JUBILEE METALS GROUP PLC - Six Month Operations Update H2 2020

            
JBL
Six Month Operations Update H2 2020

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
H2 2020
Further Record Growth Achieved


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REGULATION (EU) No 596/2014 (MAR). Not for release, publication or distribution in whole or in
part in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws
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Jubilee, the AIM and Altx traded metals processing company, is pleased to announce its unaudited
operational results for the six month period ended 31 December 2020 (H2 2020).

Highlights

         Jubilees PGM(3) and Chrome operational earnings(1) for H2 2020 increased by a record 123%
          to GBP 28.4 million (126% increase to ZAR 603.3 million(2) from H1 2020
         Jubilees attributable PGM and Chrome revenue(1) for H2 2020 increased by 64% to GBP 48.2
          million (66% increase to ZAR 1 billion) from H1 2020
         Jubilees 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
          attributable operational earnings of GBP 1.8 million (ZAR 39 million)
         Both the chrome and PGM operations deliver record operational performance
         The implementation of Jubilees copper strategy to achieve 25 000 tonnes of copper units per
          annum gains momentum with the commencement of the construction of Project Roans
          copper concentrator with phase 1 expected to come on line during Q1
         Jubilee secures in excess of 288 million tonnes of copper tailings with the further addition of
          an approximate 18 million tonnes of tailings in December 2020
         During the period H2 2020 Jubilee successfully completed the addition of its new 35 000
          tonne per month Windsor 8 chrome operation where production commenced in October
          2020 and commenced the construction of the new 80 000 tonne per month chrome operation
          adjacent to its Inyoni PGM operation
         Jubilee approved the further expansion of its PGM Inyoni operation which will commence in
          February 2021 and is targeted for completion in April 2021


    (1)   Combined revenue and earnings exclude revenue and earnings attributable to joint venture partners
    (2)   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
    (3)   PGM - 6 Element Platinum Group Metals including platinum, palladium, rhodium, ruthenium, osmium and gold
PGM Operations

         PGM project operational earnings(4) up 119% to GBP 27.4 million (122% increase to ZAR 581
          million) from H1 2020
         PGM attributable project revenue(4) up 74% to GBP 36.6 million (77% increase to ZAR 776
          million) from H1 2020
         PGM concentrate(4) delivered reached 28 187 PGM ounces up 49% from H1 2020
         Increased PGM production, including record production at Inyoni during December, achieved
          despite planned December operational stoppage by the operations JV PGM partner


    (4)   All numbers reflect only production attributable to Jubilee and excludes that portion of production attributable to its JV partner



Chrome Operations

         Chrome project earnings increase sharply to GBP 1 million (ZAR 22 million) from H1 2020
         Chrome project revenue up 37% to GBP 11.6 million (39% to ZAR 244.4 million) from H1 2020
         Chrome concentrate produced up 67% to 319 834 tonnes for H2 2020
         The increase in chrome earnings are supported by the implementation of the new fixed
          margin chrome processing contracts
         New Windsor 8 operations commenced production in October 2020
         Jubilee has commenced with the construction of a new 80 000 tonne per month chrome
          operation adjacent to its Inyoni PGM operation


Copper Operations

         Jubilees 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
          attributable operational earnings of GBP 1.8 million (ZAR 39 million)
         Jubilees copper strategy gains momentum with the commencement of the construction of
          the new copper concentrator as part of its Project Roan
         Jubilees Sable Refinery has completed the ore processing facility and is fully operational
          ready to accept the increased feed from Project Roan
         Project Roan will be commissioned over three phases with the first phase targeted to
          commence delivery of first copper units to Sable Refinery by end February 2021



Leon Coetzer, Chief Executive Officer, commented: Jubilee has delivered an exceptional operational
performance during a time that has seen tremendous challenges overshadowed by the onslaught of
the COVID-19 pandemic.

The past six months has seen both Jubilees PGM and chrome operations maturing as well as its
copper strategy gaining significant momentum with the commencement of the construction of the
first of a targeted three, copper concentrators in Zambia in line with our goal to take a leading role in
the processing of surface tailings in the country.
The Jubilee team has demonstrated its resilience and innovation during this time with the significant
progress made with the roll-out of our copper strategy while growing our PGM and chrome business
by delivering an exceptional operational performance.

During the period key milestones were achieved with the transformation of our chrome operations to
secure a more sustainable earnings margin while significantly growing the business; achieving record
PGM operational results and driving forward the implementation of our copper and cobalt strategy in
Zambia.

The expected significant ramp-up of our copper production in Zambia has the clear potential to
continue to grow Jubilees earnings on the back of the commissioning of both of our copper and cobalt
refining circuits and the expected ramp-up of our copper production, particularly with the recent
rebound, and market expectations, of strong copper prices.

As previously stated we have set ourselves a target to achieve the production of 25 000 tonnes of
copper per annum within the next 4 years after securing nearly 300 million tonnes of copper and cobalt
tailings. Our Project Roan is the first of three copper concentrators that we target to implement to
achieve this goal. Jubilee is perfectly poised to play a commanding role in the processing of copper as
we also look to further implement our strategy more widely.



Combined Operational and Financial update

Jubilees operational growth during H2 2020 exceeded expectations despite the challenges of the
COVID-19 pandemic. During H2 2020, the Company outperformed the strong growth trajectory in H1
2020, delivering a 123% increase in its PGM and chrome earnings for the period from H1 2020.

Beyond growth in revenue and earnings in its PGM and chrome operations, Jubilee has continued to
strengthen its asset base with the addition of its copper and cobalt resources in Zambia, which is in
line with the Companys strategy to target other geographical areas and metals.

The role-out of Jubilees copper and cobalt strategy offers the potential of significant continued
earnings growth in addition to the achievements of its PGM and chrome operations. To date, Jubilee
has secured in excess of 288 million tonnes of copper and cobalt containing tailings located around
three main areas in Zambia. Jubilee targets to implement a processing facility at each of these
locations with Project Roan being the first to commence with construction. The combined production
potential of the three targeted facilities is well in excess of Jubilees Sable Refinery capacity of 14 000
tonnes of copper cathode per annum. It is Jubilees objective to expand its overall capacity to 25 000
tonnes of copper per annum over the next 4 years.


The table below presents the combined operational revenue and earnings performance for H2 2020:
                                                          Jubilee             Jubilee
 COMBINED             Project
                                   Project revenue     attributable       attributable
 PGM AND             revenue1                  1                  1
                                     (ZAR'000)          earnings             earnings
 CHROME             (GBP'000)
                                                        (GBP'000)           (ZAR'000)
 H1 2019                14.361             263.873              5.6412               103.713
 H2 2019                24.966             461.669               8.299               153.501
 H1 2020                29.441             615.028              12.760               266.554
 H2 2020                     48.158                1 020.467                   28.418                    603.343
    1-   Combined revenue and earnings exclude revenue and earnings attributable to joint venture partners



Chrome Operations update  South Africa

Jubilees chrome operations include DCM Chrome, Windsor Chrome and Inyoni Chrome following the
acquisition by Inyoni of the chrome rights in November 2019. Chrome earnings increased sharply to
GBP1 million (ZAR 22 million) and chrome revenue increased by 37% to GBP 11.6 million (39% to ZAR
244.4 million) from H1 2020. This sharp increase was mainly driven by efficiency improvements and
adjusting third party ore supply agreements to better reflect the fluctuations in the chrome price and
was achieved despite chrome prices being down 18% in aggregate the period.

The table below presents the combined operational revenue and earnings performance for chrome
for H2 2020:
                    Chromite                                    Jubilee        Jubilee
                                     Project        Project
                  concentrate                                attributable attributable
 CHROME                             revenue        revenue
                    produced                                   earnings       earnings
                                   (GBP'000)      (ZAR'000)
                     Tonnes                                   (GBP000)      (ZAR000)
 H1 2019                   164 936                 6.599             121.188              1.576                28.907

 H2 2019                   186 249                 8.881             164.138                169                3.134

 H1 2020                   191 995                 8.422             175.938                223                4.660

 H2 2020                   319 834                11.565             244.435              1.005                21.985


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.

Platinum Group Metals (PGM) Operations update  South Africa

Jubilees PGM operations consist of the Inyoni and Windsor JV PGM operations. PGM project revenue
is up 74% to GBP 36.6 million (ZAR 776 million) from H1 2020. PGM project operational earnings is up
119% to GBP 27.4 million (122% to ZAR 581 million) from H1 2020. Jubilees Inyoni operations
continued to operate through-out the December period with only the Windsor JV operations shutting,
as planned, for part of the December period. Jubilees Inyoni operations continue to achieve
exceptional efficiencies achieving an all-time record production in excess of 3 000 PGM ounces for the
month of December.

The table below presents the combined operational revenue and earnings performance for PGMs for
H2 2020:

                 Tailings             PGM             Project            Project
                processed            ounces          revenue            revenue           Jubilee               Jubilee      Unit
 PGM
                 tonnes             delivered       (GBP'000)          (ZAR'000)       attributable          attributable   cost /
                                                                       earnings        earnings      PGM oz
                                                                      (GBP'000)       (ZAR'000)       (USD)


 H1 2019        237 035        11 559        7.762       142.686         4.065          74.806         412

 H2 2019       553 672         21 082       16.085       297.530         8.129         150.368         544

 H1 2020       481 353         19 682       21.019       439.091        12.537         261.894         537

 H2 2020       595 664         28 187       36.593       776.032        27.413         581.358         524


The PGM basket price remained buoyant during the period, being 22% higher in aggregate, with
demand continuing to outweigh supply and the PGM basket price is expected to remain well
supported.

Integrated Kabwe Operations, Zambia  copper, cobalt, zinc, lead and vanadium update

The Companys Kabwe Project combined with its multi-metal Sable Refinery establishes Jubilees 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.
The acquisition of the Kabwe Project served as an entry point for Jubilee into Zambia presenting the
Company with a very well placed platform from which to pursue the various base metal opportunities
presented by the country and to begin actively engaging with third party suppliers to develop strategic
partnerships as part of the expansion of the Integrated Kabwe Operations.

During 2020, Jubilee entered into joint venture agreements to secure rights to process approximately
288 million tonnes of copper and cobalt containing tailings, with the various mining rights holders.
The copper and cobalt tailings are located in three central locations dubbed Project Roan, Project
Elephant and Project Elephant 2. Jubilee targets to construct a processing facility at each of the three
locations. The extent of the processing facilities are determined by the refining capacity at its Sable
Refinery currently limited to 14 000 tonnes per annum. Jubilee has set a target to expand its access
to refining capacity to achieve 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 Jubilees Sable Refinery. Phase
1 is expected to commence delivery of the first copper units to Sable Refinery by end February 2021
which results in the first significant increase in production at the Sable Refinery targeting to achieve
400 tonnes per month. Sable Refinery is fully operational and ready to commence refining of Project
Roans material and has already achieved earnings of GBP 1. 8 million (ZAR 39 million) from production
during this phase.

Copper prices have been volatile in recent years, but the price recovered strongly in 2020 touching on
a 5 year high and market forecasts suggest that it will remain strong. At current prices and current
operating margins maintained at the Sable Refinery for the production of copper cathode and cobalt
concentrate, combined with the performance of Jubilee's large scale piloting test programme on
copper tailings, the project holds the potential to more than double Jubilee's current earnings profile.
Copper Strategy
Having demonstrated Jubilees ability to deliver significant returns in Zambia, this momentum is
expected to be maintained going forward as we look to focus our efforts on implementing the copper
strategy on a global scale, using strong cash flows from our operating activities.


The recent rebound in the copper price saw it reach a seven year high at the beginning of December
2020, 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.


Jubilee has positioned itself to ensure that it is well placed to take advantage of this growing market.
The success in Zambia to date is a clear demonstration of the teams technical know-how and IP when
it comes to processing copper tailings and the Company will continue to assess opportunities to
implement the copper strategy on a global scale, replicating this success in new jurisdictions.

COVID 19 update

The COVID-19 crisis continues across the world and we continue to enforce very strict safety measure
at all of our operations towards safe guarding our employees. Whilst these measures have been
effective to date we continue to monitor the situation and act where appropriately taking advice from
both the industry bodies and the authorities. The recently update regulations as announced by the
South African President affecting the closure of the South African borders has not had a direct
impacted on our operations as yet but we continue to monitor the situation.


14 January 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 - St Brides Partners Limited
Catherine Leftley/Beth Melluish
Tel +44 (0) 20 7236 1177

Date: 14-01-2021 02:00:00
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