Our opinion on the current state of JUBILEE(JBL)
Jubilee Metals Group (JBL) is a diversified metals recovery company focused on reprocessing mine waste and surface materials. The company is listed on both the London AIM market and the JSE's Alt-X. Its operations span South Africa, the UK, Madagascar, and Australia, with a significant joint venture in Zambia aimed at producing lead, zinc, and vanadium.
The company primarily produces platinum group metals (PGM) and chrome. Its key asset is a 63% stake in the Tjate project, which is considered one of the world's largest undeveloped platinum ore blocks, estimated to contain around 65 million ounces on the Western Limb of the Bushveld Igneous Complex. However, in recent years, Jubilee has shifted its focus toward smelting and beneficiation as a strategy to enhance cash flow.
The company is investing approximately R154 million to consolidate its PGM retreatment operations, including acquiring a reprocessing plant and chrome processing assets from PlatCro Minerals, along with 1.8 million tons of tailings. This move aims to boost its chrome and PGM production capabilities.
In its financial results for the year ending 30th June 2024, Jubilee reported revenue growth of 20.2%, supported by a 20% increase in chrome concentrate production. However, 6E PGM production fell by 14.2%, while copper production rose by 17.1%. The company’s EBITDA decreased by 7.1% to US$27.7 million, mainly due to reduced PGM earnings, which were partially offset by increased chrome output.
In its update for the quarter ending 30th September 2024, Jubilee outlined plans to produce 1,800 tonnes of copper in the first half of FY2025, with a target of reaching 4,200 tonnes in the second half, totaling approximately 6,000 tonnes for the full year. This reflects the company's focus on scaling up its copper production, especially in Zambia.
Technically, the share remains volatile and is still trading below its long-term downward trendline. We recommend caution and suggest waiting for a clear breakout before considering investment. Despite its potential, particularly with the increased stake in project "G" and securing an additional 2 megawatts of power, the share remains speculative.
As of 7th October 2024, Jubilee announced it had increased its stake in project "G" to 65% and secured additional power from an independent power producer, which should support its operations and future growth initiatives.
The company primarily produces platinum group metals (PGM) and chrome. Its key asset is a 63% stake in the Tjate project, which is considered one of the world's largest undeveloped platinum ore blocks, estimated to contain around 65 million ounces on the Western Limb of the Bushveld Igneous Complex. However, in recent years, Jubilee has shifted its focus toward smelting and beneficiation as a strategy to enhance cash flow.
The company is investing approximately R154 million to consolidate its PGM retreatment operations, including acquiring a reprocessing plant and chrome processing assets from PlatCro Minerals, along with 1.8 million tons of tailings. This move aims to boost its chrome and PGM production capabilities.
In its financial results for the year ending 30th June 2024, Jubilee reported revenue growth of 20.2%, supported by a 20% increase in chrome concentrate production. However, 6E PGM production fell by 14.2%, while copper production rose by 17.1%. The company’s EBITDA decreased by 7.1% to US$27.7 million, mainly due to reduced PGM earnings, which were partially offset by increased chrome output.
In its update for the quarter ending 30th September 2024, Jubilee outlined plans to produce 1,800 tonnes of copper in the first half of FY2025, with a target of reaching 4,200 tonnes in the second half, totaling approximately 6,000 tonnes for the full year. This reflects the company's focus on scaling up its copper production, especially in Zambia.
Technically, the share remains volatile and is still trading below its long-term downward trendline. We recommend caution and suggest waiting for a clear breakout before considering investment. Despite its potential, particularly with the increased stake in project "G" and securing an additional 2 megawatts of power, the share remains speculative.
As of 7th October 2024, Jubilee announced it had increased its stake in project "G" to 65% and secured additional power from an independent power producer, which should support its operations and future growth initiatives.
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