Jubilee Metals Group PLC (LON:JLP/Altx: JBL), a diversified leader in metals processing with operations in Africa, has announced its first quarter operational report to 30 September 2023. The Group has delivered a strong Q1 operational performance and remains on track to deliver against the production guidance for the 2024 financial year (“FY2024”).
Operational Highlights
· Q1 FY2024 production figures achieved were:
o Production of chrome concentrate increased to 336,683 tonnes (Q4 FY2023: 344,315 tonnes). Chrome production rates are expected to continue to increase with the additional processing capacity provided by an additional chrome processing module, completed in August (the “Thutse Processing Module”).
o Inyoni’s PGM production increased to 10,113oz (Q4 FY2023: 9,350oz), with no third-party production in the period. The PGM production rate is expected to further benefit from the increased feed rate from the Thutse Processing Module operating at design capacity.
o Copper cathode and copper in concentrate produced was 934 tonnes (Q4 FY2023: 653 tonnes). Project Roan’s upgrade which commenced in September 2023, has necessitated the stoppage of the feed classification circuit which will disrupt processing at Roan for 16-weeks until December 2023.
· Lost Time Frequency Injury Rate (LTFIR) for South Africa improved to 1.44 (Q4 FY2023: 1.5). While The LTFIR for Zambia improved to 2.36 (Q4 FY2023: 2.37).
· The average chrome revenue per tonne of US$85 (Q4 FY2023: US$86 per tonne) is influenced by the percentage of fixed chrome margin tonnages processed. The increased margins from the new partnership agreements are expected to reflect stronger through the current quarter. The average chrome cost per tonne remained flat at US$75 (Q4 FY2023: US$74 per tonne).
· The average PGM revenue per ounce increased to US$1,031 (Q4 FY2023: US$976). Cost remained tightly under control with the average PGM cash cost per ounce, excluding chrome credits of US$875 (Q4 FY2023: US$855).
· The average copper revenue per tonne of US$6,588 (Q4 FY2023: US$6,860 per tonne) reflects the increase of copper sulphide concentrate sales from the Roan concentrator, while the average copper cost per tonne increased marginally to US$4,907 (Q4 FY2023: US$4,802 per tonne).
Project Highlights
South Africa
· Jubilee has elected to further expand the chrome operational footprint by an additional 450,000 tonnes per annum feed process capacity using its existing modular approach.
o The expansion allows for the construction of an additional chrome process module to be added to the current Thutse operations.
o The expansion will increase Jubilee’s chrome processing footprint to 9 chrome processing modules and increase the total chrome processing capacity to 1.7 million per annum.
o The expansion of the chrome processing footprint remains contingent upon our continuing capital allocation evaluation and assessment of prospective funding arrangements.
· The Group continues to advance discussions to conclude a further Life-Of-Mine (“LOM”) partnerships and expand the chrome operations via the roll-out of additional processing modules as it targets 2 million tonnes of concentrates per annum in the future.
Zambia
· Zambia copper gathered further momentum with the securing of the first LOM copper ore off-take agreement from an existing mining company (“Project M”), as opposed to copper tailings offtakes contracts signed in the past. Project M seeks to replicate the success of the South African modular chrome expansion roll-out drive, which seeks to process copper containing ore, deemed as waste by current or previous operators.
o The copper processing modules will be trialled and tested at the same in-house development centre in South Africa where the chrome modules are currently manufactured.
o The copper process modules specifically target the processing of Run-Of-Mine (“ROM”) ore that has not been previously processed, as opposed to tailings. In many cases, this ROM material has been rejected to mine waste dumps due to the type of copper contained.
o Copper processing module designs range from 20,000 to 50,000 tonnes per month feed supply, capable of being delivered and commissioned within an eight-month period.
o Jubilee holds the capacity to execute 3 modules in parallel at an estimated capital investment of US$6.5 million per module (capital estimate based on a 50 000 tonnes per month module).
o Each 20,000 tonnes per month module is expected to produce the equivalent of 3,000 tonnes per annum of additional cathode.
o Jubilee’s project team is expected to complete the selection of the optimum process module capacity for Project M within the next 6 weeks with deployment within 8 months following the conclusion of the capital allocation decision.
· Project Roan’s upgrade currently underway includes the implementation of a 50,000 tonnes per month processing module, specifically targeting the previously announced approximate 6-year offtake agreement of unprocessed copper ROM material discarded as mined waste.
· During the period, Jubilee was awarded the Mufulira Slag project to develop the processing of all historical slag waste from the smelter operations under a joint venture agreement with Mopani Copper Mines (“MCM”). The commercial terms of the joint venture are currently being negotiated and are expected to be finalised once the sale of MCM is completed which is subject to a well-publicised formal sale process.
· Jubilee signed a technology exclusive partnership agreement for the development and implementation of a copper recovery solution called Glycine Leaching Technology for the processing of historical copper tailings with Draslovka Mining Solutions
o The partnership brings together two exceptionally skilled technical teams to work together on unlock the value from this vast resource in an environmentally friendly way.
o The partnership specifically targets the processing of copper and other base metal historical tailings in Zambia with a potential of extending the work to the Democratic Republic of the Congo.
o The technology partnership with Draslovka builds on the latest encouraging results achieved from the upscaled extended continuous trial runs that followed the earlier laboratory batch trials.
o Calculated copper extraction of more than 80% of copper in tails has been achieved from the continuous Glycine Leaching Technology trials applying a modified reagent recipe.
o Jubilee’s technical services is working closely with the Draslovka team to unlock the vast potential offered to recover copper from these low-grade tailings generated from past processing of copper ROM.
o Jubilee’s engineers are currently completing the commercial review of the tailings recovery project which will inform the decision to implement further upscaled industrial scale trials.
· The process development program for the processing of historical tails continue to show progress with results from the upscaled extended continuous trial runs confirming the encouraging results from the earlier laboratory batch trials.
o Calculated copper extraction of more than 80% of copper in tailing has been achieved from the continuous Glycine Leaching Technology trials applying a modified reagent recipe.
o Jubilee’s engineers are currently completing the commercial review of the tailings recovery project which will inform the decision to implement further upscaled industrial scale trials.
Statement from Leon Coetzer, Jubilee Metals CEO:
“I am pleased to present our operational report for the first quarter of FY2024. Our robust operational performance was supported by new long-term supply agreements which allocates higher quality feed material to our operations, allowing us to better leverage our current production capacity, and affirm our growth trajectory in chrome concentrate, PGMs, and copper.
“Jubilee continues to challenge industry norms by breaking through technical barriers and implementing solutions that extract value from materials and ore sources that were previously regarded by others as waste or too complex.
“With the Thutse chrome project performing to expectation and offering further growth potential with the addition of Jubilee’s 9th chrome module, we anticipate consistent growth in chrome and PGMs.
“Our operating presence in Zambia together with the expansion of our leadership teams have allowed us to solidify our copper expansion strategy, by implementing key lessons learnt and integrating the modular expansion of our copper production profile that has achieved such great success in South Africa.
“Our Zambian strategy is grouped into two categories of copper materials namely unprocessed copper waste from mining activities and historical processed copper tailings. Our growth in each of these categories of copper materials is independently driven. I am particularly excited by the roll-out of our copper processing modules specifically targeting the copper waste materials while our technical team continues their work to unlock the copper value in historical processed tailings using Glycine Leaching Technology.
“Safety remains a top priority, as evidenced by the improved Lost Time Frequency Injury Rate in both South Africa and Zambia.
“Our upcoming ventures, from the potential expansion of our chrome operations to our first life-of-mine copper ore off-take agreement, reinforce our strategic vision. Partnerships with companies like Mopani Copper Mines and Draslovka underscore our focus on growth and innovation.
“In conclusion, our improved operational margins across segments highlight our team’s efforts and strategic foresight. I remain extremely optimistic about Jubilee’s future and the trajectory on which the Company is headed”.
Production guidance for the 2024 financial year
· 1.45 million tonnes of chrome concentrate
· 42,000 PGM ounces
· 5,850 tonnes of copper, weighted to the second half of the financial year, given limited production in Q2
Quarterly Operational Performance
| QUARTERLY OPERATIONAL PERFORMANCE (UNAUDITED) | |||||
| Unit | Quarter ended 30 September 2023 (Q1 FY2024) | Quarter ended 30 June 2023 (Q4 FY2023) | % change | ||
| KEY UNITS OF PRODUCTION | |||||
| Chrome Concentrate | Tonnes | 336,683 | 344,315 | (2%) | |
| PGMs | |||||
| – Inyoni | Oz | 10,113 | 9,350 | 8% | |
| – Third party | Oz | – | 3,439 | (100%) | |
| – Total PGM ounces | Oz | 10,113 | 12,789 | (21%) | |
| Copper cathode and copper in concentrate | Tonnes | 934 | 653 | 43% | |
| UNIT REVENUE | |||||
| Revenue per chrome tonne | US$/t | 85 | 86 | (1%) | |
| Revenue per PGM ounce | US$/oz | 1,031 | 976 | 6% | |
| Revenue per copper tonne | US$/t | 6,588 | 6,860 | (4%) | |
| UNIT COSTS | |||||
| Cost per chrome tonne | US$/t | 75 | 74 | 1% | |
| Cost per PGM ounce (excluding chrome credits) | US$/oz | 875 | 855 | 2% | |
| Cost per copper tonne | US$/t | 4,907 | 4,802 | 2% | |
| OPERATIONAL MARGIN | |||||
| Gross profit margin per chrome tonne | % | 12.7% | 13.5% | (6%) | |
| Gross profit margin per PGM ounce | % | 15.2% | 12.3% | 23% | |
| Gross profit margin per copper tonne | % | 25.5% | 19.5% | 31% | |
| EXCHANGE RATES | |||||
| Average presentation currencies | US$/GBP | 1.27 | 1.25 | 1% | |
| Average functional currency South Africa | ZAR/ US$ | 18.63 | 18.65 | 0% | |
| Average functional currency Zambia | ZMW/ US$ | 19.50 | 18.82 | 4% | |
Jubilee Metals Investor Calendar
| Details | Dates |
| Second Quarter Operational Report | Second week of February 2024 |
| Interim results for the period ended 31 December 2023 | Second week of March 2024 |
| Third Quarter Operational Report | Second week of May 2024 |
| Fourth Quarter Operational Report | Second week of August 2024 |
| Audited results for the year ended 30 June 2024 | Second week of October 2024 |
| Annual General Meeting | Second week of November 2024 |
1 November 2023
