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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Operations Update for the six months to 31 December 2022 and Refinement of Zambian Strategy

Jubilee Metals Group PLC, a leader in diversified metals processing, with operations in Africa (AIM:
JLP/Altx: JBL), announces its six-month operations update for the period ending 31 December 2022 (H1
FY2023) and an update to its Zambian copper and cobalt strategy. The Company expects to release its
interim results for the six-month period ending 31 December 2022 on or about 20 March 2023. Figures
in this announcement are unaudited.

The Company is pleased to have delivered operational performance broadly in-line with management’s
expected earnings and revenue targets for H1 FY2023, mainly supported by the performance of its
South African PGM and chrome operations which largely buffered the impact of the power and water
infrastructural challenges faced in Zambia which have since been addressed.

Key Highlights

South Africa

    •   The Company’s newly expanded Inyoni Facility continued to perform, delivering 18 208 PGM
        ounces for the six-months to December 2022 (100% from own operations) despite increased
        power outages experienced at the Company’s South African operations.

    •   Chrome production benefited from the increased capacity delivering 634 111 tonnes of chrome
        concentrate, with chrome production on track to exceed full-year guidance of 1.2 million tonnes
        of chrome concentrate.

    •   Jubilee’s enlarged chrome processing capacity was utilised to accelerate the production of PGM
        feed material to increase PGM feed stock by a further 5 016 PGM ounces to better buffer the
        Inyoni PGM facility against increased power outages.

    •   In November 2022, Jubilee implemented back-up power units at its Windsor 8 chrome
        operations. The expansion of the power facility is currently under review to further protect the
        chrome operations that supply the feed to the Inyoni Facility. Since commissioning, the back-
        up power units have delivered in excess of 650 hours of back-up power.

    •   Operational cost net of chrome credits remained tightly under control at US$ 516 per PGM
        ounce, which is well below target despite a much lower credit from chrome production due to
        a softer chrome metal price.

    •   PGM and chrome metal prices were softer over the period with chrome recovering sharply post
        the reporting period.
   •     The South African operations experienced additional operational downtime relating to a safety
         incident at an engineering service provider that sadly resulted in a fatality. Following the
         incident, Jubilee has implemented measures to assume a more direct safety management role
         of its service providers.

   •     The combined South African operations have achieved 52 days without a lost time injury (LTI)
         with a lost time injury frequency rate (LTIFR) of 1.0.


Zambia


   •     Copper production was down 10% on the previous six months to 1 149 tonnes with in-process
         stock from processed material at Roan increasing to approximately 830 tonnes of contained
         copper.

   •     Overall production fell below the targeted 3 000 tonnes of copper for the period, with the
         Zambian operations suffering severe disruptions due to country wide power outages that
         resulted in prolonged down-times and damage to plant and equipment which impacted its
         ability to operate as intended and effectively.

   •     Jubilee has taken decisive corrective action to invest a further approximately US$2.5 million to
         end January 2023 to address and overcome the infrastructure challenges which has delivered
         an upgraded privately owned water infrastructure, further upgraded power infrastructure with
         additional secured power and replacement of damaged equipment.

   •     The upgraded and expanded water and power infrastructure at Roan now offers the potential
         to more than double the capacity of the existing 780 000 tonne per annum processing capacity.

   •     At Sable, Jubilee successfully completed the first cobalt production runs from waste. The
         success of the trials has motivated the further expansion of the cobalt circuit to increase cobalt
         production from waste and offers a buffer to the impact on Group earnings from reduced
         copper production.

Refined Zambian Strategy

   •     Jubilee has updated the implementation of its copper and cobalt expansion strategy to better
         align the targeted increased operational footprint with the in-country available power
         infrastructure, resulting in the potential to accelerate the roll-out of the Northern copper and
         cobalt strategy. The refined strategy follows a joint review by the Zambian authorities and the
         Jubilee project team.

   •     The Company’s new refined strategy will allow the Zambian operations to maximise the use of
         available and renewed infrastructure by expanding existing operations such as Roan, which
         offers the potential to bring forward the delivery of its Northern Refining Strategy through a
         centralised operation and reduced capital outlay.

   •     Sable Refinery holds the ability to pivot production between copper and cobalt metals which,
         accommodates the staged expansion of the operations while at the same time optimising
         profitability.

   •     The Sable Refinery will initially maximise cobalt production in the short-term to facilitate the
         targeted expansion of the Roan copper operations, targeting output of 450 tonnes per month
        of cobalt hydroxide (125 tonnes of contained cobalt) from recycled waste alone by end May
        2023.


Leon Coetzer, CEO, commented: “It has been a challenging period during which we have overcome
infrastructural related challenges in both of our operating jurisdictions. Reliable power and water supply
are two critical ingredients for efficient and stable operations.

“Our ability to leverage off our multi-commodity production capability has been vital in being able to
deliver the operational performance and resultant revenues and earnings. We aim to continue to
maximise this multi-metal production flexibility and therefore benefit from the cumulative earnings
potential it provides.

“Our South African operations delivered a very solid result in the period under review, despite the
aforementioned challenges. We moved quickly with our chrome and PGM feed material suppliers to
better manage stock levels and synchronise operational activities, while prioritising the implementation
of back-up power supply units at the hardest hit operational areas.

“This has allowed our South African operations to temper the impact of the ongoing load-shedding, a
term used to describe the reduction of power availability in designated areas by the national power
utility of South Africa. With the measures taken and systems implemented I fully expect the operations
to closely match targeted up-time resulting in improved processing efficiencies.

“At our operations in Zambia, the impact of nationwide power shortages has been more acute, and we
have taken bold steps to not only overcome the immediate challenges faced by operations, but also to
actively update the implementation strategy of our copper and cobalt expansion. Through a concerted
joint effort between the Jubilee teams and the Zambian authorities, we have been able to alleviate the
immediate impact of power outages on our operations through the implementation of a new power
management plan, while adapting our copper and cobalt expansion strategy to better align with
available power and water infrastructure.

“The updated, expansion implementation plan, offers the potential to accelerate the increase of copper
and cobalt production at an initial lower capital outlay, by increasing our existing operational footprint
in Zambia to fully utilise the available infrastructure, compared with an initial targeted Greenfields
expansion.

“At the Roan concentrator, the large available surface area and upgraded water and now power
infrastructure, now offers the potential to expand operations at Roan by establishing it as a concentrator
hub for projects associated both with the Northern and Southern copper refining strategy. The expansion
of Roan therefore offers the opportunity to accelerate the roll out of our operational footprint at the
nearby Northern Refining projects.

“Based on the initial review of our technical teams, Roan can be expanded in phases to more than double
its current capacity, while avoiding a complete shutdown of operations to accommodate the full
upgrade. The initial phase will expand and upgrade the material handling and classification circuits, to
accommodate the simultaneous processing of copper tailings and copper containing ROM material,
which immediately facilitates the implementation of the first Northern linked refining project at
Luanshya, and the supply of further third-party ROM material.

“At the Sable Refinery, we have taken the decision to debottleneck and further expand the cobalt refining
circuit to add to our ability to increase revenues from cobalt especially during the expansion of Roan.
The impact, therefore, of the addition of cobalt production and upgrades to the Roan operations during
February, will impact our production guidance for FY2023 which we will clarify along with the release of
our interim results due in March.
“We have suffered short term losses in the production of copper but, the learnings we have taken from
the severe challenges we faced, and the decisive steps taken, we expect clear long-term benefits from
the joint efforts. We are extremely thankful for the support of the Zambian authorities who helped keep
us on track to achieve our copper and cobalt aspirations.”


Prospects for FY2023

Zambia

    •    Jubilee has refined the implementation of the Northern Strategy against the backdrop of the
         upgraded power and water infrastructure at Roan and the expansion at Sable. The updated
         implementation strategy targets the expansion of Roan to double its processing capacity as part
         of the roll-out of the expansion strategy.

    •    The Company looks to complete the debottlenecking and initial expansion of the cobalt refining
         circuit during February 2023 to target a production capacity of 450 tonnes of cobalt hydroxide
         product from waste alone, following the further expansion in May 2023.

    •    The targeted addition of higher margin cobalt production and upgrades at Roan operations, will
         displace copper production to some extent in the short term. Guidance for FY2023 will be
         updated following the completion of the initial expansion of the cobalt refining circuit currently
         underway as soon as possible but no later than as part of the release of the Company’s interim
         results expected on or about 20 March 2023.


South Africa

    •    The new enlarged PGM and chrome operations have set the platform to deliver up to 44 000
         PGM ounces and 1.2 million tonnes of chrome concentrate per annum from Jubilee’s own
         capacity.

    •    Due to the continued uncertainty over stable power supply, and the expected time-lag to
         expand the back-up power supply for operations, the Company feels it prudent to update its
         full year guidance to 38 000 PGM ounces from own production for FY2023, with the continued
         option to add a further 8 000 PGM ounces from third party processing agreements dependent
         on stock and power availability.

    •    Jubilee continues to progress discussions to secure a further PGM processing footprint in the
         Eastern Limb of the Bushveld (north-eastern region of South Africa’s chrome and PGM mining
         region) with final design reviews underway for the chrome beneficiation facility that will
         precede the PGM facility in the Eastern Limb.

    •    During the period, Jubilee has increased its ownership of existing tailings resources in support
         of the expansion target on the Eastern Limb and is reviewing the option to either secure a
         decommissioned PGM facility that will be repurposed by Jubilee, or to construct a new facility
         in the region.
               OPERATIONAL KEY PERFORMANCE INDICATORS

COMBINED OPERATIONAL
                                                 6 months to         6 months to         6 months to         % change            % change           12 months to
PERFORMANCE (UNAUDITED)
                                                 31 Dec 2022         30 Jun 2022         31 Dec 2021        H1 FY2023 vs        H1 FY2023 vs         30 Jun 2022
                                     Unit
                                                 (H1 FY2023)         (H2 FY2022)         (H1 FY2022)         H2 FY2022           H1 FY2022             FY2022

                                                  Unaudited           Unaudited           Unaudited                                                      Audited

KEY UNITS OF PRODUCTION

PGM ounces:

-      Inyoni Facility                Oz            18 208              20 166              15 152              (10%)                  20%               35 318

-      Third party joint venture      Oz               -                1 104               5 164              (100%)              (100%)                 6 268

Total PGM ounces                      Oz            18 208              21 270              20 316              (14%)                  (10%)             41 586

Chrome tonnes                       Tonne          634 111             602 552             619 900               5%                     2%           1 222 452

Copper tonnes produced              Tonne           1 149               1 279               1 314               (10%)                  (13%)              2 593

Copper tonnes sold                  Tonne            915                1 388               1 216               (34%)                  (25%)              2 604

Copper tonnes held in stock         Tonne            280                  46                  -                   -                      -                  -


UNIT REVENUE

-      PGM revenue per ounce       US$/oz           1 456               1 599               1 632               (9%)                   (11%)              1 615

-      Chrome revenue per
                                   US$/oz           2 292               2 486               2 042               (8%)                   12%                2 269
       PGM ounce

Total PGM revenue per ounce        US$/oz           3 748               4 085               3 675               (8%)                    2%                3 884

Copper revenue per tonne            US$/t           7 953               8 932               9 527               (11%)                  (17%)              9 210


UNIT COST
Net cost per PGM ounce (after
                                   US$/oz            516                 283*                540                 83%                   (4%)               408
chrome by-product credits)

Net cost per copper tonne           US$/t          6 468**              5 248               5 873                23%                   10%                5 386


UNIT EARNINGS

Net earnings per PGM ounce         US$/oz            939                1 316               1 092               (29%)                  (14%)              1 207

Net earnings per copper tonne       US$/t          1 485**              3 684               3 654               (60%)                  (59%)              3 824

    * Net cost per PGM ounce for the period was lower as a result of stronger chrome earnings and a once off chrome stock adjustment
    ** Cost and net earnings per copper tonne includes disproportionate copper fixed charges at US$300 per copper tonne produced, to secure full power
    allocation for Sable at 100% capacity


               South African Operations Review

               Health and Safety

               The combined South Africa operations have achieved 52 days without a lost time injury (LTI) with a lost
               time injury frequency rate (LTIFR) of 1.0. Over the period 253 610 tonnes of historical tailings were
               uplifted, processed, and placed on a modern tailings facility by the Jubilee tailings operations.
Operational Performance

The expanded PGM operational processing capacity holds the potential to produce 44 000 PGM ounces
per annum, depending on feed grades received. The expansion program included the expansion of the
chrome processing operations which holds the potential to produce 1.2 million tonnes of chrome
concentrate per annum. The chrome operations play a key role in Jubilee’s PGM operations by not only
acting as a feeder system to the PGM operations, but also having the potential to subsidise the PGM
unit cost through the sales of chrome concentrate. PGM basket prices and chrome metal prices were
under pressure, retreating by approximately 18% per PGM ounce over the period and 12% per tonne of
chrome concentrate. The notoriously volatile chrome markets have seen highly fluctuating metal prices
over the past period, with a strong recovery in metals prices post the period under review.

Jubilee sold 18 208 PGM ounces for the six-month period. Notably, 100% of the PGM production
stemmed from the new Inyoni Facility. The upgraded facility benefits from the scale of operations, and
the period under review highlighted the exposure of such a single large facility to unplanned downtime
and introduced circuit instability brought on mainly as a result of interrupted power supply.

The chrome operations, as a by-product of the PGM operations, continued to perform, delivering 634
111 tonnes of chrome concentrate over the period against a targeted 600 000 tonnes. The
disproportionate increase in chrome operations over the period offered Jubilee the opportunity to
increase PGM feed stock levels by 5 016 PGM ounces in stock to better buffer the Inyoni PGM Facility
from power outages suffered at the chrome operations.

The Company has taken decisive steps to integrate its operations more closely with its key suppliers of
PGM and chrome containing feed material, to better manage buffer stock capacity. The Company has
also implemented its first back-up power units at its chrome facilities to ensure a more constant feed
supply and performance. The expansion of the back-up power units is currently under review, with the
existing system already delivering 650 hours of backup power to operations since its installation in
November 2022.

Operational PGM efficiencies came under pressure due to a scheduled drop in PGM feed grade over the
initial four months from third party suppliers, which has since returned to previous higher levels that
has continued during the current period.

The PGM basket price over the period decreased by 18% to US$2 019 per PGM ounce compared with
the previous period while chrome CIF prices decreased by 16%.


Zambian Operations Review

Health and Safety

The Zambian operations maintained their record of no reportable occupational health or environmental
incidents over the six-month period. The combined operations and projects have achieved 170 days
without a LTI with a LTIFR of 2.9.

Operational Performance

The Zambian operations faced severe power and water interruptions over the period, which extended
into January 2023, and impacted its ability to operate as intended and effectively. The water
infrastructure was successfully upgraded during December 2022, with the implementation of new
private infrastructure under licence from the Zambian authorities. A further concerted joint effort
between the Jubilee teams and the Zambian authorities to alleviate the reduced power availability, has
resulted in an action plan that addresses not only the immediate operational challenges, but also offers
an incentive to accelerate the roll-out of Jubilee’s copper and cobalt expansion strategy in Zambia.

The jointly agreed and implemented new power management plan better synchronises operational
planned maintenance with scheduled power outages to ensure more consistent and stable operations
for a prolonged period. Simultaneously power and water infrastructure has been upgraded to offer
operations, such as Roan, the opportunity to expand its operational footprint. The benefits of the new
joint power management plan are clearly visible in the improved stability of power and operations and
the impact on operations will be better reflected during the second half of FY2023.

During the period under review, and to mitigate the risk of equipment damage and loss of product
quality caused by outages, management has taken the decision to curtail copper production at Sable
and instead increase stockholding of partially processed material at its Roan concentrator, which is
targeted to be refined at Sable following the implementation of the new power management plan.

Through the success of this intervention, Jubilee has updated its copper and cobalt expansion strategy
to focus on maximizing its operational footprint through the expansion of existing operations to fully
utilise the expanded available infrastructure. This offers the opportunity to not only accelerate the
implementation of the expansion strategy but also to reduce the early capital requirement through
Brownfields expansion of existing operations. The expansive surface area supported by upgraded
infrastructure at Roan, offers the potential to more than double the existing 780 000 tonne per annum
operational capacity at a significantly lower capital outlay than building a new Greenfields concentrator
facility, and without the uncertainty of available infrastructure.

Roan operations can be expanded through a phased approach, similar to the successful expansion
implemented at the Inyoni PGM Facility in South Africa. The initial target is the upgrade of the feed
material handling and classification circuit at Roan to offer the flexibility to simultaneously process both
copper tailings and ROM copper material supplied by third party miners. Such an upgrade can be
completed within an 8-week period immediately facilitating the implementation of the first Northern
Refining project tailings project.

During the period the Sable Refinery continued to expand its operational capability through the addition
of the copper sulphide refining circuit and the successful completion of the operational trial to produce
cobalt hydroxide saleable product.

As a result of the successful cobalt production trials, the decision was taken by the Company to
debottleneck and expand the cobalt refining capacity to increase Sable’s capability to produce saleable
cobalt hydroxide concentrate from recycled waste materials in Zambia. The debottlenecking of the
circuit will be completed during February 2023 which, targets to increase the processing capacity of
waste materials to an equivalent production rate of some 270 tonnes per month of cobalt hydroxide
(75 tonnes of contained cobalt) from recycled waste alone. A further expansion is currently under
review to target some 450 tonnes per month of cobalt hydroxide (125 tonnes of contained cobalt) from
recycled waste alone. The capacity is feed grade dependent and can be increased by further
preconcentration of the secured feed supply.

Sable’s ability to now pivot between metals offers the opportunity to offset a short-term reduction in
revenues from copper production due to the expansion of Roan, with an increased higher margin cobalt
output. This is of noteworthy value during a time when responsibly soured cobalt from recycled material
has seen a significant increase in demand.
For further information visit www.jubileemetalsgroup.com or contact:


Jubilee Metals Group PLC
Leon Coetzer
Tel: +27 (0) 11 465 1913


PR & IR Adviser – Tavistock
Jos Simson/ Gareth Tredway/ Adam Baynes
Tel: +44 (0) 207 920 3150


Nominated Adviser – SPARK Advisory Partners Limited
Andrew Emmott/ James Keeshan
Tel: +44 (0) 20 3368 3555


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


United Kingdom
15 February 2023



JSE Sponsor to Jubilee




Questco Corporate Advisory Proprietary Limited
Sharon Owens
T: +27 (11) 011 9212