Jubilee Metals Group plc is moving to offload its South African chrome and platinum‑group metals (PGM) interests in a strategic pivot toward its burgeoning Zambian copper portfolio, as revealed through three recent disclosures.
Jubilee has initiated discussions to sell its South African chrome and PGM operations, according to emerging repots. The sale process follows a binding £90 million (~US$113 million) bid, submitted by an unnamed buyer to acquire the chrome and PGM assets.
This potential transaction is conditional, subject to regulatory approvals and board sign‑off, and dovetails with Jubilee’s strategy to reallocate capital toward its high‑grading copper ambitions in Zambia.
£90 million bid confirmed
Mining Review confirmed the £90 million offer, noting that it covers Jubilee’s chrome processing facilities at Windsor, Inyoni, and Thutse—whose combined annual chrome throughput reaches approximately 1.45 million tonnes under tolling and revenue‑sharing models.
These modular chrome circuits also generate valuable PGM by‑product streams—a profitable but more capital‑intensive part of the portfolio. Jubilee faces trade‑offs: retaining the PGM footprint would require fresh capital, while disposal frees resources to invest in copper.
Copper juggernaut in Kabwe, Roan, Munkoyo and Project G
Moneyweb’s SENS filing outlines how Jubilee plans to deploy sale proceeds to deepen its Zambian copper strategy. Key targets include:
- Enlarging the Sable Refinery’s capacity and accelerating the Roan concentrator’s ramp‑up.
- Advancing the Munkoyo and Project G open‑pit copper mines.
- A proposed share issue to partially fund working capital and debt trade‑downs for Zambian operations.
This represents a sharp pivot: Jubilee sees copper as its primary growth engine, given the metal’s superior long‑term outlook compared to chrome and PGMs.
Zambian mines yielding promising returns
Zambian operations have shown strong momentum. The Roan concentrator upgrade—completed in August 2024—increased capacity to ~13,000 tonnes per annum and is backed by expanding Sable refinery throughput.
Munkoyo, acquired in mid‑2024, began ahead of schedule in July with ore grades averaging >3.5 % Cu and is progressing toward a 25,000 tpm production rate; initial cap‑ex is pegged at US$2.25 million. Project G, currently under equity consideration, is scheduled to ramp up with a 20,000 tpm capacity of 3–4 % Cu grade material.
Financial snapshot & strategic rationale
Jubilee’s H1 FY 2025 interim results (to December 2024) showed chrome output of 974,659 t (up 35.7 % year‑on‑year) with revenue of US$114.5 million (+76 %). Copper revenue edged up but was hampered by drought‑related power cuts at Kariba.
PGM output—which hit 18,435 oz—saw lower unit costs, but remains a secondary contributor to core profits. Key risks include volatile chrome prices and rising power costs; proceeds from asset disposal are expected to be redirected to higher margin, longer‑life copper projects.
Market reception and outlook
Investor reaction was mixed. Some welcome the copper pivot, noting the potential for improved earnings and asset value. Others caution about relinquishing South Africa’s chrome/PGM platform prematurely amid possible future upside in PGM pricing.
Jubilee’s equity raise underpins its commitment to backing the Zambian portfolio, with management describing copper as “exceptional growth opportunity” relative to chrome/PGM.
Conclusion
Jubilee’s planned exit from South African chrome and PGM assets—if finalized—marks a definitive shift toward copper-driven expansion. The £90 million deal and accompanying equity raise will bankroll upgrades at Roan, Sable, Munkoyo, and Project G, amplifying Jubilee’s exposure to high-margin copper. For investors, the pivot represents a calculated gamble: achieving significant upside in Zambia could justify unlocking more conventional assets, but it hinges on execution and market conditions in the copper arena.
