Jubilee Metals Group PLC (AIM:JLP, JSE:JBL, OTC:JUBPF) posted a 24% increase in operational earnings for the first half as the metals processing company completed a key investment programme in South Africa and Zambia.
The £58mln investment programme helped the company diversify and enabled expanded production across platinum group metals (PGMs), chrome, copper and cobalt.
Jubilee increased PGM production to 21,140 ounces, up 5% from the year-earlier period, even as it carried out planned operational interruptions to complete a new Inyoni processing facility. About 95% of its PGM output was produced at the new Inyoni operations, up from 75% in 2021.
Early results from the new Inyoni operations have outperformed expectations, it said, with a 34% drop in PGM unit costs compared with the six months to end-December 2021 that helped mitigate the impact of softer PGM prices.
Jubilee’s operational earnings rose to £24mln as revenue from operations grew 21% to £76mln.
“The past six months and especially the last quarter has shown a sharp increase in PGM production and lower costs as Inyoni achieved its full design capacity with the majority of the PGM production stemming from this quarter,” said chief executive Leon Coetzer.
“This performance underpins our target of reaching 44,000 PGM ounces per annum from our own facilities as more of our production benefits from our renowned efficiencies.”
In Zambia, copper production rose 14% year-on-year to 1,388 tonnes.
Jubilee’s 12,000 tonne per year Southern Copper Refining Strategy was also brought into operation with the integration of the newly commissioned Roan copper concentrator. Project Roan reached 80% of design capacity during the first week of August.
“This puts us on track to achieve our targeted 3,700 tonnes of copper over the current six-month period ending December 2022," said Coetzer. “The increased production rates are expected to further reduce our unit cost.
“With the delivery of project Roan, we are on track to reach 10,000 tonnes of copper for the full twelve-month period ending June 2023, while we work to unlock the cobalt potential.
“I am very excited by what the FY 2023 period holds. It offers tremendous potential growth for our company as it benefits from the foundation laid during the FY2022 period, with the full exposure of our enlarged South African operations as well as the commissioning of our new 12,000 tonnes per annum Southern Copper Refining operations and the realisation of our cobalt production."