TIDMJLP
RNS Number : 7753H
Jubilee Metals Group PLC
06 August 2021
Jubilee Metals Group PLC
("Jubilee" or the "Company")
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR). Not for
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jurisdiction.
Six Month Operations Update
H1 2021
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 30 June
2021 ("H1 2021") along with provisional unaudited operational
results for the financial year ending 30 June 2021 ("FY 2021")
showing a year-on-year operational earnings increase of 178 % and
revenue increase of 133%.
Highlights
-- Combined attributable operational earnings(1) in H1 2021 of
GBP 40.1 million (up 36% from H2 2020) resulting in a 178%
year-on-year increase in combined attributable operational earnings
to GBP 69.6 million for FY 2021
-- Combined revenue achieved in H1 2021 of GBP 75.6 million (up
46% from H2 2020) resulting in a 133% year-on-year increase in
revenue to GBP 127.6 million for FY 2021
-- Revenue and earnings growth achieved during a period of
substantial infrastructure investment, integration and planned
operational downtime providing tremendous platform for further
future growth
-- Jubilee achieves its stated target of 50 162 PGM(2) ounces
for FY 2021 (up 23% compared with 40 743 ounces for FY 2020);
achieved during a period which included the construction and
commissioning of two new Chrome Beneficiation facilities and the
commencement of the construction of the expanded Inyoni PGM
operations (expected to be completed during Q3 2021(3) )
-- Chrome concentrate produced from chrome operations increased
to 751 223 tonnes for FY 2021 (up 99% compared with 377 883 tonnes
for FY 2020) on the back of increased operational capacities. This
is set to increase further with the commissioning of the new Chrome
Beneficiation circuit completed during Q2 2021(4)
-- Maiden earnings from Zambia copper production. Copper
production reached 2 026 tonnes as part of securing operational
readiness to accept first copper concentrate production from
Project Roan. Project Roan's integrated copper concentrator is on
track for commissioning by January 2022.
-- Jubilee's Sable Refinery achieved positive earnings as part
of its operational readiness activities with attributable
operational earnings of GBP 3.7 million for FY 2021 compared with
GBP 1.2 million for FY 2020
1- Attributable earnings represent Jubilee's net share of
operational earnings after distributions to JV partners and before
development costs
2- PGM - 6 Element Platinum Group Metals including platinum,
palladium, rhodium, ruthenium, osmium and gold
3- Period 1 July 2021 to 30 September 2021
4- Period 1 April 2021 to 30 June 2021
PGM Operations
-- Achieved target of 50 162 PGM ounces for FY 2021 with
expanded Inyoni PGM operations set for completion during Q3
2021
-- Record PGM ounce production achieved (H1 2021 contributing 21
975 PGM ounces) during a period of substantial infrastructure
investment and integration across our projects nearly doubling
overall chrome processing capacity to approximately 250 000 tonnes
per month, while commencing with the expansion of the PGM
processing capacity targeting 75 000 tonnes per month
-- Commissioning of the expanded PGM final product cleaning
circuit is underway with the enlarged integrated PGM processing
facility targeted to commence commissioning by the end of August
2021
-- During H1 2021, Jubilee secured new long term strategic PGM
Supply Agreements which signals Jubilee's PGM expansion drive into
the Eastern Limb of the Bushveld Complex of South Africa, where
further growth opportunities in the area can be targeted
-- Jubilee also acquired outright a further 255 000 tonnes of
PGM containing chrome tailings (equivalent to approximate
production of 12 300 PGM ounces) produced from the processing of
LG6 chrome reefs, which are expected to be high in Rhodium
content
-- In addition, Jubilee acquired the rights to an additional 944
000 tonnes of PGM containing surface tailings (before accounting
for any moisture), again in the Eastern Limb. Jubilee has commenced
with the upliftment and transport of the PGM material to its Inyoni
PGM processing plant, targeting to maintain a minimum rate of 30
000 tonnes per month, the equivalent of 1 600 PGM ounces per
month
-- The additional transport cost incurred for the transport of
the Eastern Limb PGM material to Jubilee's PGM Inyoni operations
located in the Western Limb region (some 400 km) is offset by the
increased revenues realised by the contained higher value PGM
material from the LG6 chrome reefs
Chrome Operations
-- Chrome concentrate produced increased to 431 390 tonnes for
H1 2021 reaching 751 223 tonnes for FY 2021
-- The increase in chrome concentrate production is driven by
the commissioning of two new Chrome Beneficiation facilities
including the new 80 000 tonnes per month Chrome Beneficiation
facility near the Inyoni PGM Operations, which was fully
commissioned by the end of June 2021
-- This new facility consists of four integrated chrome
processing units including Jubilee's Fine Chrome Recovery circuit
to maximise chrome efficiencies
-- 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
-- Jubilee's fully operational Sable Refinery achieves early
earnings from its copper and cobalt production as part of securing
operational readiness to accept first production from Project Roan,
achieving total copper production of 2 026 tonnes since being
brought back into operation by Jubilee
-- Jubilee's Project Roan copper project is progressing well
with the commissioning of the integrated copper concentrator
scheduled to commence in Q1 2022 targeting an annual production
rate of 10 000 tonnes per annum
Leon Coetzer, Chief Executive Officer, commented: "The Jubilee
team has yet again delivered another exceptional performance, where
we have achieved growth in each of our core business units; PGMs
and Chrome and also generating maiden earnings from our new Zambian
Copper portfolio.
"As we have previously reported, we have undertaken an intensive
construction and commissioning phase, in particular at our PGM and
Chrome operations in South Africa, where a number of projects have
been initiated. We have seen the commissioning of two new Chrome
Beneficiation facilities, as well as commencing with the
construction of the expanded PGM Inyoni operations. While all of
this work understandably has put significant pressure on day-to-day
operations, I am thrilled to still be reporting further production
and earnings progress. Crucially, the investment, time and effort
spent in building and integrating these facilities has set a
platform for tremendous potential growth opportunities.
"We have seen further growth in South Africa during the period
under review, with a number of new long term PGM supply agreements,
each of significant strategic value given their locations in the
Eastern Limb of the mineral rich Bushveld complex. As well as
demonstrating our ability to win and form partnerships with key
chrome mining clients, these new supply agreements provide us with
the opportunity to replicate the success of our Inyoni operation in
the Western Limb region - which is of significant value to us in
supplying a continued sustained chrome and PGM feed .
"Achieving our first delivery, on time, of partially upgraded
copper concentrate from Project Roan to the fully operational Sable
Refinery was the first major step in our commitment to achieve our
targeted production of 25 000 tonnes per annum of copper within the
next four years. Commissioning of the integrated copper
concentrator is scheduled to commence in Q1 2022, while our second
copper project, located in the Luanshya area, has completed the
development programme and is concluding the detail design phase to
commence shortly with the implementation programme. I look forward
to keeping shareholders updated on further progress in Zambia with
what holds the potential to contribute to generating long term,
quality earnings.
"With the support of our long-term stakeholders, along with some
very welcome blue-chip institutional investors to the share
register during the period, our maturing company continues on a
very exciting growth trajectory, both operationally and
financially, as our strategy continues to be implemented."
Combined Operational and Financial update
Jubilee's operational growth continuous to exceed expectations
despite the challenges of the prevailing COVID-19 pandemic and the
significant expansion programme undertaken at both its PGM &
Chrome as well as Copper business units.
Financially, the Company saw continued growth in H1 2021
delivering earnings of GBP 40.1 million. This, combined with our
record performance in the previous six months, has resulted in a
176% year-on-year increase in unaudited operational earnings to GBP
69.6 million for FY 2021. This strong earnings growth came on the
back of a 133% year-on-year increase in unaudited revenue for FY
2021 to GBP 127.6 million. The revenue and earnings growth achieved
was during a period of planned substantial infrastructure
investment and integration across our projects, which while
resulting in some operational downtime, has set a tremendous
platform for future growth.
Operationally, the Company has achieved its stated target of 50
000 PGM ounces for FY 2021 at 50 162 ounces (increase of 23%
compared with 40 743 ounces for FY 2020); again, achieved during a
period which included the construction and commissioning of two new
Chrome Beneficiation facilities and the commencement of the
construction of the expanded Inyoni PGM operations which is
expected to be completed during this current quarter. During the
period under review, the Company expanded its operational footprint
in the Eastern Limb of the Bushveld complex in South Africa - a
strategic development which demonstrates Jubilee's ability to
continue to grow its business by re-investing its earnings into
high growth projects.
Chrome operations achieved 751 223 chrome concentrate tonnes for
FY 2021 (377 883 tonnes during FY 2020) on the back of increased
operational capacities. This is set to increase further with the
commissioning of the new Chrome Beneficiation circuit which was
completed during Q2 2021.
In Zambia, early earnings from copper production were achieved.
Copper production increased to 1 387 tonnes of copper for FY2021 as
part of securing operational readiness to accept first copper
concentrate production from Project Roan. Project Roan's integrated
copper concentrator is set for commissioning by January 2022 which
will result in the first significant increase in copper production
by the Sable Refinery targeting 10 000 tonnes of copper units
annually. The fully operational Sable Refinery achieved positive
earnings as part of its operational readiness activities with
attributable operational earnings of GBP 3.7 million for FY 2021
compared to GBP 1.2 million for FY 2020.
The table below presents the combined unaudited operational
revenue and operational earnings performance for H1 2021 and
FY2021:
COMBINED Project Project Project Project Jubilee Jubilee
revenue revenue earnings earnings attributable attributable
(GBP'000) (ZAR'000) (GBP'000) (ZAR'000) earnings earnings
(1) (2) (GBP'000) (ZAR'000)
H2 2020 51 949 1 101 115 31 174 662 531 29 500 627 336
----------- ----------- ----------- ----------- --------------- --------------
H1 2021 75 623 1 526 846 40 383 819 965 40 118 814 643
----------- ----------- ----------- ----------- --------------- --------------
FY 2020 54 775 1 079 737 25 088 494 534 25 088 494 534
----------- ----------- ----------- ----------- --------------- --------------
1 482
FY 2021 127 572 2 627 961 71 557 496 69 618 1 441 979
----------- ----------- ----------- ----------- --------------- --------------
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
Chrome Operations Update - South Africa
As previously announced, in November 2020 Jubilee commenced the
construction of an additional 80 000 tonnes per month of chrome ore
processing facility, which on completion will increase 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 stage of the plant
commissioning to reach full design capacity has commenced which
includes the full integration into the feed system of the existing
Inyoni PGM Operations. The scheduled down time of the Inyoni PGM
Operations to facilitate the integration and commissioning was
carefully planned and executed and the Company reached its targeted
record production of more than 50 000 PGM ounces for the year ended
30 June 2021.
C hrome operational earnings for H1 2021 increased by 33% to GBP
1.8 million from H2 2020 achieving total chrome operational
earnings of GBP 3.1 million for FY 2021. Chrome revenue for H1 2021
increased by 102% to GBP 23.3 million from H2 2020 achieving total
chrome revenue of GBP 34.9 million for FY 2021.
The table below presents the combined unaudited operational
revenue and operational earnings performance for chrome for H1 2021
and FY 2021:
CHROME Chromite Project Project Project and Project
concentrate revenue revenue Jubilee attributable and Jubilee
produced (GBP'000) (ZAR'000) earnings attributable
Tonnes (1) (GBP'000) earnings
(ZAR'000)
H2 2020 319 834 11 565 244 435 1 320 28 522
------------- ----------- ----------- ---------------------- --------------
H1 2021 431 390 23 340 468 153 1 762 35 576
------------- ----------- ----------- ---------------------- --------------
FY2020 377 883 17 158 338 422 803 15 847
------------- ----------- ----------- ---------------------- --------------
FY2021 751 223 34 905 712 588 3 082 64 098
------------- ----------- ----------- ---------------------- --------------
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 remain volatile due to the
disruptions in the supply chain over the sixth month period, and
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.
PGM Operations Update - South Africa
Jubilee's PGM operations consist of the Inyoni and Windsor JV
PGM operations. The construction of the expanded Inyoni PGM
Operations to increase its processing capacity by 45% to 75 000
tonnes per month is complete and commissioning of the expanded
operation at Inyoni has commenced.
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 of Jubilee to expand its PGM
reach and operational capacity. The PGM Supply Agreements entered
into give access to this area offering a platform to pursue further
growth opportunities.
The PGM Supply Agreements are all 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 Agreement has secured the rights to long term
PGM feed supply of an estimated 16 500 tonnes per month, with the
potential of producing up to 14 500 PGM ounces per annum. The plan
is to initially process the increased PGM feed at Jubilee's
expanded Inyoni PGM Operations targeted for July 2021 however
consideration is being given to implementing a dedicated processing
facility in the Eastern Limb. The PGM Supply Agreement offers a
minority earnings participation to the Chrome Mine partner allowing
them exposure to the PGM values which also enhances their earnings
potential. They also demonstrate Jubilee's ability to continue to
grow its business by re-investing its earnings into high growth
projects and by forming true partnerships with its chrome mining
customers.
In addition to the PGM Supply Agreement, Jubilee has also
acquired outright a further 255 000 tonnes of PGM containing chrome
tailings (equivalent to approximate production of 12 300 PGM
ounces) produced from the processing of LG6 chrome reefs which
further increases Jubilee's existing surface PGM tailings.
PGM revenue for H1 2021 is up 29% to GBP 47.2 million from H2
2020. PGM attributable operational earnings for H1 2021 is up 38.2%
to GBP 36.5 million from H2 2020. Operational project unit cost
expressed as US$ per PGM ounce produced, increased over the past
6-month period, which is mainly driven higher by the strengthening
South African rand to the US dollar contributing approximately
US$78 dollars per ounce, as well as the associated increased
transport cost to truck the PGM tailings located in the Eastern
Limb to the Inyoni PGM processing plant.
The table below presents the combined unaudited operational
revenue and operational earnings performance for PGMs for H1 2021
and FY 2021:
PGM PGM ounces Project Project Project Project Jubilee Jubilee Unit
delivered revenue revenue earnings earnings attributable attributable cost
(GBP'000) (ZAR'000) (GBP'000) (ZAR'000) earnings earnings / PGM
(1) (2) (GBP'000) (ZAR'000) oz (US$)
H2 2020 28 187 36 593 776 032 26 959 572 782 26 387 560 450 470
----------- ----------- ----------- ----------- ----------- -------------- -------------- ----------
H1 2021 21 975 47 155 956 869 36 725 746 657 36 459 741 335 658
----------- ----------- ----------- ----------- ----------- -------------- -------------- ----------
FY 2020 40 743 34 590 682 249 21 486 418 141 21 486 423 787 541
----------- ----------- ----------- ----------- ----------- -------------- -------------- ----------
1 732 1 319
FY 2021 50 162 83 748 900 63 684 439 62 847 1 301 785 537
----------- ----------- ----------- ----------- ----------- -------------- -------------- ----------
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
Zambian Operations Update
The role-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.
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 approximate 288 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 Elephant 1 and Project Elephant 2.
Jubilee targets to construct a processing facility at each of
the three locations. The extent of the processing facilities is
determined by the refining capacity at its Sable Refinery,
currently limited to 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
processing facility will be commissioned over three phases to
accelerate the delivery of copper units for further refining to
Jubilee's Sable Refinery. On a slightly revised timetable due to
heavy rains in the region early in 2021, Phase 1 was achieved on
schedule in April 2021 and delivery of the first copper units to
the Sable Refinery took place.
Looking ahead, Phase 2 of Project Roan is targeted for
commissioning during Q3 2021 which will further increase the amount
and quality of intermediate copper concentrate delivered to the
Sable Refinery for processing.
Project Elephant Update
During the period, the completion of the design work for the
Company's second copper processing facility, Project Elephant 1,
whereby Jubilee has secured the rights to approximately 150 million
tonnes of copper containing surface tailings, progressed and
remains on track to enter the execution phase for the project by
the end of August 2021. Project Elephant 1 targets to reach the
production of 12 000 copper units per annum in addition to Project
Roan by Q2 of 2023.
6 August 2021
**ENDS**
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
JSE Sponsor - Sasfin Capital (a member of the Sasfin group)
Sharon Owens
Tel +27 (0) 11 809 7500
Lead PR & IR Adviser - Tavistock
Jos Simson/ Gareth Tredway/Charles Vivian
Tel: +44 (0) 207 920 3150
PR & IR Adviser - St Brides Partners
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