jubilee metals group plc | jubilee metals group plc ......canaccord genuity group 5.6% barclays...

WORLD LEADING METAL RECOVERY BUSINESS

Disclaimer

Important Notice:

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CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 2


OVERVIEW

Overview


Implementing environmentally conscious metal recovery solutions that ensure a zero-effluent policy

Working with globally established industry partners including Mitsubishi, Northam, Lonmin and Vedanta

Highly experienced team with ability to design, build and execute bespoke world-class mine wastetreatment projects

Profitable with a rapidly improving financial performance, delivering against targeted performance andbringing new projects on-line

Industry leading international metal recovery business focused on the treatment of surface tailingsmaterials and primary mineral ore generated from third party mining operations

Global, diversified metal recovery company that operates world-class projects, ensuring a positive impact on the environment and its stakeholders

Defined strategy to diversify earnings across multiple commodities and jurisdictions

Exposure to broad commodity basket that includes PGMs, chrome, copper, lead, zinc, vanadium andcobalt

Company Snapshot


Veddis Ventures LLP 9.01% Spice Capital Partners LLP 7.78%

HSBC Global Custody Nominee (UK) Ltd 10.2% Interactive Investor Services 7.26%

Hargreaves Lansdown (Nominees) Ltd 6.96% Canaccord Genuity Group 5.6%

Barclays Direct Investing Nominees Limited 3.91% The Bank of New York (Nominees) Ltd 3.31%

Miton Asset Management 2.5% Other 43.47%

MARKET TICKER MARKET CAP SHARE PRICE SHARES IN ISSUE

AIM JLP.L £55.47M 2.9p 1,855,300,673

SHARE PRICE GRAPH MAJOR SHAREHOLDERS

September 2018 September 2019

As at 16.09.19

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

3.8

Board of Directors

CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP

World leading team with ability to design build and execute bespoke mine waste treatment projects

Mr. Colin Bird – Non-Executive Chairman

A chartered engineer, a fellow of the institute of Materials, Minerals and Mining, Mr. Bird started his career in the UK coal mining

industry before moving to the Zambian copper belt and then to South Africa working for Anglo Coal and BP Coal. He has been involved

with a number of listed companies in the resource sector, in the UK, Canada and South Africa.

Dr. Matthew Phosa – Non-Executive Vice- ChairmanDr. Phosa is part of the ANC delegation which successfully negotiated a peaceful transition into a fully democratic South Africa. He was

elected as the first Premier of Mpumalanga Province in 1994 and went on to serve as the Treasurer-General within the Executive

Committee of the ANC from 2007 to 2012. Commercially, he sits on the board of a number of listed company boards.

Mr. Leon Coetzer – Chief Executive OfficerA qualified chemical engineer, Mr. Coetzer was with Anglo American Plc for 20 years, 16 of which with Anglo Platinum where he held

various technical and operational managerial roles. A member of the advisory board of process engineering faculties at Universities of

Pretoria.

Mr. Christopher Molefe – Non-Executive DirectorMr. Molefe has held several positions in corporate banking and industry and is currently Non-Executive Chairman of Merafe Resources

Ltd and Non-Executive Director of Capital Oil Pty Ltd, and Chairman of Transfrontier Capital Proprietary Ltd and Sabicor Proprietary Ltd.

Mr. Dr Evan Kirby – Technical DirectorA metallurgist with over 40 years experience in the mining sector, Dr Kirby worked for 16 years in South Africa with Impala Platinum,

Rand Mines and Rustenburg Platinum Mines. He then worked in Australia for Minproc Engineers and latterly Bechtel Corporation. Dr

Kirby’s experience base includes gold, platinum group metals, base metals, battery metals, diamonds, coloured gemstones, and mineral

sands.6

Metals Recovery Business


Global leader with first mover advantage in a rapidly expanding market

HOW• Implements proven, cutting-edge metallurgical processing solutions to recover

metals from historical mine waste and third party mined ore

• Applies advanced environmentally sustainable techniques, ensuring a zero effluent policy

• Well tested processes developed in world class laboratories resulting in ability to execute accurately and rapidly internationally

• Strategically partnering with mining companies and governments to develop and implement metal recovery projects from mine waste

• Access to vast amount of historic above ground material

• Increasing cost and difficulty of mining, paired with the current relativedepressed commodity prices are leading to mining majors viewing surfacematerial as a potential source of cash flow more than ever before, but do notnecessarily have the means nor expertise to implement mine waste projects

• Increasing awareness and legislation driving need to reduce mine wasteexposure both from government and corporate mining entities

WHY

Key Differentiators


Low-risk, global metals recovery business poised for growth

Provides significantly reduced exposure to

mining risk

Defined reserves with tonnage and grade known in advance,

without the expenses related to traditional mining techniques

Rapid timeline to implementation –

projects are defined and have existing infrastructure

Exceptionally low capital intensity and operating costs delivering robust

margins

Robust project pipeline & acquisition

opportunities to augment rapid growth

strategy

Solid financial performance, rapidly growing revenue and

operational track record

First mover advantage to take advantage of global opportunity for metals recovery and satisfying

increasing environmental liabilities

Highly experienced team with the technical ability and proven execution to

develop bespoke recovery solutions

globally

Revenue & Earnings Growth


£2,071.00

£5,969.00

£2,911.00

£8,265.00

£3,825.00

£8,219.00

£5,641.00

£14,361.00

£0.00

£2,000.00

£4,000.00

£6,000.00

£8,000.00

£10,000.00

£12,000.00

£14,000.00

£16,000.00

OPERATIONAL EARNINGS (GBP'000) REVENUE (GBP'000)

H2 2017 H1 2018 H2 2018 H1 2019

Project Timelines


Indicative project timeline

Financial year – June year end FY2017 FY2018 FY2019 FY2020 FY2021Quarter ending Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun

DCM Coarse Chrome

Hernic PGMs

Windsor Chrome

DCM Fine Chrome

Windsor PGMs

Kabwe

DCM PGMs

NOW


THE PORTFOLIOTHE PORTFOLIO

Portfolio Overview


Wide and expanding portfolio delivering results

Lead, Zinc, Vanadium, Copper, Cobalt

Kabwe - Zambia

Chrome, Fine Chrome, PGMs

Dilokong – South Africa

Chrome, Fine Chrome

Windsor – South Africa

PGMs from Chrome tailings

Hernic – South Africa

PGMs

Windsor – South Africa

Hernic


High margin platinum producer delivering exceptional returns

SNAPSHOT Commodity PGMs & Chrome

Partner Hernic Ferrochrome Pty Ltd

Location Bushveld Complex, South Africa

Status In production

Resource Size:• 1.7Mt of chrome rich tails at surface containing and

estimated 224,000oz (3PGM + Au)• Additional 17,000t per month of new material

Processing Capacity:• 55,000t per month chrome tailings processing• Targeted Production of 2,500oz PGM per month

Financial Model:• Jubilee retains 100% of revenue and earnings until full

capex repayment and project reaches a 30% return on capital

• Construction completed Jan ‘17• First chrome production Feb ‘17• First platinum production Mar ‘17• Positive project earnings from June ‘17• Fully Operational

Key Milestones Achieved

Rapid Implementation


Attributable Hernic project earnings growth (£’000)

-500

0

500

1000

1500

2000

2500

3000

Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019* Q2 2019

* Decreased earnings in Q1 2019 is attributable to a temporary reduced supply in electricity at Hernic, shaded area represents earnings, loss attributable to decreased power supply during the period

Dilokong


Chrome project with additional upside from ground-breaking fine chrome circuit

SNAPSHOT Commodity Chrome, Fine Chrome, PGMs

Partner Dilokong Chrome Mine (Sinosteel & Samancor JV)

Location Limpopo Province, South Africa

StatusCoarse chrome operational, fine chrome plant commissioned, platinum recovery plant awaiting approvals to begin plant construction

Resource Size:• 850,000t of chrome rich tails at surface containing an estimated

170,000t of chrome and 74,000oz 4E PGMs

Processing Capacity:• Fine chrome recovery circuit targeting 25,000t per month of feed• Able to produce 8,000t per month concentrate from fine chrome

alone• Further chrome processing capacity of 50,000t per month available

for third party feed material

Financial Model:Jubilee currently retains 100% of earnings until• Chrome: post $3.4m capex repayment 50:50 earnings split, offtake

agreement in place • PGM: post $6.6m capex repayment 67:33 earnings split in favour JLP


• Commenced construction of fine chrome Q4 ‘18• Commercial production commenced Q1 ‘19• 25 000 tonnes per month reached during Q2 ‘19

Dilokong Fine Chrome Circuit Ramp-Up


* The Dilokong fine chrome project turned profitable in June 2019, six months after commissioning

1,396 1,3131,069

2,575

3,437

5,872 6,0536,477

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19

Tonnes Produced

Windsor Chrome


One of South Africa’s largest chrome recovery facilities

SNAPSHOT Commodity Chrome and Fine Chrome

Partner Numerous third party ore suppliers

Location Western Bushveld Complex, South Africa

Status Coarse chrome recently acquired and future fine chrome project under consideration

Resource Size:• 1.45Mt of chrome and PGM-rich material at surface • Processing approximately 40,000t per month third

party material

Processing Capacity:• Installed chrome processing capacity 75,000t per

month• Approximately 45,000t per month contracted to third

party materials processing

Financial Model:• Chrome Operation: Owned 100%


• Acquisition of operation Jan ’19• Management & operation control completed• Q2 ‘19 first full quarter operation & positive contributions

Windsor PGM


JV with operating Eland Platinum to recover PGM’s from Windsor surface material

SNAPSHOT Commodity PGMs

Partner Eland Platinum

Location Western Bushveld Complex, South Africa

Status Fully operational

Resource Size:• 1.45Mt of chrome and PGM-rich material at surface • Potential to add 12,000t per month third party

material

Processing Capacity:• Targeting PGMs processing rate at average rate of

60,000t per month, producing 30,000 PGM ounces per annum

• On site as well as third party material from surrounding areas to be processed at the plant

Financial Model:• PGMs: Retains majority earnings under profit share

terms, offtake agreement in place


• Commence delivery of PGM material to Platinum recovery plant Jan ’19

• Commenced recovery at plant August 2019

Kabwe


Fully integrated metal refinery in Zambia

SNAPSHOT Commodity Zinc, Lead, Vanadium

Location Kabwe, Zambia

Status Copper circuit on-line, production expected during Q4 2019

Resource Size:• Estimated 6.4Mt surface material containing:

• 356,843t of zinc• 351,386t of lead• 1.26% equivalent vanadium pentoxide

Processing Capacity:• Targeting full capacity production of:

• 8,000t Zinc per annum• 1,500t Vanadium per annum• 11,000t Lead per annum

Financial Model:• Jubilee holds an effective 91.5% interest in the

Kabwe JV with an option to increase to 100% ownership

• Retains all earnings until capital payback

Kabwe


Fully integrated refinery in Zambia

Anticipated Project Timeline • Q4 2019 first expected copper cathode

production• Refined Zinc concentrate targeted to

commence production in Q2 2020• Production of high grade Vanadium

Pentoxide targeted to commence in Q3 2020

• Refined Lead concentrate targeted to commence production in Q2 2021

• Joint venture established for the project in Q1 2018• Sable Zinc Kabwe refinery acquired from Glencore in Q2

2019, reducing project capital and plant construction lead times

• Share and ownership transfer completed August 2019

Key Milestones AchievedH2 2019Tonnes

H1 2020Tonnes

H2 2020Tonnes

H1 2021Tonnes

H2 2021Tonnes

Copper 250 1 200 2 400 2 400 2 400

Zinc 500 2 500 3 500 4 500

Vanadium 30 400 750 750

Lead 4 500 6 500

Anticipated Kabwe Project Timeline


Indicative project timeline at current conditions

Year 2019 2020 2021

Month Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr

Sulphuric Acid Production & Sales

Copper Cathode Production & Sales

Zinc Concentrate Production & Sales

Vanadium Pentoxide Production & Sales

Lead Production & Sales


THE OPPORTUNITY

Investment Case

Industry acknowledged expert in the retreatment of primary and secondary mine waste materials, with a proven track record in metal recovery

Rapidly improving profitability with the implementation of new projects and processing techniques

Well developed strategy to focus on low capital intensive & shorter development time tailings projects, widening geographic exposure as mining companies act on rising environmental obligations

World leading team with ability to design build and execute mine waste treatment projects, applying advanced environmentally sustainable techniques

Global potential – engagement with the majors and governments means diversification of earnings from multiple sources, multiple metals & across multiple geographies

Increasing support from institutional shareholders

Has the expertise and financial ability to convert defined on surface liabilities into assets


Low-risk, global metals recovery business poised for growth

Opportunity in Zambia• The Zambian Kabwe project, now underway,

provides a platform to engage in further regional projects, expanding the southern African footprint

• Zambia has an extensive history of mining activities, producing mineral rich mine discards for over a century

• In total, more than 10,000 hectares of the Zambian Copperbelt is covered with mineral rich waste*

• Jubilee is engaging with key national Zambian stakeholders to implement the strategy of establishing centres of processing excellence, targeting a variety of surface assets

• Currently implementing experience and expertise to develop bespoke technical processing solutions for individual sites


*Source: Geological Survey of Sweden

The Global Opportunity

• The increasing cost of mining when compared to currently depressed commodity prices is leading tomining majors turning to surface material reprocessing to increase cash flow

• Increasing environmental awareness and related legislation is driving the requirement to reduce minetailings

• Jubilee possesses technological expertise which offers a global solution potential for processing mine waste

• The large, global quantities of treatable surface material created by historically ineffective miningtechniques provide an opportunity to diversify earnings through project execution on multiple sources,metals & geographies

• Jubilee’s technical excellence and experience allows the company to develop bespoke solutions applied to

• This creates significant upside potential for shareholders as the global strategy unfolds and new projectsenter the pipeline


A changing mining market presents global opportunities for metals processing


CONTACTGareth Owen (Jubilee Metals)[email protected] de Beer (Jubilee Metals)[email protected] Woolgar (Shard Capital)[email protected]

jubilee metals group plc | jubilee metals group plc ......canaccord genuity group 5.6% barclays...

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