Jubilee Metals posts good growth after year of investment

Africa-focussed metals processor Jubilee Metals reported combined attributable operational earnings in its first half of £40.1m on Friday, up 36% from the second half of 2020, resulting in a 178% year-on-year increase in combined attributable operational earnings to £69.6m for the 12 months ended 30 June.

The AIM-traded firm said combined revenue achieved in the first half totalled £75.6m, up 46% from the second half of 2020, resulting in a 133% year-on-year increase in revenue to £127.6m for the year through June.

It said that revenue and earnings growth was achieved during a period of “substantial” infrastructure investment, integration and planned operational downtime, providing a “tremendous platform” for further future growth.

Jubilee achieved its stated target of 50,162 platinum group metals (PGM) ounces for the year ended 30 June, up 23% year-on-year, achieved during a period which included the construction and commissioning of two new chrome beneficiation facilities and the start of the construction of the expanded Inyoni PGM operations, which are expected to be completed during the third quarter of 2021.

Chrome concentrate produced from chrome operations increased to 751,223 tonnes for the 12 month period, up 99% over the prior year, on the back of increased operational capacities.

That, the company said, was set to increase further with the commissioning of the new chrome beneficiation circuit completed during the second quarter.

Maiden earnings were reported from copper production in Zambia, reaching 2,026 tonnes as part of the firm’s securing of operational readiness to accept the first copper concentrate production from Project Roan.

Project Roan's integrated copper concentrator was on track for commissioning by January.

Jubilee also said its Sable refinery achieved positive earnings as part of its operational readiness activities, with attributable operational earnings of £3.7m for the year ended 30 June, compared with £1.2m a year earlier.

“The Jubilee team has yet again delivered another exceptional performance, where we have achieved growth in each of our core business units; PGMs and chrome and also generating maiden earnings from our new Zambian copper portfolio,” said chief executive officer Leon Coetzer.

“As we have previously reported, we have undertaken an intensive construction and commissioning phase, in particular at our PGM and chrome operations in South Africa, where a number of projects have been initiated.

“We have seen the commissioning of two new chrome beneficiation facilities, as well as commencing with the construction of the expanded PGM Inyoni operations.”

Coetzer said that while all of that work had put “significant pressure” on day-to-day operations, he was “thrilled” to still be reporting further production and earnings progress.

“Crucially, the investment, time and effort spent in building and integrating these facilities has set a platform for tremendous potential growth opportunities.

“We have seen further growth in South Africa during the period under review, with a number of new long term PGM supply agreements, each of significant strategic value given their locations in the Eastern Limb of the mineral rich Bushveld complex.

“As well as demonstrating our ability to win and form partnerships with key chrome mining clients, these new supply agreements provide us with the opportunity to replicate the success of our Inyoni operation in the Western Limb region - which is of significant value to us in supplying a continued sustained chrome and PGM feed.”

Achieving the company’s first delivery of partially-upgraded copper concentrate from Project Roan to the fully-operational Sable Refinery on time was described by Leon Coetzer as the “first major step” in the firm’s commitment to achieve its targeted production of 25,000 tonnes of copper per annum within four years.

“Commissioning of the integrated copper concentrator is scheduled to commence in the first quarter of 2022, while our second copper project, located in the Luanshya area, has completed the development programme and is concluding the detail design phase to commence shortly with the implementation programme.

“I look forward to keeping shareholders updated on further progress in Zambia with what holds the potential to contribute to generating long term, quality earnings.

“With the support of our long-term stakeholders, along with some very welcome blue-chip institutional investors to the share register during the period, our maturing company continues on a very exciting growth trajectory, both operationally and financially, as our strategy continues to be implemented.”

At 1125 BST, shares in Jubilee Metals Group were up 5.29% at 17.9p.