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Processing Capacity at Windsor Fully Committed and Acquisition of Rights to new Chrome Processing Facility
Jubilee Metals Group PLC
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company" or “the Group”)
Jubilee’s Chrome Processing Capacity at Windsor Fully Committed and Acquisition of Rights to new
Chrome Processing Facility
Dissemination of a Regulatory Announcement that contains inside information according to
REGULATION (EU) No 596/2014 (MAR). Not for release, publication or distribution in whole or in part
in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or
regulations of such jurisdiction.
Jubilee Metals Group ("Jubilee" or the “Company"), the AIM and Altx traded metals processing
company, is pleased to announce that it has entered into a third party Run-Of-Mine (“ROM”) chrome
ore offtake agreement that fully commits its Windsor chrome beneficiation plant (“Windsor”) for the
next three years (the “Offtake Agreement”), with an option for this to be extended further.
Under the terms of the Offtake Agreement, Jubilee commits to the production of 40 000 tonnes per
month of chrome concentrate or, subject to the chrome content in the ROM, saleable chrome
concentrate, while also retaining the rights to all discard material including the contained PGMs.
In addition, Jubilee has also successfully entered into a joint venture agreement (“JV Agreement”) with
a privately held South African company (“JV Partner”) to secure the rights to a further 35 000 tonnes
per month chrome processing capacity (“Windsor 8”). Under the JV Agreement Jubilee will assume
operational control of the Windsor 8 facility (the ‘Facility”) while also committing to upgrade it by
incorporating Jubilee’s processing solutions.
Highlights
• Jubilee secures third party ROM Offtake Agreement for Windsor targeting the production of
40 000 tonnes per month of chrome concentrate for the next three years
• The Offtake Agreement secures supply of quality feed to Windsor and supports 100% operating
capacity for the next three years, while continuing to further supplement the existing PGM feed
material to Jubilee’s PGM plants
• Jubilee has locked in a chrome sale price for the chrome production under the Offtake
Agreement to secure a firm chrome earnings margin in addition to the earnings generated by
the recovery of PGMs from the chrome discard
• Jubilee also executes a JV Agreement to secure Windsor 8, being the rights to an additional
35 000 tonnes per month chrome processing capacity at the Facility
• The Facility is strategically located to provide Jubilee with more opportunities to secure further
third party ROM supply and associated PGM material
• Commencement of production at Windsor 8 is targeted by end September 2020
Leon Coetzer, CEO of Jubilee, commented: “Jubilee continues to aggressively drive its expansion across
both its South African and Zambian operations. Our significant progress in Zambia, as announced last
week, is followed by the successful implementation of these two key agreements supporting the
expansion of our South African chrome and PGM operations. These agreements have been secured on
the back of Jubilee’s track record of continuously driving to set new industry standards.
“The Offtake Agreement, which supports Windsor’s capacity to produce 40 000 tonnes per month of
chrome concentrate, secures not only a constant feed source for Windsor under a protected operational
margin, but also significantly increases Jubilee’s surface PGM resources from the discard of the chrome
operations. The successful completion of the Offtake Agreement is credit to the Jubilee team’s ability to
consistently achieve exceptional chrome recovery efficiencies well above the norm in the industry.
“With Windsor fully committed to working at full capacity, Jubilee has also successfully secured Windsor
8 under a JV Agreement, being the rights to a further 35 000 tonnes per month of chrome processing
capacity. The new Facility and JV partner were carefully selected to establish a presence in a strategic
location which will provide Jubilee with further opportunities to increase our chrome ore supply.”
Key Terms of the Agreements
Under the terms of the Offtake Agreement, Windsor will receive a minimum guaranteed ROM supply
targeting the production of 40 000 tonnes per month of chrome concentrate, linking to the chrome
content of the ROM. The Offtake Agreement secures both a committed feed of material to Windsor as
well as the continued production of upgraded PGM discard material for further processing at Jubilee’s
PGM recovery plants.
On the back of this Offtake Agreement Jubilee has also successfully entered into the Joint Venture
Agreement with its JV Partner to secure the rights to a further 35 000 tonnes per month chrome
processing capacity (being Windsor 8). Under the JV Agreement Jubilee will assume operational control
of the Facility while also committing to upgrade the Facility by incorporating Jubilee’s processing
solutions. The Facility is strategically located to expand Jubilee’s reach providing it with more
opportunities to secure further third party chrome material supplies.
Jubilee has locked in the forward sale price of the produced chrome concentrate at its Windsor
operation to hedge the Company against a volatile chrome price driven mainly by uncertainty in the
current supply and demand fundamentals of the metal. The fixed forward sale price secures a firm
earnings margin for Windsor while allowing Windsor 8 to take advantage of any short-term price
fluctuations. The earnings margin of Windsor is strongly influenced by the efficiencies achieved by
Windsor and excludes the added benefit of the recovered PGM ounces from the discard. Windsor is
budgeted to operate at a chrome alone margin ranging between a minimum of 14% to a maximum of
25% per tonne of chrome concentrate with the additional PGM margin secured for Jubilee’s PGM
operations.
Under the terms of the JV Agreement, Jubilee and its JV Partner formed an unincorporated joint venture
(“Joint Venture”) with Jubilee holding the rights to 70% of all earnings generated by the Joint Venture.
Jubilee may at any time during the next five years elect to incorporate the Joint Venture under a new
subsidiary. All capital plus interest invested into the Joint Venture by Jubilee shall first be repaid prior
to any distribution of earnings from the Joint Venture. Jubilee has committed to invest an estimated
ZAR 10 million (GBP 440 000) towards the upgrade of Windsor 8. Jubilee is further appointed as the
manager of the Joint Venture and the operator of Windsor 8, currently owned by the JV Partner.
Windsor 8 benefits from the shared services offered by Windsor to dilute its overhead and position itself
as one of the lowest cost, third party chrome beneficiation facilities. The PGM containing discard from
Windsor 8 will be acquired by Jubilee under an existing agreement with the JV Partner.
United Kingdom
13 August 2020
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/Beth Melluish
Tel +44 (0) 20 7236 1177
Date: 13-08-2020 08:00:00
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