Jubilee Metals Group Plc (LON:JLP) has taken decisive steps to stabilise its operations and accelerate copper production in Zambia, according to a new research note from Zeus Capital. With a stable power supply now secured and a significant copper material purchase agreement in place, the company is poised for a strong comeback following recent disruptions.
Stable Power Supply Restored
Jubilee was impacted by power outages in December 2024 and early January 2025, which led to a temporary shutdown of its Roan concentrator. However, the company acted swiftly to establish a new power contract, ensuring uninterrupted operations moving forward. The company announced the update in a regulatory statement on 21 January 2025, highlighting its commitment to maintaining operational efficiency.
Boosting Copper Production with High-Grade Material
In an effort to offset lost production, Jubilee has acquired the rights to an initial 200,000 tonnes of high-grade copper material, grading approximately 1.6% copper—more than double the grade of the waste material currently being processed. This strategic move could secure a long-term feed supply for up to three years, providing stability and improved recovery rates for its operations in Zambia.
The copper material purchase agreement will be settled via part payment from Jubilee Zambia, alongside a US$2.7 million (£2.2 million) share issuance, equating to 51.8 million Jubilee ordinary shares at 4.2p per share. These shares will be subject to a 180-day lock-in period, demonstrating confidence in the company’s growth strategy.
Roan Production Ramp-Up
Jubilee aims to process 30,000 tonnes per month of this high-grade material at Roan, leveraging its 45,000 tonnes per month capacity. The company is also considering accelerating throughput to the full plant capacity and extending material purchases for a longer period. A 4-6 week test phase will be conducted before issuing updated full-year copper production guidance.
Zeus Capital’s Take
Zeus Capital views these developments as highly positive for Jubilee’s growth outlook. The research note states:
“A positive update today with Jubilee trying to make good and accelerate its copper production. Against a growing copper price, this looks like a sound strategy. Our fair value remains under review.”
Zeus estimates that Jubilee could still meet its previous production guidance for South Africa and Zambia, with the potential to exceed expectations. Current projections suggest 8.4kt of copper production for FY25, slightly above the company’s initial guidance of 5.9 – 7.5kt.
Final Thoughts
With power stability restored and a strategic copper acquisition in place, Jubilee Metals is well-positioned to drive its Zambian expansion forward. As the company moves through its test phase and production ramp-up, investors will be keenly watching for updated guidance. With copper prices on the rise, Jubilee’s proactive approach could set the stage for a strong financial performance in 2025 and beyond.
