Jubilee Metals Group PLC, (AIM: JLP), saw a 24% increase in operating earnings in the first half due to the completion of a key investment program in South Africa.
Jubilee’s key achievement during the period was the completion and early results achieved of its c. £ 58 million (ZAR1.2 billion) investment programme in South Africa and Zambia that has reshaped the company, provided expanded production across PGMs, Chrome, Copper and Cobalt, and laid the platform for the expected growth during the full FY 2023 period.
The production of PGM by Jubilee rose to 21,140 ounces, an increase of 5% over the previous year. However, it had to carry out planned operational interruptions in order to finish a new Inyoni processing plant. The new Inyoni operations produced 95% of Jubilee’s PGM output, up from 75% in 2020.
The new Inyoni operations are showing positive results, according to the company. There has been a 34% decrease in PGM unit prices compared to the six months ending December 2021, which helped offset the effects of lower PGM prices.
Jubilee’s operational earnings grew to £24mln, while revenue from operations increased 21% to £76mln.
Leon Coetzer, chief executive of Inyoni, stated that the past six months and particularly the quarter have seen a sharp rise in PGM production and lower cost. The majority of Inyoni’s PGM production came from this quarter.
“This performance supports our target to reach 44,000 PGM ounces annually from our own facilities, as more of the production benefits from our renowned efficiency.”
Copper production in Zambia rose 14% to 1,388 tonnes, an increase of 14% over the previous year.
Jubilee’s 12,000-tonne per annum Southern Copper Refining Strategy was also made operational with the integration and commissioning of the Roan copper concentrator. Project Roan achieved 80% of its design capacity in the first week of August.
Coetzer stated that this puts us on track for achieving our target of 3,700 tonnes of copper in the six-month period ending December 20,22. “We expect to see an increase in production rates which will further lower our unit costs.
“With project Roan’s delivery, we are now on track to produce 10,000 tonnes of copper over the twelve-month period ending June 2023. While we unlock the cobalt potential.
“I am extremely excited about what the FY 2023 period has in store. It has tremendous potential for growth as it builds on the FY2022 foundation. This includes the full exposure of our expanded South African operations, as well as our new 12,000-ton per annum Southern Copper Refining operations, and the realisation of our cobalt production.
