenue per PGM ounce US$/oz 2 317*** 2 292
-------- -------------- ---------------
Copper revenue per tonne US$/t 8 459**** 7 953
-------- -------------- ---------------
UNIT COST
-------- -------------- ---------------
Cost per PGM ounce (after chrome
by-product credits) US$/oz 383*** 608
-------- -------------- ---------------
Cost per copper tonne US$/t 6 236**** 6 468*
-------- -------------- ---------------
UNIT EARNINGS
-------- -------------- ---------------
Earnings per PGM ounce US$/oz 902*** 845
-------- -------------- ---------------
Earnings per copper tonne US$/t 2 223** 1 485
-------- -------------- ---------------
* Numbers are as per the half year operational update prior to
capitalisation of proportional Roan output
** Includes total copper tonnes sold inclusive of Roan produced
tonnes which are capitalised prior to full commercialisation of the
project expected by end May 2023
*** PGM cost, revenue and earnings are accounted for based on the combined 11 437 PGM oz
Total chrome credits account to US$402 per oz of total PGM oz
sold during the period. Inyoni unit cost before chrome credits were
US$708 per PGM oz
**** Copper revenue and cost represent total copper tonnes sold
and include capitalised cost of Project Roan
SOUTH AFRICA
Jubilee's Inyoni Facility continued to deliver a strong
performance in line with expectations. The Inyoni operations
achieved 9 019 PGM oz for the quarter (100% from own operations)
and additionally, sold the equivalent of 2 418 PGM oz from excess
feedstock through its JV partner agreement. At the Company's Inyoni
operations, the operational cost remained tightly under control
despite the inflationary pressure and benefitted from the chrome
offset on the back of the strong performance.
The chrome operations, as a by-product of the PGM operations,
continued to perform, delivering 310 721 tonnes of chrome
concentrate over the period against a targeted 300 000 tonnes. This
strong performance coupled with increased chrome prices during the
past quarter, resulted in a more than doubling of contribution from
chrome credits towards the PGM operations, equating to US$402 per
PGM oz, and resulting in a cost per PGM oz (after chrome by-product
credits) of US$383 All in unit cost for the Inyoni operation
inclusive of feed material purchases and before accounting for the
chrome credits, totalled US$708 per PGM oz.
Chrome prices remain robust with strong demand from China
coupled with constrained supply. PGM basket prices remained lower
at US$1 297 per oz net of all refining charges.
As previously announced, Jubilee has made good progress with
discussions to secure a further PGM processing footprint in the
Eastern Limb of the Bushveld complex (the north-eastern region of
South Africa's chrome and PGM mining region), with final design
reviews completed for the chrome beneficiation facility that will
precede the PGM facility in the Eastern Limb. The Company targets
to commence with the construction of the chrome beneficiation
circuit as soon as regulatory approvals are secured, which is
expected during Q3 of the 2023 calendar year. The construction of
the circuit is budgeted to be completed over a six-month period.
The Eastern Limb PGM facility offers the opportunity to further
increase Jubilee's PGM operational footprint by 25 000 PGM
ounces.
ZAMBIA
Jubilee's 780 000 tonnes per annum Roan copper concentrator
forms part of its fully integrated Southern Copper Refining
Strategy which integrates the Sable Refinery and the Roan
Concentrator with a total capacity of 12 000 tonnes of copper per
annum.
At the end of February, with the power and water disruptions
across Zambia now resolved, Project Roan re-commenced with ramping
up to full production and commercialisation of the Southern Copper
Refining project. The project sold 494 copper tonnes over the
period with a further 202 tonnes of equivalent copper contained in
copper concentrate and copper cathode. To date, a total capital
investment of US$48.2 million has been made for the construction,
implementation, commissioning and ramp-up of the integrated Roan
project towards reaching commercialisation. Upon reaching
commercial production, the Roan copper concentrator is expected to
contribute 550 tonnes of copper per month to the production of the
Sable Refinery with a further 130 tonnes per month of copper from
third party supplies.
As announced on 20 March 2023, the upgrade of the power and
water infrastructure at Project Roan offered the potential for the
simplification of the Northern Copper Refining Strategy by
utilising Roan's expanded infrastructure to establish a central
copper concentrating hub at Roan which would significantly reduce
the required capital investment and project timelines.
The Company will provide further clarity on the expected capital
investment and updated timelines for the implementation of the
Northern Copper Refining Strategy at the completion of the revised
capital program which is expected by the end of the current
reporting period.
At Sable, Jubilee successfully completed the first cobalt
production runs from waste and looks to increase the capacity to be
able to produce 450 tonnes per month of cobalt hydroxide (125
tonnes of contained cobalt) from recycled waste alone by the end of
May 2023. This additional capability offers Jubilee the flexibility
to pivot between copper and cobalt production guided by prevailing
market conditions. Cobalt prices have depreciated sharply over the
period with cobalt hydroxide prices reducing by 76% from its highs
during April 2022. Cobalt production has therefore been halted and
will resume once the market displays signs of recovery.
24 April 2023
FOR FURTHER INFORMATION VISIT WWW.JUBILEEMETALSGROUP.COM OR
PLEASE CONTACT:
Jubilee Metals Group PLC Tel: +27 (0) 11 465 1913
Leon Coetzer
PR & IR Adviser - Tavistock Tel: +44 (0) 20 7920 3150
Jos Simson/ Gareth Tredway
Nominated Adviser - SPARK Advisory Tel: +44 (0) 20 3368 3555
Partners Limited
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 Tel: +27 (0) 11 011 9207
Pty Ltd
Alison McLaren
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