Aim- and AltX-listed metals processing company Jubilee Metals Group’s total revenue for the financial year ended June 30 increased by 132%, to R1.1-billion.
The company, which has chrome and platinum group metals (PGMs) operations in South Africa and a lead, zinc and vanadium project in Zambia, achieved record production of 40 743 oz, up from the 23 847 oz produced in the 2019 financial year.
This generated PGMs revenue of R681.9-million, compared with R288.9-million in the prior financial year.
The company’s chrome operations produced 377 883 t of concentrate, up from the 181 947 t produced in the prior year.
Chrome revenues reached R338.2-million for the financial year under review.
Jubilee’s adjusted group earnings before interest, taxes and amortisation also increased by 132% to R446.4-million. Impairments and other noncash charges and gains are also excluded from this figure.
As such, the company recorded earnings growth of 162%, to R361.1-million, and a return on equity of 21.2%. Earnings a share were also up 96% to 18.47c.
Jubilee delivered strong cash flows from its operating activities of R415.4-million, up from the positive cash flow of R84.79-million generated in the 2019 financial year.
During the year under review, R557.9-million was invested in acquisitions and purchases of property, plant and equipment – more than double the R240-million invested in the prior financial year.
At the same time, a further R89.1-million of external debt obligations was repaid.
Operating profit was boosted by 226% to R313.2-million, with an operating margin of 29%.
Jubilee’s balance sheet was strengthened substantially, with total assets increasing by 28% to R2.8-billion. Total equity increased to R2-billion, from R1.4-billion in the prior comparable period, thereby maintaining a strong equity ratio of 72%.
Overall, the group’s gearing remains low, with current assets covering 92.7% of total short- and long-term liabilities.
During the 2020 financial year, Jubilee completed the acquisition of the Sable Zinc Refinery in Kabwe, Zambia, for R176-million. The refinery is situated immediately adjacent to the large stockpiles of zinc, lead and vanadium that Jubilee has contracted from BMR Group.
Jubilee has secured the rights to about 150-million tonnes of copper-containing surface tailings, targeted to be upgraded at site and refined at its Sable Refinery. This will be done through a joint operation with the mining rights holder. Project Elephant alone holds the potential to produce copper concentrates in excess of the total Sable Refinery capacity of 14 000 t/y of copper cathode.
In terms of investment, Jubilee acquired 100% of the rights to the PGM tailings situated at Jubilee’s Inyoni operations (previously Hernic) located in the Bushveld Complex, South Africa. Jubilee has also acquired 100% of all further rights to the chrome contained in all of the historical tailings at Inyoni operations.
Further, Jubilee implemented its option to acquire Enviro Mining from BMR. Enviro Processing is a subsidiary of Enviro Mining that owns the small scale mining licence in Zambia.
For the 2021 financial year, Jubilee secured the rights to about two-million tonnes of copper run-of-mine (RoM) material with the potential of increasing the RoM material to four-million tonnes, as well as a targeted 2.5-million tonnes of copper-containing tailings as part of Project Roan.
It also secured the rights to an additional 115-million tonnes of copper and cobalt tailings. This increases Jubilee’s total secured rights to copper and cobalt tailings to about 270-million tonnes.