Jubilee Metals: Operations and Projects Update for H2 FY2022
In its Operations and Projects Update for H2 FY2022, Jubilee Metals operational earnings totalled £ 24 million (ZAR 480 million) for the six-month period ending June 2022 (up 24% from the previous six-month period). Revenue from operations totalled £ 76 million (ZAR 1.5 billion) for the six-month period ending June 2022 (up 21% from the previous six-month period).
PGM unit cost of production reduced by 34% driven by increased PGM operational footprint and increased contribution of chrome by-product credits. The group cash and cash equivalents as at 30 June 2022, stood at £ 16 million (FY2021 £ 19.6 million)
SOUTH AFRICAN OPERATIONS
- South African operations maintained a strong safety performance over the six-month period with 162 days worked without any LTI
- Jubilee’s PGM operations delivered 21 140 PGM ounces of which 95% was delivered by the expanded Inyoni operations for the six-month period. This equates to an increase of 32% compared with Inyoni’s previous best performance of 15 152 PGM ounces
- Third party JV ounces decreased 79% as part of the strategy to migrate to Inyoni only production
- Early results from the expanded Inyoni operations exceed expectations with a reduction of 34% in PGM unit cost of operations due to the increased PGM processing capacity and a sharp increase in the contribution from chrome by-product operations
- Net revenue from South African operations over the six-month period increased to £ 67 million (ZAR 1.3 billion) up 21% from the previous six-month period
- Net operational earnings from South Africa for the six-month period reached £ 20 million (ZAR 400 million) maintaining a strong margin of 30% and up 23% from the previous six-month period
ZAMBIAN OPERATIONS
- Zambian operations maintained a strong safety performance achieving 124 days worked without any LTI
- 12 000 tonne per annum Southern Copper Refining Strategy brought into operation with the integration of the newly commissioned Roan copper concentrator with Sable Refinery
- Ramp-up of the Roan concentrator reaches 80% of design capacity at the time of this announcement
- Copper tonnes sold during the six-month period as part of operational trials increased to 1 388 tonnes, up 14% over the previous six-month period
- Net revenue from Zambian operations increased to £ 10 million (ZAR 200 million) for the six-month period, up 16% from the previous six-month period
- Net operational earnings from Zambian operations increased to £ 4.2 million (ZAR 84 million) up 30% from the previous six-month period
PROSPECTS FOR FY2023
South Africa
The new enlarged PGM and chrome operations have set the platform to deliver 44 000 PGM ounces and 1.2million tonnes of chrome concentrate per annum from Jubilee’s own capacity. The PGM production benefits from the increased efficiencies of this new enlarged facility, which is significantly subsidised by the increased chrome production as highlighted by the results for the H2 six-month period. FY2023 offers strong potential for growth in earnings as it benefits from the full exposure of our enlarged South African operations
Jubilee continues to progress discussions to secure a further PGM processing footprint in the Eastern Limb of the Bushveld (north-eastern region of South Africa’s chrome and PGM mining region). Jubilee has already secured significant tailings resources with further expansion opportunities in the area. Jubilee is reviewing the option to either secure a decommissioned PGM facility that will be repurposed by Jubilee, or to construct a new facility in the region.
Zambia
The Southern Copper Refining Strategy targets to produce 3 700 tonnes of copper within the first half of FY2023 ramping up to target 10 000 tonnes of copper for the full FY2023 year. If achieved this equates to a 284% increase in copper output.
In addition, the Company looks to complete the testing and commissioning of the cobalt circuit on the back of the completed ramp up of Project Roan offering the potential of significant earnings contribution.
Jubilee’s technical and projects team can now dedicate their focus on the development and execution of the Northern Copper Refining Strategy.
