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Jubilee Metals Group Plc (JSE:JBL) News - Six Month Operations Update
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
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Six Month Operations Update
H2 CY2021
Jubilee Metals Group PLC, a leader in metals processing with operations in Africa (AIM: JLP/Altx: JBL),
is pleased to announce its unaudited operational results for the six months to 31 December 2021 (“H2
CY2021”).
PGM Operations – South Africa
• Jubilee successfully recommissioned on-time and in-budget the significantly upgraded and
fully integrated new Inyoni PGM1 processing facility in South Africa in November 2021
• The £ 17.5 million (ZAR 377 million) 2 investment program enables the new integrated facility
to produce up to 44 000 PGM ounces (previously 30 000 PGM ounces) and 615 000 tonnes of
additional chrome concentrate per annum (complete rebuild of old Hernic chrome plant)
• The investment in Inyoni has materially increased the Group’s production capacity of PGM
ounces and, importantly, increases the proportion of the ounces produced that are fully
attributable to Jubilee along with the associated earnings compared with the significant
dilution of earnings caused by the Windsor PGM JV where up to 40% of earnings was
attributable to the JV partner
• The new Inyoni processing facility is a state-of-the-art plant that is uniquely able to process
both a wide variety of chrome and PGM containing mined ores as well as historical tailings.
Previously the plant was limited to processing only a single feed source
• The investment program included the construction of a new 80 000 tonnes per month
Chrome processing facility (“OBB Chrome Plant”) integrated with the new upgraded Inyoni
PGM circuit, delivering a world class fully integrated chrome and PGM processing facility able
to process a wide variety of chrome and PGM containing mined ores as well as historical
tailings
• The new integrated facility sets a strong foundation for sustained future growth and is the
culmination of Jubilee’s extensive investment into achieving class leading efficiencies
• Jubilee was able to maintain contractual obligations during the re-build of the program with
20 316 PGM ounces sold during H2 CY2021 despite scheduled production downtime during
expansion at Inyoni
• Unit cost and revenues are skewed by a one-off release of PGM stock as a lower grade PGM
material
• January 2022 saw monthly production levels up 66% compared with H2 CY2021. The higher
production levels reflect the new Inyoni facility reaching full design capacities
• During the period, Jubilee further increased its access to both mined chrome and PGM
material, as well as historical tailings, which further supports Jubilee’s targeted processing
capacity expansion into the Eastern Limb. This expansion would not only offer an offset to the
current transport cost incurred by this material but also offers significant growth
opportunities in this PGM and chrome-rich region of South Africa
• Overall, the investment in capital expenditure over this period totalled 19.3 million (ZAR 414
million) with a further £ 17.7 million (ZAR 380 million) invested in acquisitions, leaving cash
and cash equivalents at the end of the period under review standing at £ 21.7 million (ZAR
466 million), compared with £ 19.6 million (ZAR 384 million) at the year ended 30 June 2021
1. PGM – 6 Element Platinum Group Metals including platinum, palladium, rhodium, ruthenium, osmium and gold
2. Average conversion rates used for the period under review for income statement purposes and the spot rate at period end
for balance sheet purposes
Chrome Operations – South Africa
• Full integration of the new 80 000 tonne per month OBB Chrome Plant with the expanded
Inyoni PGM plant was achieved within budget and in record time during November 2021,
delivering an integrated chrome and PGM processing facility with the unique ability to process
multiple feed sources
• Production of chrome concentrate increased by 41% to 609 734 tonnes, illustrating the early
contribution from the new OBB Chrome Plant which was brought on-line at the end of Q2
2021 and ramped-up during Q3 2021 before being integrated with the newly expanded Inyoni
Plant during November 2021
• Chrome revenue was up 28% to £ 30 million (ZAR 611 million) from H1 CY2021
• Chrome earnings were up 15% to £ 2 million (ZAR 42 million) from H1 CY2021
• The new chrome beneficiation facility follows the completion of the Windsor 8 Chrome Plant
in October 2020 and which, combined, expands Jubilee’s chrome feed capacity to 250 000
tonnes per month of both chrome run-of-mine ore and historical tailings
• The increased chrome processing capacity directly contributes to increased PGM feed supply
as a tailings stream produced from the chrome processing circuit
Copper Operations - Zambia
• Sable Refinery copper production up 70% to 1 314 tonnes compared with 774 tonnes for H1
CY2021 as part of the process to ensure operational readiness to accept first copper
concentrate production from Jubilee’s Project Roan
• The commissioning of Jubilee’s Project Roan copper concentrator neared completion during
the period with early commissioning activities commencing. The project remains on schedule
to reach full production levels during the current period targeting an annual production rate
of 10 000 tonnes per annum
• Jubilee’s Sable Refinery reported revenue from the sale of copper cathode of £ 8 million (ZAR
165 million) up 57% from H1 CY2021
• Sable Refinery achieved positive earnings as part of its operational readiness activities with
attributable operational earnings of £ 3.2 million (ZAR 66 million) up 70% from H2 CY2021
Leon Coetzer, Chief Executive Officer, commented: “I wish to congratulate the Jubilee team for
successfully completing our fully integrated, world-class, Inyoni chrome and PGM facility in South
Africa, and for further delivering on our Southern Copper Refining Strategy in Zambia. The current
reporting period is an example of Jubilee’s continued commitment to invest into our company to secure
further growth and sustainability of our operations.
Despite this challenging undertaking that lays our foundation for future performance, the team
delivered a stellar operational performance.
“The Jubilee team has displayed exceptional commitment and ingenuity by implementing on-time and
in-budget the complex integration of the newly constructed OBB Chrome Plant, with a fully upgraded
and expanded Inyoni PGM circuit. The safety of our team was paramount during this complex project
with the full project delivered without a single lost time injury to any member of our team, all while
continuing to operate certain sections of the facility to maintain contractual commitments for the
delivery of PGM ounces.
“This new circuit at Inyoni, expands our capability to produce 44 000 PGM ounces per annum, from
30 000 ounces previously, reducing Jubilee’s reliance on the Windsor JV agreement which led to a
significant dilution of earnings.
“Our chrome results already illustrate the early impact of the new OBB Chrome Plant with an increase
of 41% in the production of chrome concentrate during the period under review. In addition, the
recovery of chrome from the various feed supplies produces an upgraded PGM feed stream to our PGM
recovery plant.
“Our Southern Copper Refining Strategy in Zambia has reached a significant milestone with the
commencement of commissioning activities at our newly constructed copper concentrator situated in
Ndola (Project Roan) that delivers copper concentrate to our Sable Refinery and third-party suppliers.
“The early material produced under Project Roan as part of our Phase 1 implementation is already
delivering results with a 70% step-up in copper production at our Sable Refinery.
“I look forward to the Jubilee operational team’s performance over the next six months with the full
impact of the Inyoni facility being felt, as well as the targeted ramp-up at Roan enabling us to take
another major step in our commitment to achieve annual copper production of 25 000 tonnes.”
Combined Operational and Financial update
The Company saw the culmination of a continued period of planned substantial infrastructure
investment and integration across its projects, which resulted in scheduled operational downtime at
the chrome and PGM operations to facilitate the construction and integration of new processing
circuits. The newly constructed and commissioned fully integrated chrome and PGM facility has set a
tremendous platform for future growth for the Company. It sets the example of the type of facility
that the Company plans to develop as it expands its chrome and PGM operational footprint in the
Eastern Limb of the Bushveld complex in South Africa. This is a strategic development, demonstrating
Jubilee’s ability to continue to grow its business by re-investing its earnings into high growth projects.
During this period, the Company maintained its contractual obligations to deliver the required PGM
production despite its Inyoni PGM operation only being partially operational to achieve 20 316 PGM
ounces sold for H2 CY2021 (H1 CY2021: 21 975 ounces). The PGM results are skewed and impacted
by the staged decommissioning and re-commissioning of the new integrated Inyoni facility over the
reporting period resulting in the one-off release of certain lower-grade PGM inventories and refilling
of the operational pipeline over the period. The total PGM ounces sold included in-process stock
released as part of the recommissioning of the expanded and upgraded PGM facility. The in-process
stock was sold as a lower grade PGM material and prior to the completion of the newly commissioned
final product cleaning circuit. This release of inventory does not reflect the normally incurred full
operational revenues and cost and therefore skews the overall PGM unit cost and PGM revenues
delivered. These ounces are therefore excluded from the calculation of the reported PGM unit cost
below.
Chrome operations achieved 609 734 chrome concentrate tonnes for H2 CY2021 (431 390 tonnes
during H1 CY2021) on the back of increased operational capacities following the commissioning of the
new OBB chrome beneficiation circuit which was fully integrated with the newly commissioned
upgraded Inyoni PGM facility during the period under review.
In Zambia, copper production increased to 1 314 tonnes of copper for H2 CY2021 (H1 CY2021: 774
tonnes) as part of ensuring operational readiness to accept first copper concentrate production from
Project Roan. Project Roan’s integrated copper concentrator near completion during the reporting
period with early commissioning activities underway at the time of writing. The Roan concentrator is
targeted to ramp up during the current period to deliver a targeted 10 000 tonnes of copper units
annually. The fully operational Sable Refinery delivered increased positive earnings as part of its
operational readiness activities with attributable operational earnings of £ 3.2 million for H2 CY2021,
compared to £ 1.9 million for H1 CY2021.
The table below presents the combined unaudited operational revenue and operational earnings
performance for H2 CY2021:
Jubilee Jubilee
Project Project Project Project
COMBINED attributable attributable
revenue revenue 1 earnings earnings
earnings2 earnings
(£'000) (ZAR'000) (£'000) (ZAR'000)
(£'000) (ZAR'000)
H2 CY2020 51 949 1 101 115 31 174 662 531 29 500 627 336
H1 CY2021 75 623 1 526 846 40 383 819 965 40 118 814 643
H2 CY2021 61 813 1 264 325 20 215 413 480 19 002 388 663
1- All amounts in this announcement are converted at average conversion rates for the period for income statement
purposes and at the period end spot rate for balance sheet purposes
2- Attributable earnings represent Jubilee’s net share of operational earnings after distributions to JV partners and before
development costs
PGM Operations Update – South Africa
Jubilee’s PGM operations consist of the Inyoni PGM operations and the Windsor PGM JV (operated
under a JV agreement with Eland Platinum). Jubilee successfully completed and commissioned the
new fully integrated and enlarged chrome and PGM facility at the 100% owned Inyoni during
November 2021. The investment in Inyoni has materially increased the Group’s production capacity
of PGM ounces and, importantly, increases the proportion of the ounces produced that are fully
attributable to Jubilee along with the associated earnings compared with the significant dilution of
earnings caused by the Windsor PGM JV where up to 40% of earnings was attributable to the JV
partner.
The new Inyoni facility integrates the new OBB Chrome Plant with the expanded and upgraded Inyoni
PGM operations. The Inyoni PGM operations were expanded to increase its processing capacity by
45% to 75 000 tonnes per month and to diversify its capacity with the addition of a multi feed blending
circuit and additional PGM recovery circuit. This has allowed for the feeding and recovering of PGMs
from a wide variety of feed material. This new fully integrated chrome and PGM circuit has overcome
the historical limitations of only being able to process material from the then Hernic operations and
historical waste. The new integrated chrome and PGM facility increases Jubilee’s Inyoni operational
capacity to 615 000 tonnes per annum of chrome concentrate and 44 000 ounces of PGM per annum.
This increased Inyoni capacity reduces Jubilee reliance on the Windsor PGM JV, reducing future
earnings dilution and exposure to significantly reduced efficiencies. Jubilee now holds an annual PGM
capacity that consists of up to 44 000 PGM ounces at Inyoni (previously only 30 000 PGM ounces) with
the additional option of accessing the Windsor PGM JV at a capacity of 16 000 PGM ounces – this
represents a material increase in the anticipated production of PGM ounces which will be attributable
to Jubilee. Following the recommissioning of the integrated Inyoni operation and the restocking of
the in-process pipeline the expected production target for the full financial period is readjusted to
between 43 000 to 48 000 PGM ounces depending on the supplementary production achieved for the
remaining period through the Windsor PGM JV.
The investment by Jubilee into the completed integrated project totalled £ 17.5 million (ZAR 377
million) and it illustrates Jubilee’s continued commitment to investing into its operations to creating
the foundation for sustained future growth.
As announced on 3 and 4 June 2021, Jubilee’s current PGM operational footprint has been largely
focused on the Western Limb, a single area of the two main PGM areas in South Africa. The Eastern
Limb has been a key focus for Jubilee to expand its PGM reach and operational capacity following the
completion of its fully integrated Inyoni facility. The additional PGM Supply Agreements from the
Eastern Limb entered into gives Jubilee access to this area offering a platform to establish a dedicated
integrated chrome and PGM facility and to pursue further growth opportunities.
The Eastern Limb PGM Supply Agreements are mostly based on the LG6 chrome reef known for its
high rhodium content accounting for approximately 12% of a produced PGM ounce compared with
as low as 7% of other chrome reefs. The PGM Supply Agreements has secured the rights to long term
PGM feed supply with the potential to produce up to 14 500 PGM ounces per annum, with further
growth opportunities available. Jubilee will initially process the increased PGM feed at the Company’s
expanded and newly integrated Inyoni PGM operations, while pursuing the implementation of a
dedicated processing facility in the Eastern Limb. The temporary increase in costs to transport this
material to our Western Limb Inyoni facility is offset by the strategic investment to secure the material
for the Eastern Limb strategy and the long-term growth it offers.
During the period, the Company maintained its contractual obligations to deliver the required PGM
production despite its Inyoni PGM operation only being partially operational to achieve 20 316 PGM
ounces sold for H2 CY2021 (H1 CY2021: 21 975 ounces). The PGM results are skewed and impacted
by the staged decommissioning and recommissioning of the new integrated Inyoni facility over the
reporting period resulting in the once of release of certain lower PGM grade inventories and the
refilling of the operational pipeline over the period. The total PGM ounces sold included in-process
stock released as part of the recommissioning of the expanded and upgraded PGM facility. The in-
process stock was sold as a lower grade PGM material and prior to the completion of the newly
commissioned final product cleaning circuit. This release of inventory, which does not reflect the
normally incurred full operational cost, skews the PGM unit cost and PGM revenues delivered. These
ounces are excluded from the calculation of the reported PGM unit cost below.
Operational project unit costs expressed as US$ per PGM ounce produced consisted of US$ 560 per
ounce processing unit cost and a US$ 262 per PGM ounce transport cost for the material sourced from
the Eastern Limb. The average PGM basket price realised per ounce sold reduced by 35% over the
period but showed a strong recovery at the end of the period which was sustained during January
2022.
The table below presents the combined unaudited operational revenue and operational earnings
performance for PGMs for H2 CY2021:
Jubilee Jubilee
PGM Project Project Project Project Unit cost
attributable attributable
PGM ounces revenue revenue earnings earnings / PGM oz
earnings2 earnings
delivered (£'000) (ZAR'000)1 (£'000) (ZAR'000) (US$)
(£'000) (ZAR'000)
H2 CY2020 28 187 36 593 776 032 26 959 572 782 26 387 560 450 470
H1 CY2021 21 975 47 155 956 869 36 725 746 657 36 459 741 335 658
H2 CY2021 20 316 23 885 488 544 14 966 306 117 13 753 281 300 8223
1. All amounts in this announcement are converted at average conversion rates for the period for income statement
purposes and at the period end spot rate for balance sheet purposes
2. Attributable earnings represent Jubilee’s net share of operational earnings after distributions to JV partners and before
development costs
3. Unit cost includes a transport cost component of US$262 per PGM ounce
Chrome Operations Update – South Africa
As previously announced, in November 2020 Jubilee commenced the construction of an additional
80 000 tonnes per month OBB Chrome Plant, which on completion increased Jubilee's overall
processing capacity to 250 000 tonnes of chrome ore and tailings per month. The facility consists of
four integrated chrome recovery circuits to maximise chrome efficiencies, which includes Jubilee’s
fine chrome operation.
The final integration of the new OBB Chrome Plant into the new and upgraded Inyoni PGM facility
was completed in November 2021. The operational levels of the OBB Chrome Plant were largely
maintained during the rebuild and commissioning of the new Inyoni facility with the produced PGM
discard from the OBB Chrome Plant stockpiled for later reintroduction into the new fully integrated
chrome and PGM facility.
Chrome operational earnings for H2 CY2021 increased by 15%, to £ 2 million from H2 CY2021. Chrome
revenue for H2 CY2021 increased by 28% to £ 30 million from H2 2021.
The table below presents the combined unaudited operational revenue and operational earnings
performance for chrome for H2 CY2021:
Project and Project and
Chromite
Project Project Jubilee Jubilee
concentrate
CHROME revenue revenue1 attributable attributable
produced
(£'000) (ZAR'000) earnings earnings
Tonnes
(£’000) (ZAR’000)
H2 CY2020 319 834 11 565 244 435 1 320 28 522
H1 CY2021 431 390 23 340 468 153 1 762 35 576
H2 CY2021 609 734 29 872 611 004 2 034 41 600
1- All amounts in this announcement are converted at average conversion rates for the period for income statement
purposes and at the period end spot rate for balance sheet purposes
Chrome prices continued to be volatile during the period under review due to the disruptions in the
supply chain over the sixth-month period. These price fluctuations are expected to continue over the
next six months as the world emerges from the Covid-19 pandemic and supply and demand
fundamentals are better matched.
Zambian Operations Update
The roll-out of Jubilee’s copper and cobalt strategy offers the potential of significant continued
earnings growth in addition to the achievements of its PGM and chrome operations.
Background
The Company’s Kabwe Project combined with its multi-metal Sable Refinery establishes Jubilee’s fully
integrated multi-metal recovery and refining operational footprint in Zambia. The Sable Refinery,
which acts as a central processing facility for third-party material in the region, gives access to a
current resource comprising of an estimated 6.4 million tonnes of surface waste assets containing
zinc, lead and vanadium pentoxide in addition to the approximately 300 million tonnes of copper and
cobalt tailings secured in 2020.
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 Lechwe and Project
Elephant.
Jubilee aims to construct a processing facility at each of the three locations. The scope of the
processing facilities will be determined by the refining capacity at its Sable Refinery, currently standing
at 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.
During H1 2021, the first of the processing facilities entered its construction phase at Project Roan,
which targets an annual production rate of 10 000 tonnes of equivalent copper units.
The Project Roan copper concentrator neared completion during the reporting period with early
commissioning activities commencing. The completion of construction has commenced well post the
period, with the final integration of the copper oxide and copper sulphide circuit targeted for
completion during March 2022 to complete the ramp-up of the fully integrated circuit during the
current period.
The table below presents the combined unaudited operational revenue and operational earnings
performance for copper for H2 CY2021:
Project and Project and
Copper units Project Project Jubilee Jubilee
COPPER produced revenue revenue 1 attributable attributable
Tonnes (£'000) (ZAR'000) earnings earnings
(£’000) (ZAR’000)
H2 CY2020 614 3 791 80 648 1 793 38 365
H1 CY2021 774 5 128 101 824 1 897 37 732
H2 CY2021 1 314 8 056 164 776 3 215 65 762
1- All amounts in this announcement are converted at average conversion rates for the period for income statement
purposes and at the period end spot rate for balance sheet purposes
Project Lechwe Update - Zambia
During the period, the completion of the design work for the Company's second copper processing
facility, Project Lechwe, whereby Jubilee has secured the rights to approximately 150 million tonnes
of copper containing surface tailings, further progressed with final pilot runs under way to confirm
the design work. Project Lechwe targets to reach the production of 7 500 copper units per annum in
addition to Project Roan by Q2 of CY2023.
8 February 2022
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
Lead PR & IR Adviser – Tavistock
Jos Simson/ Gareth Tredway/Charles Vivian
Tel: +44 (0) 207 920 3150
JSE Sponsor to Jubilee
Questco Corporate Advisory Proprietary Limited
Sharon Owens
T: +27 (11) 011 9212
Notes
Jubilee Metals Group is a diversified metal recovery business with a world-class portfolio of projects
in South Africa and Zambia. We create value for all stakeholders through the transformation of mining
liabilities into profitable assets in a manner that addresses mining's historical footprint and improves
the quality of life for surrounding communities. Our distinguishing value proposition is our net positive
impact on all stakeholders and the environment.
Our business model focuses on the retreatment and metals recovery from mine tailings, waste, slag,
slurry and other secondary materials generated from mining operations. In effect, while extracting
maximum financial returns, we responsibly rehabilitate environments scarred by the surface footprint
of historical mining operations and solving air and water pollution issues associated with those
installations.
The Company's expanding multi-project portfolio provides exposure to a broad commodity basket
including Platinum Group Metals ('PGMs'), chrome, lead, zinc, vanadium, copper and cobalt.
Jubilee is listed on the London Stock Exchange's AIM (ticker: JLP) and the Johannesburg Stock
Exchange (ticker: JB).
Date: 08-02-2022 09:01:00
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