Jubilee Metals is making decisive moves to unlock greater value from its booming chrome operations, and a fresh alliance with a leading PGM producer signals a sharp upward shift in momentum. This development hints at a significant production boost without the burden of new capital investment, offering investors a glimpse into Jubilee’s expanding dominance in South Africa’s mineral wealth.
Jubilee Metals, listed on both the AIM and AltX exchanges, has cemented a 12-month partnership with a major platinum group metals (PGM) producer to process surplus PGM- and chrome-rich material from its South African operations. The name of the partner remains undisclosed, but the strategic nature of this agreement underscores Jubilee’s commitment to enhancing value creation while maintaining operational efficiency.
This milestone follows a dramatic surge in chrome concentrate production, with output reaching a record 974,659 tonnes for the six months ending 31 December 2024. The expansion was driven by the successful commissioning of two additional chrome processing modules at the company’s Thutse site. This operational achievement not only strengthened Jubilee’s chrome production but also created a significant build-up of PGM-rich surface stockpiles.
Rather than investing in costly new PGM processing facilities, Jubilee has taken a shrewd path by partnering with an existing PGM operator. This strategy allows Jubilee to ramp up its overall PGM output without the need for additional capital expenditure, enhancing returns for stakeholders and reinforcing the company’s reputation for operational agility.
Under the agreement’s terms, Jubilee will initially supply 18,000 tonnes of material per month to its new partner, with the flexibility to scale production to 30,000 tonnes monthly. Should the maximum scale be achieved, this collaboration could generate around 11,500 additional ounces of PGMs annually. Based on the company’s 2025 production guidance, this represents a potential 32% uplift in Jubilee’s total PGM output.
Financially, the project is structured to split earnings evenly between Jubilee and its partner, ensuring that both sides share in the upside potential. The contract also includes an option to extend beyond the initial 12-month term, providing room for further growth and long-term cooperation.
At the same time, Jubilee’s flagship Iyoni PGM operations continue to operate at full capacity, a testament to the company’s robust operational discipline and strong positioning within South Africa’s competitive chrome and PGM landscape.
Jubilee’s ability to leverage its growing chrome output into significant PGM gains without heavy new investment speaks to its strategic foresight and operational excellence. Investors will be watching closely as this new partnership begins to bear fruit, offering the prospect of sustained revenue growth and expanded market influence in 2025 and beyond.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
