Jubilee Metals Group (LON:JLP) Six Monthly Operations Update

Leon Coetzer, Chief Executive Officer, says: I am delighted to present Jubilee’s Six Monthly Operations Update for the H2 2019 period. It has been an exceptional period which included two transformational transactions while we maintained our growth trajectory delivering another step increase in earnings.

Jubilee Metals Group (“Jubilee” or the “Company”), the AIM and Altx traded metals processing company, is pleased to announce its unaudited operational results for the six month period ended 31 December 2019 (“H2 2019”).

Highlights

· 74% increase in combined H2 2019 revenue to GBP 25 million (ZAR 462 million) from H1 2019

· 47% increase in combined H2 2019 operational earnings to GBP 8 million (ZAR 154 million) from H1 2019

· Jubilee completed the acquisition of the Sable Refinery in Zambia and produced first copper metal in November 2019 while commencing with the construction of the zinc refinery circuit

· Inyoni Operations acquired 100% of current PGM* surface tailings estimated at 3.33 million tonnes as well as future PGMs tails, extending the project life and taking full control of all operational aspects and gaining 100% economic rights

· Inyoni Operations secured rights to all chrome contained in estimated 3.33 million tonnes of surface tailings and produced first chrome concentrate for own sales in November 2019

PGM Operations

· PGM revenue up 107% to GBP 16 million (ZAR 298 million)

· PGM operational earnings doubled to GBP 8 million (ZAR 150 million)

· PGM ounces delivered up 82% to 21 082 ounces

· Windsor PGM Operations brought on-line end August 2019 and concluding ramp-up to reach full operational capacity in November 2019

· Windsor PGM Operations almost doubles budgeted capacity to reach processing rate of 100 000 tonnes per month

· Combined PGM processing capacity expanded 3 fold to 170 000 tonnes per month targeting 6 000 PGM ounces per month.

Chrome Operations

· Windsor Chrome Operations successfully replaced the last remaining legacy tolling agreements with 3rd party ore supply agreements resulting in Chrome revenue growth of 35% to GBP 9 million (ZAR 164 million) from H1 2019 despite a 30% drop in the Chrome metal prices

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· The Chrome Operations maintained positive earnings and are perfectly positioned to capitalize on a rebound in the chrome markets

· Chrome concentrate produced up 13% to 186 249 tonnes for H2 2019

· Following the acquisition of PGM surface tailings, Inyoni Operations commenced with the production of chrome during November 2019

Integrated Multi Metal Kabwe Operations

· Jubilee completed the commissioning of the copper circuits during November 2019 producing 110 tonnes of export copper plate by end December 2019

· Currently the copper feed is primarily from historical tailings with the processing of 3rd party copper material expected to commence during Q1 2020

· The commissioning of the cobalt circuit to recover cobalt contained in copper material is targeted for early Q2 2020

· The Integrated Kabwe project is progressing well targeting the commissioning of the first zinc production line during Q2 2020

· Jubilee is actively engaging with 3rd party suppliers of both copper and zinc ore to develop strategic partnerships as part of the expansion of the Integrated Kabwe Operations

* PGM – 6 Element Platinum Group Metals including platinum, palladium, rhodium, ruthenium, osmium and gold

Leon Coetzer, Chief Executive Officer, says: “I am delighted to present Jubilee’s Six Monthly Operations Update for the H2 2019 period. It has been an exceptional period which included two transformational transactions while we maintained our growth trajectory delivering another step increase in earnings.

“The benefit of our multi-metal strategy has been clearly demonstrated over the period supported by our leading in-house technical and operational excellence. Our PGM operations delivered record earnings on the back of increased production and metal prices while our chrome operations showed their resolve maintaining positive earnings against much softer chrome prices delivering increased output and higher efficiencies.

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“In August 2019 the Company completed the acquisition of the Sable Refinery in Zambia. The acquisition further enhanced the Company’s operational earnings capability, expanding Jubilee’s operations to other geographical areas and metals. Since the acquisition the team has commenced with the construction of the zinc refinery circuit and have brought the copper refinery circuit into operation producing its first high grade copper metal in November 2019.

“In October and November 2019 the transactions at our Inyoni Operations which involved the acquisition of all rights to an approximate 3.33 million tonnes of historical surface material and the obtainment of full control of the feed rate at the facility, transformed Inyoni into an owner operated facility with the acquisition of all rights to the historical surface material and taking full control of the feed rate at the facility. The Inyoni team delivered an exceptional performance, completing the recapitalisation of the feed systems over the December period to allow the operation to ramp-up the feed targeting 50 000 tonnes per month.

“The oversubscribed placing of £6.49 million in the period, proceeds of which were used to assist with the acquisitions, as well as general expansion plans, demonstrates the continued support we are receiving from our investors for which we are thankful.

“We are consistently delivering on our strategy of diversifying earnings across multiple commodities and jurisdictions and I look forward to updating shareholders as we head into a new year and continue to advance our rapid growth strategy.”

Full update link www.share-talk.co.uk


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