Jubilee Metals upbeat on first-quarter progress

Jubilee Metals Group reported several operational milestones in its first-quarter update on Wednesday, with platinum group metals (PGM) production up, although chrome concentrate output slipped.

The AIM-traded company said chrome concentrate production reached 336,683 tonnes, slightly down from the prior quarter’s 344,315 tonnes.

That was, however, expected to improve with the addition of the Thutse processing module, which became operational in August.

It said Inyoni’s PGM production increased to 10,113 ounces, compared to 9,350 ounces in the previous quarter, with no third-party production during the period.

The PGM production rate was also expected to benefit from the Thutse processing module’s increased feed rate.

Copper cathode and copper-in-concentrate production amounted to 934 tonnes, up from 653 tonnes in the prior quarter.

However, Project Roan’s upgrade, initiated in September, had temporarily halted processing until December due to a feed classification circuit stoppage.

Jubilee reported an improved lost time frequency injury rate (LTFIR) for its South African operations, with a rate of 1.44, compared to 1.5 in the previous quarter.

In Zambia, the LTFIR improved to 2.36, down from 2.37 in the prior quarter.

The company reported an average chrome revenue per tonne of $85, compared to $86 in the prior quarter, while its average chrome cost per tonne remained flat at $75.

PGM revenue per ounce increased to $1,031 from $976, while the average PGM cash cost per ounce, excluding chrome credits, stood at $875, compared to $855 in the previous quarter.

For copper, the average revenue per tonne was $6,588, down from $6,860, while the average cost per tonne marginally increased to $4,907 from $4,802.

Regarding projects, Jubilee said it was expanding its chrome processing capacity in South Africa, adding 450,000 tonnes per annum feed process capacity by constructing an additional chrome process module.

That expansion was designed to increase the company’s chrome processing footprint to nine modules, with a total capacity of 1.7 million tonnes per annum, pending capital allocation evaluation and funding arrangements.

In Zambia, Jubilee secured its first life-of-mine (LOM) copper ore off-take agreement with an existing mining company, ‘Project M’.

That marked a shift from previous copper tailings off-takes and aimed to process copper-containing ore previously deemed waste.

The firm planned to test copper processing modules at its South African development centre, targeting run-of-mine (ROM) ore processing, potentially adding 3,000 tonnes per annum of additional cathode per 20,000 tonnes per month module.

Additionally, Jubilee said its partnership with Draslovka Mining Solutions for Glycine leaching technology to recover copper from historical tailings in Zambia was progressing well, with promising results showing copper extraction rates exceeding 80%.#

The company’s engineers were evaluating the commercial aspects of the tailings recovery project for possible further industrial-scale trials.

“Our robust operational performance was supported by new long-term supply agreements which allocates higher quality feed material to our operations, allowing us to better leverage our current production capacity, and affirm our growth trajectory in chrome concentrate, PGMs, and copper,” said chief executive officer Leon Coetzer.

“Jubilee continues to challenge industry norms by breaking through technical barriers and implementing solutions that extract value from materials and ore sources that were previously regarded by others as waste or too complex.

“Our improved operational margins across segments highlight our team’s efforts and strategic foresight.”

At 1029 GMT, shares in Jubilee Metals Group were flat at 5.5p.

Reporting by Josh White for Sharecast.com.