TIDMJLP
RNS Number : 2828V
Jubilee Metals Group PLC
06 August 2020
Jubilee Metals Group PLC
Registration number (4459850)
Altx share code: JBL
AIM share code: JLP
ISIN: GB0031852162
("Jubilee" or "the Company" or "the Group")
Dissemination of a Regulatory Announcement that contains inside
information according to 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 or regulations of such
jurisdiction.
Further Copper Tailings Resource Secured in Zambia Increasing
Short Term Copper Production and Earnings
Jubilee Metals Group ("Jubilee" or the "Company"), the AIM and
Altx traded metals processing company, is pleased to announce that
in line with its stated strategy to expand operations in Zambia, it
has signed a Joint Venture Agreement with a private Zambian company
(the "JV Agreement") securing the rights to process 2 million
tonnes copper Run-Of-Mine material containing in excess of 2%
copper (the "ROM Material"). Under the JV Agreement, there is a
further potential to increase the supply of copper ore to
approximately 4 million tonnes with an additional 2.5 million
tonnes of copper containing tailings available for processing
(together "the Project" or "Project Roan"). The Project will target
the near-term production of copper concentrate through a dedicated
newly constructed copper concentrating facility (the "Processing
Facility") for which Jubilee has completed the design for the
construction at a targeted Brownfield site adjacent to the tailings
(the "Site"). The Processing Facility will be commissioned in two
phases with the first copper concentrate and revenues expected
within four months.
Highlights
-- Jubilee executes JV Agreement targeting the production of an
additional 10 000 tonnes equivalent copper units per annum
-- The Project targets to commence production of first copper concentrate within four months
-- JV Agreement incorporates 2 million tonnes of in excess of 2%
ROM Material with the potential to increase to 4 million tonnes of
ROM Material as well as surrounding copper tailings material in
excess of 2.5 million tonnes
-- Under the JV Agreement, Jubilee will construct a new
Processing Facility targeting a processing rate of approximately
600 000 tonnes per annum producing copper concentrate for further
refining at its Sable Refinery
-- The total Project capital is estimated at USD 15 million, to
be invested over a period of twelve months, which Jubilee targets
to fund utilising its cash reserves and access to debt funding,
leveraging off its existing balance sheet
-- The additional copper units supplied to Jubilee's Sable
Refinery holds the potential to significantly enhance the earnings
margin, targeting a unit cost of approximately USD 4 000 per tonne
of copper cathode, offering a potential payback of the Project
capital within one year
-- The Processing Facility is strategically located to access
the large potential of third-party copper ore in the area
-- The Project is targeted to deliver copper units well in
advance of Jubilee's previously announced copper transaction in
Zambia ("Project Elephant") and is significant step towards
achieving Jubilee's stated goal of 25 000 tonnes per annum of
copper production
Leon Coetzer, CEO of Jubilee, commented: "This JV Agreement
offers tremendous earnings potential for Jubilee. The Project has
been a key target for Jubilee to drive the ramp-up in our copper
production while we are implementing our previously announced
Project Elephant. This transaction complements the already secured
large copper resource and will provide us with earnings in the near
term. The earnings of this Project is further bolstered when we
commence the processing of the 150 million tonnes of tailings
secured under Project Elephant, allowing us to expand and fill to
capacity, over the long term, our Sable Refinery.
"The combination of easily accessible large surface resources,
together with a fully operational copper refinery, offers us the
potential to replicate, at a larger scale, the success Jubilee is
achieving with its PGM and Chrome operations in South Africa. Our
exceptional in-house processing and metals recovery abilities are
core to this success.
"For Jubilee to have entered into this JV Agreement so soon
after announcing Project Elephant is testament to a period of
intensive work by our team and I would like to thank everyone for
their efforts.
"We have already completed the designs for our Processing
Facility and engaged with key equipment suppliers to accelerate the
implementation of Project Roan. I am confident that we are able to
fund the capital required for the Project from our own strong cash
reserves and our ability to raise project debt.
"Our innovative designs allow us to commence production of the
first copper concentrate within four months while we complete the
remainder of the Processing Facility to ramp-up to full capacity
over the following eight months. The additional copper units this
Project brings to our Sable Refinery ensures we are able to
maintain a strong margin for our copper cathode."
Further Details
The Processing Facility, which will have the ability to process
80 tonnes per hour, will be constructed in two phases targeting for
its first copper concentrate to be delivered to Jubilee's Sable
Refinery within four months of entering into the JV Agreement where
it will be further upgraded to copper cathode. The Processing
Facility has been strategically located with existing good
infrastructure and facilities to attract the significant potential
of further third-party copper material in the area. The copper
material consisting of ROM Material and tailings are targeted to be
upgraded at the Site with the acid soluble copper concentrate being
refined to copper cathode at the Company's Sable Refinery in
Zambia. The increased copper units presented to the Sable Refinery
holds the potential to maintain a strong operational margin
targeting all in copper unit cost in the order of USD 4 000 per
tonne of cathode (all in cost includes the acquisition cost of
copper concentrate by Sable Refinery under the JV Agreement with
the joint venture partner ("JV Partner")).
Project Roan is targeting the production of 10 000 tonnes of
equivalent copper units per annum of copper concentrate for further
refining supporting Jubilee's rapid copper expansion strategy to
increase capacity to in excess of 25 000 tonnes of copper per
annum. Project Roan is a strategic addition to Project Elephant,
which secured the rights to approximately 150 million tonnes of
copper tailings in Zambia. Further information on Project Elephant
and Jubilee's strategy in Zambia can be found in the announcement
of 18 June 2020.
Key Terms of the Agreement
Jubilee has secured the rights to approximately 2 million tonnes
of ROM Material with the potential of increasing the ROM Material
to 4 million tonnes as well as a targeted 2.5 million tonnes of
copper containing tailings ("Tailings") through the JV Agreement.
Under the JV Agreement the parties have agreed to establish a 50/50
joint venture for the purpose of turning the Project to
account.
Jubilee will construct, own and operate the Processing Facility
while its JV Partner will deliver the ROM Material and Tailings at
no cost to the JV. The JV Partner is tasked with producing the
copper concentrates, which will be sold on an arms-length basis
with Jubilee's Sable Refinery holding a first right to such
concentrate. The participation in the earnings received by Jubilee
and the JV Partner is linked to the source of the processed
material while Jubilee retains 100% of all earnings generated
through the refining of the copper concentrate at its Sable
Refinery.
A typical market analysis indicates the targeted copper
concentrate produced by the JV attracts in the order of 38% of
contained copper value prior to being refined to copper cathode at
the Sable Refinery which is sold at London Metal Exchange prices.
Jubilee may also under the JV Agreement secure and process its own
third-party ROM ("Jubilee ROM") for processing at the Processing
Facility.
Jubilee will implement the Project in phases to accelerate the
production of a saleable, intermediate product within four months
prior to completion of the full scope of the Processing
Facility.
United Kingdom
6 August 2020
**ENDS**
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
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END
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