Operational Update H1 FY2025

Jubilee Metals Group PLC

13 January 2025

 

Jubilee Metals Group Plc

Registration number (4459850)                                                           

AIM share code: JLP

Altx share code: JBL                                                           

ISIN: GB0031852162

("Jubilee" or "Company" or "Group")

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Operational Update H1 FY2025

Jubilee, a diversified metals producer with operations in South Africa and Zambia, today publishes its unaudited operational and project update for the half year ended 31 December 2024 (H1 FY2025).

Highlights

Zambia

§ Lost Time Frequency Injury Rate (LTFIR) of 1.00 (H1 FY2025: 0.61).

§ Copper units produced reached 1 454 tonnes (H1 FY2024: 1 683 tonnes) below the revised half year production target of 1 800 tonnes mainly due to the impact of power constraints.

§ Run-of-Mine (ROM) and in process stock increased sharply as a result, reaching approximately 1.21 million tonnes containing an estimated 8 466 tonnes of copper units for future processing.

§ Additional power agreement executed with a new broad based power provider to supplement the existing power supply agreement, specifically aimed at achieving steady power supply at Roan. The agreement:

o  Secures access to a distributed power base from multiple sources of power generation to avoid dependency on a single supply source and localised power network distribution limitations;

o  Is expected to commence with power supply within 7 business days pending regulatory approval; and

o  The new additional power supply is capable of supplying all of Sable and Roan's power demands, if required, at a power cost similar to the existing power agreement.

§ Sable refinery was able to continue operating and remains operational given its proximity to the power producer.

§ Roan upgrade and commissioning completed reaching ramp-up throughput targets of a combined 45 000 tonnes per month during the period before experiencing shut-downs due to power constraints.

o  Roan was commissioned and ramped up initially using  low-grade waste materials before targeting the switch  to feed materials containing approximate 1.5% copper (Cu);

o  Roan was placed under care and maintenance to prioritise maintenance activities and to avoid any risk of equipment damage due to unstable power supply; and

o  Roan will restart with the commencement of power supply under the additional power supply agreement.

§ Copper production at Munkoyo unaffected by power constraints:

o  Munkoyo mining on target producing in excess of 70 000 tonnes per month of ROM ready for future processing;

o  High grade ROM at a rate of 8 000 tonnes per month exceeding 2.5% total copper, continues to be directly refined at Sable; and

o  Pilot-scale leach trials targeting all of the ROM produced at Munkoyo have shown exceptional results and implementation will be accelerated with final designs and capital estimations expected by end of Q1 CY2025.

§ Copper production rates are expected to return to target on the back of the commencement of the additional power agreements and the restart of Roan plant.

South Africa

§ South Africa reported a LTIFR rate of 1.45 (H1 FY2024: 2.41).

§ Chrome concentrate produced reached record highs on the back of the successful commissioning of two further chrome processing units increasing by 35.7% to 974 659 tonnes (H1 FY2024: 718 189 tonnes), well on track to meet and exceed full year guidance of 1.65 million tonnes. 

§ 6E Platinum Group Metals* (PGM) produced for H1 FY2025 reached 18 435oz (H1 FY2024: 20 244oz), on track to meet full year guidance of 36 000oz.

§ The new chrome processing modules built at Thutse met design throughput during December setting a record total chrome concentrate production for Q2 FY2025 of 519 310 tonnes.

*  6E PGM - Platinum, palladium, rhodium, ruthenium, iridium and gold

Production guidance for FY2025

§ Copper: Increased copper production in place, however, guidance is under review until such time as consistent power supply is established and Roan is brought back into operation following the most recent agreement.

§ Chrome and PGM: On-track to achieve and exceed chrome concentrate production guidance of 1.65 million tonnes, and PGM production guidance of 36 000oz.

Statement from Leon Coetzer, Jubilee CEO:

"Over the past quarter, we have experienced significant challenges in our Zambian operations brought on by a combination of extraordinary circumstances outside of our direct control. We have addressed the power supply challenge by entering into an additional power supply agreement that  sources power across a broader generation network to avoid localised exposure to network instabilities and a single power generation plant. This power supply contract should successfully address current power supply limitations that affected Roan's ability to operate.

The timing of the interruptions was particularly unfortunate given the recent successful commissioning of the upgraded Roan facility set to significantly increase the copper production alongside the Munkoyo operation. We expect to return to the processing rate previously achieved at Roan once power delivery under the new power supply agreement commences.

The Munkoyo process trials have delivered very encouraging results confirming our ability to process all of the ROM mined at Munkoyo on-site, at a much lower operating cost and a reduced operating footprint than originally envisaged. This offers the potential to fast track the implementation of this process solution. Our technical team is completing the design and implementation plan which is expected within this quarter.

While unexpected setbacks manly outside of our control do provide hurdles to a smooth growth path in Zambia, we have successfully navigated these challenges and I remain confident in our ability to bringing full value to the investment made into the expansion of our operating and processing footprint. We are withholding an updated copper guidance until the additional power under the power agreement is delivered and we are able to return to running the operations on a continuous basis. 

In South Africa, the team continues to deliver an exceptional performance, and we are well on track to achieve and exceed our chrome guidance of 1.65 million tonnes of chrome concentrate for FY2025, following the two new Thutse production modules reaching design capacity during December, leading to a quarterly production record for Q2 FY2025. Our Chrome and PGM business have proactively reacted to the sharp decline in the chrome market prices by successfully increasing both operational efficiencies and overall throughput. "

Zambia

Half Year Production results

The table below presents the unaudited operational production performance of Zambia for H1  FY2025:

OPERATIONAL PERFORMANCE		H1 FY2025	H1 FY2024	% change
COPPER
In process stock
Copper in process stock	DMT	1 210 312	-	100.0%
Grade	Tcu%	0.7%	-	100.0%
Copper units	tonnes	8 466	-	100.0%
Production
Copper	tonnes	1 454	1 683	(13.6%)

Power supply agreement

A new power agreement has been executed with a broad-based power provider to supplement the existing power supply arrangement. This agreement secures access to a broader and more distributed power base and power sources, reducing the Company's reliance on a single power generation facility that is vulnerable to local distribution and generation constraints. These constraints have significantly impacted continuous operations at the Roan facility, an issue which the supplementary agreement aims to resolve. Power supply under the new agreement is expected to commence within 7 business days, pending regulatory approval. The Company was successful in securing power rates comparative to the current power rates charged under the existing power agreement. The new agreement caters for the potential to supply all of the power demands at both Sable and Roan if required.  

Roan Concentrator

The Roan upgrade and commissioning were successfully completed during the period, with the operation achieving ramp-up targets by processing low-grade ROM from extensive historical stockpiles. However, after reaching capacity, the Roan operation faced significant challenges, leading to a partial closure to resolve issues related to supplementary power agreements. Roan was placed under care and maintenance to prioritise key maintenance activities during this period.

Roan achieved a combined throughput of 45 000 tonnes per month processing low grade materials to minimise loss of copper during the ramp-up and commissioning of the operation. Roan was scheduled to switch over to the longer-term feed material targeting a copper grade in excess of 1.5% Cu prior to the forced closure. Roan is expected to complete with the switch over once stable power under then new power agreement is established.

Sable Refinery

In line with Jubilee's ongoing resource expansion in Zambia, the Company is upgrading Sable to serve as a dedicated facility for processing materials from Open-Pit mining operations, including the recently acquired Munkoyo and Project G. The upgrade is currently in progress and is expected to be completed during Q2 FY2026.

The successful acquisition of these targeted resources has enabled Jubilee to transform Sable into a specialised refiner focused on shallow Open-Pit mining operations.

Munkoyo

Copper production at Munkoyo has remained unaffected by recent challenges, with total production of ROM exceeding 70 000 tonnes per month.  The high-grade ROM exceeding 2.5% Cu is direct leached and refined at Sable targeting a rate of 8 500 tonnes per month of ROM delivered. The remaining lower grade ROM at an approximate grade of 0.7% Cu is stockpiled on site. An on-site leaching process targeting all of the ROM mined at Munkoyo has been developed by Jubilee's technical team with pilot trails scheduled during the period.

The pilot-scale leach trials of Munkoyo material, initiated in December 2024, have delivered exceptional results, demonstrating significantly reduced acid consumption rates for copper extraction and the potential to considerably reduce the required operating footprint. Currently, only high-grade ROM material is transported to Sable for refining, while the remaining ROM is stockpiled at Munkoyo for further on-site processing.

The leach trials confirm not only the recoverability of copper from the ROM, but also the strong economic returns this processing method offers to the Munkoyo operation. Implementation of the leach solution will be accelerated, with final design and capital estimates expected by the end of Q1 CY2025. Based on pilot run results, a modest capital investment is required at Munkoyo, with most equipment sourced locally to avoid long lead times. Further details will be provided as soon as possible.

Project G

Following the completion of Jubilee's due diligence on Project G during August 2024, the Company acquired a majority interest in Project G.

The project aims to expand existing operations to achieve an initial mining rate of 10 000 tpm by February 2025. Project G includes an on-site facility designed to pre-concentrate mined ROM material, with an immediate capacity to produce 3 000 tonnes of copper concentrate per month, containing 10% to 15% copper. Lower-grade copper will be stockpiled for future on-site processing. First copper concentrate was produced at Project G during October 2024.

Large Scale Waste Rock Project

The project targets the processing of the approximate 260 million tonnes of previously mined material through a dedicated processing footprint resembling the new Roan facility. The Company is currently focussed on the completion of the extended industrial trial as part of its ongoing due diligence review. Under the terms of the option to purchase agreement, a due diligence extension to the end of January 2025 has been agreed to allow sufficient time to compile the results from the trial.

South Africa

Half Year Production results

The table below presents the unaudited operational production performance of South Africa for H1  FY2025:

OPERATIONAL PERFORMANCE		H1 FY2025	H1 FY2024	% change
Chrome and PGM
Production
Chrome	tonnes	974 659	718 189	35.7%
PGM	Oz	18 435	20 244	(8.9%)

The Company continues to experience growth in its South African operations, which are now well-established and consistently delivering strong results. Chrome operations increased output to 974 659 tonnes for H1 FY2025 on the back of improved efficiencies while PGM production benefited from better quality feed to produce 18 435 ounces.

Construction and commissioning of the two new chrome processing modules was successfully completed and commissioned contributing to the record production achieved over the past period.

13 January 2025

For further information visit www.jubileemetalsgroup.com, follow Jubilee on Twitter (@Jubilee_Metals) or contact:

Jubilee Metals Group PLC 

Leon Coetzer (CEO) / Jonathan Morley-Kirk (FD)

Tel: [phone]  / Tel: [phone]

Nominated Adviser - SPARK Advisory Partners Limited 

Andrew Emmott/James Keeshan 

Tel: [phone] 

PR & IR Adviser - Tavistock 

Jos Simson/ Gareth Tredway

Tel: [phone] 

Joint Broker - RBC Capital Markets

Farid Dadashev/Jamil Miah                                                                                                                               

Tel [phone]

Joint Broker - Zeus Capital

Harry Ansell/Katy Mitchell  

Tel: [phone] 

JSE Sponsor - Questco Corporate Advisory Proprietary Limited 

Alison McLaren

Tel: [phone]

About Jubilee Metals Group Plc

Jubilee is a low-cost, diversified producer, specialising in the recovery and processing of metals from previously overlooked resources, such as unprocessed historical waste rock, run-of-mine materials and tailings in Zambia and South Africa. The Company's low-capex, modular processing facilities are deployed close to these various types of material, producing high grade concentrates for sale or further refining to finished metal at the Company's downstream facilities. Production currently consists of copper, chrome, and platinum group metals (PGMs). The modular processing facilities offer a platform for growth and the rapid expansion of Jubilee's operational footprint in Zambia and South Africa. Jubilee's success is derived from operational and technical excellence, an experienced management team and a pioneering Technical Development Centre.

 

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