Wrap Text
Zambian Operations Update,Project Roan delivers first copper material ,Offtake Agreement concluded
Jubilee Metals Group PLC
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
Zambian Operations Update
Project Roan delivers first copper material to the Sable Refinery
Offtake Agreement concluded
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Jubilee, the AIM and Altx traded metals processing company is pleased to announce an update
on progress at its copper operations in Zambia, specifically the first copper concentrate for
refining at Jubilee’s Sable Refinery from Project Roan which has been delivered on schedule.
Highlights:
• Project Roan commences with the production of intermediate copper concentrate
for refining at Jubilee’s Sable Refinery
• Project Roan completes Phase 1 of 3 Phases to allow early production of
intermediate copper concentrate while construction of Phases 2 and 3 remain on
target
• Sable Refinery is fully operational and ready to refine product received from Project
Roan - targeting an additional 240 tonnes of copper units and stepping up to 400
tonnes of copper units per month at completion of Phase 2
• Phase 2 of Project Roan targets to commence commissioning during early Q3 2021
to produce a higher-grade intermediate copper concentrate to further increase the
production of copper units prior to the completion of Phase 3 expected during Q1
2022.
• In addition, the Sable Refinery has concluded a long-term offtake agreement for
third party Run-Of-Mine (“ROM”) copper containing material targeting to ramp-up
to an additional 150 tonnes of copper units per month by June 2021
• Copper prices continue to be buoyant trading at just under $10 000 per tonne at the
time of writing and with current operating margins, early earnings from copper and
cobalt production are set to increase
• Completion of the design work for Project Elephant progressing and remains on
track to enter the execution phase for the project by August 2021
Leon Coetzer, CEO of Jubilee, commented: "The successful delivery on time of copper
concentrate from Project Roan to the fully operational Sable Refinery is the first major step in
our commitment to achieve our targeted production of 25 000 tonnes per annum of copper
within the next four years, and taking a leading role in the processing of surface tailings in
Zambia.
“Project Roan is the first of three copper processing facilities that we target to implement to
achieve this goal. Completion of Phase 1 on schedule demonstrates our team’s ability to deliver
on our goals in a new jurisdiction. It provides me with great confidence that we will see
significant success as our copper strategy is further implemented.
“Alongside the continued performance of our South African PGM operations, the targeted
significant ramp up of our copper operation in Zambia is expected to further improve on
Jubilee's recently published record interim results for the six-month period to 31 December
2020, generating long term, quality earnings.
“Looking ahead to next steps, I am confident of the completion of Phase 2 of Project Roan on
time during Q3 2021, which will further increase the copper concentrate being delivered to the
Sable Refinery. With Project Elephant progressing simultaneously and on track to enter the
execution phase of the project by August this year, I look forward with confidence to update
shareholders as we progress.”
Project Roan Update
As previously announced, during 2020, Jubilee entered into joint venture agreements to
secure rights to process over 300 million tonnes of copper and cobalt containing tailings in
Zambia. The copper and cobalt tailings are located in three central locations named Project
Roan, Project Elephant 1 and Project Elephant 2.
Jubilee targets to construct a processing facility at each of the three locations. The extent of
the processing facilities is determined by the refining capacity at its Sable Refinery, currently
limited to 14 000 tonnes per annum. Jubilee has a set target to expand its access to refining
capacity, to achieve a targeted 25 000 tonnes of copper units per annum.
The first of the processing facilities has entered its construction phase at Project Roan, which
targets an annual production rate of 10 000 tonnes of equivalent copper units. The processing
facility will be commissioned over three phases to accelerate the delivery of copper units for
further refining to Jubilee's Sable Refinery. On a slightly revised timetable due to heavy rains
in the region early in 2021, Phase 1 has been achieved on schedule and delivery of the first
copper units to the Sable Refinery has taken place. Phase 1 targets the delivery of an
additional 240 tonnes of copper units per month which will result in the first significant
increase in production at the Sable Refinery. Phase 2 which is expected to be completed
during Q3 targets a further increase in production to 400 tonnes of copper units per
month. The Sable Refinery is fully operational and ready to commence refining of Project
Roan's material and the delivery of this initial intermediate copper concentrate will
significantly and rapidly add to the already achieved early earnings of £ 1.8 million (ZAR 39
million) from production during the first phase.
Looking forward, Phase 2 of Project Roan is targeted for commissioning during Q3 2021 which
will further increase the amount and quality of intermediate copper concentrate delivered to
the Sable Refinery for processing.
The continuing rebound in the copper price is seeing it at a near 10-year high at the time of
writing with analysts predicting further significant growth over the next 12-24 months driven
by several long-term trends. An increased environmental agenda globally and electrification
are at the centre of this with the proliferation of electric vehicles, the increased use of
renewable energy sources, energy efficiency and increased consumption of electronics.
Long-term Offtake Agreement
In addition to Project Roan’s Phase 1 commissioning, Jubilee has entered into a long-term
offtake agreement and the Sable Refinery is expecting to start receiving third party copper
containing ROM material. Under the terms of this agreement the third-party ROM material
will be ramped up to reach 150 tonnes per month of delivered copper units by June 2021.
Project Elephant Update
The completion of the design work for the Company’s second copper processing facility,
Project Elephant, whereby Jubilee has secured the rights to approximately 150 million tonnes
of copper containing surface tailings, is progressing well and remains on track to enter the
execution phase for the project by August 2021. Project Elephant targets to reach the
production of 12 000 copper units per annum in addition to Project Roan by the end of 2022.
United Kingdom
29 April 2021
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 - Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
PR & IR Adviser - St Brides Partners Limited
Catherine Leftley/Charlotte Hollinshead
Tel +44 (0) 20 7236 1177
Date: 29-04-2021 08:00:00
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