TIDMJLP
RNS Number : 9915W
Jubilee Metals Group PLC
29 April 2021
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN.
Jubilee Metals Group PLC
("Jubilee" or "the Company" or "the Group")
Zambian Operations Update
Project Roan delivers first copper material to the Sable
Refinery
Offtake Agreement concluded
Jubilee, the AIM and Altx traded metals processing company is
pleased to announce an update on progress at its copper operations
in Zambia, specifically the first copper concentrate for refining
at Jubilee's Sable Refinery from Project Roan which has been
delivered on schedule.
Highlights:
-- Project Roan commences with the production of intermediate
copper concentrate for refining at Jubilee's Sable Refinery
-- Project Roan completes Phase 1 of 3 Phases to allow early
production of intermediate copper concentrate while construction of
Phases 2 and 3 remain on target
-- Sable Refinery is fully operational and ready to refine
product received from Project Roan - targeting an additional 240
tonnes of copper units and stepping up to 400 tonnes of copper
units per month at completion of Phase 2
-- Phase 2 of Project Roan targets to commence commissioning
during early Q3 2021 to produce a higher-grade intermediate copper
concentrate to further increase the production of copper units
prior to the completion of Phase 3 expected during Q1 2022.
-- In addition, the Sable Refinery has concluded a long-term
offtake agreement for third party Run-Of-Mine ("ROM") copper
containing material targeting to ramp-up to an additional 150
tonnes of copper units per month by June 2021
-- Copper prices continue to be buoyant trading at just under
$10 000 per tonne at the time of writing and with current operating
margins, early earnings from copper and cobalt production are set
to increase
-- Completion of the design work for Project Elephant
progressing and remains on track to enter the execution phase for
the project by August 2021
Leon Coetzer, CEO of Jubilee, commented: "The successful
delivery on time of copper concentrate from Project Roan to the
fully operational Sable Refinery is 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, and taking a leading
role in the processing of surface tailings in Zambia.
" Project Roan is the first of three copper processing
facilities that we target to implement to achieve this goal.
Completion of Phase 1 on schedule demonstrates our team's ability
to deliver on our goals in a new jurisdiction. It provides me with
great confidence that we will see significant success as our copper
strategy is further implemented.
"Alongside the continued performance of our South African PGM
operations, the targeted significant ramp up of our copper
operation in Zambia is expected to further improve on Jubilee's
recently published record interim results for the six-month period
to 31 December 2020, generating long term, quality earnings.
"Looking ahead to next steps, I am confident of the completion
of Phase 2 of Project Roan on time during Q3 2021, which will
further increase the copper concentrate being delivered to the
Sable Refinery. With Project Elephant progressing simultaneously
and on track to enter the execution phase of the project by August
this year, I look forward with confidence to update shareholders as
we progress."
Project Roan Update
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.
The first of the processing facilities has 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 has been achieved
on schedule and delivery of the first copper units to the Sable
Refinery has taken place. Phase 1 targets the delivery of an
additional 240 tonnes of copper units per month which will result
in the first significant increase in production at the Sable
Refinery. Phase 2 which is expected to be completed during Q3
targets a further increase in production to 400 tonnes of copper
units per month. The Sable Refinery is fully operational and ready
to commence refining of Project Roan's material and the delivery of
this initial intermediate copper concentrate will significantly and
rapidly add to the already achieved early earnings of GBP 1.8
million (ZAR 39 million) from production during the first
phase.
Looking forward, 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.
The continuing rebound in the copper price is seeing it at a
near 10-year high at the time of writing with analysts predicting
further significant growth over the next 12-24 months driven by
several long-term trends. An increased environmental agenda
globally and electrification are at the centre of this with the
proliferation of electric vehicles, the increased use of renewable
energy sources, energy efficiency and increased consumption of
electronics.
Long-term Offtake Agreement
In addition to Project Roan's Phase 1 commissioning, Jubilee has
entered into a long-term offtake agreement and the Sable Refinery
is expecting to start receiving third party copper containing ROM
material. Under the terms of this agreement the third-party ROM
material will be ramped up to reach 150 tonnes per month of
delivered copper units by June 2021.
Project Elephant Update
The completion of the design work for the Company's second
copper processing facility, Project Elephant, whereby Jubilee has
secured the rights to approximately 150 million tonnes of copper
containing surface tailings, is progressing well and remains on
track to enter the execution phase for the project by August 2021.
Project Elephant targets to reach the production of 12 000 copper
units per annum in addition to Project Roan by the end of 2022.
United Kingdom
29 April 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
PR & IR Adviser - St Brides Partners Limited
Catherine Leftley/Charlotte Hollinshead
Tel +44 (0) 20 7236 1177
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