Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF) has revealed that its South African operations and Zambian projects performed well in the quarter ended 31 March 2023.
The diversified metals processing company said it sold 11,437 platinum group metals (PGM) ounces (oz) in the period, which includes 9,019 PGM oz from its own operations and an additional 2,418 PGM oz through the sale of stock under its joint venture partnership agreement. The company also produced 310,721 tonnes of chrome, which is on track to reach its full-year guidance.
Overall, the company's full-year guidance for PGM oz remains unchanged at 38,000, with the potential for upward revision depending on South Africa's power supply outlook. Chrome operations are expected to exceed the guidance of 1.2mln tonnes of chrome concentrate supported by stronger chrome prices during Q3 FY2023, while copper guidance remains unchanged at 3,000 tonnes.
The chrome by-product credits for PGM operations more than doubled, resulting in a drop in the cost per PGM oz to US$383. Jubilee Metals noted that platinum and palladium prices have risen during the current period, while chrome and copper prices have remained resilient.
The company said the Southern Copper Refining project resumed its ramp-up at the end of February with a stable supply of water and power fully restored. The Sable Refinery's flexibility offers the ability to pivot between copper and cobalt production to rapidly respond to changing market fundamentals, with copper production prioritized due to a 76% reduction in cobalt prices from the year's high. The company produced 110 tonnes of cobalt hydroxide before pivoting to copper, with a further 70 tonnes of equivalent cobalt units held in stock.
In the company update, Jubilee Metals CEO Leon Coetzer said the company's South African operations have delivered a strong performance, putting it on track to meet and potentially exceed its full-year guidance of 38,000 PGM oz.
He noted that the ramp-up of operations at the Roan copper concentrator in Zambia is progressing well, with full output now expected in May 2023.
Coetzer said the company is also making good progress with discussions to secure an additional PGM processing footprint in the Eastern Limb, targeting an additional 25,000 PGM oz per annum and expected to commence construction in Q4 CY2023. The final design reviews for the Northern Refining Strategy are underway to confirm the implementation schedule and required investment, with further information expected to be provided to the market by the full year close in June.
Jubilee Metals reported a lost time injury frequency rate (LTIFR) of 1.0 in South Africa and LTIFR of 2.3 in Zambia.