WORLD LEADING METAL RECOVERY BUSINESS
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WORLD LEADING METAL RECOVERY BUSINESS
Disclaimer Important Notice: All reasonable care has been taken to ensure that the facts stated in these presentation materials are accurate and that any forecasts, opinions and expectations contained therein are fair and reasonable. Accordingly, no representation or warranty express or implied is made to the fairness, accuracy, completeness or correctness of these materials or opinions contained therein and each receipt of these presentation materials must make its own investigation and assessment of the matters contained therein. In particular, but without prejudice to the generality of the foregoing, no representation or warranty is given, and no responsibility or liability is accepted by the Company or any of its representatives, as to the achievement or reasonableness of any future projections or the assumption underlying them, or any forecasts, estimates, or statements as to prospects contained or referred to in these presentation materials. No responsibility or liability whatsoever is accepted by the Company or any of its representatives for any loss howsoever arising from any use of, or reliance upon, or in connection with, these presentation materials or their contents or otherwise arising in connection therewith. In issuing these presentation materials, the Company does not undertake any obligation to update or to correct any inaccuracies which may become apparent in these presentation materials. These presentation materials are being supplied for you for your own information and may not be distributed, published, reproduced or otherwise made available to any other person with addresses in Canada, Australia, Japan, the Republic of Ireland, or the United States, its territories or possessions or in any other country outside the United Kingdom where such distribution or availability may lead to a breach of any law or regulatory requirements. The distribution of these presentation materials in other jurisdictions may be restricted by law, and persons into whose possession these presentation materials come should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction. In the United Kingdom, these presentation materials have not been approved by an authorised person pursuant to selection 21 of the Financial Services and Markets Act 2000 (the "FSMA") and, accordingly, these presentation materials are only directed at persons in the United Kingdom who fall within the exemptions contained in Articles 19 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (such as persons who are authorised or exempt persons within the meaning of the FSMA and certain other investment professionals, high net worth companies, unincorporated associations or partnerships and the trustees of high value trusts) and persons who are otherwise permitted by law to receive them. These presentation materials are directed only at persons having professional experience in matters relating to investments and any investment or investment activity to which these presentation materials relate is only available to such persons. Persons of any other description, including those who do not have professional experience in matters relating to investments, should not reply on these presentation materials or act upon their content. These presentation materials have not been approved by the Financial Conduct Authority (the "FCA") as a prospectus for the purposes of section 87A of the FSMA and have not been filed with the FCA pursuant to the United Kingdom Prospectus Rules. CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 2
OVERVIEW CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 3
Overview
Global, diversified metal recovery company that operates world-class projects, ensuring a positive
impact on the environment and its stakeholders
Industry leading international metal recovery business focused on the treatment of surface tailings
materials and primary mineral ore generated from third party mining operations
Defined strategy to diversify earnings across multiple commodities and jurisdictions
Profitable with a rapidly improving financial performance, delivering against targeted performance and
bringing new projects on-line
Exposure to broad commodity basket that includes PGMs, chrome, copper, lead, zinc, vanadium and
cobalt
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 waste
treatment projects
Implementing environmentally conscious metal recovery solutions that ensure a zero-effluent policy
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 4
Company Snapshot
MARKET TICKER MARKET CAP SHARE PRICE SHARES IN ISSUE
AIM JLP.L £55.47M 2.9p 1,855,300,673
As at 16.09.19
SHARE PRICE GRAPH MAJOR SHAREHOLDERS
3.8
3.6
3.4
3.2
3
2.8
2.6
2.4
2.2
2 Veddis Ventures LLP 9.01% Spice Capital Partners LLP 7.78%
September 2018 September 2019 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%
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 5
Board of Directors
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- Chairman
Dr. 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 Officer
A 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 Director
Mr. 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 Director
A 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.
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 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
WHY
• Access to vast amount of historic above ground material
• Increasing cost and difficulty of mining, paired with the current relative
depressed commodity prices are leading to mining majors viewing surface
material as a potential source of cash flow more than ever before, but do not
necessarily have the means nor expertise to implement mine waste projects
• Increasing awareness and legislation driving need to reduce mine waste
exposure both from government and corporate mining entities
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 7
Key Differentiators
Low-risk, global metals recovery business poised for growth
Highly experienced team Defined reserves with
tonnage and grade Rapid timeline to
with the technical ability Provides significantly
known in advance, implementation –
and proven execution to reduced exposure to
without the expenses projects are defined and
develop bespoke mining risk
related to traditional have existing
recovery solutions
mining techniques infrastructure
globally
First mover advantage to
Robust project Solid financial
take advantage of global Exceptionally low capital
pipeline & acquisition performance, rapidly
opportunity for metals intensity and operating
opportunities to growing revenue and
recovery and satisfying costs delivering robust
augment rapid growth operational track record
increasing environmental margins
strategy
liabilities
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 8
Revenue & Earnings Growth
£16,000.00
£14,000.00 £14,361.00
£12,000.00
£10,000.00
£8,000.00
£8,265.00 £8,219.00
£6,000.00
£5,969.00
£5,641.00
£4,000.00
£3,825.00
£2,000.00 £2,911.00
£2,071.00
£0.00
OPERATIONAL EARNINGS (GBP'000) REVENUE (GBP'000)
H2 2017 H1 2018 H2 2018 H1 2019
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 9
Project Timelines
Indicative project timeline
Financial year – June year end FY2017 FY2018 FY2019 FY2020 FY2021
Quarter 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
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 10THE
THEPORTFOLIO
PORTFOLIO
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 11Portfolio Overview
Wide and expanding portfolio delivering results
Kabwe - Zambia
Lead, Zinc, Vanadium, Copper,
Cobalt
Hernic – South Africa
PGMs from Chrome tailings
Dilokong – South Africa
Chrome, Fine Chrome, PGMs
Windsor – South Africa
Chrome, Fine Chrome
Windsor – South Africa
PGMs
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 12Hernic
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
Key Milestones Achieved
Financial Model: • Construction completed Jan ‘17
• Jubilee retains 100% of revenue and earnings until full • First chrome production Feb ‘17
capex repayment and project reaches a 30% return on • First platinum production Mar ‘17
• Positive project earnings from June ‘17
capital • Fully Operational
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 13Rapid Implementation
Attributable Hernic project earnings growth (£’000)
3000
2500
2000
1500
1000
500
0
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019* Q2 2019
-500
* 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
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 14Dilokong
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
Coarse chrome operational, fine chrome plant
Status 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 Key Milestones Achieved
• Chrome: post $3.4m capex repayment 50:50 earnings split, offtake • Commenced construction of fine chrome Q4 ‘18
agreement in place • Commercial production commenced Q1 ‘19
• PGM: post $6.6m capex repayment 67:33 earnings split in favour JLP • 25 000 tonnes per month reached during Q2 ‘19
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 15Dilokong Fine Chrome Circuit Ramp-Up
Tonnes Produced
7,000
6,477
6,053
5,872
6,000
5,000
4,000
3,437
3,000 2,575
2,000
1,396 1,313
1,069
1,000
0
Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19
* The Dilokong fine chrome project turned profitable in June 2019, six months after commissioning
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 16Windsor 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
Coarse chrome recently acquired and future fine
Status
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 Key Milestones Achieved
• Acquisition of operation Jan ’19
Financial Model: • Management & operation control completed
• Chrome Operation: Owned 100% • Q2 ‘19 first full quarter operation & positive contributions
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 17Windsor 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 Key Milestones Achieved
• On site as well as third party material from surrounding • Commence delivery of PGM material to Platinum recovery
areas to be processed at the plant plant Jan ’19
• Commenced recovery at plant August 2019
Financial Model:
• PGMs: Retains majority earnings under profit share
terms, offtake agreement in place
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 18Kabwe
Fully integrated metal refinery in Zambia
SNAPSHOT
Commodity Zinc, Lead, Vanadium
Location Kabwe, Zambia
Copper circuit on-line, production expected during
Status
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
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 19Kabwe
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
Key Milestones Achieved
H2 2019 H1 2020 H2 2020 H1 2021 H2 2021
Tonnes Tonnes Tonnes Tonnes Tonnes • Joint venture established for the project in Q1 2018
• Sable Zinc Kabwe refinery acquired from Glencore in Q2
Copper 250 1 200 2 400 2 400 2 400 2019, reducing project capital and plant construction
lead times
• Share and ownership transfer completed August 2019
Zinc 500 2 500 3 500 4 500
Vanadium 30 400 750 750
Lead 4 500 6 500
CORPORATE PRESENTATION | Q3 2019
JUBILEE METALS GROUP 20Anticipated 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
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 21THE OPPORTUNITY CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 22
Investment Case Low-risk, global metals recovery business poised for growth 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 CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 23
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
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 24The Global Opportunity A changing mining market presents global opportunities for metals processing • The increasing cost of mining when compared to currently depressed commodity prices is leading to mining majors turning to surface material reprocessing to increase cash flow • Increasing environmental awareness and related legislation is driving the requirement to reduce mine tailings • 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 mining techniques 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 projects enter the pipeline CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 25
CONTACT
Gareth Owen (Jubilee Metals)
gowen@jubileemetalsgroup.com
Or
Carina de Beer (Jubilee Metals)
cdebeer@jubileemetalsgroup.com
Or
Erik Woolgar (Shard Capital)
Erik.Woolgar@shardcapital.com
CORPORATE PRESENTATION | Q3 2019 JUBILEE METALS GROUP 26You can also read
