Wrap Text
Q1 Operational Report to 30 September 2023
Jubilee Metals Group PLC
("Jubilee" or "the Company" or "the Group")
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
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Q1 Operational Report to 30 September 2023
Jubilee Metals Group PLC (AIM: JLP/Altx: JBL), a diversified leader in metals processing with
operations in Africa, is pleased to announce its first quarter operational report to 30 September 2023
("Q1 FY2024"). The Group has delivered a strong Q1 operational performance and remains on track
to deliver against the production guidance for the 2024 financial year ("FY2024").
Operational Highlights
• Q1 FY2024 production figures achieved were:
o Production of chrome concentrate increased to 336,683 tonnes (Q4 FY2023: 344,315
tonnes). Chrome production rates are expected to continue to increase with the
additional processing capacity provided by an additional chrome processing module,
completed in August (the "Thutse Processing Module").
o Inyoni's PGM production increased to 10,113oz (Q4 FY2023: 9,350oz), with no third-
party production in the period. The PGM production rate is expected to further
benefit from the increased feed rate from the Thutse Processing Module operating
at design capacity.
o Copper cathode and copper in concentrate produced was 934 tonnes (Q4 FY2023:
653 tonnes). Project Roan's upgrade which commenced in September 2023, has
necessitated the stoppage of the feed classification circuit which will disrupt
processing at Roan for 16-weeks until December 2023.
• Lost Time Frequency Injury Rate (LTFIR) for South Africa improved to 1.44 (Q4 FY2023: 1.5).
While The LTFIR for Zambia improved to 2.36 (Q4 FY2023: 2.37).
• The average chrome revenue per tonne of US$85 (Q4 FY2023: US$86 per tonne) is influenced
by the percentage of fixed chrome margin tonnages processed. The increased margins from
the new partnership agreements are expected to reflect stronger through the current
quarter. The average chrome cost per tonne remained flat at US$75 (Q4 FY2023: US$74 per
tonne).
• The average PGM revenue per ounce increased to US$1,031 (Q4 FY2023: US$976). Cost
remained tightly under control with the average PGM cash cost per ounce, excluding chrome
credits of US$875 (Q4 FY2023: US$855).
• The average copper revenue per tonne of US$6,588 (Q4 FY2023: US$6,860 per tonne) reflects
the increase of copper sulphide concentrate sales from the Roan concentrator, while the
average copper cost per tonne increased marginally to US$4,907 (Q4 FY2023: US$4,802 per
tonne).
Project Highlights
South Africa
• Jubilee has elected to further expand the chrome operational footprint by an additional
450,000 tonnes per annum feed process capacity using its existing modular approach.
o The expansion allows for the construction of an additional chrome process module to
be added to the current Thutse operations.
o The expansion will increase Jubilee's chrome processing footprint to 9 chrome
processing modules and increase the total chrome processing capacity to 1.7 million
per annum.
o The expansion of the chrome processing footprint remains contingent upon our
continuing capital allocation evaluation and assessment of prospective funding
arrangements.
• The Group continues to advance discussions to conclude a further Life-Of-Mine ("LOM")
partnerships and expand the chrome operations via the roll-out of additional processing
modules as it targets 2 million tonnes of concentrates per annum in the future.
Zambia
• Zambia copper gathered further momentum with the securing of the first LOM copper ore
off-take agreement from an existing mining company ("Project M"), as opposed to copper
tailings offtakes contracts signed in the past. Project M seeks to replicate the success of the
South African modular chrome expansion roll-out drive, which seeks to process copper
containing ore, deemed as waste by current or previous operators.
o The copper processing modules will be trialled and tested at the same in-house
development centre in South Africa where the chrome modules are currently
manufactured.
o The copper process modules specifically target the processing of Run-Of-Mine
("ROM") ore that has not been previously processed, as opposed to tailings. In many
cases, this ROM material has been rejected to mine waste dumps due to the type of
copper contained.
o Copper processing module designs range from 20,000 to 50,000 tonnes per month
feed supply, capable of being delivered and commissioned within an eight-month
period.
o Jubilee holds the capacity to execute 3 modules in parallel at an estimated capital
investment of US$6.5 million per module (capital estimate based on a 50 000 tonnes
per month module).
o Each 20,000 tonnes per month module is expected to produce the equivalent of 3,000
tonnes per annum of additional cathode.
o Jubilee's project team is expected to complete the selection of the optimum process
module capacity for Project M within the next 6 weeks with deployment within 8
months following the conclusion of the capital allocation decision.
• Project Roan's upgrade currently underway includes the implementation of a 50,000 tonnes
per month processing module, specifically targeting the previously announced approximate
6-year offtake agreement of unprocessed copper ROM material discarded as mined waste.
• During the period, Jubilee was awarded the Mufulira Slag project to develop the processing
of all historical slag waste from the smelter operations under a joint venture agreement with
Mopani Copper Mines ("MCM"). The commercial terms of the joint venture are currently
being negotiated and are expected to be finalised once the sale of MCM is completed which
is subject to a well-publicised formal sale process.
• Jubilee signed a technology exclusive partnership agreement for the development and
implementation of a copper recovery solution called Glycine Leaching Technology for the
processing of historical copper tailings with Draslovka Mining Solutions
o The partnership brings together two exceptionally skilled technical teams to work
together on unlock the value from this vast resource in an environmentally friendly
way.
o The partnership specifically targets the processing of copper and other base metal
historical tailings in Zambia with a potential of extending the work to the Democratic
Republic of the Congo.
o The technology partnership with Draslovka builds on the latest encouraging results
achieved from the upscaled extended continuous trial runs that followed the earlier
laboratory batch trials.
o Calculated copper extraction of more than 80% of copper in tails has been achieved
from the continuous Glycine Leaching Technology trials applying a modified reagent
recipe.
o Jubilee's technical services is working closely with the Draslovka team to unlock the
vast potential offered to recover copper from these low-grade tailings generated
from past processing of copper ROM.
o Jubilee's engineers are currently completing the commercial review of the tailings
recovery project which will inform the decision to implement further upscaled
industrial scale trials.
• The process development program for the processing of historical tails continue to show
progress with results from the upscaled extended continuous trial runs confirming the
encouraging results from the earlier laboratory batch trials.
o Calculated copper extraction of more than 80% of copper in tailing has been achieved
from the continuous Glycine Leaching Technology trials applying a modified reagent
recipe.
o Jubilee's engineers are currently completing the commercial review of the tailings
recovery project which will inform the decision to implement further upscaled
industrial scale trials.
Statement from Leon Coetzer, CEO:
"I am pleased to present our operational report for the first quarter of FY2024. Our robust operational
performance was supported by new long-term supply agreements which allocates higher quality feed
material to our operations, allowing us to better leverage our current production capacity, and affirm
our growth trajectory in chrome concentrate, PGMs, and copper.
"Jubilee continues to challenge industry norms by breaking through technical barriers and
implementing solutions that extract value from materials and ore sources that were previously
regarded by others as waste or too complex.
"With the Thutse chrome project performing to expectation and offering further growth potential
with the addition of Jubilee's 9th chrome module, we anticipate consistent growth in chrome and
PGMs.
"Our operating presence in Zambia together with the expansion of our leadership teams have allowed
us to solidify our copper expansion strategy, by implementing key lessons learnt and integrating the
modular expansion of our copper production profile that has achieved such great success in South
Africa.
"Our Zambian strategy is grouped into two categories of copper materials namely unprocessed
copper waste from mining activities and historical processed copper tailings. Our growth in each of
these categories of copper materials is independently driven. I am particularly excited by the roll-out
of our copper processing modules specifically targeting the copper waste materials while our
technical team continues their work to unlock the copper value in historical processed tailings using
Glycine Leaching Technology.
"Safety remains a top priority, as evidenced by the improved Lost Time Frequency Injury Rate in both
South Africa and Zambia.
"Our upcoming ventures, from the potential expansion of our chrome operations to our first life-of-
mine copper ore off-take agreement, reinforce our strategic vision. Partnerships with companies like
Mopani Copper Mines and Draslovka underscore our focus on growth and innovation.
"In conclusion, our improved operational margins across segments highlight our team's efforts
and strategic foresight. I remain extremely optimistic about Jubilee's future and the trajectory on
which the Company is headed".
Production guidance for the 2024 financial year
• 1.45 million tonnes of chrome concentrate
• 42,000 PGM ounces
• 5,850 tonnes of copper, weighted to the second half of the financial year, given limited
production in Q2
Quarterly Operational Performance
QUARTERLY OPERATIONAL PERFORMANCE (UNAUDITED)
Quarter ended Quarter
30 September ended 30 %
Unit
2023 (Q1 June 2023 change
FY2024) (Q4 FY2023)
KEY UNITS OF PRODUCTION
Chrome Concentrate Tonnes 336,683 344,315 (2%)
PGMs
- Inyoni Oz 10,113 9,350 8%
- Third party Oz - 3,439 (100%)
- Total PGM ounces Oz 10,113 12,789 (21%)
Copper cathode and copper in concentrate Tonnes 934 653 43%
UNIT REVENUE
Revenue per chrome tonne US$/t 85 86 (1%)
Revenue per PGM ounce US$/oz 1,031 976 6%
Revenue per copper tonne US$/t 6,588 6,860 (4%)
UNIT COSTS
Cost per chrome tonne US$/t 75 74 1%
Cost per PGM ounce (excluding chrome credits) US$/oz 875 855 2%
Cost per copper tonne US$/t 4,907 4,802 2%
OPERATIONAL MARGIN
Gross profit margin per chrome tonne % 12.7% 13.5% (6%)
Gross profit margin per PGM ounce % 15.2% 12.3% 23%
Gross profit margin per copper tonne % 25.5% 19.5% 31%
EXCHANGE RATES
Average presentation currencies US$/GBP 1.27 1.25 1%
Average functional currency South Africa ZAR/ US$ 18.63 18.65 0%
Average functional currency Zambia ZMW/ US$ 19.50 18.82 4%
Investor Calendar
Details Dates
Second Quarter Operational Report Second week of February 2024
Interim results for the period ended 31 December 2023 Second week of March 2024
Third Quarter Operational Report Second week of May 2024
Fourth Quarter Operational Report Second week of August 2024
Audited results for the year ended 30 June 2024 Second week of October 2024
Annual General Meeting Second week of November 2024
1 November 2023
For further information please contact:
Jubilee Metals Group PLC Tel: +27 (0) 11 465 1913
Leon Coetzer (CEO) / Neal Reynolds (CFO)
PR & IR Adviser – Tavistock Tel: +44 (0) 20 7920 3150
Jos Simson/ Gareth Tredway
Nominated Adviser – SPARK Advisory Partners Limited Tel: +44 (0) 20 3368 3555
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 Proprietary Tel: +27 (0) 11 011 9207
Limited
Alison McLaren
Date: 01-11-2023 09:05:00
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