Registration number (4459850)

Altx share code: JBL

AIM share code: JLP

ISIN: GB0031852162

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Jubilee Metals Group PLC

("Jubilee" or "the Company" or "the Group")

UNAUDITED INTERIM RESULTS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

Jubilee, the AIM and Altx traded metals processing company is pleased to announce its unaudited interim results of the Group for the six months ended 31 December 2020, a period that has seen exceptional operational and financial growth. These results are compared with the period for the six months ended 31 December 2019 as the comparative period unless stated otherwise.

HIGHLIGHTS

Financial highlights

Six-month period under review

·    Jubilee attributable earnings ⁽ⁱ⁾ for the six-month period increased sharply by 212 %, to a record £ 30.9 million (ZAR 656 million) ⁽ⁱⁱ⁾ (2019: £ 9.9 million (ZAR 170.4 million)),  driven mainly by increased operational output with PGM production surging by 34 % and increased metal prices over the period ⁽ⁱⁱⁱ⁾

·    Adjusted EBITDA ^(iv) for the six-month period increased by 237 % to £ 29.3 million (ZAR 622 million) (2019: £ 8.7 million (ZAR 150 million))

·    Basic earnings per share for the six-month period increased by 160 % to 0.91 pence (ZAR 19.21 cents) (2019: 0.35 pence (ZAR 6.09 cents))

·    Revenue increased 110 % to £ 53.4 million (ZAR 1.1 billion) (2019: £ 25.4 million (ZAR 439.4 million))

·    Operating profit increased sharply by 355 % to £ 25.5 million (ZAR 541 million) (2019: £ 5.6 million (ZAR 97.7 million))

·    Cash generated from operations before movements in working capital increased by 265 % to £ 28.8 million (ZAR 611.4 million) (2019: £ 7.9 million (ZAR 136.3 million)) ^(v)

·    The Group balance sheet strengthened further on the back of the strong operational performance, with total assets at £ 152.9 million (ZAR 3.1 billion), up from £ 131 million (ZAR 2.8 billion) at the end of June 2020, total equity increasing by 21.3 % to £ 114 million (ZAR 2.3 billion), for the same period, maintaining a high 75 % equity ratio (30 June 2020: 72 %)

·    Cash and cash equivalents stood at £ 9.8 million (ZAR 195 million), with short term assets covering a healthy 301 % of short-term liabilities compared to 235 % at 30 June 2020

Post the period under review

·    Jubilee through its South African subsidiary Windsor SA, executed a scalable working capital credit facility with ABSA Bank, which signals Jubilee's ability to attract bank and structured funding to support its growth objectives, on the back of its repeated quality earnings

(i)                    Attributable earnings refer to earnings attributable to the group based on its contractual rights in each project

(ii)                  Conversion rates used for revenue and earnings are at the average conversion rate for the period and for balance sheet at the spot rate at period end. Conversion rates used for capital expenditure and acquisitions are at current spot rates

(iii)                 The average Platinum price increased 11% from US$501/oz to US$557/oz, Palladium increased 19% from US$347/oz to US$413/oz and Rhodium increased 245% from US$373/oz to U$1 286/oz from 31 December 2019 to 31 December 2020

(iv)                 Adjusted EBITDA refers to EBITDA adjusted for non-cash expenses including impairments, gain on bargain purchase and foreign exchange differences

(v)                   Refer to the table on Group Cash below

Operational highlights

PGM

Six-month period under review

·    PGM ^(vi) production for the six-month period up 34 % to 28 187 ounces (2019: 21 082 ounces)  

·    PGM revenue up 125 % to £ 36.6 million (ZAR 776 million) (2019: £ 16.3 million (ZAR 281.6 million))

·    PGM attributable earnings ^(vii) up 172 % to £ 26.4 million (ZAR 560 million) (2019: £ 9.7 million (ZAR 167.7 million))

·    Increased PGM production was achieved, including record production during December, despite the planned scale down of operations at Jubilee's Eland Platinum JV PGM partner

Post the period under review

·    Inyoni expansion currently underway targeting to further improve PGM production rates and targeted PGM recoveries, expansion expected to conclude during Q2 2021

(vi)                 Platinum Group Metals (6E platinum, palladium, rhodium, iridium, osmium, and gold).

(vii)                All numbers reflect only production attributable to Jubilee and excludes that portion of production attributable to its JV partner.

CHROME

Six-month period under review

·    Chrome production for the six-month period up 72 % to 319 834 tonnes of saleable chromite concentrate (2019: 186 249 tonnes)

·    Chrome revenue up 27 % to £ 11.6 million (ZAR 245.3 million) (2019: £ 9.12 million (ZAR 157.8 million))

·    Attributable chrome earnings are up 333 % to £ 1.3 million (ZAR 28 million) (2019: £ 0.3 million (ZAR 4.7 million))

·    The increase in chrome earnings was supported by the implementation of the new fixed margin chrome processing contracts

·    The new 35 000 tonnes per month chrome beneficiation facility named, Windsor 8, commenced operations in October 2020

·    Jubilee commenced with the construction of an additional new 80 000 tonne per month chrome beneficiation operation near its Inyoni PGM Operations. The facility will consist of four integrated chrome recovery circuits to maximise chrome efficiencies and is expected to be fully commissioned within Q2 2021

Post the period under review

·    Jubilee commenced with the commissioning of the first of the four integrated chrome recovery circuits combined forming the new 80 000 tonnes per month chrome beneficiation facility, with the second and third process scheduled to commence commissioning immediately

COPPER

Period under review

·    Jubilee's Sable Refinery achieves early earnings from its copper and cobalt production as part of securing operational readiness to accept first production from Project Roan, producing a total of 1 447 tonnes of plated copper cathode to date

·    The construction of the first processing facility, named Project Roan, has commenced and will be commissioned in three phases to allow the early production of partially upgraded copper concentrates for refining at the Sable Refinery

·    A capital budget of US$ 17 million has been allocated to Project Roan which is funded from Jubilee's own cash-flow

·    Jubilee secured the rights to in excess of 300 million tonnes of copper and cobalt containing material at surface, which combined will be the primary feed source to the three copper and cobalt processing facilities being targeted for construction

Post the period under review

·    Phase one of Project Roan reaching completion and targeting to commence delivery of intermediate copper concentrate to Sable Refinery during April 2021 despite severe disruptions caused by heavy rains in the region  

Leon Coetzer, CEO of Jubilee, commented:  "The acquisition of the rights to almost 300 million tonnes of copper and cobalt tailings with the completion of five major transactions in Zambia; the maturity of operations and continued delivery of record PGM and Chrome earnings in South Africa; and a 110 % increase in Group Revenue to £ 53.4 million resulting in attributable earnings of £ 30.9 million, are just a few of the milestones met by the Jubilee team during the six-month period under review. Despite the unprecedented challenges posed by the ongoing pandemic, H2 2020 was a period of significant growth for the Company.

"Central to achieving the above milestones is our commitment to 'The Jubilee Way', and I am extremely grateful to the Jubilee team which has continuously demonstrated its resilience and commitment to this, always striving to translate leading in-house processing and metals recovery excellency into industry leading operational efficiencies.

"On the back of new third party and ore supply agreements as well as improved efficiencies across our chrome and PGM operations, we have delivered both record production and financial performance at our South African operations. Importantly, thanks to this sustained earnings growth, we have been able to fund the capitalisation of our Sable Refinery and Project Roan currently under construction in Zambia which has been the focus of much of our efforts over the six-month period.

"We are now ramping up production with the first copper concentrator currently under construction at Project Roan and set to commence delivery of the first intermediate copper concentrate to Sable Refinery within the next three weeks.  We are fully committed to achieving our target of producing 25 000 tonnes of copper per annum within the next four years.

"Our success in South Africa and progress in Zambia  is a clear demonstration of our technical know-how and IP when it comes to surface material into value and we are now perfectly poised to play a commanding role in the sector including in Zambia."

Chairperson's Statement

Jubilee has delivered an exceptional performance for the six-month reporting period with significant gains achieved at both an operational and financial level. 

Despite the challenges faced due to the continued Covid-19 pandemic the Company was able to largely buffer the impact on the operations by adjusting to more regulated working conditions and maintaining a robust protocol for the management of Covid-19 which was in line with government guidelines and in some cases beyond. Consistent with our operational philosophy, the entire Jubilee team demonstrated support and commitment whilst dealing with the potential negative effects of the pandemic and we thank everyone for their hard work and support in this regard.

Our PGM and chrome operational earnings increased sharply to £ 27.7 million representing an increase of 178 % over the previous reporting period. This increase was supported by strong operational gains in throughput, operational efficiencies and buoyant PGM prices.

PGM operational earnings increased significantly achieving an overall 172 % increase delivering 28 187 PGM ounces and the Windsor chrome operation contributed to the improved earnings with the new Windsor 8 chrome operation commencing production during October 2020. We continue to aggressively grow our chrome beneficiation capacity which also produced, as a by-product, a PGM rich discard stream as further feed to our PGM operations. In November 2020, in line with this chrome strategy, Jubilee commenced with the construction of an additional 80 000 tonnes per month chrome beneficiation facility targeting the processing of chrome Run-Of-Mine ore. On completion of this new facility Jubilee will hold a total chrome feed processing capacity of 250 000 tonnes per month of both chrome ore and tailings.  

This dual metal approach has served us well during recent periods with the low chrome metal prices cycle being offset by PGMs providing a robust upside as the PGM basket price demonstrated value increase. We, as a company, are able to react to changing metal prices on a short-term basis assuring that we maximise contribution from our various ore sources. Jubilee has achieved success in the chrome and PGM industry by combining experience and innovation with business acumen taking us to our current strong industry position.

We now welcome the challenge of growing our Zambian copper and cobalt operation. The acquisition of the Sable Refinery in Kabwe was a pivotal component in the implementation of the Company's copper strategy recognising the ability to reach operational readiness of the Sable Refinery in the short term. We can produce, without any expansion, up to 16 000 tonnes of copper cathodes and that is our immediate target. We have capitalised the Sable Refinery achieving full operational readiness to accept the first intermediate copper concentrate from Project Roan and have achieved some early earnings during the interim period. The first of three targeted processing facilities is under construction, which will enhance copper earnings progressively during the first half of this year. At full capacity, Project Roan is targeted to produce 10 000 tonnes per annum of equivalent copper units.

During the period, we announced the acquisitions from various sources of some 300 million tonnes of copper/cobalt tailings as feed for the mid-term future. We intend to construct three new processing plants to process and recover the copper and cobalt in these resources targeting the production of 25 000 tonnes of copper once completed. The first of these processing facilities is dubbed Project Roan.   

We are excited about the potential for our copper operations to deliver significant earnings and believe that current prices can not only be maintained but also be increased upon. We are mindful of a world that has not yet beaten or fully managed the Covid-19 pandemic and therefore anticipate global stop start economics. Having said that we are in no doubt that the sheer weight of money directed at infrastructure will maintain demand and that the EV vehicle rollout will be accelerated. Like many in our industry, we expect that these factors will continue to drive strong demand for copper supply and upward pressure on prices over the medium term.

Zambia has vast amounts of waste material produced by past mining and there is huge potential for new mining of copper in the country, providing Zambia with the opportunity to show growth consistent with other major producing nations. Jubilee intends to be part of that growth and as such we will continue to be proactive and offering assistance in realising that growth. 

We were fortunate that during the period we have widened our shareholder profile and we now have an enviable balance of retail, institutional and family office shareholders with the larger funds also taking interest in the Company either by investment or regular review.  Like all rapidly growing companies we are aware that growth, whilst bringing new opportunities, is not without its challenges and the Board is constantly reviewing its focus and approach to ensure that it is flexible in a rapidly changing world.

We expect the year 2021 to be another transformational year for the Company with South Africa maturing and Zambia evolving, and we are confident that we can grow our earnings consistent with our internal forecast. At the same time, we recognise that resources companies are seldom faced with such broad ranging opportunities that we now see. It is our intention to maintain and accelerate our growth in challenging but exciting times.

Colin Bird

Non-Executive Chairman

GROUP FINANCIAL AND OPERATIONAL PERFORMANCE

(i)  Attributable earnings refer to earnings attributable to the group based on its contractual rights in each project.

(ii) Adjusted EBITDA refers to EBITDA adjusted for non-cash expenses including impairments, gain on bargain purchase

and foreign exchange differences.

(iii) Adjusted PGM production unit cost includes all direct and indirect processing costs attributable to the production of PGMs. The period under review also includes all operating costs for the Windsor PGM Joint Venture allocated to the Jubilee attributable PGM ounces.

(iv) Chrome revenue is recognised on an ex-works basis after costs of export logistics including freight, shipping and marketing.

PRESENTATION OF MOVEMENTS IN GROUP CASH

(i)   The significant increase in accounts receivable is mainly due to revenue recognised at the period end for inventories sold and delivered, but subject to final pricing and invoicing post the period end. These receivables are recognised as contract assets in the Statement of Financial Position.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG")

Jubilee, as a specialist in processing of historical mine waste and tailings, and through its operations, continuously reduces the negative environmental effects caused by the historical activities of mining in the jurisdictions where it operates. 

Registered as a public company and listed on the AIM market of the London Stock Exchange and the Altx board of the Johannesburg Stock Exchange, Jubilee is committed to providing effective, relevant and transparent disclosure of data in relation to all environmental, social and governance ("ESG") aspects of the Group's business activities.

Through its evolving ESG policies and strict operational protocols, the Group is a committed and responsible corporate citizen, incorporating best practices wherever possible for both the operational, social, environmental and governance aspects of the Group's business activities.

Going forward, it is the Board's intention to more formally and in greater detail disclose the progress of the Group's ESG related performance and initiatives. Jubilee will initiate its regular and more structured ESG reporting with the launch of its new corporate website currently under construction.

ENVIRONMENTAL

Jubilee has adopted three core themes to control and further reduce the net carbon footprint of its operations.  The three themes are grouped under Effluent Management, Energy Usage and Water Consumption. Under these themes the Company manages a continuous improvement programme along the following principals;

·    Reviewing and updating where applicable related Policies and Procedures

·    Accurate measuring and reporting of operating base line

·    Setting and holding to account short- and medium-term targets

·    Identifying and implementing intervention projects to achieve targets

·    Measuring and reporting of progress made

Effluent Management

The Company's zero effluent policy is central to its project designs and operational management.  Under the policy the company strives to transform historical mine waste sites to a fully contained site with zero effluent egress.

Energy Usage

Energy usage is a focal point of Jubilee's environmental footprint. The major energy usages are in the supply of electricity to sustain operations and through the use of fuels in the transport of materials.     At a potential chrome feed capacity of 250 000 tonnes per month, the logistical management of material movement is a key focus area for Jubilee and offers many areas for optimisation to reduce the related carbon footprint.  Jubilee has identified key intervention projects to significantly impact its related carbon footprint which will form part of its detailed ESG reporting. 

Water Consumption

Water, being a key element in the pumping of material and in the physical separation process of both Chrome and PGMs, forms the basis of Jubilee's production processes. Water usage is strictly monitored by the engineering team and Jubilee strives to maximise the usage of recycled water.  Jubilee has launched several intervention projects to further increase the retention of recycled water as it strives to minimise its reliance on any natural resources such as water.    

SOCIAL

Jubilee pursues constant engagement with, and involvement of its social partners affected by its operations.  These engagements are used to identify key interventions in addition to the social labour programmes managed by Jubilee as defined under the processing conditions set by regulators.  Interventions are pursued that result in a sustained impact on Jubilee's social partners. 

Workforce

Stakeholder involvement and participation is considered an integral part of labour relations. As such, successful annual wage agreements have been concluded at all of the Company's operations. In South Africa Jubilee currently offers direct employment to 319 people while in Zambia the Jubilee team has grown to a total of 204 local Zambians which is expected to increase sharply on the back of Jubilee's copper strategy.

Community

Jubilee's community and social engagement projects are grouped under education, health and sustainability

Jubilee has to date provided running water to approximately 400 households with a target to increase this number to 700 households over the coming year. The water project includes the installation and maintenance of an irrigated food garden operated sustainably by the local community. The programme is further supported by a feeding programme for the most vulnerable members. 

Jubilee currently sponsors four bursaries for higher education and annually sponsors eighteen community members with certificated training of portable skills to enhance their employment prospects.

During 2020, Jubilee was committed to ensuring that where possible it provided support to the local communities with respect to the Covid-19 pandemic. This included donating cloth masks and sanitizers to 1 000 members. The team also believe that the transfer of information is critical in the fight against the virus and as such, Jubilee helped with the distribution of information regarding Covid-19 regulations and health and safety to the communities via the established forums.

Jubilee has prioritised the development and contracting of community established small enterprises. To this end strategic service level agreements were signed to assist local enterprise development, focusing on general maintenance, transport and security. These initiatives have already established sustainable civil, security and transport companies wholly owned by the communities and offering direct employment to their members.

GOVERNANCE

Jubilee's board, consisting of mining, engineering, corporate finance and legal experts, maintains the responsibility of leading the Company towards sustainable growth and is committed to leading the Company with integrity. The Company subscribes to the King IV Code of Corporate Governance in South Africa and the QCA Corporate Governance Code in the UK and applies best practice wherever possible which defines Corporate Governance as the exercise of ethical and effective leadership by the governing body towards the achievement of the following governance goals:

•             Anti- corruption

•             Ethical culture

•             Transparency

•             Risk Management

•             Good performance

•             Effective control

•             Legitimacy

•             Quantitative data

Jubilee continues to drive transparency in its stakeholder engagement through the regular publishing of updates regarding the Group's performance, strategy and operational developments. The Company also engages with stakeholders via CEO interviews, which are published on Jubilee's website and with the releasing of financial results on a half yearly basis.

INTERIM PERIOD REVIEW

Jubilee's South African operations maintained their growth trajectory during the six-month period on the back of a record operational performance for both its PGM and chrome operations. During the period under review Jubilee commissioned its new Windsor 8 chrome beneficiation plant further increasing its chrome processing capacity by 35 000 tonnes per month, while also commencing with the construction of its new 80 000 tonnes per month chrome beneficiation plant situated near its Inyoni Operation. PGM and Chrome operational earnings increasing by a record 178 % to £ 27.7 million compared to the same comparative six-month period in 2019. 

In addition to the strong performance of its South African operations, Jubilee has made exceptional progress in the implementation of its Copper and Cobalt strategy in Zambia.  At the beginning of the reporting period, in July 2020, Jubilee outlined its plans to expand its business model into all aspects of copper in Zambia due to the vast quantities of tailings available, with the long term target of achieving production of 25 000 tonnes of copper per annum within four years. Six months on, this copper and cobalt strategy has already gained significant momentum, with Jubilee having secured almost 300 million tonnes of copper and cobalt tailings located in three zones across Zambia via the completion of five major transactions. The roll-out of this strategy has the potential to significantly increase earnings growth and the Company is committed to reaching its targeted goal of 25 000 tonnes per annum within the defined four-year period. Jubilee has targeted to construct three copper processing facilities to process the copper tailings to produce a copper concentrate that will be refined at Jubilee's Sable Refinery. The three copper processing projects have been named Projects Roan, Elephant One and Elephant Two, with Project Roan commencing construction and set to produce its first intermediate copper concentrate for further refining at Sable during April 2021.

Platinum Group Metals (PGM) Operations - South Africa

Jubilee's PGM operations consist of the Inyoni and Windsor PGM Operations. The PGM operations delivered a strong performance during the period with revenue up 125 % to £ 36.6 million (ZAR 776 million) when compared to the same period last year. PGM operational earnings also increased by 172 % to £ 26.4 million (ZAR 560 million) from H2 2019. Whilst the Windsor PGM Operations shut down temporarily as planned for part of the December period, the Company's Inyoni PGM Operations continued to operate. The expansion of the Inyoni Operation was approved and commenced construction post the period under review to further improve operation throughputs and overall PGM efficiencies. The average Platinum price increased 11 % from US$ 501/oz to US$ 557/oz, Palladium increased 19 % from US$ 347/oz to US$ 413/oz and Rhodium increased 245 % from US$ 373/oz to US$ 1 286/oz from 31 December 2019 to 31 December 2020.

The table below presents the combined operational revenue and earnings performance for PGMs for the period under review. The figures represent the final results based on reconciled production inputs and the allocation of costs have been standardised to fully account for all in sustainable costs:

(i)      The unit cost per ounce of PGM is influenced by a component of the acquisition cost for third party Run-Of-Mine ore.

Looking ahead to 2021, demand for the metals is expected to remain well supported with a deficit in supply of both platinum and palladium being predicted which is expected to provide strong support for PGM prices.   

Chrome Operations - South Africa

Jubilee has pursued an aggressive growth strategy of its chrome operations.  The chrome operations play a vital role to secure a sustained feed supply to both the chrome and PGM operations. Chrome ore is processed at the Jubilee chrome beneficiation plants to produce a saleable chrome concentrate and a PGM containing discard which is fed to the PGM recovery plants. Jubilee has expanded its chrome operations to reach an overall processing capacity of chrome ore of 115 000 tonnes per month which is in addition to its 55 000 tonnes per month chrome tailings facility at the Inyoni Operation.

Jubilee has further commenced with the construction of an additional 80 000 tonnes per month of chrome ore processing facility which at completion will increase Jubilee's overall processing capacity to 250 000 tonnes per month. At the time of writing this report, Jubilee had commenced the commissioning of its new 80 000 tonnes per month chrome processing facility.

During the period under review, Jubilee entered into a third-party Run-Of-Mine ("ROM") chrome ore offtake agreement fully committing both its Windsor Chrome beneficiation plant as well as the future capacity of the new 80 000 tonnes per month chrome beneficiation facility for the next three years, with an option for this to be extended further, supplementing the already secured surface chrome tailings stockpiles. 

As a result of the completion of these agreements, as well as efficiency improvements, the Company's chrome earnings and revenue increased dramatically during the period. Chrome earnings increased by 387 % to £ 1.3 million (ZAR 28 million) compared to the same period last year with chrome revenue increasing by 27 % to £ 11.6 million (ZAR 245.3 million) from H2 2019.

The table below presents the combined operational revenue and earnings performance for chrome for the period under review. The figures represent the final results based on reconciled production inputs and the allocation of costs have been standardised to fully account for all in sustainable costs:

Chrome prices continued to remain volatile due to the disruptions in the supply chain over the six- month period, and these price fluctuations are expected to continue over the next six months as the world emerges from the Covid-19 pandemic and supply and demand fundamentals are better matched.

Copper and Cobalt Operations - Zambia

Jubilee's Sable Refinery achieved early earnings from its copper and cobalt production as part of securing operational readiness to accept first production from Project Roan, producing a total of           1 447 tonnes of plated copper cathode to date.

The Sable Refinery is fully operational and ready to commence refining of Project Roan's material and has already achieved earnings of £ 1.8 million (ZAR 38.4 million) from production during this phase. Copper prices increased strongly during the period, reaching a seven year high in December 2020, driven by strong demand fundamentals which are expected to last over the medium term. 

The Company's Kabwe Project combined with its multi-metal Sable Refinery establishes Jubilee's fully integrated multi-metal recovery and refining operational footprint in Zambia. The Sable Refinery acts as a central processing facility for third party copper material in the region as well as the refinery offtake for the targeted copper tailings projects. Jubilee acquired the Sable Refinery to serve as an entry point into Zambia, from which to expand operations and take advantage of the various base metal opportunities in the country. As previously announced the Company has targeted to complete the zinc refining circuit to produce a zinc concentrate by Q4 2021. The zinc circuit will target the processing of both third-party zinc ore supplies within the region and the Kabwe tails located adjacent to the Sable Refinery. The vanadium circuit remains on-hold, pending a recovery in the market fundamentals.

At the beginning of the reporting period, in July 2020, Jubilee outlined its intention to expand its copper and cobalt operations in Zambia with the target of producing 25 000 tonnes of copper per annum within four years. The Company's copper and cobalt strategy gained significant momentum over the six-month period under review with the completion of five major acquisitions, securing the rights to a total of almost 300 million tonnes of copper and cobalt tailings. The tailings, which are spread across three different locations, will be developed by Jubilee as three separate projects with a processing facility being constructed at each: Project Roan, Project Elephant One and Project Elephant Two. The concentrates produced at each project will then be sent for further refining at the Company's Sable Refinery with the option of either expanding Sable Refinery or securing further refining capacity through JV partnerships or acquisition to match the ramp-up of the three processing facilities.  The refining capacity at the Sable Refinery is currently limited to 16 000 tonnes per annum. Jubilee intends to increase its access to copper refining capacity to achieve 25 000 tonnes per annum within four years to ensure it is able to cater for material received from all three projects in line with its copper strategy.

During the period under review, the first of the three processing facilities entered into its construction phase at Project Roan and will be targeting an annual production rate of 10 000 tonnes of equivalent copper units. A capital expenditure of US$ 17 million has been allocated towards the implementation of Project Roan which will be funded from Jubilee cash flows. The processing facility will be commissioned over three phases to accelerate the delivery of copper units to the Sable Refinery. Phase one was expected to commence delivery of copper units to the Sable Refinery by end February 2021 but has been delayed mainly due to the heavy rains experienced within the region destroying access roads and delaying the commissioning to April 2021. The delivery of this intermediate copper concentrate to Sable Refinery will result in the first significant increase in production, with a target of achieving 400 copper units per month.

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

Consolidated Statement of Comprehensive Income for the six months ended 31 December 2020

Consolidated Statement of Financial Position as at 31 December 2020

(i)      Revenue recognised at the period end for inventories sold and delivered, but subject to final pricing are recognised as contract assets

(ii)     Payments received in advance for concentrate that is only delivered and invoiced post the year end are recognised as contract liabilities