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Copper and PGM Projects Update
Jubilee Metals Group PLC
("Jubilee" or the “Company")
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162
Copper and PGM Projects Update
Dissemination of a Regulatory Announcement that contains inside information according
to REGULATION (EU) No 596/2014 (MAR). Not for release, publication or distribution in
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Jubilee Metals Group PLC, a leader in metals processing with operations in Africa (AIM:
JLP/Altx: JBL), is pleased to provide an operational and corporate update on its copper
projects in Zambia, specifically Project Roan, and its Inyoni PGM project in South Africa
following a period of significant progress.
Highlights
Copper Projects
• Construction of Project Roan targeting the production of 10 000 tonnes per annum
through the integrated copper processing plant in northern Zambia, is fast nearing
completion with commissioning activities targeted to commence during December
CY2021, slightly ahead of the anticipated timetable and notwithstanding international
freight and logistics challenges experienced globally
• Project Roan remains on track to start delivering copper concentrate to the upgraded
Sable Refinery during Q1 CY2022
• In addition to Project Roan, Jubilee is targeting the construction of a further two such
copper concentrating facilities as part of its Northern Zambian refining strategy, as
the Company targets the delivery of in excess of 25 000 tonnes of copper per annum
by the end of CY2023
• On the back of positive results from the preliminary work undertaken at the Troulli
Copper Project in Cyprus, coupled with the fact that Caerus Mineral Resources Plc
(“Caerus”) has successfully increased its prospective rights, which offers the potential
of greater scale to the project, Jubilee has reached an agreement with Caerus to
extend its Option Agreement for a further 18 months, with both parties working
towards a possible joint venture during Q1 CY2022
• Jubilee is planning to upscale its engineering team in Cyprus as it advances its test
programme at the Troulli Project.
PGM Projects
• Jubilee has completed the approximate US$21 million construction and
commissioning of the extensive upgrade capitalisation programme of the Inyoni PGM
Operations. The upgrade programme has significantly enhanced Inyoni’s processing
capability by providing the flexibility to process a wide variety of third party PGM feed
materials making it one of the only large scale PGM plants capable of processing blended
ores
• The capitalisation programme was undertaken over an 11-month period and included
a chrome recovery circuit together with a new feed blending and classification circuit
with a significantly expanded PGM recovery circuit with the capability, based on its
design, to process up to 75 000 tonnes per month of chrome and PGM rich material.
• Inyoni is now uniquely positioned to capitalise on the variety of PGM feed materials
offered to the market
• Jubilee’s PGM operational target for the current financial period remains at 50 000
PGM ounces, despite the interruptions to operations during the construction and
commissioning of the upgrade programme
• Jubilee continues to review the available options to expand its processing footprint
into South Africa’s Eastern Limb of the Bushveld Complex PGM-bearing region
Leon Coetzer, Chief Executive Officer, commented: “Further significant progress has been
made over recent months at both our South African and Zambian operations, as well as
outside the African continent, with the collaboration with Cyprus based Caerus Mineral
Resources.
“Our implementation team at Project Roan has successfully navigated the various challenges
faced due to the impact of the Covid pandemic and its knock-on effect on international
logistics and freight movement and construction activities. The state-of-the-art copper
concentrator which will be able to produce both a copper oxide and a copper sulphide rich
concentrate, and following some reprioritisation of the commissioning schedule, is nearing
completion with staggered commissioning activities set to commence in December 2021,
targeting the first commercial production during March 2022. Owning 100% interest in the
Southern Refining Strategy, which incorporates the Sable Refinery and Project Roan, captures
all of the earnings potential and total flexibility, putting us in a very strong position going into
2022.
“I am particularly pleased at the completion of the capitalisation and commissioning
programme at our PGM operations which has transformed the operation from originally
implemented to only process the historical tailings from the then Hernic Ferrochrome, to now
been able to target the processing of a variety of PGM feed materials. This follows our success
in securing vast quantities of PGM tailing materials through long term offtakes in the Eastern
Limb earlier this year, solidifying our presence in the region. It gives me confidence that we
will secure further long-term feed supplies and operational presence driving our sustained
earnings in South Africa.
“Very telling of ‘the Jubilee Way’ is our reputation outside of the African sub-continent. The
extended Option Agreement with Caerus demonstrates the recognition of Jubilee’s
international brand and the results from the initial project review are encouraging and we are
looking forward to continuing to work with the Caerus team, with the potential to further the
partnership and benefit to Jubilee stakeholders in the future.”
Zambian Copper Projects Update
Having already achieved early earnings, the roll 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 Sable Refinery, which is fully operational, acts as a central processing facility for third
party material in the region in addition to providing refining access to Project Roan for the
refining of the copper concentrates.
As previously announced, during CY2020 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 Lechwe and Project Elephant. Jubilee has a set target to expand its access to
refining capacity, to achieve a targeted 25 000 tonnes of copper units per annum.
Project Roan, which targets an annual production rate of 10 000 tonnes of equivalent copper
units, entered its construction phase during H1 CY2021. The state-of-the-art copper
concentrator, which will be able to produce both a copper oxide and a copper sulphide rich
concentrate, is nearing completion with staggered commissioning activities set to commence
within three weeks targeting the first commercial production during March CY2022.
The project team consistently demonstrated their tenacity to overcome the challenges
brought on as a result of the Covid-19 pandemic, which caused havoc with delivery and
construction schedules of imported equipment, due to international freight disruptions.
The Company is looking forward to commencing with the commissioning of the first of our
targeted three copper concentrators on our path of delivering 25 000 tonnes of copper per
annum.
Global Project Strategy
Jubilee’s approach to the research and development of copper waste and tailings projects is
not limited to any particular region or country and Jubilee’s success to date has created a
recognisable international brand. To this extent, Jubilee announced on 4 May 2021 its
collaboration with Caerus to undertake thorough metallurgical test work in relation to the
processing of copper and gold surface-based waste and tailings materials located in Cyprus.
The results from Jubilee’s initial project review have delivered encouraging results and the
Company has concluded to allocate more resources to the project, including its in-country
presence. In line with the decision, Jubilee has reached an agreement with Caerus to extend
its Option Agreement for a further 18 months to complete, amongst other things, a review of
the Troulli – Kokkinapetra Project in Cyprus, particularly given that Caerus has successfully
increased their prospective rights offering greater scale to the Troulli Project.
PGM Projects Update – South Africa
Jubilee’s PGM operations consist of the Inyoni and Windsor JV PGM operations.
Historically, Jubilee’s Inyoni Operations were largely focussed on the processing of historical
tailings stockpiled at the operations. The financial distress suffered by Hernic Ferrochrome
Pty Limited, that ultimately resulted in the sale of its business in late 2019, highlighted the
risk of the dependency of the PGM operation on such a single source feed stream, to creating
a long-term sustainable operation.
The Company took the decision in Q4 2020 to significantly enhance the Inyoni operation to
form a PGM processing facility that offered the flexibility to process a wide range of PGM
feed and tailings materials under PGM Supply Agreements from a variety of clients. The
Company set out to establish a uniquely positioned processing facility targeting the wider
industry.
The capitalisation programme and commissioning of the new enhanced Inyoni facility has
been completed totalling approximately US$ 21 million and offering a new feed blending and
classification circuit and significantly expanded PGM recovery circuit, with the capability,
based on its design, to process up to 75 000 tonnes per month of chrome and PGM rich
material. The project required intricate planning to commission the upgraded facility within
an operational environment, while ensuring the safety of our people. Despite the disruptions
to the operations during the expansion, the Company continues to target the production of
50 000 PGM ounces for the current financial period setting a solid foundation for achieving
its 55 000 PGM ounces target on a sustainable basis.
As announced earlier this year, Jubilee’s PGM operational footprint has been largely focused
on the Western Limb of the Bushveld Complex, a single area of the two main PGM areas in
South Africa. The Eastern Limb has been a key focus to expand its PGM reach and operational
capacity. A number of the PGM Supply Agreements entered into give access to this area,
offering a platform to Jubilee to pursue further growth opportunities.
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
PR & IR Adviser – Tavistock
Jos Simson/ Gareth Tredway/Charles Vivian
Tel: +44 (0) 207 920 3150
PR & IR Adviser – St Brides Partners
Notes:
Jubilee Metals Group is a diversified metal recovery business with a world-class portfolio of
projects in South Africa and Zambia. We create value for all stakeholders through the
transformation of mining liabilities into profitable assets in a manner that addresses mining's
historical footprint and improves the quality of life for surrounding communities. Our
distinguishing value proposition is our net positive impact on all stakeholders and the
environment.
Our business model focuses on the retreatment and metals recovery from mine tailings,
waste, slag, slurry and other secondary materials generated from mining operations. In effect,
while extracting maximum financial returns, we responsibly rehabilitate environments
scarred by the surface footprint of historical mining operations and solving air and water
pollution issues associated with those installations.
The Company's expanding multi-project portfolio provides exposure to a broad commodity
basket including Platinum Group Metals ('PGMs'), chrome, lead, zinc, vanadium, copper and
cobalt.
Jubilee is listed on the London Stock Exchange's AIM (ticker: JLP) and the Johannesburg Stock
Exchange (ticker: JB).
United Kingdom
17 November 2021
Date: 17-11-2021 09:00:00
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