06 Aug - 15 min read

Six Month Operations Update H1 2021

Six Month Operations Update H1 2021

Jubilee Metals Group PLC
("Jubilee" or the “Company")
Registration number (4459850)
AltX share code: JBL
AIM share code: JLP
ISIN: GB0031852162



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 earning* 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** 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***)
    •    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****
    •    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

    *   Attributable earnings represent Jubilee’s net share of operational earnings after distributions to JV partners and before
        development costs
    **  PGM  6 Element Platinum Group Metals including platinum, palladium, rhodium, ruthenium, osmium and gold
    *** Period 1 July 2021 to 30 September 2021
   **** 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:

                                                                                                        Jubilee               Jubilee
                            Project             Project            Project           Project
 COMBINED                                                                                            attributable          attributable
                           revenue             revenue            earnings          earnings
                                                                                                     earnings**              earnings
                          (GBP'000)          (ZAR'000)*          (GBP'000)         (ZAR'000)
                                                                                                      (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
 FY 2021                   127 572            2 627 961            71 557         1 482 496             69 618              1 441 979

*  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

** 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.

Chrome 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:

                                                                                       Project and          Project and
                         Chromite
                                                  Project              Project            Jubilee              Jubilee
                        concentrate
 CHROME                                          revenue              revenue          attributable         attributable
                         produced
                                                (GBP'000)            (ZAR'000)1          earnings             earnings
                          Tonnes
                                                                                        (GBP’000)            (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:

                                                                                                      Jubilee             Jubilee
               PGM             Project            Project         Project           Project                                                  Unit cost
                                                                                                   attributable        attributable
PGM           ounces          revenue            revenue         earnings          earnings                                                  / PGM oz
                                                                                                   earnings**            earnings
             delivered       (GBP'000)         (ZAR'000)*       (GBP'000)         (ZAR'000)                                                    (US$)
                                                                                                    (GBP'000)           (ZAR'000)

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
FY 2021        50 162          83 748          1 732 900          63 684          1 319 439           62 847             1 301 785             537
  
*  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

** 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

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

Date: 06-08-2021 08:00:00
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