Jubilee Metals has landmark chrome production in South Africa, with output for the year to June rebounding 20%, putting the company on course to attain its targets of producing 2 million tons per year while it has also made advances with its Zambian copper operations.
Leon Coetzer, CEO of Jubilee Metals, yesterday said chrome production in SA grew to 1.5m tons for the period under review.
“This growth allowed us to exceed our full-year guidance of 1.450m tons and keeps us on track to achieve our goal of producing 2m tons of chrome concentrate per annum,” he said.
However, the company’s production of platinum group metals over the full year to end June 2024 lapsed by 14.2% to 36 411 ounces although this had been offset by the “strategic prioritisation of higher margin chrome material, which provided improved economic” returns.
Jubilee’s production of copper cathode and copper in concentrate surged by 17.1% to 3 422 tons. Its earnings before interest, tax, depreciation and amortisation (Ebitda) for copper, mining in Zambia, surged by 71.4% to $3.6 million, driven mainly by the increased sale of copper units in concentrate from Roan.
Copper units in concentrate are sold at a higher margin and for Jubilee contributed to 57% of total copper units sold during the period under review.
Its Ebitda from chrome was also up by as much as 154.3% to $17.8m.
As a result of the higher chrome and copper output, revenues in Jubilee Metals for the full year increased by 20.2% to $205.4m.
The higher chrome and copper output helped to offset a “sharp pullback in platinum group metals (PGM) basket prices” obtaining for the period.
“The Group’s financial performance demonstrates the strength of our operations and the diversification of revenue. Increased chrome production helped offset the reduction in PGM revenue, given the challenging pricing environment,” explained Coetzer.
Despite this, gross profits in Jubilee for the period slumped from $15.6m to $6.3m while attributable earnings also weakened by 61.7% to $5.9m. Stocks in the company traded 2.6% weaker in afternoon trade yesterday at R1.12 per share.
Expansion of Jubilee’s Zambian copper processing capacity was a priority focus as it completed an upgrade of the copper concentrator at Roan in August, enabling the company to to handle multiple feed sources of copper oxide while also increasing copper output capacity.
An upgrade and expansion project for the Sable Refinery was currently underway, targeted for completion over the coming 10 months to reach a capacity of 16 000 tons per year.
“With Roan capable of operating independently of Sable this will increase Jubilee’s copper processing capacity to in excess of its initial target of 25 000 tons per annum of copper. Our focus now shifts to bring into operation our various copper resources to take-up this expanded processing footprint,” Coetzer added.
Jubilee’s PGM production dipped by 14.2% to 36 411 ounces after the company opted to focus more on chrome production.
During the period under review, Jubilee invested $39.9m in capital and intangible asset expenditure as well as other other assets to expand its Zambian and South African operations.
BUSINESS REPORT