Jubilee Metals Group (LSE:JLP) — Molefe Mine Update

0:00 Good afternoon, and welcome to the JUBILEE METALS GROUP PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Leon Kutzer, CEO. Good afternoon, sir. Good afternoon, and thank you for the introduction, and welcome to everybody that's logged in. It's been a while since I personally presented, and looking forward to today's discussion. Today's focus, which is, of course, this Malefe mine production area, is one of many focused presentations we'll be scheduling throughout the course of this year, targeting specific operational areas and giving more clarity, color and insight into what we, as Jubilee, are currently implementing, rolling out and implementing in our Zambian copper strategy.

1:10 So without further ado, we'll jump straight into the presentation. And maybe just before we kick off the presentation, just a quick step back for especially for everybody's understanding of where Malefe fits into the larger JUBILEE strategy. We've published before what we call our three business pillared strategy in Zambia. Our first pillar, which resembles some of the successes we had in our South African operation we sold in December, which is all about buying in third party material, processing that third party material, and turning it into copper. It's a business model that relies on our own processing capability, which we're quite renowned for.

1:58 It is our own processing capacity we've installed, capitalized and operate, and then we buy in the various copper ores that we process. This business pillar is centered around our Rowan operations in Zambia. The Rowan operations made has been in the news in our various updates on its path to where it is today, where it operates at Target, a very uniquely combined processes to give flexibility to our company for the types of ore that Rowan processes. Rowan will be our next project presentation that we will schedule in the coming weeks to provide shareholders insight into this unique operation that we are now running and and enjoying the success of that long path of development that is Rowan today.

2:58 The second pillar within our business was to leverage off the first pillar where we enter a market, we establish a significant processing footprint, We get to know the environment. We start producing copper. We introduce our copper cathode into the market. We're building up a brand for the quality of copper cathode that we produce as a Jubilee through that processing arm. And then our second business pillar really is one anchored by own resources. It's a business profile that ensures that our processing expertise are applied onto our own resources. It's anchored by your own profile, your own life of mine, and your own resource base, which can ultimately reflect into value onto your own balance sheet and into the market.

3:52 It therefore means that it replicates a traditional exploration mine to metals company. The uniqueness of this pillar is the fact that, of course, we're operational already, that by the time we commenced with the development of this Malefe mine, we were already making cathode through our first business pillar. The third business pillar that we are executing is one that replicates what we've done in South Africa where we apply our processing expertise onto historical surface mined material. The only difference between Zambia and what we used to have in South Africa is that we own that surface material in the 240,000,000 tons of overburdened rock we secured in Zambia in addition to rights to various other tailings resources.

4:43 So these are our three pillars. Today's focus is on the center pillar, which is our mining side, where we entered this mining space roughly eighteen months ago with the acquisition of the rights of our Malefe project. If we look back and dial the clock back roughly ten odd months, In August, we made a few statements on on the rationale, what we aim to achieve, and then we can reflect on whether, in fact, we achieved what we set out under this second pillar of mine to metals. We mentioned the fact that in Zambia, we would steadily move towards an integrated mine to metals company. It is a company that relies on its own resources and applies its processing capacity onto its own resources predominantly.

5:41 We said that our strategy would be aimed to dilute or or move away in time from relying on third party run of mine as a anchor supply to our refinery as the dominant supply going forward would come from our own resources. It, therefore, may mention that JUBILEE looking forward would replicate or or look more like a traditional mine to metals company where it has an exploration profile, it has a profile of mining operating assets, and it has a significant processing footprint in country that turns that mined ore into cathode, a traditional large copper company. As long along this way, from where we are to get to that significance, we also indicated that we would be forming strategic partnerships along the way to accelerate that rollout and also make the capital requirement lighter to achieve this fully integrated mines to metal company.

6:40 Where are we today? Mulefe, as we've said in our previous announcements, has mined a significant amount of copper reef already. It's the unique approach we had where we said if we're going into mining, let's combine being operational while we develop and roll out the ore resource statements. We had that ability because Malefe is quite unique in in that it has multiple copper outcrop areas. So it means the copper is accessible. It's not a large overburden or a large significant amount of earth that has to be moved to dig a hole from where you ultimately expose the copper reef. The area in which Malefa is located is blessed with multiple areas where the copper actually breaks through and is visible from surface.

7:31 Equal, as part of forming our strategic partnership, is we launched a drilling program of this resource to update and review what the formal mine plan for this opportunity should be, ultimately supported by a fully York compliant or SAMRAC coded as depending on your jurisdiction, would describe the resource from a competent person's report. In addition, while this is being developed, while we are expanding the Malefe mine, we also created on surface a stockpile of medium to low grade copper. The strategy at Molefe was always at the higher grade copper, would be tracked directly to our refinery because we're in this position where we already have a copper refinery.

8:22 This is not the typical development of an exploration right into ultimately, a mining right into a mining plan, a mine and then capitalize into processing. We kick start life with an operating refinery already producing copper cathode. The stockpiled material for the size of this mine is already exceeding nearly 2.3, closing reaching 2,500,000 tonnes of rock on surface. In its own right, a very significant value if you just extrapolate to some of the values we've told the market on that we've attained on some of the surface materials we hold rights to. Phase two of this development is the Phase two drilling program, that once we've now drilled the resource sufficiently to implement a formal mine plan, is to continue the drilling program as we define the remaining resource to the compliant statement.

9:24 Maybe just a quick overview for Zambia for those that don't quite know where Zambia is. At the bottom there, South Africa is where we our main focus was. The in Africa, just above Botswana and Zimbabwe, you've got Zambia. And in Zambia, all our assets are in that center area of Zambia, within that central province. It borders the Northwestern side, which is the new frontier of copper, and it borders the Northeastern Side where there are quite a number of established copper mines. In the center there, you'll see Sable Refinery, where it is our central refinery where our various concentrates and materials are tracked to, where we then produce our copper cathode.

10:11 The refinery's capacity is being expanded, and the expansion rate is married to the development rate of our Malefei mine and area so that its capacity is linked to the requirement to refine the various ores coming from our operations. The refinery has got two copper tank houses. Those are the areas where you plate your copper. We're currently operating on one tank house. The capacity step up will be that the second tank house is brought into operation. The infrastructure for this second tank house, including the buildings, are already in existence. Rowan Concentrator sits just to the north of Sable, while Malefe sits slightly to the east of Sable.

11:03 Rowan is in that where the two kidneys of Zambia comes together, and Rowan is a fully operating facility. It's been capitalized over a prolonged period as we've adjusted that process to be able to process the materials that Rowan currently focuses on. These materials are predominantly copper oxide materials, which, by their very nature, are more complex, are more variable in in quality and content, and Rowan's process has adjusted to be able to process that very efficiently. The last addition Rowan received has been what we call the new dewatering system for one of its products. Rowan makes three products, and the dewatering system is one that accelerates the drying of one of those products being the very fine concentrate.

11:58 It is a particularly unique approach to be able to dewater what most companies find extremely difficult. When particles are that fine, to separate water from particles becomes particularly challenging, and Rowan has solved that problem only for Rowan, but very likely has solved that problem for the industry on how do you actually produce a dewatered concentrate from that product. It therefore means that Rowan is now able to send more copper product to Sable for refining into cathode. And then the last one there at the bottom is the Malefe. We call it the Malefe Greater District. The reason for that is that beyond Malefe mine, that certainly isn't our only target. We've acquired rights to vast greater properties than Malefe itself. Malefeh running at about 400 hectares in on surface.

12:55 We've gone and taken that through our rights to thousands of hectares that we have secured, which we will now target our exploration project to roll out to. These properties were selected because from the visual inspection, the aerial inspections, they seem to replicate the potential success that Malefe has been. As we discussed and touched on, maybe some often not quite communicated accurately through our announcements, there is a particular value differentiator when you look at Jubilee and copper. When most companies enter a copper and they they they bring the opportunity to market, it is driven by an asset that has explored, developed into mining and follows the chain of production.

13:47 Jubilee is very different because of our three business pillars. We we are a company with a well established processing platform. In that processing platform, we have two operating assets that are processing, operating and producing high quality cathode in Rowan and our Sable refinery. We have a significant in country presence. It is probably the most valuable investment in our portfolio is to be in country and have been in country for a few years. The lessons that have been learned, the obstacles that had to be overcome to produce copper are invaluable lessons, invaluable assets in our group. And that barrier of entry is set so much higher for other companies who wish to enter into a jurisdiction that is maybe not well understood and its challenges not well understood.

14:43 The second component is on the back of that success that we have now achieved and lessons we have now learned and the knowledge on how to operate in this country. We are now transitioning into a resource backed copper entity on the back of secured rights in in exploration rights and operating mining right on the back of, as we said, operating processing platforms. It therefore means that our long term value is driven by two drivers. We have a near term production of copper cathode, which now steps up on the back of these two assets that are currently operational. We have our long term value underpinned by a resource growth and a resource statement to underpin our mine life expansions.

15:40 So we have both the mining upside being combined with an existing processing capability. If you were to look at the typical capitalization of a mine, it is multiples above what we have at Malefe because we have your existing processing platform already operating, which is normally a significant capital component on the mining projects. Molefe in picture there. This picture is a couple of months old, a couple of weeks old, actually. What you are looking at is a top view. In view there is the pit two. It is the overburden or the pre stripping program we announced in April and accelerated through May. This stems from the drilling program that designed our mine that restated our mining targets and our mining operational model in partnership with Galileo.

16:42 The what you're looking at there is pit two. It is being developed down to the bottom of the picture where it ultimately will extend into pit three to become one megabit that we mine. From that photo, you can see the shallowness near surface. The reef is the reef is being exposed. The steps you're seeing is the trenching as we presample reef before mining and loading it. You can also see from the picture that it's what they call free dig. We are not yet drilling and blasting. It currently is free digging, which makes it even cheaper to mine. The phase two drilling program, which we'll show the picture for you later, is now extending down to the Southeast as we explore the reef as it bends down to the Southeast.

17:34 There are a total of nine pits on this property, previously mined by various companies in a more of an informal manner. It gives you a sense if you look at that picture and you just let your eyes drift up, you'll see what looks like a dam. It's actually a jagged original pit dug by the mining company before us. You'll see it's it's not it's it's there's no structure to it. It's quite narrow. Therefore, your access of trucks and loaders to step up the mining rate is challenged and nor is it of of a safety standard that you would expect from a listed company and a company such as JUBILEE. The drilling program as we spoke, the first is is the phase one and partially phase two drilling holes across that property. It gives you the sense of the extent of the mines of the previous pits that were opened at Molefe Mine. And to the right of this picture, it just shows you as we bend down southeast, reef as bends down to that natural shape, next drilling program will has been undertaken.

18:46 Those holes shown there are already drilled just to define the reef direction. It now will increase the number of drilling with fixed spacing to be compliant for our resource statement we spoke about. Mulefe is in a particular development program. It's a very structured program. We're following through on Mulefe. Just giving you a pictorial view. Phase one is done. Phase one's biggest outcome was the mine plan that was designed, implemented. And, of course, the difference between this mine plan and an exploration drilling and then mine plan is fact that we're very operational. We have thousands of samples from operations, from our pretrenching to confirm the accuracy of our mine plan. That's a particular advantage to be in that you are able to confirm what you've drilled through actual operation and taking ore into into cathode.

19:43 The outcome of phase two, the biggest outcome of that would be a resource statement to finally put to market the value of this property, to finally bring it onto our balance sheet and get recognition for that value and investment that has gone into this operation. Thereafter, of course, is the expansion. As I said, we're going from hundreds of hectares to thousands of hectares we've secured for the expansion of the regional drilling and exploration area of Malefei. Phase one drilling, we've touched on. It was quite a significant drilling program. As we say, there's 3,005 roughly meters of drilling done. Wide. It's particularly significant if you think of how shallow this reef is. It just gives you an overview there on the right. It's a very old picture as the pre stripping program commenced.

20:34 Phase one drilling, as we said, new mine plan, Pit 2 And 3 being combined into a single mega pit. That is ongoing. But two's expansion is now completed. That was the announcement as we commenced delivery of a run of mine ore from that pit to our Sable refinery last week. And already for the month of June, as announced, the tonnage from this mine steps up by nearly 80% from its previous mining rate. And from there, it continues where we are going up by a factor of three to 4x the amount of material and from this mine on a sustained base basis.

21:23 The updated mine plan we've discussed. I mean, there are a figure there that maybe for people not quite understand the technical terms. The stripping average stripping ratio of the mine plan at six to one is exceptional. What it means is that you are for the amount of material you have to mine, one ton out of every six ton is actually reef. It shows you how the mine plan drives efficiencies, that the amount of ore in there for the amount of copper you mine for every ton uplifted has significantly increased to where we previously were hovering at 14 tons mined for a ton of reef coming down to the six tons for a ton of reef. Very very significant on your cost, efficiency, number of equipment you need to implement the mine plan, and consistency and safety of mining from this mine plan. Just some numbers because quite often, you know, to put six to one and and shipping ratios and and tonnage rates into actual tonnages, You'll see on the table there, it's roughly broken into quarters from commencing our stripping. To give you a sense at the bottom line, what the actual copper units are that will be delivered to our refinery from this mine and what are the copper units delivered to surface. As you can see, it's a significant step up driven by the width of the new pit, driven by the accessibility of that reef, the shallow dipping of the

22:55 reef, which means it gets deeper very slowly, and the consistency of that reef supported by the drilling program. So Molefe becomes a there were questions around why we're calling it an anchor. Well, the reason we call it an anchor of our strategy is because of its consistent increased contribution to our copper production. You can see where it it plateaus. Two milleferes are already bigger than all of our copper cathode production. Three millefehs is a multiple higher than our current production. And if you look at the size of our current millefeh property at a couple of 100 hectares compared to the thousands of hectares we have secured, one can see that there's a potential for a significant number of molefe mines to be established within our existing exploration portfolio.

23:55 What comes next for this mine? What we've discussed and and and and and spoke about in some of our announcements is the development of the on-site processing capability. At the moment, Mulefe, which is quite close, roughly 52 to 54 kilometers from our refinery on a dedicated road, bridges that we've constructed, and we only take the high grade. So it's 1.6% roughly, ultimately, copper ore to our refinery. We still have a significant amount of copper ore, which is being stockpiled in the lower grades. It's naught point 8% to naught point 6% copper. Still significant copper grades on-site. That material is stockpiled for on-site processing.

24:43 On-site processing means two distinct processes. The first is what we call all sorting. Ore sorting means that we automatically and using online technology, are able to select the ore into high grade, medium grade, lower grade, and waste on-site. It means it doesn't have to be done manually. It doesn't have to affect the mining. It is done on surface to allocate accurately the ore for trucking direct to SABL as well as the different grade profiles, which has each requires a specific processing solution.

25:31 The on-site or selection or or sorting program has already commenced. The first all sorter is in Zambia. And to implement the process goes through very specific steps. Not to go too technical, but the first step is actually defining the recipe or defining the dataset for the all sorter to ensure that what it measures through its various techniques actually has a statistical accurate link to the copper grade. And that is the first part of the project. This takes roughly about eight to ten weeks of intense work box samples going through this facility as we define that dataset before we complete the detailed design on-site.

26:25 It's light on power, light on capital, so it's not a particular complex installation once that first phase has been successfully completed. The second phase, which is more involved, is the actual chemical extraction of the copper. And the size of that modular unit, as we called it, has gone through various reviews driven by the new mine plan, driven by the drilling outcome, and equally, by the sharp increases in as you've seen with the current challenges the war the the the world is facing on diesel costs and asset costs that we had to adjust our project to accommodate these higher prices. So it would mean that what you truck to Sable has to be more accurate and of a specific grade to ensure your transport cost doesn't destroy a significant component of the contained copper value. So that program is currently being reviewed.

27:27 Johnny, through our financial and commercial team, is ensuring that the capitalization and returns of that project remains to expectation, and that will probably take another two, three months to complete to be able to accurately define for the market. This is the size, this is the timeline, and this is the capital that that modular units will require. The modular units that we are designing are by design, very capital light, by design learning from our South African experience where we so successfully rolled out our modular units. It's about reaching an economical grade of copper to transport it to SABLE. It's not about producing a saleable product.

28:12 That's the reason why it's so capital light because you have this advantage where only 53, 54 kilometers away, you have a fully capitalized operating refinery already. That's what the modular units seek to do to ensure that transport cost is a very small component of the actual carrying value per ton. Phase two, we've discussed. It's all about the expansion of our drilling program. The outcome that we're chasing so hard of our phase two is a York, as we call it, or SAMRAC coded statement of our resource so that people can recognize the value. People can compare it to other mining companies. People can apply their multiple on the copper units contained to come to a value that this mine would reflect on the balance sheet and be recognized in the market.

29:09 And therefore, the drive and the pressure on completing that drill program is specifically high to ensure we reach that point so it can be recognized for what it is rather than purely on our copper production. It's a significant potential value that is sitting in our company and will be released on the back of our resource compliant statement. As we said, Mulefe, it is a validation of what we said upfront when we reviewed the opportunities in Zambia and when we looked at anything into Zambia. It's a validation of securing property that can be rapidly returned in turned into an operating operation or or project while expanding and exploring that facility.

30:04 It's a proof of concept that is not common. It's a proof of concept that we saw this opportunity and seized it. It is why we secured thousands of hectares before proving up that the resource also become unaffordable to acquire. And that is what Molefe is. It's on the back of our first business pillar, which is an operating facility processing other people's material into cathode that we sell and make a margin on. It's on the back of that investment. It's on the back of those lessons learned that we are able to implement Molefe, accelerate the implementation, already delivering run of mine material to our refinery under a structured mining plan informed by a drilling program while we expand the drilling program for the definition of the larger resource. And, absolutely, we look to replicate that success across Zambia because we're ahead of the pack in in showing this. We're ahead of other competitors in showing how this can be done because the barrier to acquire a refinery and build a a concentrator is so high in capital, so long on timeline that we have made sure that this lane we are in is secured for ourselves for a while to come.

31:23 As we've said, through this, we have demonstrated our capability to operate, to overcome numerous challenges thrown at us within the country from infrastructure to environment. And, yes, very valuable lessons learned along the way, underestimating initially what it takes to get to that operational state and now finally arriving at that operational state. Our next phase of the business is scale. Having a copper being in copper, be having a copper refinery, scale is critical. Your your fixed cost structures in refining is a significant component of your cost structure, and therefore, scale is very important to ensure your margins are protected, offer significant capital return.

32:19 And it's that expansion drive on the back of the Malefic success and the fact that our own concentrator is currently operating to target that we are now able to pursue. That concludes the discussion or the presentation on Malefe. I hope that, that has assisted in understanding better what we've what we are doing. I have no doubt that there are views that we could do what we do faster. We should do it deliver the results and deliver the value faster, but it is a buildup of of circumstances. It's a buildup of lessons learned, and it's a buildup of two critical operational arms finally coming together and now reflecting in our copper output.

33:09 The beauty of where we are today is that you're sitting with a fully capitalized concentrator, a fully capitalized and operating refinery, and a capitalized mine that now delivers its run of mine. Very few companies in copper in Zambia can lay claim to that outcome. I thank you for listening. To avoid any further delays, I think the next phase of this presentation is I'll dig into the questions. We've received a list of questions, and and there's a few questions popping up as as I spoke on from investors, what I am going to do is really focus the questions that are specific to Malefe.

33:54 Many of the questions outside of Malefe, we'll address in the in the the next hosted presentation on Rowan facility as well as the the third phase, which, of course, is our large waste project. There's a few that that I think is quite pertinent that I will address and touch on. But to jump right in, and and and we'll try and get through as many as I can of these questions where we do not get to them as as initially said at the beginning of of this presentation. We'll definitely endeavor to to to list them and write the answers where we can, of course. We can't use this platform to make announcements that hasn't previously been announced, but we certainly can give color and and and maybe explain and correct maybe misunderstandings along the way.

34:43 The first question, grouping of questions, was around the capital expenditure, which is expected to complete the next phase of the Malefei ramp up. That's the phase of ramp up as we announced going from the 6,000 tonnes of run of mine high grade for this month up to 8.5 in August and then 10 to October. On that capital, well, we've capitalized Malefei. The only remaining component of Malefei is working capital as the mine expands. The bigger capital drive of establishing the mine or acquiring the mine, establishing the mine and doing the full prestripping to go into operation has been completed. The next part of that question is the on-site processing strategy. I think we touched on that in the presentation.

35:28 Is that the first phase, which is the all sorting? These capital as this phase now currently undergoing the definition work of the dataset of the ore sorter, linking it to the data of the actual copper and mineralogy of the ore that will define the the the the accurate capital which we'll bring to market. The second component which makes that answer slightly complicated is the fact that we yet again have to rework our models in the back of the sharp jump in diesel prices, asset prices in the in the market that our commercial team is currently reviewing. So we'll bring that to market very shortly. But by definition, as we said, the capitalization numbers are particularly low because of the fact that your large capital investment in your refinery has already been made.

36:21 It links into your second question, which is about capital intensity on the infrastructure and how that compares to traditional mining, while one can expect it to be particularly light. If you were to compare our capitalization of the Malefe mine compared to traditional mine, you'd expect it to be a multiple less because of your first business pillar as well as the fact of how shallow the ore is at Molefe and the proximity of the Molefe operation to our refinery. And then the final component is because of the processing techniques we've developed to upgrade that ore rather than making a sale of the product of that ore for our refinery. How should investors think about the longer term production profile for Malefe beyond the initial 10,000 tonnes? Well, as we said before, we are targeting up to a 20,000 tonnes per month of of copper reef being mined at Malefe. Of course, that means it's 20 times six. If you take in the stripping ratio, the physical tonnes that are being mined, it's quite a large operation of and that of that ore, part will be processed on-site, and the rest is tracked directly to Sable.

37:39 A question around what production scale Malefe can district can ultimately support if additional exploration successes continues. That's a question tough to answer, and I certainly can't be speculating here. The only sense that gives us a great excitement is the visual view and aerial surveys we've done of the greater exploration areas as well as that drilling that we've done towards the southeastern side of the property. It certainly suggests there's a lot more molifes potential in that area. The question around Sable flexibility and capacity in Sable, how bigger how how much more can Sable be expanded to accommodate the potential of the Malefe District.

38:32 Excuse me. As we discussed, Sable has currently, we use one of the tank houses at Sable. So it's running running roughly at half of its capacity. Both tank houses extrapolates to seven to 14,000 tonnes of copper cathode per month. Expanding beyond that 14 at Sable has limited potential because of the footprint congestion that happens in that area. You potentially could by increasing further, the feed grades increasing further, the upgrading at the Malefe sites, but it wouldn't be a material increase. The timing on the first production of ore sorting at Malefe, as we discussed the first phase now, which is eight to ten weeks, is is the definition work of of the of the ore characterization of the data to make sure it links strongly to our actual grade profiles.

39:30 And, thereafter, there's probably a four month process, six months top end to physically implement the all sorting system because it is not a particularly complex supporting infrastructure that is required. How do we expect the cut off grades to be impacted by this? It's purely the accuracy that is impacted. So it makes sure that what you send to SIBLE is accurate, consistent, and meets that grade, and it's also far simpler to adjust that selection of ore. It means mining can potentially mine more knowing that the all sorting accuracy has been taken care of. But but, again, the the the next questions are about timing is how quickly we can replicate the modular solutions.

40:27 Can the modular solutions be expanded? The short answer is yes. As in most projects, your most difficult first step is the infrastructure required for the first system. Expanding infrastructure thereafter becomes far simpler, and it's part of our designs in ensuring the power allocation for the area, the road infrastructure for the area supports way more than just the first system. We will bring out the modular approach later in the year. There are a particular technique approaches there that we're not keen to to publicly publicize. At this stage, there's a lot of IP in in how we upgrade that ore so effectively to a significantly higher grade prior to refining it to cathode, which has been done in house through our team.

41:22 The the next question is around the balance between internally mined feed and our third party run of mine supply. We address it in the presentation, you will consistently see a sharp growth in our own mined material versus the third party ROM. Yes. There is still a potential, as we discussed in the market, for a slight increase in the third party ROM through the front end of Rowan. That decision whether we bring that online in June as well to step up throughput is something, we'll explain when we specifically talk through the Rowan project and its potential and and how its processes operate together to allow us such great flexibility. Operating synergies between Molefe mine, Rowan and Sable, significant.

42:13 In copper, throughput and and and and volume is king. In a refinery, it is important because higher copper volumes dilute fixed costs, significantly increases margins for for the for the company because SIBLE is that central anchor that takes on Malefe and takes on Rowan. They are great synergies beyond, of course, people, technical support, etcetera. But the synergies of Mulefe, Rowan grades, higher grades out of Mulefe on-site processing means transport costs and its impact on copper margins become less as we roll out the processes, many of the process techniques already embedded at Rowan into the Malefe on-site processing solution.

43:06 On on the next question about how do we, JUBILEE, expect the economics of lower grade material to change on once on-site upgrading and processing has been established? Well, the answer is dramatic. The we're not processing a low grade at the moment. It's a it's a working capital that sits on the mine and growing, unlocking that value where we have nearly 2,400,000 tons already sitting on surface and growing to unlock that copper in addition, the the amount of copper we add every month onto that stockpile has a significant value release for the market. It means that we're planning to currently transport 10,000 tons of high grade ore through to to Sable at the estimated 950 tons of copper cathode.

43:54 It nearly increases by nearly 60 odd percent in the amount of copper you add to the profile from just the low grade side. So it's a significant step up coming from the Malefi area. It is that key step up as we step up from our four to five to 10 to 15 and beyond thousand tons of copper per year as these various building blocks start linking into one another. You know, it was a vision we had laid out in front that we target out 25,000 tonnes of copper. We now are showing the market how these blocks start building into one another as we step up those various production outputs. A question around Galileo and the role it plays in in in Malefe.

44:45 Galileo plays a key role in Malefe. They are integrated into our executive management side. They provide the exploration knowledge as well as mining knowledge into into the project. They were integral part in the development of the new mine plan, which was reviewed externally by consultants. They bring that wealth of experience through their exploration programs in multiple countries into this focused project. That skill would typically be very difficult to secure for a project, the initial side of Malefe. Obviously, when Malefe expands to where it's on its way to, you'll attract more of that skill into the company.

45:33 What milestones remain under the Galileo earning structure? Basically, currently validating and auditing accounts to ensure there's an investment hurdle that has to be overcome. And, secondly, there's a resource definition hurdle that has to be overcome for the Galileo side. Very key question around what are the most important operational milestones investors should look forward to or watch out for over the coming twelve months. Well, there's a few very key simple ones. Number one, the first business pillar is around Rowan. What you can expect to see is the Rowan consistent delivery of its targets, the step up of copper units it is delivering now to Sable, and, of course, the outcome of whether we commence that front end on top of what we do right now at Rowan and the Malefe step out. Very clear, known. We've given the targets, what we have to chase from Malefe.

46:35 So it translates to increased copper output. That's what you expect to see. The second component is clarity on the on-site development at Malefe of the on-site processing. All sorting and processing, the two phases of that solution, that clarity is what you can expect to be to be brought out to market as we've now commenced the next phase, which is the actual bulk testing of ore through a sorter to define its dataset. That'll be an outcome, for example, because it gives you the triggers for the construction timelines as well. Clear direction on a large waste project is an expectation you can have. It means we've told the market we've got two companies we're considering to partner with on that large waste project.

47:27 Those discussions are well developed, and one can expect an outcome from those discussions in the very near future on how what we're doing on a large waste project because it's such a significant mountain of surface material that sits in our portfolio. And and that outcome is an expectation you can have well long before twelve months. The last component is the step out of the future, the step out of our refinery, the step out as we're building our blocks on our operational step out from Rowan to Malefe to wider Malefe to Greater Malefe to the next Malefe as that steps out and the large waste project clarity.

48:20 That would be what investors can look forward to over the coming twelve months as that now comes through, reporting as you can expect as a typical mining company on the one side, complemented by our third party refining going forward. That it it also means that we've been, you know, we've been holding back on giving updated guidance. The right rationale is quite simple. We've learned our lessons. This is now about giving once we have these building blocks coming in, is to give guidance based on our operating assets rather than guidance on a project being developed to ensure that clarity to address the frustration of missing targets, about missing production targets.

49:07 It's more about missing project targets and giving production targets too soon. And that those lessons have culminated into a mine plan that we can put to market, given a Rowan operating plant that we can give to market. And that's where we are at the moment. The last question really was about the scalability of Malefe. Is it outside of the Malefe Greater District? Of course, our key focus right now is the Malefe Greater District. We've got our secured properties. We have to launch our exploration programs, but we certainly aren't blind to further opportunities outside of that district. We are well plugged in into our into our jurisdiction. Our teams are well plugged in into the area. We have a significant team based in Zambia.

49:57 I'm personally there most of my life. So you've got an educated workforce looking at, of course, many more opportunities than what we've currently brought into into operation. Just going through the latest questions. There's a few that that has come up. Just touching on some of them. They're not quite around Molefe, which was our key focus, but I'll just touch on a few. They they speak of the South African sale and those funds that come through. We've, of course, as you're well aware, we've received the payments in in December. Our next payment date is coming December, six months away, of the next payment date of that sale of that operation of the South African operation coming coming through that. So it's a very nice liquidity event lying forward as we have nearly $65,000,000 coming into the group from that sale outside of what's already been paid.

50:59 And as we said, that next trigger date is in December this year is that next trigger date. There's questions around just, again, clarity on project g that that's part of our mining portfolio. Purely, Molife has just overtaken project g. It's overtaken project g in its potential, and therefore, we've zoned in our focus on Molife to secure it, expand it, secure the properties. We haven't forgotten about project g, but project g's current sizing is well below that of where Malefe is right now. So every dollar we spend is better spent into Malefe than currently spending it on project g. So project g, we've parked till the latter half of this calendar year while we secure the completion of the prestripping program, the drilling program, and the expansion of Malefe.

52:05 There's a question around the upcoming EGM that is coming on Monday as we've published that quite, you know, the the the EGM. It purely is focused on the most critical component of the EGM. We're living in a world, and in Zambia specifically, where we have a vast expanding copper focus in Zambia. There's huge competition for critical people and skill in Zambia. We have put together an exceptional Zambian team. We have an exceptional technical and operational team following the successes and and and what we've overcome to reach where we are. It would be absolutely senseless to lee to lose that skill and that level of of commitment to competitors.

52:58 And one of the key components we look for incentivization of a very specific band of people is through the ability to secure these people through an incentivization scheme of potentially options because they feel they are then linked into our company and our company's success. It aligns people's thinking. It aligns their commitment. It's one of the fundamental drivers behind the EGM and a fundamental component to the continued success of our company. No company can be successful without the right people and the right commitment, especially commitment. Very intelligent, very highly skilled people without commitment has less value than highly committed individuals, and this is recognized by the companies.

53:45 New entrants coming into Zambia, we've seen it in our South African business. The first door they would knock on are people with a track record, people who have have overcome challenges and are still standing and and is operating. That inherent knowledge and skill is invaluable and and and and and and and employees and is vitally important to to to retain for both our success and your success in the company. Just looking to make sure I haven't missed any particular area of questions that just come through. It speaks to the Sable expansion. Maybe you didn't quite explain that properly. The Sable expansion, which already has its two tank houses, the one is operational. The other tank house, the building is is now is there. The infrastructure is there.

54:39 The leach tanks are under construction for the Sable. The timing of the Sable expansion is linking into the Malefe plan. As the Malefic operational plan kicks in is the that's the requirement of the Sable expansion. So we're trying to be as capital efficient as we can to link the two as close as possible so that we expand alongside the expansion of Malefe, but very vitally importantly, not get caught short where we are expanding and delivering material to SIBLE beyond its refining capacity. So that is what we are linking it very carefully. The delivery of the processing on-site processing facilities at Malefi is a vital step into the requirement of refining capacity because it ups the amount of copper units from Malefi so, so significantly.

55:25 And that is where the link comes in, And that clarity will be part of what we what you'll see in rolling out the processing on-site facility at Malefi because the two links so tightly for for for Zambia. And that, I think, concludes today. I know I've taken up a lot of your time going through this. I hope that it gives a sense of clarity of what we are pursuing in Zambia. I hope it say it gives a better understanding of our business pillars that we are driving the success. Yes. Maybe too slow and maybe delayed, but the current success we've achieved. Here's a company who has achieved pillar one. We have a running successful Rowan operation. Unique set of of of of new processes come together to offer a solution to an industry on how to process that type of oxide run of mine running to target, delivering its cathode in a refinery. On the back of that, we have an expanded malefe of a successful first phase drilling program with a mine plan published to the market and expanded, but that we sunk a lot of capital into to get to the success and now delivering its ore. And we're now on to that expansion drive and the last remaining pillar, which is a large waste project, which we are really looking forward to bring to you all in the market on its next phase for that large waste project. I wanna thank you all for the time taken, the great interest shown to be available

56:55 for this presentation, and thank you for your support. That's great. Thank you for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This may only take a few moments to complete, and I'm sure it'll be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good afternoon to you all.