Jubilee Metals : 9 months production and corporate update

CORPORATE SPONSORED MARKETING COMMUNICATION

25 April 2023

CORPORATE

Share Price (last close)

9.1p

Ticker	JLP
Index	AIM
Sector	Mining
Market Cap	£250m

Marketing Communication

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Analyst

Paul Smith [phone] [e-mail]

David Seers [phone] [e-mail]

MORNING COMMENT

Jubilee Metals

9 months production and corporate update

Jubilee yesterday provided a Q3 update for production from its South African PGM-chrome operations and its copper producing units in Zambia. In South Africa production of 11.4koz of PGM with 9koz from its own unit at Inyoni, plus a further 2.4koz from its JV with a neighbouring plant using spare tailings material. Chrome production was 310kt. In Zambia, with production ramp-up at its Roan concentrator back on track after water and electricity problems were resolved in February, sold production of copper cathode was 494t through the Sable refinery. At full production, Sable is expected to produce 550t/month of copper with a 130t/month from 3rd party sources. Plans were also announced for a new chrome- PGM project on the Eastern limb of the Bushveld expected in Q3 CY2023. The plan for the larger Northern Copper Refinery project in Zambia will be announced in the June quarter - Q4 FY2023. All-in-all, Jubilee is back on track with a stable production outlook and growth projects in both countries.

Stable production outlook: Jubilee has provided a quarterly update which supports its full year guidance. We expect production guidance to be met (or exceeded) which sets up the company nicely to begin its growth profile once again in our opinion. Production is profitable and with gains expected, in our view, in PGM basket prices and in the copper price, the outlook looks increasingly robust.

Table 1: Jubilee - Key production statistics Q3 FY 2023 (March quarter)

	3 Months		H1 FY2023	9 months		FY2023 guidance
Production
PGM (koz)	11.4	18.2	29.6
Inyoni	9.0	18.2	27.2	38.0
3rd party JV	2.4			2.4		Up to 8.0*
Chrome (kt)	310	634	944	1,200
Copper (t)	494~	915	1,409	3.0
Unit revenue
PGM revenue ($/oz PGM)	1,285	1,453
Chrome revenue ($/oz PGM)	2,317	2,292
Copper revenue ($/t copper)	8,459	7,953
Unit Cost
PGM (net cost after chrome credits)	383	608
Copper	6,236	7,953
Unit earnings
PGM ($/oz PGM)	902	845
Copper ($/t)	2,223	1,485

Source: WH Ireland Research, Jubilee Metals * option to add a further 8kz PGM oz from third party processing agreements dependent on stock and power availability ~ sold number - Includes total copper tonnes sold inclusive of Roan produced tonnes which are capitalised prior to full commercialisation of the project expected by end May 2023

Growth projects: We expect growth organically at Inyoni and Roan/Sable as projects are bedded in and operational efficiencies can be realised. Cobalt production as an option can also be introduced at Sable once the cobalt price allows (it has lost 76% of its value since its high price in April 2022). Production growth is expected in South Africa from a new 25koz/yr PGM facility with ground-breaking on a new site to begin construction of the chrome treatment facilities expected in Q3 CY2023; this is the requisite first stage to upgrade the PGMs in tailings to acceptable levels. In Zambia further clarity in the 'Northern Refining Strategy" (to complement Roan and Sable in the South) is expected during the June quarter FY 2023.

WHI View: The Jubilee investment case is strong with multi-commodity production from two mining jurisdictions using good technical control of processing technology to process waste materials (and Run Of Mine ore); low-cost production into a high price environment promises strong revenues and profits and high returns to shareholders. The Northern Refinery project

WH Ireland Limited, 24 Martin Lane, London, EC4R 0DR, tel. [phone]

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CORPORATE SPONSORED MARKETING COMMUNICATION

25 April 2023

in Zambia will be the game changer in our opinion.

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Important disclosures and certifications regarding companies that are the subject of this report can be found within the disclosures page at the end of this document.

CORPORATE SPONSORED MARKETING COMMUNICATION

			25 April 2023
Contacts
Research
John Cummins		020 7220 1755	[e-mail]
Matthew Davis		0113 394 6620	[e-mail]
Brendan Long	Oil & Gas	020 7220 1694	[e-mail]
Paul Smith	Mining	0113 394 6609	[e-mail]
David Seers	Mining	0113 394 6610	[e-mail]
Nick Spoliar		020 7220 1761	[e-mail]
Emma Ulker	Healthcare	020 7398 1141	[e-mail]
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Corporate Broking & Investor Relations
Fraser Marshall		020 7220 0484	[e-mail]
George Krokos		020 7398 1106	[e-mail]
Joanna Hunt		020 7398 1124	[e-mail]
Tara Browne		020 7398 1198	[e-mail]

WH Ireland Limited, 24 Martin Lane, London, EC4R 0DR, tel. [phone]

WHIreland is authorised and regulated by The Financial Conduct Authority and is a member of The London Stock Exchange.

Important disclosures and certifications regarding companies that are the subject of this report can be found within the disclosures page at the end of this document.

CORPORATE SPONSORED MARKETING COMMUNICATION

25 April 2023

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As at the month ending 31st March 2023 the distribution of all our published recommendations is as follows:

Recommendation	Total Stocks	Percentage %	Corporate	Percentage %
Corporate	66		100.0	66	100.0
Buy	0		0.0	0	0.0
Speculative Buy	0		0.0	0	0.0
Outperform	0		0.0	0	0.0
Market Perform	0		0.0	0	0.0
Underperform	0		0.0	0	0.0
Sell	0		0.0	0	0.0
Total	66.0	100.0	66.0	100.0

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Important disclosures and certifications regarding companies that are the subject of this report can be found within the disclosures page at the end of this document.

CORPORATE SPONSORED MARKETING COMMUNICATION

25 April 2023

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Company/Issuer Disclosures

Company Name

Table of interest number

12-month recommendation history

Date

Jubilee Metals (JLP)

2,3,4,5,10

Corporate

28.01.20

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WH Ireland Limited, 24 Martin Lane, London, EC4R 0DR, tel. [phone]

WHIreland is authorised and regulated by The Financial Conduct Authority and is a member of The London Stock Exchange.

Important disclosures and certifications regarding companies that are the subject of this report can be found within the disclosures page at the end of this document.