Jubilee Metals Group plc (LON:JLP), a diversified metals producer with operations in South Africa and Zambia, has published its unaudited operational and project update for the quarter ended 30 June 2024 (Q4 FY2024), highlighting that Jubilee exceeded chrome production guidance and met revised copper production targets.
Highlights
Zambia
§ Improved safety performance achieved of 488 lost time injury free (LTI-free) days (FY2023: 122 LTI-free days), and commensurately realising a reduction in the LTI Frequency Rate (LTIFR) to zero (FY2023: 2.4).
§ Copper units produced for Q4 FY2024 increased by 51.7% to 1 048 tonnes (Q3 FY2024: 691 tonnes), despite operational stoppages due to construction activities at Roan.
§ Copper units produced for the financial year increased by 17.1% to 3 422 tonnes (FY2023: 2 923 tonnes) meeting the revised guidance for FY2024 of 3 250 – 4 000 tonnes.
§ Construction and commissioning of the Roan Front-End Module were completed during July 2024 with production of first copper concentrate announced on 12 August 2024.
o Production of copper concentrate from the Roan Front-End Module is in addition to the existing sulphide copper concentrate production from Roan’s mill and flotation circuit currently being traded in the market.
o Roan’s capacity is dedicated to the processing of Previously Mined Material and Previously Processed Material.
o Early results indicate Roan’s Front-End Module achieving a 10-fold copper grade upgrade into concentrate from Previously Mined Material meeting design specifications.
o These early results provide further confidence in the proposed process design solution being developed for the Waste Rock Project in partnership with IRH.
§ Jubilee expanded its portfolio of Open-Pit copper resources with the acquisition and implementation of Project Munkoyo and the agreement for the acquisition of Project G as previously announced on 24 June 2024. Both operations contain significant copper resources that are near surface and are currently being open-pit mined with material being delivered to Sable for refining.
o Project Munkoyo was brought into operation during July 2024, ahead of schedule, with mined run-of-mine (ROM) grades exceeding 3.5% copper which is delivered to Sable for refining.
o Jubilee is concluding its technical review of Project G with expected completion during September 2024. Bulk sampled mined material is being refined at Sable as part of the technical due diligence review.
o Jubilee has entered into further negotiations for additional Open-Pit copper resources surrounding both Munkoyo and Project G where Jubilee targets to implement processing hubs to upgrade the copper ROM at both locations.
§ Sable Refinery is currently being upgraded to expand its refining capacity and copper sulphide concentrating capacity targeting to reach a combined capacity of 16 000 tonnes per annum of copper which will be dedicated to the concentrating and refining of Open-Pit mined copper resources.
§ The Roan Front-End Module and Concentrator, and the Sable Refinery are expected to reach a processing capacity in excess of 25 000 tonnes of copper per annum.
South Africa
§ Operations achieved 88 LTI-free days (FY2023: 177 LTI-free days), reflecting a consistent LTIFR rate of 1.62, in line with performance from the previous year.
§ Chrome concentrate produced for Q4 FY2024 increased by 3.2% to 421 698 tonnes (Q3 FY2024: 408 710 tonnes).
§ Chrome concentrate produced for FY2024 increased by 20.0% year-on-year, exceeding guidance at 1 548 205 tonnes (FY2023: 1 289 891 tonnes).
§ Platinum Group Metals 6E (PGM 6E) produced for Q4 FY2024 reached 7 828oz (Q3 FY2024: 8 339oz) driven lower by reduced PGM feed grades delivered with higher chrome recoverable material being prioritised to benefit from favourable chrome market conditions.
§ PGM 6E production for FY2024 decreased by 14.2% to 36 411oz (FY2023: 42 433oz) offset by the significant increase in chrome production given the prioritisation to improved economic merits of our chrome material.
§ Jubilee’s chrome operations continue to perform, with the construction of a new chrome processing module at Thutse remaining on track for construction completion during Q3 CY2024.
Production guidance for FY2025
§ Chrome concentrate production guidance is 1.65 million tonnes (6.7% year-on-year production increase), and PGM 6E production guidance is 36 000oz (similar year-on-year).
§ Copper units production guidance of between 5 750 tonnes (68.0% year-on-year production increase) and 7 500 tonnes (119.2% year-on-year production increase).
Statement from Leon Coetzer, Jubilee CEO:
“Jubilee continued to show strong growth in its South African and Zambian operations with increased copper and chrome production while maintaining our strong safety performance.
Our Zambian operations are emerging from a period of significant investment in upgrading the Roan operations while expanding our copper resource portfolio with the commissioning of our Munkoyo Open-Pit copper mining operation. The upgraded Roan operation is now capable of processing Previously Mined material through the new Front-End Module while continuing to produce copper concentrate from Previously Processed material through the existing flotation section. Roan’s unique capabilities offer Jubilee the opportunity to grow significantly within Zambia.
I am particularly excited by the potential to significantly grow our open-pit copper resource portfolio to complement both our Munkoyo and Project G operations as we target committing the expanded Sable refining capacity to these resources.
In South Africa, our chrome production continued to deliver strong growth with a 20.0% year-on-year increase. Our South African business utilised its processing flexibility to prioritise chrome recoverability over PGM production to capitalise on the buoyant chrome market while PGM prices remain depressed. We will continue to prioritise chrome production on the back of the success of this strategy by keeping our PGM forecast numbers stable for the coming period.
The team’s performance highlights our exceptional technical and processing expertise, bolstered by our modular expansion strategy. The processing efficiencies driving this success continue to create new growth opportunities within the sector.
As we move forward, we remain committed to delivering on our growth projects for copper in Zambia and chrome in South Africa. This successful quarter further highlights our operational excellence, resilience, and adaptability. With strong, mature operations in South Africa and tremendous strides taken in Zambia, Jubilee is well-prepared to deliver a robust FY2025 performance, with anticipated production increases across all commodities.”
Quarterly Production results
The table below presents the unaudited operational production performance of the group for Q4 FY2024:
| OPERATIONAL PERFORMANCE | Unit | % change | % change | ||||
| Q4 FY2024 | Q3 FY2024 | FY2024 | FY2023 | ||||
| Copper units | tonne | 1 048 | 691 | 51.7% | 3 422 | 2 923 | 17.1% |
| Chrome concentrates | tonne | 421 698 | 408 710 | 3.2% | 1 548 205 | 1 289 891 | 20.0% |
| PGM 6E | oz | 7 828 | 8 339 | (6.1%) | 36 411 | 42 433 | (14.2%) |
Projects Update
Zambia
Jubilee’s Integrated Copper Strategy is enabled by its proven ability to extract value from materials often regarded by the industry as either waste or too complex to extract economically through traditional methods.
Targeted copper resources are classed into three groups namely:
· Medium Open-Pit Mining Operations – Acquiring open-pit resources using Jubilee’s experienced management team and refinery for processing.
· Previously Mined Material – Processing low-grade material discarded by other mining operations, including waste rock surrounding our processing facilities.
· Previously Processed Material – Processing historically processed material such as tailings and partially processed materials, with ongoing projects with Zambia major miners’ material at Roan and Sable while also assessing the feasibility of unlocking value to the rights over 300 million tonnes of tailings.
The Company’s Zambian copper processing operational footprint now encompasses the Roan Front-End module with its mill and flotation circuit, collectively referred to as the Roan Concentrator, and the Sable Refinery, which is currently being upgraded for a combined in-country copper capacity in excess of 25 000 tonnes per annum.
Roan Concentrator
The Roan Concentrator completed construction and commissioning of its new Front-End Module in July 2024. Operations commenced on 8 August with first copper concentrate produced on 13 August 2024. The Front-End Module is adjacent to the existing Roan mill-and-float circuit already producing and trading copper units.
The upgraded Roan Concentrator provides additional processing capacity complementing the existing sulphide copper concentrate capacity at Roan to a combined maximum design capacity of 13 000tpa of copper depending on the copper feed grades.
The Jubilee team has commenced with the feeding of Previously Mined Material into Roan. The material is upgraded at source before being transported to Roan where a saleable copper concentrate is produced. The copper concentrate will initially be refined to copper cathode at Sable until such time that Sable’s capacity is fully committed to the Open-Pit Mined Material from Project Munkoyo and Project G whereafter the Roan concentrate will be traded on the open market.
The Roan Front-End Module will treat predominantly Previously Mined and Processed Material such as waste rock material. Early operational results from the new Front-End Module confirm the capability to upgrade Previously Mined Material grades from material such as waste rock by more than 10-fold prior to further refining the concentrate. These early results are key to confirming the design parameters of the process solution being developed for Jubilee’s large Waste Rock project that it has partnered with the Abu Dhabi based IRH. Jubilee targets to incorporate the Front-End Modules into the overall processing solution for this Waste Rock Project. Jubilee expects to finalise the designs over the coming weeks as more results from Roan are evaluated.
Sable Refinery
Pursuant to Jubilee’s continued resource expansion in Zambia, it is able to upscale and upgrade its Sable Refinery to become a dedicated refiner for processing materials from Open-Pit mining operations, including the newly acquired Project Munkoyo.
The success in securing these targeted resources allowed Jubilee to transition Sable into a dedicated refiner for the processing of Open-Pit mining operations.
Medium Open-Pit Mining Operations
Project Munkoyo
§ Secured a 95% interest in Project Munkoyo for US$1.75 million while continuing negotiations for the acquisition of further Open-Pit copper resources in the region to supply a targeted regional processing hub for the upgrade of the mined ore prior to refining at Sable.
§ Commenced operation of the Open-Pit ahead of schedule in July 2024 with the project targeting to expand to 25 000 tonnes per month over the next 10 months.
§ Current mined ROM is averaging above 3.5% copper exceeding expectations.
§ Initial capital expenditure estimates indicate US$2.25 million over the 10-month period for the development and expansion of the Munkoyo operation.
§ Final capital expenditure numbers for a targeted regional processing hub will be guided by the processing review of the copper resources in the region and the successful completion of further resource acquisitions in the surrounding area.
Jubilee has committed to various community support programmes which include providing clean water along the Munkoyo Mine Corridor, improving community health outcomes for the surrounding communities, while initiating educational improvements and sustainable sanitation solutions, including solar pump installations and improved ablution facilities at the Kabanga Primary School.
Project G
§ As previously announced on 24 June 2024, the acquisition of a 51% interest in Project G for US$2.1 million, of an established open-pit mining operation remains subject to the conclusion of the purchase conditions.
§ This will be settled through the issuance of Jubilee ordinary shares, on conclusion of the purchase conditions.
§ Project G includes the refurbishment of an on-site processing facility and targeted ramp-up to 20 000 tonnes per month of mined ore at 3-4% copper grade.
§ An initial capital expenditure estimate for the plant refurbishment and stabilisation of the open-pit operation is US$2.7 million with final numbers expected as part of the current due diligence program expected to be concluded during September 2024.
South Africa
The Jubilee Metals South African team together with resource partners are progressing with the construction of Thutse’s chrome module. This initiative is part of the continued targeted growth in chrome concentrate production towards the 2Mt per annum goal. Construction of the new chrome module is progressing well and is expected to be completed during Q3 CY2024. Jubilee has significantly expanded its chrome operational capacity to process chrome ROM materials in partnership with the resource holders of chrome mining rights under an agreed earnings share model which offers Jubilee greater exposure to the chrome market.
