Jubilee Metals Group plc (LON:JLP), the AIM and Altx traded metals processing company, has provided an operational update for the first three months of H2 2020, after returning to full operational status following the COVID-19 related operational interruptions experienced.
Q3 2020 has delivered both a record production and financial performance and follows Jubilee’s implementation of the previously announced new third party ore supply agreements, as well as improved efficiencies across its chrome and PGM operations. Jubilee continues to make significant progress with the implementation of its copper strategy in Zambia and looks forward to including the copper performance in further operational updates. Jubilee expects to release its annual audited results for the year ending 30 June 2020 before the end of October 2020.
Highlights
· Highest quarterly PGM production to date, with 15 044 PGM ounces produced during Q3 2020
· PGM record production supported by 136 162 tonnes of chrome concentrate produced under tolling agreements from third party ore suppliers
· PGM and chrome operations delivered record high quarterly operational earnings of £ 15.17 million (ZAR 332.36 million) surpassing the previous operational record set during the full H1 2020 period
· Operational performance reflects Jubilee’s successful drive to expand its operations by supplementing its own surface resources, with third party ore supply agreements to secure a sustainable business strategy
· Jubilee continues to pursue additional opportunities to further expand its chrome and PGM operational footprint
· Jubilee’s copper operations in Zambia continue to make significant progress, with the copper ore upgrade facility at its Sable Refinery nearing completion as part of its overall expansion plan
· All long lead items have been secured for the construction and implementation of Project Roan, which is set to more than double Jubilee’s copper production over the short term
Leon Coetzer, CEO of Jubilee Metals, commented: “It is great to see our chrome and PGM strategy paying off, as reflected in our recent operational performance. We have aggressively driven our expansion across both our South African and Zambian operations.
“Our continued strive to improve our operational efficiencies continues to unlock additional opportunities to further expand our chrome and PGM operations in a sustained manner.
“The Jubilee team has delivered an exceptional performance during Q3 2020 and I thank them for their dedication and drive. The Q3 2020 results bode very well for our projected H2 2020 performance and hold the potential to significantly surpass our previous best half year performance; H1 2020. I look forward to the addition of our copper operations in Zambia to these numbers in the future.
“Our team in Zambia is focussed on delivering on our copper expansion drive, which includes the continued capitalisation of our Sable Refinery, to be ready for both our Project Roan coming on-line, as well as taking delivery of increased third party copper ore. Our technical team is simultaneously concluding their studies on our very exciting Project Elephant to unlock the nearly 150 million tonnes of surface copper tailings, which will further add to our copper production, as we chase down our target of 25 000 tonnes of copper units per annum. “
Key operational statistics
The table below summarises the Group’s operational performance for PGM and CHROME for Q3 2020:
| CHROME | Chrome tonnes produced | Jubilee attributable revenue (£’000) | Jubilee attributable revenue (ZAR’000) | Jubilee Attributable Earnings (£’000) | Jubilee Attributable Earnings (ZAR’000) |
| Q3 2020 | 136 162 | 5.425 | 118.209 | 1.257 | 27.420 |
| PGM | PGM Ounces delivered | Jubilee attributable revenue (£’000) | Jubilee attributable revenue (ZAR’000) | Jubilee Attributable Earnings (£’000) | Jubilee Attributable Earnings (ZAR’000) |
| Q3 2020 | 15.044 | 17.717 | 387.872 | 13.909 | 304.939 |
| COMBINED | Jubilee attributable revenue (£’000) | Jubilee attributable revenue (ZAR’000) | Jubilee Attributable Earnings (£’000) | Jubilee Attributable Earnings (ZAR’000) |
| Q3 2020 | 23.142 | 506.081 | 15.166 | 332.359 |
Recently announced Zambian Acquisitions
Project Elephant
As announced on 18 June 2020, Jubilee has secured the rights to approximately 150 million tonnes of copper containing surface tailings, targeted to be upgraded at site and refined at its Sable Refinery in Zambia. This will be done through a joint venture with the mining rights holder.
The Company’s highly experienced technical and operational teams plan to construct a copper concentrator at the tailings resource to produce two separate concentrates for both the acid soluble copper oxides and sulphide associated copper. Project Elephant alone holds the potential to produce copper concentrates in excess of the total Sable Refinery capacity of 14 000 tonnes per annum of copper cathode.
Project Roan
As announced on 6 August 2020, Jubilee has secured the rights to approximately 2 million tonnes of copper run-of-mine material (“ROM”), with the potential of increasing the ROM to 4 million tonnes, as well as a targeted 2.5 million tonnes of copper containing tailings. Jubilee concluded a strategic partnership through a 50/50 joint venture to turn Project Roan into account.
Jubilee will construct, own and operate the processing facility (“Roan Facility”), while its JV partner will deliver the ROM and tailings at no cost to Project Roan. The JV partner is tasked with producing the copper concentrates, which will be sold on an arms-length basis, with Jubilee’s Sable Refinery holding a first right to such concentrate. Jubilee may also under the JV secure and process its own third-party ROM at the Roan Facility. Project Roan is targeting the production of 10 000 tonnes of equivalent copper units per annum of copper concentrate for further refining, supporting Jubilee’s rapid copper expansion strategy to increase capacity to in excess of 25 000 tonnes of copper per annum
As per the stated reporting timetable, the Company will continue to provide operational updates on a six monthly basis while continuing with more frequent project updates.
