Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF) said its operational performance in the past six months has been broadly in line with earnings and revenue targets, mainly supported by the performance of its South African PGM (platinum group metals) and chrome operations.
These had buffered the impact of the power and water infrastructural challenges faced in Zambia that the company said have since been addressed.
In South Africa, the newly expanded Inyoni facility produced 18,208 PGM ounces in the half-year to end-December 2022 despite increased power outages.
Chrome capacity rose to 634,111 tonnes of concentrate, with production on track to exceed full-year guidance of 1.2mln tonnes (t).
Operational cost, net of chrome credits, was US$516 per PGM ounce, which Jubilee said was well below target despite a much lower credit from chrome due to a softer metal price.
Prices for both of its metals were softer over the period, said the statement, though chrome has recovered sharply post the reporting period.
In Zambia, copper production was down 10% on the previous six months to 1,149t with in-process stock from processed material at Roan increasing to approximately 830t of contained copper.
Production fell below the 3,000t target for the period, with the Zambian operations suffering severe disruptions due to country-wide power outages.
Jubilee added it had updated the implementation of its copper and cobalt strategy in Zambia to align it better with in-country available power infrastructure, resulting in the potential to accelerate the roll-out of the Northern copper and cobalt strategy.
Existing operations such as Roan will be expanded, which offers the potential to bring forward the delivery of its Northern Refining Strategy through a centralised operation and reduced capital outlay.
Production this year will be affected by the change, Jubilee added, with an update to be given alongside interim results in March.
Leon Coetzer, chief executive, commented it had been a "challenging period" during which it had overcome infrastructural-related challenges in both of its operating jurisdictions
"Our South African operations delivered a very solid result,” he said.
"At our operations in Zambia, the impact of nationwide power shortages has been more acute, and we have taken bold steps to not only overcome the immediate challenges faced by operations, but also to actively update the implementation strategy of our copper and cobalt expansion.
"The updated, expansion implementation plan offers the potential to accelerate the increase of copper and cobalt production at an initial lower capital outlay, by increasing our existing operational footprint in Zambia to fully utilise the available infrastructure, compared with an initial targeted greenfields expansion.”