Jubilee Metals Group reports solid performance amid the ongoing sale of its chrome and PGM businesses

Jubilee Metals Group, the Zambia-focused copper producer, said Friday the workstreams to conclude the R1.6 billion sale of its South African chrome and PGM businesses were progressing well, while production at these operations remained firmly on track.

The company, which is listed on the London Stock Exchange AIM market and the JSE, said in an operational update for its first quarter to September 30 that approval by the South African Competition Commission and delivery of detailed accounts for the disposal group were the only two outstanding conditions precedent for the sale.

The share price notched up 2.94% on Friday on the JSE to 70 cents, but the price is still well down from 106 cents a year before.

“Our South African operations have delivered a solid performance while the sales of our South African chrome and PGM operations are progressing to expectation. At this end, we are pleased to see a notable decrease in the Lost Time Injury Frequency Rate,” said Jubilee’s CEO Leon Coetzer in a statement.

The company hopes to complete the sale by the end of the 2025 financial year. The audited result for the financial year to June 30, 2025 was expected to be delivered during the first half of November 2025, the directors said.

The first $15 million of the sale consideration had been received in cash.

Chrome production for the quarter was 11.2% lower than the same quarter in the previous financial year to 404 151 tons, due mainly to the cessation of the OBB chrome ore supply contract at the end of the fourth quarter of the 2025 financial year.

The OBB contract, equivalent to about 450 000 tons of chrome per year, would be offset by increased production from Thutse operations. In addition, it would be offset by a sharp increase in chrome production from third-party chrome ore partnership agreements.

These agreements, offering direct exposure to the chrome price, contribute approximately 64.1% to current chrome production, directors said.

PGM production for the quarter reached 8 382 ounces, down 10.1% from the comparative quarter in the previous financial year, due to the cessation of the OBB contract for PGM feed supply.

The company had announced in July this year already that its contract supplying material to the OBB facility was not renewed. 

PGM tailings from the OBB processing facility continue to be processed at the Inyoni facility. The discontinuation of the OBB contract had a limited impact on the PGM production profile of Jubilee, with the operational handover completed.

PGM feed supply to the Inyoni PGM facility stemmed mainly from the tailings generated from the OBB facility, supplemented by PGM tailings from the Windsor operations, as well as existing PGM-bearing feedstock in the historical chrome and PGM tailings at Inyoni.

Jubilee holds a second tolling agreement with this ore feed supplier, producing in excess of 500 000 tons per year of chrome concentrate at its Windsor operations, which reaches maturity in February 2027.

The new PGM joint partnership, under an earnings share agreement, had completed a two-month operational trial at the facility.

The technical team was making further modifications to the processing facility to improve the final product specifications. The upgraded facility is expected to commence production during the third quarter of the 2026 financial year.

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