Jubilee Metals Group PLC (LON:JLP), a leader in diversified metals processing, with operations in Africa, has published its unaudited Operational Update for the 12 months to 30 June 2023.
Overview for FY2023
§ Lost time injury frequency rate (LTIFR) of 1.5 in South Africa; LTIFR of 2.36 in Zambia.
§ Strong operational performance from the South African PGM and chrome operations exceeding guidance and reflecting the ability to successfully navigate power and infrastructure challenges in South Africa.
§ PGM operations recorded 42 474 oz (FY2022: 41 456 oz).
o PGM production increased 2% on FY2022, exceeding full year guidance of 38 000 oz.
o Initial impact of power outages in South Africa addressed via increased stock holding and installation of back-up power units at chrome operation in November 2022.
§ Chrome production up 7% to 1 289 890 tonnes (FY2022: 1 207 947 tonnes) exceeding full year guidance of 1 200 000 tonnes.
o New 360 000 tonne per annum chrome concentrate facility completed during June, already delivering first saleable product in June 2023.
§ Copper production of 2 923 tonnes up 29% (FY2022: 2 269 tonnes) marginally below revised guidance of 3 000 tonnes primarily due to previously announced H1 FY2023 power and water disruptions in Zambia, impacting ramp-up of the Roan Concentrator.
o H1 FY2023 power and water disruptions resolved with new privately owned water infrastructure implemented (Dec 2022).
o Expanded power infrastructure implemented (Feb 2023).
o Decision reached on the revised expansion strategy to upgrade Roan as central processing hub to accommodate more copper waste feed streams.
o Decision motivated by size of copper waste opportunity presented to Jubilee.
o Upgrade scheduled to commence during Q1 FY 2024 and will be completed over a 12-week period.
o At completion, the Roan concentrator will offer unique processing capability in Zambia to simultaneously target a variety of feed streams producing three products for further refining or selling to the market.
o Cobalt refining capacity at Sable refinery remains allocated to copper production. The decision will be reviewed depending on the recovery in cobalt prices.
Strategy and growth projects
§ PGM Eastern Limb expansion progressing and targeting an additional 25 000 PGM oz per annum
o Construction expected to commence during Q4 CY2023.
§ On 6 June 2023, the Company announced that it had secured a long-term processing partnership comprising an expansion of 360 000 tonnes per annum of chrome concentrate and 10 000 PGM oz per annum:
o The partnership offers Jubilee the opportunity to obtain greater exposure to the chrome price and achieve higher margins compared with the Company’s existing fixed price chrome tolling agreements; and
o Jubilee holds the option to further expand the partnership to produce 720 000 tonnes per annum of chrome concentrate.
§ Jubilee continues to pursue further chrome expansion opportunities and is advancing discussions to achieve an annualised chrome concentrate production rate of 2 million tonnes (60% expansion) by the end of the 2024 calendar year as previously announced.
§ Roll-out of copper expansion strategy in Zambia refined to align with the security of additional power and water infrastructure:
o Centralised processing footprint offering significant capital savings by enlarging Roan Concentrator and reducing the number of new Greenfields operations required for the Northern Refinery expansion.
o Expansion and upgrade of Roan concentrator set to commence during Q1 FY2024 over a 12-week period and incorporates technical enhancements to increase Roan’s capability to process a wider range of copper waste opportunities.
o At completion Roan will hold a unique ability to simultaneously process a broad range of feed material to take advantage of the waste opportunities on offer in Zambia.
o During the 12-week upgrade intermittent disruptions to the Roan operations are expected.
o Total capital investment into new equipment and installation for the upgrade is budgeted at US$ 8.5 million.
Full year Outlook FY 2024
§ PGM production stepping up to 42 000 oz.
§ Chrome operations expected to reach a new record of 1 450 000 tonnes of chrome following completion of new 360 000 tonne per annum chrome concentrate facility announced in June 2023.
§ Targeted copper units for the full financial period doubles to 5 850 tonnes of copper. Copper guidance is impacted by the upgrade to the Roan concentrator expected over the next 12- weeks. Guidance will be reviewed on the back of the successful completion of the upgrade. We remain focussed on achieving 25 000 tonnes per annum capability at the completion of the strategy by 2025.
Statement from Leon Coetzer, CEO:
“I am pleased to report record production figures for the year across our entire PGM, chrome and copper operations despite numerous external power and water challenges. These numbers reflect a continued investment strategy in expansion opportunities across our business which we believe will continue to bear fruit in the short and medium term.
“In South Africa, Inyoni continues to go from strength-to-strength. Our expansion strategy will see production increase further in the year ahead, as evidenced by our guidance for FY 2024 of 42 000 PGM oz and chrome production stepping up to 1 450 000 tonnes.
“The production of chrome forms a vital part of the South African business’ profitability and cost competitiveness, and I am pleased we were able to secure more feed at more attractive, market-linked terms in the period than our existing toll treatment contracts.
“In that regard, we are looking to take full advantage of this opportunity by growing production, while also looking at other opportunities similar to this one.
“Having expanded into Zambia in 2018, our technical research and process development work has allowed us to fully understand the extent of the waste and non-traditional ore opportunities. Jubilee’s technical process development team has completed its on-going test work to both increase Jubilee’s ability to process a wider range of these vast copper materials, as well as address key operational lessons learned to date at the Roan concentrator.
“As a result, and to better capture this opportunity, Jubilee has taken the decision to significantly upgrade its Roan concentrator facility to offer a unique capability to target a broader range of materials and produce three concentrate products for both refining at Sable and direct on-sale to the market.
“Our Northern Strategy continues to progress on several fronts, including advanced talks to secure a significant operational refining footprint, from where we are able to establish a central refining footprint in the area. The Jubilee team is working to complete the on-going pilot trials to optimise the targeted process solution for the treatment of the range of northern copper and cobalt wastes. These results will be used to inform the capital requirements for the project which has been delayed to August 2023. Final test programs includes scaling up further the pilot work to a newly constructed large scale piloting facility expected to commence during September 2023.”
The table below presents the operational performance of the group for the year ended 30 June 2023:
| OPERATIONAL PERFORMANCE | Unit | 12 months to 30 Jun 2023 FY2023 | 12 months to 30 Jun 2022 FY2022 | % change |
| Unaudited | Audited | |||
| KEY UNITS OF PRODUCTION | ||||
| Total PGM ounces | Oz | 42 474 | 41 456 | 2% |
| Chrome tonnes | Tonne | 1 289 890 | 1 207 947 | 7% |
| Copper tonnes | Tonne | 2 923 | 2 269 | 29% |
