TIDMJLP
RNS Number : 5911A
Jubilee Metals Group PLC
23 January 2024
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
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jurisdiction.
Operational and Projects Update Q2 FY2024
Jubilee, a diversified leader in metals processing with
operations in Africa, is pleased to announce an operational and
projects update to 31 December 2023 ("Q2 FY2024"). The Group has
delivered a robust Q2 operational performance and remains on track
to deliver against the production guidance for the 2024 financial
year ("FY2024").
Operational highlights
-- Q2 FY2024 production figures:
o Chrome concentrate production increased by 13.2% setting a new
quarterly production record of 381 114 tonnes, (Q1 FY2024: 336 683
tonnes) benefiting from the Thutse Project reaching full production
targets.
o Inyoni's PGM production was maintained at 10 131 oz in what is
traditionally a slower quarter (Q1 FY2024: 10 113 oz), with no
third-party production in the period.
o Copper cathode and copper in concentrate production reached
749 tonnes (Q1 FY2024: 934 tonnes). The production was achieved
despite the operational disruptions at Roan as part of the ongoing
upgrade project which is set to significantly increase copper
production during the current half year period.
-- Lost Time Frequency Injury Rate (LTFIR) for Zambia improved
to 0.61 (Q1 FY2024: 2.36). LTFIR for South Africa was 2.17 (Q1
FY2024: 1.44).
Key Projects highlights
-- Jubilee has elected to expand the Thutse Project with the
addition of a further 50 000 tonnes per month feed processing
module, following the successful completion of the first chrome
module during August 2023. The potential expansion will move us
nearer to our objective of producing 2.1 million tonnes of chrome
concentrate per annum.
-- Roan copper concentrator was brought back into operation
during December 2023 to reduce the impact of the front-end upgrade
project start-up being postponed due to the delay in the delivery
of a critical electrical components due to the ongoing logistics
constraints at ports across South Africa.
-- Roan will continue to operate at approximately 50% of full
capacity while an alternative solution is being pursued to source
the electrical components which includes the option to locally
manufacture the components. A 9 weeks delay is expected to the
upgrade of the Roan project.
-- The development of Project M (Monkoyo Copper Resource) near
Jubilee's Sable Refinery is progressing to schedule with the first
test material from this exciting copper resource expected to be
delivered to the Sable refinery during Q4 FY2024. The material
forms part of the development of detailed surface copper resource
definition, which offers the potential of a long-term quality
copper supply to Sable Refinery from early in the 2025 calendar
year.
-- The accelerated development of the newly secured large copper
waste rock asset is being progressed along various work streams.
This includes the development of a more detailed resource
definition, undertaking bulk processing trials of the source
material by Jubilee Technical Services ("JTS") to confirm detail
designs of the processing units, and the securing of manufacturing
capacity for plant and equipment.
-- The expansion of the sulphide copper recovery circuit at the
Sable Refinery is progressing to schedule with installation
expected to commence during Q3 CY2024 which aligns with the
expected near-term increase in copper concentrate delivery from the
various copper expansion projects.
Leon Coetzer, CEO commented :
"In the face of a dynamic and challenging global market, Jubilee
has continued to demonstrate resilience and adaptability,
delivering a strong operational performance in the second quarter
of the 2024 fiscal year. Our commitment to operational excellence
and strategic growth is evident in our robust production figures
and sustained progress across key projects.
"We are particularly proud of the significant increase in chrome
concentrate production setting a record for Jubilee. The targeted
expansion of our Thutse project brings us closer to reaching our
strategic goal of 2.1 million tonnes of chrome concentrate per
annum. Our chrome operations are capable of funding the expansion
capital from its cash generation, and the commencement of the
Thutse expansion is subject to internal capital and funding
approval processes.
"In Zambia the team were able to grow our copper output despite
the operational interruptions caused by the Roan front-end upgrade
and associated import delays. The team is working tirelessly to
overcome the delay and will continue to operate Roan at a reduced
capacity during this time.
"I am excited by the early indications from both our Project M
and newly secured large waste rock asset. Both projects offer
significant growth opportunities anchored by a large copper
resource. We will keep shareholders updated on the development of
both projects.
"Safety remains a core value at Jubilee, and we continue our
unwavering commitment to the health and safety of our workforce to
continuously improve.
"In conclusion, Jubilee is well-positioned to continue its
growth trajectory. Our operational achievements, strategic
expansions, and strong market presence underscore our resilience
and adaptability in a complex global landscape. We remain committed
to delivering value to our stakeholders and playing a pivotal role
in the sustainable development of the metals processing
industry."
Projects Update
South Africa
Thutse complex
The Group is making progress in negotiations to establish
additional Life-of-Mine ("LOM") partnerships. Concurrently, the
Company is focusing on expanding its chrome operations through the
implementation of one additional processing module. This initiative
is part of the Company's strategic plan to achieve a future annual
chrome concentrate production milestone in excess of 2 million
tonnes per annum. This expansion will be approximately US$6
million, funded through cash generated by the chrome operations,
the commencement of the project is subject to our internal capital
and funding approval processes.
The success of the Thutse Project has motivated the further
expansion of the Thutse operations by implementing a further 50 000
tonnes per month feed processing unit at Thutse. This expansion
takes Jubilee a step closer towards achieving a targeted 2.1
million tonnes per annum of chrome concentrate. It is expected that
the additional chrome module will be implemented during Q3 CY2024
and is capable of producing an additional 300 000 tonnes of chrome
concentrate per annum.
Zambia
Historical Waste Rock Dump in Zambia
As announced during November 2023, Jubilee secured one of the
largest copper waste rock assets on surface in Zambia and has
formed a strategic partnership with Abu Dhabi based International
Resources Holding RSC Limited ("IRH").
Jubilee executed a binding funding term sheet with IRH to form a
dedicated special purpose vehicle ("SPV") through which both the
acquisition of the copper waste rock asset and implementation of
the processing solution will be funded. According to the terms of
the funding term sheet, IRH and Jubilee will aim to complete the
implementation of the SPV and associated appointments by 31 January
2024. IRH will provide the necessary capital through equity and
loans, subject only to IRH completing its due diligence. Jubilee
will design, implement, and operate the Waste Rock Project, set to
commence in Q1 CY2024. With a total projected investment of around
US$50 million, this venture highlights Jubilee's commitment to
delivering cost-effective and environmentally sustainable mining
solutions.
The accelerated development of the Waste Rock Project is being
progressed along various work streams which includes the
development of a more detailed resource definition, processing
trials undertaken by JTS to confirm the designs of processing units
and securing manufacturing capacity for plant and equipment.
Project Roan
The upgrade of Roan currently underway includes the
implementation of a 50 000 tonnes per month modular unit, which
allows Roan to simultaneously process multiple feed sources. JTS is
currently completing a review of various additional feed sources
near Roan which is in addition to the previously announced
approximate 6-year off-take agreement of unprocessed copper ROM
material discarded as mined waste. The upgraded Roan is perfectly
positioned to uniquely capitalise on the opportunities on
offer.
Project Roan, through these key upgrades, is poised for a
significant operational rebound.
The Roan front-end upgrade has suffered delays in completion due
to delayed delivery of an imported critical electrical component
caused by logistical challenges at South African ports. JTS has
been able to bring unaffected sections of Roan back into operation
to reduce the impact of the delays. JTS has approached local
manufacturers in South Africa to produce the component as an
emergency measure which is expected to be completed within 8 weeks.
Until completion, Roan will continue to operate by processing
selectively suitable material.
During this period overall production rates are capable of being
maintained in excess of 600 copper units per month before offering
the opportunity to increase to beyond 1 000 tonnes per month once
Roan returns to full production.
Sable Refinery Upgrade
JTS has completed the design work for the expansion of the
sulphide copper recovery circuit at the Sable Refinery, in
anticipation of the expected near-term increase in copper
concentrate delivery from the various copper expansion projects.
Construction is expected to commence during Q3 of CY2024. The
project forms part of Jubilee's strategy to expand the Sable
Refinery's capacity to produce up to 16 000 copper units per
annum.
Project M
As announced on 1 November 2023, Jubilee secured its first LOM
copper ore off-take agreement from an existing mining company
("Project M" short for Monkoyo). Project M seeks to emulate the
success of the South African modular chrome expansion roll-out
drive, to process copper containing ore, deemed as waste by current
or previous operators.
The team has undertaken significant work at Project M over the
past quarter, with the first sample material from the extended open
pit material expected to be delivered to Sable Refinery in May 2024
as part of the development of detailed copper resource definition.
Project M offers the potential to be a sustained long term
supplementary copper supply for Sable refinery by early 2025
calendar year.
At completion, Project M will include the implementation of a
further copper processing module of approximate 35 000 tonnes per
month feed processing capacity. The project forms part of the
targeted roll-out of the copper modular units across the Zambian
projects which mimics the success achieved through the modular roll
out of the chrome units in South Africa.
Mufulira Slag Project
The Mufulira Slag project targets the processing of all
historical slag waste from the Mufulira smelter operations under a
joint venture agreement with Mopani Copper Mines ("MCM"). JTS has
commenced the joint technical review of the project to create a
processing solution that is environmentally friendly. More
information about the project will be available once JTS concludes
this initial technical review.
Production guidance for the 2024 financial year
The chrome and PGM production guidance remains unchanged at 1.45
million tonnes of chrome concentrate and 42 000 PGM ounces for the
current financial year ending June 2024.
Copper guidance remains at 5 850 tonnes, pending confirmation of
the manufacturing timeline of the electrical component delaying the
front-end upgrade of the Project Roan.
The table below presents the unaudited operational performance
of the group for Q2 FY2024:
OPERATIONAL PERFORMANCE Unit Q2 Q1 % change Q2 % change
FY2024 FY2024 FY2023 Q2 FY2024
on Q2 FY2023
KEY UNITS OF PRODUCTION
------- ------- ------- -------- -------- -------------
PGM ounces Oz 10 131 10 113 0.2% 11 088 (9%)
------- ------- ------- -------- -------- -------------
Chrome tonnes Tonne 381 114 336 683 13% 274 390 39%
------- ------- ------- -------- -------- -------------
Copper tonnes Tonne 749 934 (20%) 562 33%
------- ------- ------- -------- -------- -------------
23 January 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
PR & IR Adviser - Tavistock
Jos Simson/ Gareth Tredway
Tel: +44 (0) 207 920 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 Metals Plc
Jubilee is a low-cost, diversified producer, specialising in the
recovery of metal from previously overlooked resources, such as
unprocessed historical waste rock, run-of-mine materials and
tailings in South Africa and Zambia. 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 chrome, copper and
platinum group metals (PGMs). The modular processing facilities
offer a platform for growth and the rapid expansion of its
operational footprint. Jubilee's success is derived from
operational excellence, a highly experienced management team and a
pioneering Technical Development Centre.
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