Jubilee Metals Group Plc
Registration number (4459850)
AIM
share code: JLP
Altx share code: JBL
ISIN: GB0031852162
('Jubilee' or 'Company' or 'Group')
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Announcement that contains inside information according to UK
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Zambia Projects
update
High grade copper resource
acquisition supported by equity
Jubilee, a diversified metals
producer with operations in South Africa and
Zambia, announces progress on restarting its Roan operations following
stable power delivery, as well as the processing of new
higher-grade copper feed material, in order to accelerate the
production of copper.
As announced on 20 January 2025,
Jubilee has implemented a new power agreement after the national
power outages had a material impact on the Company's copper
production for the months of December 2024 and January
2025.
In support of the Company's
accelerated copper production strategy Jubilee has prioritised the
processing of new higher-grade copper feed material while reviewing
the option to trade, where appropriate, a portion of the vast
quantity of surplus lower grade stocks it currently holds and that
do not form part of the Company's short to medium term production
plans.
The Roan operations offer the unique
ability to process simultaneously both high-grade mined material as
well as previously processed tailings materials. This affords
Jubilee the ability to significantly enhance its copper production
at increased operating margins and recoup some of the lost
production time.
In support of this strategy Jubilee
has agreed to invest into securing rights to an initial
200 000 tonnes of copper material with an expected copper
content of approximately 1.6% copper, which is available
immediately for processing at Roan, which is equivalent to more
than double the waste material currently being processed. Jubilee
holds the option to increase the initial 200 000 allocation of
copper material with the potential to secure a long-term feed
supply of this high grade material.
Highlights:
·
Jubilee implements strategy to accelerate copper
production on the back of stable power and secured new high grade
copper material at an expected feed grade of approximately 1.6%
copper. The present copper content of processed material is c.
0.7%.
·
Roan holds the capacity to process up to 45 000
tonnes per month if all capacity is dedicated to the new high grade
copper material, following the successful ramp-up of operations
during November 2024. Initially 30 000 tonnes per month of
Roan's capacity will be allocate to this high grade
material.
·
Roan will commence processing of the new high
grade material within the next week.
·
The Company is evaluating the potential to operate
Roan on this higher grade material at full production of 45 000
tonnes per month for an extended period exceeding 3
years.
·
Under the terms of the agreements the copper
material is settled through a part payment by Jubilee's Zambian
operations and a payment of US$2.70 million (£2.17 million) to be
settled through the issuance of 51 774 429 new Jubilee
ordinary shares (Shares) at a price of 4.20 pence per share,
subject to lock in provisions of up to 180 days.
·
In addition, Jubilee is concluding final details
of the due diligence on the Large Waste Project with expected
conclusion of the transaction as per the terms of the agreement
during March 2025.
Statement from Leon Coetzer, Jubilee CEO:
"Our years of investment to transform the Roan concentrator to
a position that allows it to uniquely process both run-of-mine and
waste copper material simultaneously, is once again vindicated by
the ability to opportunistically secure high grade adjacent
resources. These high grade resources have already been tested
within our facility confirming its quality and metallurgical
performance.
While the downtime experienced due to the power outages at
Roan had a material negative impact on our production over the past
couple of months, the Jubilee team has
demonstrated their ability to immediately react to the challenges
faced. We have secured a stable power supply which has allowed us
to bring Roan back into operation and have secured
higher grade
material which provides an immediate
opportunity to recoup part of the lost production and enhance cash
flows within a short period of time.
The investment support from Jubilee to its Zambian operations
ensures that we capture this opportunity and increase our copper
production as we accelerate our Zambia operations' recovery from
the operational interruptions.
Our Zambian copper strategy remains robust on the back of a
vast resource base of copper material already at surface together
with two operating Open-Pit mining operations and a fully
operational processing and refining footprint. We are reviewing
several opportunities to liquidate for value certain of the
non-core lower grade assets.
Copper guidance will be reviewed following a four to six week
operational run on the new material."
Admission and total voting rights
The Shares are expected to be
admitted to trading on AIM and listed on the Altx of the JSE
Limited on or around 12 February 2025 (Admission) and will rank
pari passu with the
ordinary shares of the Company in issue.
The Company's total issued capital,
after the issue of the Shares, will be 3 065 640 251
ordinary shares. As the Company does not hold any shares in
treasury, this figure may be used by shareholders in the Company as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to
their interest in, the share capital of the Company following
Admission.
06 February 2025
For further information visit
www.jubileemetalsgroup.com,
follow Jubilee on Twitter (@Jubilee_Metals) or contact:
Jubilee Metals Group PLC
Leon Coetzer (CEO) / Jonathan
Morley-Kirk (FD)
Tel: +27 (0) 11 465 1913 /
Tel: +44 (0) 7797 775546
Nominated Adviser - SPARK Advisory Partners
Limited
Andrew Emmott/James
Keeshan
Tel: +44 (0) 20 3368
3555
PR
& IR Adviser - Tavistock
Jos Simson/ Gareth
Tredway
Tel: +44 (0) 207 920
3150
Joint Broker - RBC Capital Markets
Farid Dadashev/Jamil Miah
Tel +44 (0) 20 7653 4000
Joint Broker - Zeus Capital
Harry Ansell/Katy
Mitchell
Tel: +44 (0) 20 7220 1670/+44 (0)
113 394 6618
JSE
Sponsor - Questco Corporate Advisory Proprietary
Limited
Alison McLaren
Tel: +27 63 482 3802
About Jubilee Metals Group
Plc
Jubilee is a low-cost, diversified
producer, specialising in the recovery and processing of metals
from previously overlooked resources, such as unprocessed
historical waste rock, run-of-mine materials and tailings in Zambia
and South Africa. The Company's low-capex, modular processing
facilities are deployed close to these various types of material,
producing high grade concentrates for sale or further refining to
finished metal at the Company's downstream facilities. Production
currently consists of copper, chrome, and platinum group metals
(PGMs). The modular processing facilities offer a platform for
growth and the rapid expansion of Jubilee's operational footprint
in Zambia and South Africa. Jubilee's success is derived from
operational and technical excellence, an experienced management
team and a pioneering Technical Development Centre.
