- Company completes water infrastructure upgrade at Roan project
- Progress made with copper and cobalt production from Sable refinery
- Chief strategy officer, with experience in corporate funding, promoted to finance role
Metals processing outfit Jubilee Metals (JLP:AIM) is looking to put operational challenges behind it as it rejigs its management team for the next phase of its development.
Jubilee produces platinum group metals, chrome and copper from tailings (waste materials left after the target mineral is extracted from ore) in Zambia and South Africa.
The company has successfully completed the water infrastructure upgrade at its Roan copper concentrator project in Zambia - Roan had suffered from repeated interruptions to water supply which impacted its ability to perform to specifications.
With the new equipment in place operations are back at full capacity. The company also said it continued to make progress with the production of cobalt and copper from waste at its Sable refinery, also in Zambia.
Jubilee is applying a direct leaching strategy at Sable, a process used to separate metal from ore which is less power-intensive than the traditional smelting of copper sulphide concentrates.
This has the effect of reducing operating costs and also provides the flexibility to produce copper from mixed materials like copper oxide ores and copper sulphide.
To take full advantage Jubilee is looking at new agreements with third-party producers to provide feedstock for Sable. The company is targeting initial production of 50 tonnes of contained cobalt metal. Production of cobalt from waste is in line with internal expectations.
WHAT MANAGEMENT CHANGES MIGHT MEAN
Shares in the company ticked up 0.7% to 10.5p on today’s announcement but are down 34.4% year-to-date having enjoyed a decent run heading into 2022.
Chief strategy officer Pedja Kovacevic has been promoted to the role of chief financial officer (replacing Peet van Coller) namechecking his ‘vast experience in the corporate funding and international debt markets’.
Berenberg analyst Richard Hetch commented: ‘We view this as a positive release for Jubilee. The appointment of Mr Kovacevic as CFO is a positive due to his previous experience and knowledge of the company, suggesting that any material change in strategy looks unlikely.
‘The commentary around the solved water supply issues at the Roan concentrator and the possible expansions for both copper and cobalt production at Sable is encouraging, and we would look for further updates on this in subsequent releases.’
