Jubilee Metals : Annual Report for the year ended 30 June 2021

ANNUAL REPORT

2021

Inyoni Operations

Contents

01 Abbreviations

Strategic Reports

03 Chairperson's statement

05 Chief Executive Officer's report

Governance Reports

20 Report of the Directors

1. Environmental, Social and Governance (ESG)

1. Directors' s 172 statement

1. Statement of Directors' responsibilities
2. Report of the Audit and Risk Committee

Financial Statements

47 Independent auditor's report to the members

1. Group and Company statements of financial position
2. Group and Company statements of comprehensive income
3. Group and Company statements of changes in equity

1. Group and Company statements of cash flows
2. Notes to the Group and Company financial statements

Other Information

1. Shareholder analysis
2. Administrative information

Strategic	Governance	Financial	Other
Reports	Reports	Statements	Information

Abbreviations

"Kendrick"	Kendrick Resources Plc (formerly BMR Group Plc)
"BPS"	Braemore Platinum Smelters (Pty) Ltd, a wholly-owned subsidiary of
	Jubilee
"BPMR"	Braemore Precious Metals Refiners (Pty) Ltd, a subsidiary of Jubilee
	and operator of the Group's PGM and chrome operations
"Braemore Plant"	the PGM concentrate processing plant owned by Braemore
	Platinum Smelters at Inyoni Operations, together with all equipment,
	components, machinery, parts and spares associated with that plant
	and the tailings recovery and chrome beneficiation plant at Inyoni
	Operations, owned by Braemore Platinum Smelters
"Company" or "JMG" or "Jubilee"	Jubilee Metals Group PLC
or "the Company"
"CGU"	Cash-generating unit
"CY"	Calendar year
"DCM"	Dilokong Chrome Mine
"EBITDA"	earnings before interest, tax, depreciation and amortisation
"EML"	Enviro Mining Limited, a company incorporated in Mauritius, a
	subsidiary of Jubilee and the company that owns the Integrated
	Kabwe Project through Jubilee's Zambian based Enviro Processing
	Limited
"EPL"	Enviro Processing Limited, a company incorporated in Zambia and a
	subsidiary of Jubilee
"FY"	Financial year
"GBP"	Great British Pound or Pound Sterling
"Group"	Jubilee Metals Group and all of its subsidiaries and associated
	companies
"H1 CY"	six months to June
"H2 CY"	six months to December
"IFRS"	International Financial Reporting Standards
"Income Tax Act"	the South African Income Tax Act no. 58 of 1962, as amended from
	time to time
"Integrated Kabwe Project"	Kabwe Surface zinc, lead and vanadium project in Zambia
"Inyoni Chrome Operations"	the Group's chrome processing plant adjacent to the Inyoni PGM
	operations
"Inyoni PGM Operations"	the Group's PGM recovery plant located in the western limb of South
	Africa's PGM bushveld complex

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Jubilee Metals Group Plc

Abbreviations

continued

"IP"	oral or written information, data or material in relation to the Group's
	operations and projects which is deemed proprietary, or confidential
	and not generally known by the public and includes discoveries,
	ideas, concepts, research, development, processes, procedures,
	maps, diagrams, technical information, "know-how," pricing policies
	and financial information, methods of production, use, operation and
	application, invented, owned or developed by the Group, proprietary
	data regarding mineral anomalies and exploration results, business
	practices, pricing, product philosophy and position relative to
	competitors
"JTTC"	Jubilee Tailings Treatment Company (Pty) Ltd, a wholly-owned
	subsidiary of Jubilee and operator of the DCM Project
"JP"	Jubilee Processing (Pty) Ltd, a wholly-owned subsidiary of Jubilee
	and operator of the Windsor Plant
"Kabwe Operations" or "KOL"	Kabwe Operations Limited, a company incorporated in Mauritius
	and established for the purpose of executing the Integrated Kabwe
	Project
"Notes"	notes to the financial statements
"PGE"	Platinum Group Elements
"PGM" or "PGMs"	Platinum Group Metals (platinum, palladium, rhodium, ruthenium,
	iridium)
"Windsor Chrome Operations" or	the Group's chrome operations at Windsor Chrome Plant and
"Windsor Chrome"	Windsor 8
"Windsor Chrome Plant"	the Group's chrome processing plant at Windsor SA
"Windsor SA"	Windsor SA, a wholly-owned subsidiary of the Company
"Windsor 8"	the Group's joint venture chrome processing plant
"ROM"	Run-of-mine
"Sable Refinery"	the multi-metal refinery acquired in Zambia, owned by Sable Zinc
	Kabwe Limited, a subsidiary of Jubilee acquired in August 2019
"SAMREC"	the South African code for the reporting of exploration results,
	mineral resources and mineral reserves
"SLP"	Social and labour programme
"Tjate Platinum Project"	the Tjate Platinum Project situated on the Eastern Limb of the
	Bushveld Complex. The Project is located down-dip of Anglo
	Platinum's Twickenham and Impala Platinum's Marula mines. Its
	Merensky and UG2 platinum reefs (Reefs) targeted for initial mining
	lie between 600 meters and 1,000 meters below surface. The Project
	is independently judged to contain arguably the world's largest
	undeveloped defined block of platinum ore. The property covers
	5,140 hectares on three farms and the area has been independently
	appraised to contain a potential net 65 million ounces of platinum
	group elements (PGEs) and gold
"USD"	the United States Dollar
"ZAR"	the South African Rand
"ZMK"	the Zambian Kwacha
"Sterling"	British Pound

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	Jubilee Metals Group Plc

Strategic	Governance	Financial	Other
Reports	Reports	Statements	Information

Chairperson's statement

Colin Bird

Non-executive Chairperson

Dear Shareholder,

As we have done over recent years, our company has experienced another year of significant progress across all aspects of the business. Jubilee has delivered a strong financial performance with growth in all aspects of the business, both in South Africa and in Zambia, during a phase of new build, extension to existing facilities and feed and new project acquisitions.

As a rapidly developing company, the board have exercised considerable attention to ESG matters to ensure that there is no disconnect between operational and financial performance, against our environmental, social and governance obligations. ESG has always been at the heart of what Jubilee does and is captured in the Jubilee Way of doing business. I am pleased to say that the word "obligations", whilst being a modern requirement, has always been at the forefront of the Board's mind and as such further formalisation of our protocols has not been unduly onerous. We continue to progress formalisation to ensure that all aspects of our business remain synchronised, with a common mission of responsible, efficient and strongly commercial growth.

The effects and uncertainty of the COVID-19 pandemic remains to be felt by the world. Jubilee continues to navigate these effects with our operations being able to, in the most part, avoid any direct impact. While our construction projects in Zambia were impacted for a time by the disruptions in supply chains and freight logistics, I am pleased that, despite these impacts, we will shortly commence with the commissioning of our new copper concentrator at Project Roan in Zambia with delivery of copper concentrates to our Sable Refinery on track for Q1 CY2022 next year. At the outset of the pandemic, we put in stringent testing and reporting measures to protect our staff. I do thank everyone involved in the Company for the responsible approach to this pandemic, which we remain incredibly vigilant of.

The year under review was about successfully extending and consolidating our chrome and PGM operations in South Africa as we aimed to serve a wider client base to de-risk the business from any one source, especially following the financial collapse of Hernic Ferrochrome, while also establishing and expanding our copper presence in Zambia. We successfully completed a major upgrade programme at Inyoni which has significantly enhanced our processing capabilities with us now able to process a wide variety of third-party materials leaving us in a unique position to further capitalise on the materials in the market.

In terms of our Zambian operations, we announced during the year the acquisition of several tailings projects in Luanshya and Kitwe, which amounted to gaining the rights to some 300 million tonnes of tailings of varying grades of copper, and in some cases cobalt. The period saw the ramping up of production at the Sable Refinery as they prepare for the commissioning of Project Roan which targets an annual 10 000 tonnes of copper, which may increase to 14 000 tonnes per annum.

Post the period under review, we announced a binding MOU for the Mopani Refining Facility and peripheral hardware which will significantly accelerate our production plans for the Luanshya and Kitwe tailings as part of our Northern Copper and Cobalt refining strategy. The acquisition of these redundant facilities and refurbishing, together with localised tailings dams, will greatly reduce our capital requirements and bring forward processing availability timing by at least 2 years. In general, our achievements in the Zambian copper arena are advancing to plan and we fully expect to attain our target of 25 000 tonnes of annualised copper production to be achieved.

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Jubilee Metals Group Plc