Shares in Jubilee Metals lifted up 3.76% on the JSE Altx to close at R1.38 on Thursday after it reported tolling agreements to February 2027, while construction of a second processor module was on course for completion later this year.
Jubilee said the extension of its chrome tolling agreements to February 2027 had helped it secure a total yearly processing feed capacity of 2.4 million tons of chrome.
Tolling refers to contract-based service smelting against a fee of concentrates.
The company processes chrome in South Africa and has copper operations in Zambia. It also treats platinum group metals in South Africa.
Construction of a second chrome processing module at Thutse was also “on track” for completion in August, Jubilee said. This will boost its capacity to produce 300 000 tons of chrome concentrates per year.
“Our chrome business continues to grow with Jubilee’s renowned processing and operational capabilities as the drivers of our success. The continued renewal of our tolling processing agreements speaks to the acknowledgement by the industry of these capabilities,”said Jubilee CEO Leon Koetzer.
The company’s chrome and platinum group metals (PGM) business in South Africa is centred on-processing third-party chrome ore at its Windsor and Inyoni operations under agreed fixed margin return per ton of chrome concentrate produced.
Jubilee recovers the remaining PGMs and retains the majority of this benefit.
“In addition, Jubilee has significantly expanded its chrome operational capacity to process chrome run of mine materials in partnership with the holders of chrome mining rights under an agreed earnings share model, which offers Jubilee greater exposure to the chrome market,” the company said.
Jubilee holds a total chrome processing capacity of producing 1.45 million tons of chrome concentrates per year.
Jubilee has also committed to expanding its chrome operations in collaboration with the mining right holders at Thutse and added a second processing unit which will be financed through cash flows from existing chrome operations.
In Zambia, Jubilee is exercising its right to proceed with the formation of the joint venture (JV) vehicle for implementation of the Waste Rock Project. Jubilee has signed an agreement with IRH for the running and funding of the JV.
The Waste Rock Project aims to process copper under a combined feed capacity of more than 2.4 million tons per year and is targeting the recovery of more than 20 000 tons per year of copper in concentrates. About 30% will be attributable to Jubilee.
It is also progressing with an upgrade project at the Roan facility in Zambia.
“The upgrade project is progressing to schedule with commissioning activities and ramp-up expected to commence during April 2024,” the company said.
Additionally, the resource definition at the Project Munkoyo had progressed “with the aeromagnetic survey having identified a large magnetic anomaly associated with the known copper mineralisation confirmed by geochemical assays” from recent trenching samples.
Processing trials confirmed the recoverability of the copper, and Jubilee is targeting initial copper ore from Project Munkoyo to be delivered to the Sable refinery from September this year.
"The expansion of our copper operations are well underway as we look to significantly increase our copper production in the coming months on the back of the expansion of both Roan and Sable. I am particularly excited by the progress of our strategic relationship with IRH as we look to jointly develop the large Waste Rock Project which holds the potential to again demonstrate Jubilee’s unique capability of turning waste to value,” added Koetzer.
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