Jubilee plans copper expansion after strong first half

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Jubilee plans copper expansion after strong first half

Published Date: 2020-07-14 | Source: Stephen Gunnion | Author: Stephen Gunnion

Jubilee plans copper expansion after strong first half

The mine-to-metals company says Zambia contains vast quantities of copper tailings that its skills can unlock.

Jubilee Metals Group has delivered its sixth consecutive half year of double digit growth despite downtime that resulted from Covid-19 restrictions. Following a number of acquisitions, the mine-to-metals company now has its sights set on strengthening its asset base in Zambia's copper belt.

In an operational update for the six months to end-June, Jubilee reported a 54% increase in operational earnings to £12.8 million from the second half of last year. In rand terms, they rose 74%. Revenue for the period increased by 18% to £29.4 million, supported by last year's acquisition of the Inyoni chrome and platinum group metals (PGMs) business.

Following the disruption caused by Covid-19 lockdowns, the company said all its operations had returned to 100% capacity and it had also started production of copper cathode and cobalt concentrate at Zambia's Sable Refinery, also acquired last year. Under its 'Project Elephant' the company has secured the rights to approximately 150 million tonnes of copper surface tailings that will be refined at Sable. It has targeted a second copper resource, which it says has the potential to be brought into operation well in advance of Project Elephant. The company plans to reach 25,000 tonnes of copper a year within the next four years.

The addition of the copper tailings in Zambia followed the significant increase in access to chrome and PGM surface material with the acquisition of all historical and future PGM tailings and all historical chrome rights at Inyoni in the Bushveld Complex last November. It also acquired all rights to a further 1-million tonnes of PGM-rich material located close to its Windsor chrome operations.

In May, Jubilee said it was going ahead with the relocation of its fine chrome recovery plant at the Dilokong Chrome Mine (DCM) in Limpopo in a move that it said would maximise its earnings. DCM is a joint venture with Sinosteel and Samancor. It said the chrome facility could contribute more significantly to earnings if implemented at the larger Inyoni or Windsor operations.

Jubilee's shares rose 8.4% to 89c yesterday.





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