Jubilee Metals Group plc (LON:JLP) is the topic of conversation when WH Ireland Analyst Paul Smith caught up with DirectorsTalk.
Q1. Paul, Jubilee Metals have just published their interim results for the 6 months ended 31st December 2019, what were the highlights that stood out to you?
A1. Uniformly better results from the prior period. Higher revenues, leading to higher profits and increased generation of cash. Intra-period transactions should sustain this growth into H2 FY 2020 – for example the purchase of the rights to 100% of the chrome and PGMs from its Inyoni operation and the commissioning of the Sable copper circuit at Kabwe in Zambia. Jubilee continues on its growth trajectory, with more organic growth projects in the pipeline.
Q2. What were the main drivers behind the growth?
The main reason for the growth was full commissioning at Windsor with the additional production growth together with higher prices received for PGMS – in particular palladium where the price surged to historical highs. With high PGM prices continuing into early 2020 we expect further improvements in growth in H2 FY 2020 despite the current Covid-19 situation in South Africa – providing the current lock down does not extend too far past the current 3 weeks.
Jubilee Metals Group is an industry leading metal recovery business focussed on the retreatment and metals recovery from mine tailings, waste, slag, slurry and other secondary materials generated from mining operations.
The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals (‘PGMs’), chrome, lead, zinc, vanadium, copper and cobalt.