Leon Coetzer, CEO of Jubilee Metals Group (JLP.L) Podcast

Jubilee, the AIM and Altx traded metals processing company, is pleased to announce its unaudited operational results for the six month period ended 30 June 2020 (“H1 2020”).


Leon Coetzer, Chief Executive Officer, commented: “I am proud to be leading such a committed Jubilee team that has delivered yet another exceptional performance. The growth in our operational earnings of 54% signals the sixth consecutive six-monthly period of double digit growth for the Company.
 

 
Highlights

· Jubilee delivers sixth consecutive six-monthly period of double digit growth with a 54% increase in combined 1 H1 2020 operational earnings to GBP 12.8 million (74% increase to ZAR 266.5 million) from H2 2019

· Earnings growth achieved notwithstanding the loss of the equivalent of approximately 2 months’ of operational time due to restrictions under COVID-19 regulations

· 18% increase in combined 1 H1 2020 revenue to GBP 29.4 million (33% increase to ZAR 615 million) from H2 2019

· Jubilee’s cash position increased to GBP 10.8 million (ZAR 230.5 million)

· Jubilee’s increased cash position was maintained despite settling of the final payment of GBP 1.4 (ZAR 30.6 million) for the acquisition of additional PGM and chrome rights, as well as settling historical debt of GBP 2.5 million (ZAR 53.9 million) while maintaining the capitalisation of the Zambian Sable Refinery

· All operations have returned to 100% capacity while maintaining strict health and safety measures

· Jubilee commenced production of both copper cathode and cobalt concentrate at its Sable Refinery

· Jubilee secures the rights to approximately 150 million tonnes of copper containing surface tailings targeted to be refined at the Sable Refinery

· Jubilee targets to reach 25 000 tonnes of copper per annum within the next 4 years

PGM Operations

· PGM project operational earnings up 54% to GBP 12.5 million (74% increase to ZAR 262 million) from H2 2019

· PGM project revenue up 31% to GBP 21 million (48% increase to ZAR 439 million) from H2 2019

· Jubilee’s operations being at surface enabled the Company to pro-actively implement safety measures to align with the required COVID-19 regulations

· PGM concentrate delivered reached 19 682 ounces (7% lower than that of H2 2019 due to COVID-19 restrictions)

· PGM results are net of 40% of the Windsor PGM results attributable to its joint venture partner

Chrome Operations

· Chrome project earnings up 32% to GBP 0.2 million (up 49% to ZAR 4.7 million) from H2 2019 despite suppressed chrome metal prices during the period

· Chrome project revenue down 5% to GBP 8.4 million (up 7% to ZAR 176 million) from H2 2019

· Chrome concentrate produced up 3% to 191 995 tonnes for H1 2020

· Following the acquisition of PGM surface tailings, Inyoni Operations commenced with the production of chrome in November 2019 with a total of 21 018 tonnes of concentrate produced for H1 2020

· Jubilee commenced with the relocation of its ground breaking fine chrome facility to its much larger Windsor and Inyoni Operations to contribute more significantly to group earnings and overcome the delays in the potential roll-out of the solution caused by extended equipment delivery time lines during the period as a result of COVID-19

Integrated Kabwe Operations

· Commenced production of copper cathode and cobalt concentrate

· Secured the rights to 150 million tonnes copper containing surface tailings in Zambia offering a long term sustainable earnings profile to the Zambian business

· Continues to actively engage with third party suppliers of both copper and zinc ore as part of the expansion of the Integrated Kabwe Project

1- Combined revenue and earnings exclude revenue and earnings attributable to joint venture partners

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

3- 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

Leon Coetzer, Chief Executive Officer, commented: “I am proud to be leading such a committed Jubilee team that has delivered yet another exceptional performance. The growth in our operational earnings of 54% signals the sixth consecutive six-monthly period of double digit growth for the Company.

“During the six month period we have achieved a number of key milestones to both grow our PGM and Chrome production footprint while also replicating the success in these commodities in Zambia with the roll-out of our Copper strategy.

“The Group is demonstrating clear potential to continue to grow earnings over the next reporting period on the back of the commissioning of both of our copper and cobalt refining circuits and the expected ramp-up of our copper production.

“I am particularly pleased with our copper transaction where we secured the rights to approximately 150 million tonnes of copper-containing surface material (“Project Elephant”). This transaction forms a key part of our copper strategy which will target the production of copper concentrates at selected resources to then be further refined to pure metal at our Sable Refinery.

“We have targeted a second copper resource which if successfully concluded holds the potential to be brought into operation well in advance of our Project Elephant. This would secure a sustained copper ramp-up prior to Project Elephant being commissioned. We have set ourselves a target to achieve the production of 25 000 tonnes of copper per annum within the next 4 years.

“Our presence in Zambia over the past year since the acquisition of the Sable Refinery re-asserted our belief that many opportunities exist to expand our business model into all aspects of copper in the country. Zambia contains vast quantities of copper tailings requiring Jubilee’s skills to unlock these opportunities. Jubilee is perfectly poised to play a commanding role in this area.

“The COVID-19 pandemic has brought with it a number of challenges over the last 6 months, however the manner in which Jubilee has been able to react and find solutions is testimony to the ingenuity of the Jubilee team and lies at the heart of ‘The Jubilee Way’.”


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